The historical rank and industry rank for El Paso Electric Co's Operating Margin % or its related term are showing as below:
EE's Operating Margin % is not ranked *
in the Utilities - Regulated industry.
Industry Median: 12.3 * Ranked among companies with meaningful Operating Margin % only.
El Paso Electric Co's 5-Year Average Operating Margin % Growth Rate was 0.00% per year.
El Paso Electric Co Operating Margin % Historical Data
The historical data trend for El Paso Electric Co's Operating Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Competitive Comparison of El Paso Electric Co's Operating Margin %
For the Utilities - Regulated Electric subindustry, El Paso Electric Co's Operating Margin %, along with its competitors' market caps and Operating Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
El Paso Electric Co's Operating Margin % Distribution in the Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, El Paso Electric Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where El Paso Electric Co's Operating Margin % falls into.
El Paso Electric Co Operating Margin % Calculation
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
El Paso Electric Co's Operating Margin % for the fiscal year that ended in Dec. 2019 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
El Paso Electric Co (NYSE:EE) Operating Margin % Explanation
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
El Paso Electric Co Operating Margin % Related Terms
Thank you for viewing the detailed overview of El Paso Electric Co's Operating Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
El Paso Electric Co (El Paso Electric Co) Business Description
El Paso Electric Co is a Texas-based public utility company engaged in the generation, transmission, and distribution of electricity in the Southwestern U.S. The company principally serves retail customers in the El Paso, Texas and Las Cruces, New Mexico markets through its portfolio of nuclear, natural gas, coal, solar, and wind power plants. The vast majority of the total power produced by El Paso Electric is derived from its nuclear and natural gas facilities. The company generates most of its revenue from the production and sale of energy. Distribution service fees also represent a significant income stream. El Paso Electric primarily serves residential and small industrial customers, but also participates in wholesale transactions with local military installations and universities.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
EE has been successfully added to your 