SEMPRA (SRE) Stock Fundamental Analysis
USA - NYSE:SRE - US8168511090 - Common Stock
92.78 USD
+0.97 (+1.06%)
91.18 USD
-1.6 (-1.72%)
SRE gets a fundamental rating of 2 out of 10. The analysis compared the fundamentals against 25 industry peers in the Multi-Utilities industry. While SRE is still in line with the averages on profitability rating, there are concerns on its financial health. SRE has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
SRE had positive earnings in the past year.
In the past year SRE had a positive cash flow from operations.
In the past 5 years SRE has always been profitable.
In the past 5 years SRE always reported a positive cash flow from operatings.
1.2 Ratios
SRE has a Return On Assets of 2.67%. This is in the lower half of the industry: SRE underperforms 60.00% of its industry peers.
SRE's Return On Equity of 8.42% is on the low side compared to the rest of the industry. SRE is outperformed by 60.00% of its industry peers.
SRE's Return On Invested Capital of 2.77% is on the low side compared to the rest of the industry. SRE is outperformed by 96.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SRE is in line with the industry average of 3.82%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.67% | ||
| ROE | 8.42% | ||
| ROIC | 2.77% |
ROA(3y)3.02%
ROA(5y)3.29%
ROE(3y)9.1%
ROE(5y)9.64%
ROIC(3y)3.3%
ROIC(5y)3.52%
1.3 Margins
The Profit Margin of SRE (20.02%) is better than 96.00% of its industry peers.
SRE's Profit Margin has improved in the last couple of years.
The Operating Margin of SRE (22.76%) is better than 68.00% of its industry peers.
In the last couple of years the Operating Margin of SRE has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.76% | ||
| PM (TTM) | 20.02% | ||
| GM | N/A |
OM growth 3Y0.45%
OM growth 5Y-2.46%
PM growth 3Y29.87%
PM growth 5Y2.38%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SRE is destroying value.
Compared to 1 year ago, SRE has more shares outstanding
Compared to 5 years ago, SRE has more shares outstanding
Compared to 1 year ago, SRE has a worse debt to assets ratio.
2.2 Solvency
SRE has an Altman-Z score of 0.95. This is a bad value and indicates that SRE is not financially healthy and even has some risk of bankruptcy.
SRE has a Altman-Z score of 0.95. This is in the better half of the industry: SRE outperforms 72.00% of its industry peers.
A Debt/Equity ratio of 1.17 is on the high side and indicates that SRE has dependencies on debt financing.
The Debt to Equity ratio of SRE (1.17) is better than 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.17 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.95 |
ROIC/WACC0.42
WACC6.67%
2.3 Liquidity
SRE has a Current Ratio of 0.48. This is a bad value and indicates that SRE is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.48, SRE is not doing good in the industry: 96.00% of the companies in the same industry are doing better.
A Quick Ratio of 0.41 indicates that SRE may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.41, SRE is doing worse than 92.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.48 | ||
| Quick Ratio | 0.41 |
3. Growth
3.1 Past
SRE shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.31%.
Measured over the past years, SRE shows a decrease in Earnings Per Share. The EPS has been decreasing by -5.31% on average per year.
SRE shows a decrease in Revenue. In the last year, the revenue decreased by -1.04%.
The Revenue has been growing slightly by 4.04% on average over the past years.
EPS 1Y (TTM)6.31%
EPS 3Y-18.2%
EPS 5Y-5.31%
EPS Q2Q%0%
Revenue 1Y (TTM)-1.04%
Revenue growth 3Y0.84%
Revenue growth 5Y4.04%
Sales Q2Q%-0.37%
3.2 Future
The Earnings Per Share is expected to grow by 6.98% on average over the next years.
The Revenue is expected to decrease by -0.87% on average over the next years.
EPS Next Y-1.07%
EPS Next 2Y4.64%
EPS Next 3Y5.94%
EPS Next 5Y6.98%
Revenue Next Year-12.8%
Revenue Next 2Y-4.25%
Revenue Next 3Y-3.19%
Revenue Next 5Y-0.87%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 19.66, SRE is valued on the expensive side.
Based on the Price/Earnings ratio, SRE is valued a bit more expensive than 60.00% of the companies in the same industry.
When comparing the Price/Earnings ratio of SRE to the average of the S&P500 Index (26.91), we can say SRE is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 18.34, the valuation of SRE can be described as rather expensive.
Based on the Price/Forward Earnings ratio, SRE is valued a bit more expensive than the industry average as 64.00% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.92, SRE is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.66 | ||
| Fwd PE | 18.34 |
4.2 Price Multiples
SRE's Enterprise Value to EBITDA ratio is rather expensive when compared to the industry. SRE is more expensive than 92.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 17.25 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y4.64%
EPS Next 3Y5.94%
5. Dividend
5.1 Amount
SRE has a Yearly Dividend Yield of 2.83%.
Compared to an average industry Dividend Yield of 3.74, SRE's dividend is way lower than its industry peers. On top of this 80.00% of the companies listed in the same industry pay a better dividend than SRE!
SRE's Dividend Yield is a higher than the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.83% |
5.2 History
The dividend of SRE decreases each year by -9.71%.
SRE has been paying a dividend for at least 10 years, so it has a reliable track record.
SRE has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)-9.71%
Div Incr Years7
Div Non Decr Years7
5.3 Sustainability
59.51% of the earnings are spent on dividend by SRE. This is a bit on the high side, but may be sustainable.
DP59.51%
EPS Next 2Y4.64%
EPS Next 3Y5.94%
92.78
+0.97 (+1.06%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners91.76%
Inst Owner Change-0.18%
Ins Owners0.04%
Ins Owner Change-7.4%
Market Cap60.54B
Revenue(TTM)13.34B
Net Income(TTM)2.67B
Analysts71.25
Price Target87.3 (-5.91%)
Short Float %1.85%
Short Ratio3.02
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.83% |
Yearly Dividend2.41
Dividend Growth(5Y)-9.71%
DP59.51%
Div Incr Years7
Div Non Decr Years7
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.09%
Min EPS beat(2)4.16%
Max EPS beat(2)8.03%
EPS beat(4)2
Avg EPS beat(4)-2.82%
Min EPS beat(4)-16.27%
Max EPS beat(4)8.03%
EPS beat(8)4
Avg EPS beat(8)-1.5%
EPS beat(12)8
Avg EPS beat(12)1.82%
EPS beat(16)11
Avg EPS beat(16)2.7%
Revenue beat(2)0
Avg Revenue beat(2)-3.99%
Min Revenue beat(2)-4.09%
Max Revenue beat(2)-3.89%
Revenue beat(4)0
Avg Revenue beat(4)-11.25%
Min Revenue beat(4)-22.35%
Max Revenue beat(4)-3.89%
Revenue beat(8)0
Avg Revenue beat(8)-15%
Revenue beat(12)2
Avg Revenue beat(12)-5.44%
Revenue beat(16)6
Avg Revenue beat(16)-1.39%
PT rev (1m)2.37%
PT rev (3m)5.4%
EPS NQ rev (1m)1.76%
EPS NQ rev (3m)2.93%
EPS NY rev (1m)0.13%
EPS NY rev (3m)0.16%
Revenue NQ rev (1m)-3.25%
Revenue NQ rev (3m)-4.39%
Revenue NY rev (1m)-3.47%
Revenue NY rev (3m)-5.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.66 | ||
| Fwd PE | 18.34 | ||
| P/S | 4.54 | ||
| P/FCF | N/A | ||
| P/OCF | 13.01 | ||
| P/B | 1.91 | ||
| P/tB | 2.03 | ||
| EV/EBITDA | 17.25 |
EPS(TTM)4.72
EY5.09%
EPS(NY)5.06
Fwd EY5.45%
FCF(TTM)-8.26
FCFYN/A
OCF(TTM)7.13
OCFY7.68%
SpS20.44
BVpS48.61
TBVpS45.73
PEG (NY)N/A
PEG (5Y)N/A
Graham Number71.85
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.67% | ||
| ROE | 8.42% | ||
| ROCE | 3.32% | ||
| ROIC | 2.77% | ||
| ROICexc | 2.78% | ||
| ROICexgc | 2.83% | ||
| OM | 22.76% | ||
| PM (TTM) | 20.02% | ||
| GM | N/A | ||
| FCFM | N/A |
ROA(3y)3.02%
ROA(5y)3.29%
ROE(3y)9.1%
ROE(5y)9.64%
ROIC(3y)3.3%
ROIC(5y)3.52%
ROICexc(3y)3.32%
ROICexc(5y)3.56%
ROICexgc(3y)3.41%
ROICexgc(5y)3.66%
ROCE(3y)3.99%
ROCE(5y)4.26%
ROICexgc growth 3Y-8.37%
ROICexgc growth 5Y-5.96%
ROICexc growth 3Y-8.1%
ROICexc growth 5Y-5.8%
OM growth 3Y0.45%
OM growth 5Y-2.46%
PM growth 3Y29.87%
PM growth 5Y2.38%
GM growth 3YN/A
GM growth 5YN/A
F-Score4
Asset Turnover0.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.17 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 6.68 | ||
| Cap/Depr | 396.53% | ||
| Cap/Sales | 75.31% | ||
| Interest Coverage | 2.3 | ||
| Cash Conversion | 83.55% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.48 | ||
| Quick Ratio | 0.41 | ||
| Altman-Z | 0.95 |
F-Score4
WACC6.67%
ROIC/WACC0.42
Cap/Depr(3y)359.34%
Cap/Depr(5y)353.45%
Cap/Sales(3y)54.96%
Cap/Sales(5y)53.03%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)6.31%
EPS 3Y-18.2%
EPS 5Y-5.31%
EPS Q2Q%0%
EPS Next Y-1.07%
EPS Next 2Y4.64%
EPS Next 3Y5.94%
EPS Next 5Y6.98%
Revenue 1Y (TTM)-1.04%
Revenue growth 3Y0.84%
Revenue growth 5Y4.04%
Sales Q2Q%-0.37%
Revenue Next Year-12.8%
Revenue Next 2Y-4.25%
Revenue Next 3Y-3.19%
Revenue Next 5Y-0.87%
EBIT growth 1Y9.84%
EBIT growth 3Y1.29%
EBIT growth 5Y1.48%
EBIT Next Year58.5%
EBIT Next 3Y22.25%
EBIT Next 5Y12.63%
FCF growth 1Y-0.07%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y84.97%
OCF growth 3Y8.5%
OCF growth 5Y9.71%
SEMPRA / SRE FAQ
What is the fundamental rating for SRE stock?
ChartMill assigns a fundamental rating of 2 / 10 to SRE.
What is the valuation status of SEMPRA (SRE) stock?
ChartMill assigns a valuation rating of 1 / 10 to SEMPRA (SRE). This can be considered as Overvalued.
Can you provide the profitability details for SEMPRA?
SEMPRA (SRE) has a profitability rating of 4 / 10.
Can you provide the financial health for SRE stock?
The financial health rating of SEMPRA (SRE) is 1 / 10.
What is the expected EPS growth for SEMPRA (SRE) stock?
The Earnings per Share (EPS) of SEMPRA (SRE) is expected to decline by -1.07% in the next year.