SEMPRA (SRE) Stock Fundamental Analysis
NYSE:SRE - New York Stock Exchange, Inc. - US8168511090 - Common Stock - Currency: USD
Taking everything into account, SRE scores 3 out of 10 in our fundamental rating. SRE was compared to 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 does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
In the past year SRE was profitable.
SRE had a positive operating cash flow in the past year.
SRE had positive earnings in each of the past 5 years.
Each year in the past 5 years SRE had a positive operating cash flow.
1.2 Ratios
SRE's Return On Assets of 2.95% is fine compared to the rest of the industry. SRE outperforms 72.00% of its industry peers.
SRE has a Return On Equity (9.23%) which is comparable to the rest of the industry.
SRE has a Return On Invested Capital of 2.83%. This is amonst the worse of the industry: SRE underperforms 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 3.93%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.95% | ||
| ROE | 9.23% | ||
| ROIC | 2.83% |
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
SRE's Profit Margin of 21.89% is amongst the best of the industry. SRE outperforms 96.00% of its industry peers.
In the last couple of years the Profit Margin of SRE has grown nicely.
SRE has a Operating Margin of 22.65%. This is in the better half of the industry: SRE outperforms 64.00% of its industry peers.
In the last couple of years the Operating Margin of SRE has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.65% | ||
| PM (TTM) | 21.89% | ||
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SRE is destroying value.
The number of shares outstanding for SRE has been increased compared to 1 year ago.
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
Based on the Altman-Z score of 0.86, we must say that SRE is in the distress zone and has some risk of bankruptcy.
SRE has a Altman-Z score (0.86) which is comparable to the rest of the industry.
A Debt/Equity ratio of 1.12 is on the high side and indicates that SRE has dependencies on debt financing.
SRE has a Debt to Equity ratio of 1.12. This is amongst the best in the industry. SRE outperforms 84.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.12 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.86 |
ROIC/WACC0.43
WACC6.62%
2.3 Liquidity
SRE has a Current Ratio of 0.57. This is a bad value and indicates that SRE is not financially healthy enough and could expect problems in meeting its short term obligations.
SRE has a Current ratio of 0.57. This is amonst the worse of the industry: SRE underperforms 88.00% of its industry peers.
SRE has a Quick Ratio of 0.57. This is a bad value and indicates that SRE is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.51, SRE is doing worse than 88.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.57 | ||
| Quick Ratio | 0.51 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 5.12% over the past year.
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 -3.28%.
Measured over the past years, SRE shows a small growth in Revenue. The Revenue has been growing by 4.04% on average per year.
EPS 1Y (TTM)5.12%
EPS 3Y-18.2%
EPS 5Y-5.31%
EPS Q2Q%7.46%
Revenue 1Y (TTM)-3.28%
Revenue growth 3Y0.84%
Revenue growth 5Y4.04%
Sales Q2Q%4.45%
3.2 Future
Based on estimates for the next years, SRE will show a small growth in Earnings Per Share. The EPS will grow by 6.81% on average per year.
Based on estimates for the next years, SRE will show a small growth in Revenue. The Revenue will grow by 2.14% on average per year.
EPS Next Y-1.23%
EPS Next 2Y4.57%
EPS Next 3Y5.83%
EPS Next 5Y6.81%
Revenue Next Year-7.99%
Revenue Next 2Y-1.71%
Revenue Next 3Y0.24%
Revenue Next 5Y2.14%
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
The Price/Earnings ratio is 15.89, which indicates a correct valuation of SRE.
Compared to the rest of the industry, the Price/Earnings ratio of SRE is on the same level as its industry peers.
When comparing the Price/Earnings ratio of SRE to the average of the S&P500 Index (27.18), we can say SRE is valued slightly cheaper.
SRE is valuated correctly with a Price/Forward Earnings ratio of 14.85.
The rest of the industry has a similar Price/Forward Earnings ratio as SRE.
SRE's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 35.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.89 | ||
| Fwd PE | 14.85 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SRE is valued more expensive than 88.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 14.93 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y4.57%
EPS Next 3Y5.83%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.44%, SRE has a reasonable but not impressive dividend return.
SRE's Dividend Yield is a higher than the industry average which is at 3.73.
SRE's Dividend Yield is a higher than the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.44% |
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
SRE pays out 53.42% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP53.42%
EPS Next 2Y4.57%
EPS Next 3Y5.83%
NYSE:SRE (7/16/2025, 1:17:09 PM)
75
+0.86 (+1.16%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners90.23%
Inst Owner Change0%
Ins Owners0.03%
Ins Owner Change12.61%
Market Cap48.91B
Analysts73.64
Price Target82.89 (10.52%)
Short Float %1.28%
Short Ratio2.19
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.44% |
Yearly Dividend2.41
Dividend Growth(5Y)-9.71%
DP53.42%
Div Incr Years7
Div Non Decr Years7
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.43%
Min EPS beat(2)-7.18%
Max EPS beat(2)8.03%
EPS beat(4)1
Avg EPS beat(4)-5.36%
Min EPS beat(4)-16.27%
Max EPS beat(4)8.03%
EPS beat(8)4
Avg EPS beat(8)-1.23%
EPS beat(12)8
Avg EPS beat(12)2.43%
EPS beat(16)11
Avg EPS beat(16)2.54%
Revenue beat(2)0
Avg Revenue beat(2)-9.28%
Min Revenue beat(2)-14.67%
Max Revenue beat(2)-3.89%
Revenue beat(4)0
Avg Revenue beat(4)-13.33%
Min Revenue beat(4)-22.35%
Max Revenue beat(4)-3.89%
Revenue beat(8)0
Avg Revenue beat(8)-15.32%
Revenue beat(12)3
Avg Revenue beat(12)-3.67%
Revenue beat(16)7
Avg Revenue beat(16)-0.69%
PT rev (1m)0.08%
PT rev (3m)-1.67%
EPS NQ rev (1m)0.73%
EPS NQ rev (3m)5.46%
EPS NY rev (1m)-0.15%
EPS NY rev (3m)0.18%
Revenue NQ rev (1m)-4.74%
Revenue NQ rev (3m)-2.07%
Revenue NY rev (1m)-0.96%
Revenue NY rev (3m)-6.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.89 | ||
| Fwd PE | 14.85 | ||
| P/S | 3.66 | ||
| P/FCF | N/A | ||
| P/OCF | 10.78 | ||
| P/B | 1.54 | ||
| P/tB | 1.64 | ||
| EV/EBITDA | 14.93 |
EPS(TTM)4.72
EY6.29%
EPS(NY)5.05
Fwd EY6.74%
FCF(TTM)-7.76
FCFYN/A
OCF(TTM)6.96
OCFY9.28%
SpS20.47
BVpS48.55
TBVpS45.66
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.95% | ||
| ROE | 9.23% | ||
| ROCE | 3.39% | ||
| ROIC | 2.83% | ||
| ROICexc | 2.89% | ||
| ROICexgc | 2.95% | ||
| OM | 22.65% | ||
| PM (TTM) | 21.89% | ||
| 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%
ROICexcg growth 3Y-8.37%
ROICexcg 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 | 1.12 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 6.43 | ||
| Cap/Depr | 386.71% | ||
| Cap/Sales | 71.94% | ||
| Interest Coverage | 2.57 | ||
| Cash Conversion | 82.42% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.57 | ||
| Quick Ratio | 0.51 | ||
| Altman-Z | 0.86 |
F-Score4
WACC6.62%
ROIC/WACC0.43
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)5.12%
EPS 3Y-18.2%
EPS 5Y-5.31%
EPS Q2Q%7.46%
EPS Next Y-1.23%
EPS Next 2Y4.57%
EPS Next 3Y5.83%
EPS Next 5Y6.81%
Revenue 1Y (TTM)-3.28%
Revenue growth 3Y0.84%
Revenue growth 5Y4.04%
Sales Q2Q%4.45%
Revenue Next Year-7.99%
Revenue Next 2Y-1.71%
Revenue Next 3Y0.24%
Revenue Next 5Y2.14%
EBIT growth 1Y1.34%
EBIT growth 3Y1.29%
EBIT growth 5Y1.48%
EBIT Next Year60.88%
EBIT Next 3Y22.79%
EBIT Next 5Y14.31%
FCF growth 1Y0.84%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y199.54%
OCF growth 3Y8.5%
OCF growth 5Y9.71%