SEMPRA (SRE) Stock Fundamental Analysis
USA - NYSE:SRE - US8168511090 - Common Stock
86.51 USD
+0.46 (+0.53%)
We assign a fundamental rating of 3 out of 10 to SRE. SRE was compared to 25 industry peers in the Multi-Utilities industry. There are concerns on the financial health of SRE while its profitability can be described as average. 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.
SRE had a positive operating cash flow in the past year.
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
Looking at the Return On Assets, with a value of 2.67%, SRE is doing worse than 60.00% of the companies in the same industry.
SRE has a worse Return On Equity (8.42%) than 60.00% of its industry peers.
SRE has a worse Return On Invested Capital (2.77%) than 96.00% of its industry peers.
SRE had an Average Return On Invested Capital over the past 3 years of 3.30%. This 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
SRE's Profit Margin of 20.02% is amongst the best of the industry. SRE outperforms 96.00% of its industry peers.
SRE's Profit Margin has improved in the last couple of years.
SRE's Operating Margin of 22.76% is fine compared to the rest of the industry. SRE outperforms 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SRE is destroying value.
Compared to 1 year ago, SRE has more shares outstanding
Compared to 5 years ago, SRE has more shares outstanding
The debt/assets ratio for SRE is higher compared to a year ago.
2.2 Solvency
SRE has an Altman-Z score of 0.92. This is a bad value and indicates that SRE is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of SRE (0.92) is better than 72.00% of its industry peers.
SRE has a Debt/Equity ratio of 1.17. This is a high value indicating a heavy dependency on external financing.
SRE's Debt to Equity ratio of 1.17 is fine compared to the rest of the industry. SRE outperforms 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.17 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.92 |
ROIC/WACC0.42
WACC6.66%
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.
The Quick ratio of SRE (0.41) is worse than 92.00% of its industry peers.
| 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.
The Revenue has decreased by -1.04% in the past year.
SRE shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.04% yearly.
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 7.04% on average over the next years.
SRE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.62% yearly.
EPS Next Y-1.2%
EPS Next 2Y4.82%
EPS Next 3Y6.01%
EPS Next 5Y7.04%
Revenue Next Year-9.66%
Revenue Next 2Y-2.27%
Revenue Next 3Y-0.3%
Revenue Next 5Y2.62%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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 18.33, SRE is valued on the expensive side.
SRE's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of SRE to the average of the S&P500 Index (27.41), we can say SRE is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 17.04, the valuation of SRE can be described as rather expensive.
SRE's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. SRE is more expensive than 60.00% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.87, SRE is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.33 | ||
| Fwd PE | 17.04 |
4.2 Price Multiples
92.00% of the companies in the same industry are cheaper than SRE, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 16.58 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y4.82%
EPS Next 3Y6.01%
5. Dividend
5.1 Amount
SRE has a Yearly Dividend Yield of 3.13%.
SRE's Dividend Yield is slightly below the industry average, which is at 4.63.
SRE's Dividend Yield is a higher than the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.13% |
5.2 History
The dividend of SRE decreases each year by -9.71%.
SRE has paid a dividend for at least 10 years, which is a reliable track record.
As SRE did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
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 2Y4.82%
EPS Next 3Y6.01%
NYSE:SRE (9/24/2025, 9:30:33 AM)
86.51
+0.46 (+0.53%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners95.23%
Inst Owner Change3.5%
Ins Owners0.04%
Ins Owner Change-5.9%
Market Cap56.45B
Analysts74
Price Target85.28 (-1.42%)
Short Float %1.74%
Short Ratio3.23
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.13% |
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)1.7%
PT rev (3m)2.89%
EPS NQ rev (1m)-1.08%
EPS NQ rev (3m)0.17%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.01%
Revenue NQ rev (1m)1.67%
Revenue NQ rev (3m)-3.75%
Revenue NY rev (1m)-1.1%
Revenue NY rev (3m)-2.76%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.33 | ||
| Fwd PE | 17.04 | ||
| P/S | 4.23 | ||
| P/FCF | N/A | ||
| P/OCF | 12.13 | ||
| P/B | 1.78 | ||
| P/tB | 1.89 | ||
| EV/EBITDA | 16.58 |
EPS(TTM)4.72
EY5.46%
EPS(NY)5.08
Fwd EY5.87%
FCF(TTM)-8.26
FCFYN/A
OCF(TTM)7.13
OCFY8.24%
SpS20.44
BVpS48.61
TBVpS45.73
PEG (NY)N/A
PEG (5Y)N/A
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%
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 | 1.17 | ||
| 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 | 0.92 |
F-Score4
WACC6.66%
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-1.2%
EPS Next 2Y4.82%
EPS Next 3Y6.01%
EPS Next 5Y7.04%
Revenue 1Y (TTM)-1.04%
Revenue growth 3Y0.84%
Revenue growth 5Y4.04%
Sales Q2Q%-0.37%
Revenue Next Year-9.66%
Revenue Next 2Y-2.27%
Revenue Next 3Y-0.3%
Revenue Next 5Y2.62%
EBIT growth 1Y9.84%
EBIT growth 3Y1.29%
EBIT growth 5Y1.48%
EBIT Next Year59%
EBIT Next 3Y22.19%
EBIT Next 5Y14.33%
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%