SEMPRA (SRE) Stock Fundamental Analysis
USA - NYSE:SRE - US8168511090 - Common Stock
90.71 USD
-0.31 (-0.34%)
90.71 USD
0 (0%)
Taking everything into account, SRE scores 3 out of 10 in our fundamental rating. SRE was compared to 26 industry peers in the Multi-Utilities industry. SRE has an average financial health and profitability rating. SRE is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year SRE was profitable.
SRE had a positive operating cash flow in the past year.
In the past 5 years SRE has always been profitable.
Each year in the past 5 years SRE had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 1.97%, SRE is doing worse than 84.62% of the companies in the same industry.
Looking at the Return On Equity, with a value of 6.77%, SRE is doing worse than 84.62% of the companies in the same industry.
With a Return On Invested Capital value of 2.94%, SRE is not doing good in the industry: 96.15% of the companies in the same industry are doing better.
The Average Return On Invested Capital over the past 3 years for SRE is in line with the industry average of 3.96%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.97% | ||
| ROE | 6.77% | ||
| ROIC | 2.94% |
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 15.38% is amongst the best of the industry. SRE outperforms 80.77% of its industry peers.
SRE's Profit Margin has improved in the last couple of years.
SRE has a Operating Margin of 22.51%. This is in the better half of the industry: SRE outperforms 65.38% of its industry peers.
In the last couple of years the Operating Margin of SRE has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.51% | ||
| PM (TTM) | 15.38% | ||
| 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
SRE has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for SRE has been increased compared to 1 year ago.
SRE has more shares outstanding than it did 5 years ago.
The debt/assets ratio for SRE is higher compared to a year ago.
2.2 Solvency
SRE has an Altman-Z score of 1.05. This is a bad value and indicates that SRE is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.05, SRE belongs to the top of the industry, outperforming 80.77% of the companies in the same industry.
A Debt/Equity ratio of 1.02 is on the high side and indicates that SRE has dependencies on debt financing.
SRE has a Debt to Equity ratio of 1.02. This is amongst the best in the industry. SRE outperforms 96.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.02 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.05 |
ROIC/WACC0.44
WACC6.71%
2.3 Liquidity
SRE has a Current Ratio of 1.59. This is a normal value and indicates that SRE is financially healthy and should not expect problems in meeting its short term obligations.
SRE has a better Current ratio (1.59) than 96.15% of its industry peers.
SRE has a Quick Ratio of 1.56. This is a normal value and indicates that SRE is financially healthy and should not expect problems in meeting its short term obligations.
With an excellent Quick ratio value of 1.56, SRE belongs to the best of the industry, outperforming 96.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.59 | ||
| Quick Ratio | 1.56 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 16.24% over the past year.
SRE shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -5.31% yearly.
SRE shows a small growth in Revenue. In the last year, the Revenue has grown by 6.14%.
SRE shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.04% yearly.
EPS 1Y (TTM)16.24%
EPS 3Y-18.2%
EPS 5Y-5.31%
EPS Q2Q%24.72%
Revenue 1Y (TTM)6.14%
Revenue growth 3Y0.84%
Revenue growth 5Y4.04%
Sales Q2Q%13.51%
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 6.96% on average per year.
Based on estimates for the next years, SRE will show a decrease in Revenue. The Revenue will decrease by -0.54% on average per year.
EPS Next Y-0.85%
EPS Next 2Y5.43%
EPS Next 3Y6.4%
EPS Next 5Y6.96%
Revenue Next Year-11.31%
Revenue Next 2Y-3.91%
Revenue Next 3Y-3.57%
Revenue Next 5Y-0.54%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 18.36, which indicates a rather expensive current valuation of SRE.
The rest of the industry has a similar Price/Earnings ratio as SRE.
The average S&P500 Price/Earnings ratio is at 25.07. SRE is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 17.66 indicates a rather expensive valuation of SRE.
Based on the Price/Forward Earnings ratio, SRE is valued a bit more expensive than 65.38% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 34.08. SRE is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.36 | ||
| Fwd PE | 17.66 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SRE is valued expensively inside the industry as 92.31% of the companies are valued cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 15.89 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y5.43%
EPS Next 3Y6.4%
5. Dividend
5.1 Amount
SRE has a Yearly Dividend Yield of 2.80%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 4.19, SRE's dividend is way lower than its industry peers. On top of this 80.77% of the companies listed in the same industry pay a better dividend than SRE!
SRE's Dividend Yield is comparable with the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.8% |
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.
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
76.67% of the earnings are spent on dividend by SRE. This is not a sustainable payout ratio.
DP76.67%
EPS Next 2Y5.43%
EPS Next 3Y6.4%
90.71
-0.31 (-0.34%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners91.76%
Inst Owner Change3.45%
Ins Owners0.04%
Ins Owner Change-18.55%
Market Cap59.19B
Revenue(TTM)13.71B
Net Income(TTM)2.11B
Analysts77.14
Price Target98.24 (8.3%)
Short Float %2.1%
Short Ratio3.5
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.8% |
Yearly Dividend2.41
Dividend Growth(5Y)-9.71%
DP76.67%
Div Incr Years7
Div Non Decr Years7
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)12.33%
Min EPS beat(2)4.16%
Max EPS beat(2)20.49%
EPS beat(4)3
Avg EPS beat(4)6.38%
Min EPS beat(4)-7.18%
Max EPS beat(4)20.49%
EPS beat(8)4
Avg EPS beat(8)0.32%
EPS beat(12)8
Avg EPS beat(12)2.78%
EPS beat(16)12
Avg EPS beat(16)4.05%
Revenue beat(2)1
Avg Revenue beat(2)1.51%
Min Revenue beat(2)-4.09%
Max Revenue beat(2)7.1%
Revenue beat(4)1
Avg Revenue beat(4)-3.89%
Min Revenue beat(4)-14.67%
Max Revenue beat(4)7.1%
Revenue beat(8)1
Avg Revenue beat(8)-12.45%
Revenue beat(12)2
Avg Revenue beat(12)-5.38%
Revenue beat(16)6
Avg Revenue beat(16)-1.3%
PT rev (1m)12.53%
PT rev (3m)17.16%
EPS NQ rev (1m)-3.64%
EPS NQ rev (3m)-7.37%
EPS NY rev (1m)0.22%
EPS NY rev (3m)0.38%
Revenue NQ rev (1m)-3.39%
Revenue NQ rev (3m)-3.88%
Revenue NY rev (1m)1.71%
Revenue NY rev (3m)-3.8%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.36 | ||
| Fwd PE | 17.66 | ||
| P/S | 4.32 | ||
| P/FCF | N/A | ||
| P/OCF | 12.48 | ||
| P/B | 1.9 | ||
| P/tB | 1.9 | ||
| EV/EBITDA | 15.89 |
EPS(TTM)4.94
EY5.45%
EPS(NY)5.14
Fwd EY5.66%
FCF(TTM)-9.02
FCFYN/A
OCF(TTM)7.27
OCFY8.01%
SpS21.01
BVpS47.78
TBVpS47.78
PEG (NY)N/A
PEG (5Y)N/A
Graham Number72.87
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.97% | ||
| ROE | 6.77% | ||
| ROCE | 3.55% | ||
| ROIC | 2.94% | ||
| ROICexc | 2.94% | ||
| ROICexgc | 2.94% | ||
| OM | 22.51% | ||
| PM (TTM) | 15.38% | ||
| 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-Score5
Asset Turnover0.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.02 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.6 | ||
| Cap/Depr | 411.78% | ||
| Cap/Sales | 77.51% | ||
| Interest Coverage | 2.32 | ||
| Cash Conversion | 83.66% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.59 | ||
| Quick Ratio | 1.56 | ||
| Altman-Z | 1.05 |
F-Score5
WACC6.71%
ROIC/WACC0.44
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)16.24%
EPS 3Y-18.2%
EPS 5Y-5.31%
EPS Q2Q%24.72%
EPS Next Y-0.85%
EPS Next 2Y5.43%
EPS Next 3Y6.4%
EPS Next 5Y6.96%
Revenue 1Y (TTM)6.14%
Revenue growth 3Y0.84%
Revenue growth 5Y4.04%
Sales Q2Q%13.51%
Revenue Next Year-11.31%
Revenue Next 2Y-3.91%
Revenue Next 3Y-3.57%
Revenue Next 5Y-0.54%
EBIT growth 1Y18.88%
EBIT growth 3Y1.29%
EBIT growth 5Y1.48%
EBIT Next Year58.5%
EBIT Next 3Y22.25%
EBIT Next 5Y13.97%
FCF growth 1Y-58.81%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-1.56%
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 3 / 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 4 / 10.
What is the expected EPS growth for SEMPRA (SRE) stock?
The Earnings per Share (EPS) of SEMPRA (SRE) is expected to decline by -0.85% in the next year.