SEMPRA (SRE) Stock Fundamental Analysis
NYSE:SRE - US8168511090 - Common Stock
82.56 USD
+1.12 (+1.38%)
82.7 USD
+0.14 (+0.17%)
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 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.
Each year in the past 5 years SRE has been profitable.
Each year in the past 5 years SRE had a positive operating cash flow.
1.2 Ratios
SRE's Return On Assets of 2.67% 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 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.
With a Return On Invested Capital value of 2.77%, SRE is not doing good in the industry: 96.00% 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 3.82%.
| 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 has a Profit Margin of 20.02%. This is amongst the best in the industry. SRE outperforms 96.00% of its industry peers.
In the last couple of years the Profit Margin of SRE has grown nicely.
With a decent Operating Margin value of 22.76%, SRE is doing good in the industry, outperforming 68.00% of the companies in the same industry.
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
The debt/assets ratio for SRE is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.90, we must say that SRE is in the distress zone and has some risk of bankruptcy.
SRE's Altman-Z score of 0.90 is fine compared to the rest 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.
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 | 0.9 |
ROIC/WACC0.42
WACC6.65%
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.
SRE has a worse Current ratio (0.48) than 96.00% of its industry peers.
SRE has a Quick 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.
SRE's Quick ratio of 0.41 is on the low side compared to the rest of the industry. SRE is outperformed by 92.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.48 | ||
| Quick Ratio | 0.41 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 6.31% 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.
The Revenue has decreased by -1.04% in the past year.
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)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
Based on estimates for the next years, SRE will show a small growth in Earnings Per Share. The EPS will grow by 7.04% on average per year.
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-8.65%
Revenue Next 2Y-1.49%
Revenue Next 3Y0.31%
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.
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 17.49, which indicates a rather expensive current 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.
SRE's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.13.
The Price/Forward Earnings ratio is 16.26, which indicates a correct valuation of SRE.
The rest of the industry has a similar Price/Forward Earnings ratio as SRE.
SRE is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.49 | ||
| Fwd PE | 16.26 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SRE is valued more expensive than 92.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 16.17 |
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 3.17%.
Compared to an average industry Dividend Yield of 3.67, SRE is paying slightly less dividend.
SRE's Dividend Yield is a higher than the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.17% |
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%
82.56
+1.12 (+1.38%)
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-0.32%
Market Cap53.87B
Analysts73.64
Price Target84.58 (2.45%)
Short Float %1.63%
Short Ratio2.85
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.17% |
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)2.1%
PT rev (3m)4.09%
EPS NQ rev (1m)-0.84%
EPS NQ rev (3m)0.09%
EPS NY rev (1m)0.03%
EPS NY rev (3m)-0.12%
Revenue NQ rev (1m)1.19%
Revenue NQ rev (3m)-6.09%
Revenue NY rev (1m)-0.92%
Revenue NY rev (3m)-3.98%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.49 | ||
| Fwd PE | 16.26 | ||
| P/S | 4.04 | ||
| P/FCF | N/A | ||
| P/OCF | 11.58 | ||
| P/B | 1.7 | ||
| P/tB | 1.81 | ||
| EV/EBITDA | 16.17 |
EPS(TTM)4.72
EY5.72%
EPS(NY)5.08
Fwd EY6.15%
FCF(TTM)-8.26
FCFYN/A
OCF(TTM)7.13
OCFY8.64%
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 | 0.9 |
F-Score4
WACC6.65%
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-8.65%
Revenue Next 2Y-1.49%
Revenue Next 3Y0.31%
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%