SEMPRA (SRE) Fundamental Analysis & Valuation
NYSE:SRE • US8168511090
92.63 USD
-1.31 (-1.39%)
At close: Mar 6, 2026
92.63 USD
0 (0%)
After Hours: 3/6/2026, 8:04:00 PM
This SRE fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
We assign a fundamental rating of 3 out of 10 to SRE. SRE was compared to 26 industry peers in the Multi-Utilities industry. The financial health of SRE is average, but there are quite some concerns on its profitability. SRE has a expensive valuation and it also scores bad on growth.
1. SRE Profitability Analysis
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.
- In the past 5 years SRE always reported a positive cash flow from operatings.
1.2 Ratios
- SRE has a Return On Assets of 1.62%. This is amonst the worse of the industry: SRE underperforms 84.62% of its industry peers.
- SRE has a Return On Equity of 5.68%. This is amonst the worse of the industry: SRE underperforms 84.62% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 2.14%, SRE is doing worse than 96.15% of the companies in the same industry.
- SRE had an Average Return On Invested Capital over the past 3 years of 2.45%. This is in line with the industry average of 3.76%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.62% | ||
| ROE | 5.68% | ||
| ROIC | 2.14% |
ROA(3y)2.67%
ROA(5y)2.49%
ROE(3y)8.42%
ROE(5y)7.56%
ROIC(3y)2.45%
ROIC(5y)2.49%
1.3 Margins
- SRE has a Profit Margin of 13.11%. This is in the better half of the industry: SRE outperforms 69.23% of its industry peers.
- SRE's Profit Margin has declined in the last couple of years.
- Looking at the Operating Margin, with a value of 22.48%, SRE is in line with its industry, outperforming 57.69% of the companies in the same industry.
- SRE's Operating Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.48% | ||
| PM (TTM) | 13.11% | ||
| GM | N/A |
OM growth 3Y8.27%
OM growth 5Y-2.04%
PM growth 3Y-3.31%
PM growth 5Y-16.91%
GM growth 3YN/A
GM growth 5YN/A
2. SRE Health Analysis
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.
- Compared to 1 year ago, SRE has more shares outstanding
- The number of shares outstanding for SRE has been increased compared to 5 years ago.
- The debt/assets ratio for SRE has been reduced compared to a year ago.
2.2 Solvency
- SRE has an Altman-Z score of 1.04. This is a bad value and indicates that SRE is not financially healthy and even has some risk of bankruptcy.
- SRE has a better Altman-Z score (1.04) than 76.92% of its industry peers.
- SRE has a Debt/Equity ratio of 1.05. This is a high value indicating a heavy dependency on external financing.
- SRE has a better Debt to Equity ratio (1.05) than 96.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.05 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.04 |
ROIC/WACC0.33
WACC6.52%
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 Current ratio of 1.59. This is amongst the best in the industry. SRE outperforms 96.15% of its industry peers.
- SRE has a Quick Ratio of 1.57. This is a normal value and indicates that SRE is financially healthy and should not expect problems in meeting its short term obligations.
- Looking at the Quick ratio, with a value of 1.57, SRE belongs to the top of the industry, outperforming 96.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.59 | ||
| Quick Ratio | 1.57 |
3. SRE Growth Analysis
3.1 Past
- SRE shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.16%.
- The Earnings Per Share has been growing slightly by 3.52% on average over the past years.
- SRE shows a small growth in Revenue. In the last year, the Revenue has grown by 3.92%.
- Measured over the past years, SRE shows a small growth in Revenue. The Revenue has been growing by 3.80% on average per year.
EPS 1Y (TTM)2.16%
EPS 3Y0.83%
EPS 5Y3.52%
EPS Q2Q%-14.67%
Revenue 1Y (TTM)3.92%
Revenue growth 3Y-1.73%
Revenue growth 5Y3.8%
Sales Q2Q%-0.24%
3.2 Future
- SRE is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.88% yearly.
- The Revenue is expected to decrease by -0.45% on average over the next years.
EPS Next Y9.09%
EPS Next 2Y8.76%
EPS Next 3Y8.51%
EPS Next 5Y8.88%
Revenue Next Year4.17%
Revenue Next 2Y0.01%
Revenue Next 3Y0.11%
Revenue Next 5Y-0.45%
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. SRE Valuation Analysis
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 19.63, which indicates a rather expensive current valuation of SRE.
- The rest of the industry has a similar Price/Earnings ratio as SRE.
- SRE's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.29.
- The Price/Forward Earnings ratio is 17.99, which indicates a rather expensive current valuation of SRE.
- SRE's Price/Forward Earnings ratio is in line with the industry average.
- SRE is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 24.57, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.63 | ||
| Fwd PE | 17.99 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, SRE is valued more expensive than 92.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 16.34 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates SRE does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)2.16
PEG (5Y)5.57
EPS Next 2Y8.76%
EPS Next 3Y8.51%
5. SRE Dividend Analysis
5.1 Amount
- SRE has a Yearly Dividend Yield of 2.80%. Purely for dividend investing, there may be better candidates out there.
- With a Dividend Yield of 2.80, SRE pays less dividend than the industry average, which is at 3.45. 84.62% of the companies listed in the same industry pay a better dividend than SRE!
- Compared to an average S&P500 Dividend Yield of 1.82, SRE pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.8% |
5.2 History
- The dividend of SRE decreases each year by -11.29%.
- 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)-11.29%
Div Incr Years7
Div Non Decr Years7
5.3 Sustainability
- 91.48% of the earnings are spent on dividend by SRE. This is not a sustainable payout ratio.
DP91.48%
EPS Next 2Y8.76%
EPS Next 3Y8.51%
SRE Fundamentals: All Metrics, Ratios and Statistics
92.63
-1.31 (-1.39%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)02-26 2026-02-26/bmo
Earnings (Next)05-06 2026-05-06/bmo
Inst Owners94.08%
Inst Owner Change-2.12%
Ins Owners0.04%
Ins Owner Change-10.16%
Market Cap60.51B
Revenue(TTM)13.70B
Net Income(TTM)1.80B
Analysts78.26
Price Target102.08 (10.2%)
Short Float %1.73%
Short Ratio2.87
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.8% |
Yearly Dividend2.52
Dividend Growth(5Y)-11.29%
DP91.48%
Div Incr Years7
Div Non Decr Years7
Ex-Date03-19 2026-03-19 (0.6575)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)14.36%
Min EPS beat(2)8.22%
Max EPS beat(2)20.49%
EPS beat(4)4
Avg EPS beat(4)10.23%
Min EPS beat(4)4.16%
Max EPS beat(4)20.49%
EPS beat(8)4
Avg EPS beat(8)1.35%
EPS beat(12)8
Avg EPS beat(12)2.29%
EPS beat(16)12
Avg EPS beat(16)4.13%
Revenue beat(2)1
Avg Revenue beat(2)-0.62%
Min Revenue beat(2)-8.34%
Max Revenue beat(2)7.1%
Revenue beat(4)1
Avg Revenue beat(4)-2.3%
Min Revenue beat(4)-8.34%
Max Revenue beat(4)7.1%
Revenue beat(8)1
Avg Revenue beat(8)-11.75%
Revenue beat(12)2
Avg Revenue beat(12)-5.28%
Revenue beat(16)5
Avg Revenue beat(16)-2.27%
PT rev (1m)0.13%
PT rev (3m)-1.44%
EPS NQ rev (1m)-2.23%
EPS NQ rev (3m)-6.68%
EPS NY rev (1m)0.5%
EPS NY rev (3m)1.38%
Revenue NQ rev (1m)-4.64%
Revenue NQ rev (3m)-8.3%
Revenue NY rev (1m)-0.37%
Revenue NY rev (3m)-0.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.63 | ||
| Fwd PE | 17.99 | ||
| P/S | 4.42 | ||
| P/FCF | N/A | ||
| P/OCF | 13.26 | ||
| P/B | 1.91 | ||
| P/tB | 1.91 | ||
| EV/EBITDA | 16.34 |
EPS(TTM)4.72
EY5.1%
EPS(NY)5.15
Fwd EY5.56%
FCF(TTM)-10.83
FCFYN/A
OCF(TTM)6.99
OCFY7.54%
SpS20.97
BVpS48.39
TBVpS48.39
PEG (NY)2.16
PEG (5Y)5.57
Graham Number71.69
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.62% | ||
| ROE | 5.68% | ||
| ROCE | 3.46% | ||
| ROIC | 2.14% | ||
| ROICexc | 2.14% | ||
| ROICexgc | 2.14% | ||
| OM | 22.48% | ||
| PM (TTM) | 13.11% | ||
| GM | N/A | ||
| FCFM | N/A |
ROA(3y)2.67%
ROA(5y)2.49%
ROE(3y)8.42%
ROE(5y)7.56%
ROIC(3y)2.45%
ROIC(5y)2.49%
ROICexc(3y)2.46%
ROICexc(5y)2.51%
ROICexgc(3y)2.51%
ROICexgc(5y)2.57%
ROCE(3y)3.9%
ROCE(5y)4%
ROICexgc growth 3Y-3.39%
ROICexgc growth 5Y-7.53%
ROICexc growth 3Y-2.5%
ROICexc growth 5Y-6.96%
OM growth 3Y8.27%
OM growth 5Y-2.04%
PM growth 3Y-3.31%
PM growth 5Y-16.91%
GM growth 3YN/A
GM growth 5YN/A
F-Score6
Asset Turnover0.12
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.05 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.87 | ||
| Cap/Depr | 454.27% | ||
| Cap/Sales | 84.97% | ||
| Interest Coverage | 2.13 | ||
| Cash Conversion | 80.9% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.59 | ||
| Quick Ratio | 1.57 | ||
| Altman-Z | 1.04 |
F-Score6
WACC6.52%
ROIC/WACC0.33
Cap/Depr(3y)410.76%
Cap/Depr(5y)370.89%
Cap/Sales(3y)69.3%
Cap/Sales(5y)59.26%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)2.16%
EPS 3Y0.83%
EPS 5Y3.52%
EPS Q2Q%-14.67%
EPS Next Y9.09%
EPS Next 2Y8.76%
EPS Next 3Y8.51%
EPS Next 5Y8.88%
Revenue 1Y (TTM)3.92%
Revenue growth 3Y-1.73%
Revenue growth 5Y3.8%
Sales Q2Q%-0.24%
Revenue Next Year4.17%
Revenue Next 2Y0.01%
Revenue Next 3Y0.11%
Revenue Next 5Y-0.45%
EBIT growth 1Y3.98%
EBIT growth 3Y6.4%
EBIT growth 5Y1.69%
EBIT Next Year94.32%
EBIT Next 3Y27%
EBIT Next 5Y18.33%
FCF growth 1Y-68.64%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-6.97%
OCF growth 3Y58.71%
OCF growth 5Y11.99%
SEMPRA / SRE FAQ
What is the fundamental rating for SRE stock?
ChartMill assigns a fundamental rating of 3 / 10 to SRE.
Can you provide the valuation status for SEMPRA?
ChartMill assigns a valuation rating of 2 / 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 3 / 10.
What is the valuation of SEMPRA based on its PE and PB ratios?
The Price/Earnings (PE) ratio for SEMPRA (SRE) is 19.63 and the Price/Book (PB) ratio is 1.91.
Is the dividend of SEMPRA sustainable?
The dividend rating of SEMPRA (SRE) is 4 / 10 and the dividend payout ratio is 91.48%.