SEMPRA (SRE) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SRE - US8168511090 - Common Stock
88.97 USD
-0.1 (-0.11%)
88.97 USD
0 (0%)
We assign a fundamental rating of 3 out of 10 to SRE. SRE was compared to 26 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
In the past year SRE was profitable.
In the past year SRE had a positive cash flow from operations.
SRE had positive earnings in each of the past 5 years.
SRE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
SRE has a Return On Assets of 1.97%. This is amonst the worse of the industry: SRE underperforms 84.62% of its industry peers.
SRE's Return On Equity of 6.77% is on the low side compared to the rest of the industry. SRE is outperformed by 84.62% of its industry peers.
SRE has a worse Return On Invested Capital (2.94%) than 96.15% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SRE is in line with the industry average of 3.94%.
| 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's Operating Margin of 22.51% is fine compared to the rest of the industry. SRE outperforms 65.38% of its industry peers.
SRE's Operating Margin has declined in the last couple of years.
| 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.
SRE has more shares outstanding than it did 1 year ago.
The number of shares outstanding for SRE has been increased compared to 5 years ago.
SRE has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.04, we must say that SRE is in the distress zone and has some risk of bankruptcy.
With a decent Altman-Z score value of 1.04, SRE is doing good in the industry, outperforming 76.92% 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 | 1.04 |
ROIC/WACC0.44
WACC6.69%
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.
A Quick Ratio of 1.56 indicates that SRE should not have too much problems paying its short term obligations.
SRE has a Quick ratio of 1.56. This is amongst the best in the industry. SRE outperforms 96.15% of its industry peers.
| 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.
Looking at the last year, SRE shows a small growth in Revenue. The Revenue has grown by 6.14% in the last year.
The Revenue has been growing slightly by 4.04% on average over the past years.
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
The Earnings Per Share is expected to grow by 6.96% on average over the next years.
Based on estimates for the next years, SRE will show a decrease in Revenue. The Revenue will decrease by -0.86% on average per year.
EPS Next Y-0.11%
EPS Next 2Y5.64%
EPS Next 3Y6.66%
EPS Next 5Y6.96%
Revenue Next Year-11.37%
Revenue Next 2Y-3.57%
Revenue Next 3Y-2.54%
Revenue Next 5Y-0.86%
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
With a Price/Earnings ratio of 18.01, SRE is valued on the expensive side.
SRE's Price/Earnings ratio is a bit more expensive when compared to the industry. SRE is more expensive than 61.54% of the companies in the same industry.
When comparing the Price/Earnings ratio of SRE to the average of the S&P500 Index (26.76), we can say SRE is valued slightly cheaper.
SRE is valuated rather expensively with a Price/Forward Earnings ratio of 17.26.
65.38% of the companies in the same industry are cheaper than SRE, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of SRE to the average of the S&P500 Index (23.96), we can say SRE is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.01 | ||
| Fwd PE | 17.26 |
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 | 15.7 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y5.64%
EPS Next 3Y6.66%
5. Dividend
5.1 Amount
SRE has a Yearly Dividend Yield of 2.86%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.54, 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!
Compared to an average S&P500 Dividend Yield of 2.31, SRE pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.86% |
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 76.67% of its income as dividend. This is not a sustainable payout ratio.
DP76.67%
EPS Next 2Y5.64%
EPS Next 3Y6.66%
88.97
-0.1 (-0.11%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners95.73%
Inst Owner Change3.49%
Ins Owners0.04%
Ins Owner Change-10.23%
Market Cap58.07B
Revenue(TTM)13.71B
Net Income(TTM)2.11B
Analysts78.18
Price Target102.62 (15.34%)
Short Float %2.31%
Short Ratio4.02
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.86% |
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)4.46%
PT rev (3m)20.33%
EPS NQ rev (1m)-0.71%
EPS NQ rev (3m)-3.1%
EPS NY rev (1m)0.75%
EPS NY rev (3m)1.1%
Revenue NQ rev (1m)-0.73%
Revenue NQ rev (3m)11.64%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)-2.97%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.01 | ||
| Fwd PE | 17.26 | ||
| P/S | 4.24 | ||
| P/FCF | N/A | ||
| P/OCF | 12.25 | ||
| P/B | 1.86 | ||
| P/tB | 1.86 | ||
| EV/EBITDA | 15.7 |
EPS(TTM)4.94
EY5.55%
EPS(NY)5.16
Fwd EY5.79%
FCF(TTM)-9.02
FCFYN/A
OCF(TTM)7.26
OCFY8.16%
SpS21.01
BVpS47.76
TBVpS47.76
PEG (NY)N/A
PEG (5Y)N/A
Graham Number72.86
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 | 1.04 |
F-Score5
WACC6.69%
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-0.11%
EPS Next 2Y5.64%
EPS Next 3Y6.66%
EPS Next 5Y6.96%
Revenue 1Y (TTM)6.14%
Revenue growth 3Y0.84%
Revenue growth 5Y4.04%
Sales Q2Q%13.51%
Revenue Next Year-11.37%
Revenue Next 2Y-3.57%
Revenue Next 3Y-2.54%
Revenue Next 5Y-0.86%
EBIT growth 1Y18.88%
EBIT growth 3Y1.29%
EBIT growth 5Y1.48%
EBIT Next Year57.29%
EBIT Next 3Y19.85%
EBIT Next 5Y14.33%
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 3 / 10.
What is the expected EPS growth for SEMPRA (SRE) stock?
The Earnings per Share (EPS) of SEMPRA (SRE) is expected to decline by -0.11% in the next year.