SEMPRA (SRE) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SRE - US8168511090 - Common Stock
92.5 USD
+1.79 (+1.97%)
91.8223 USD
-0.68 (-0.73%)
Overall SRE gets a fundamental rating of 3 out of 10. We evaluated SRE against 26 industry peers in the Multi-Utilities industry. SRE has only an average score on both its financial health and profitability. SRE does not seem to be growing, but still is valued expensively.
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
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.
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.
SRE's Return On Invested Capital of 2.94% is on the low side compared to the rest of the industry. SRE is outperformed by 96.15% 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 3.96%.
| 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
With an excellent Profit Margin value of 15.38%, SRE belongs to the best of the industry, outperforming 80.77% of the companies in the same industry.
SRE's Profit Margin has improved in the last couple of years.
The Operating Margin of SRE (22.51%) is better than 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
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 1.06, we must say that SRE is in the distress zone and has some risk of bankruptcy.
SRE has a better Altman-Z score (1.06) than 80.77% of its industry peers.
SRE has a Debt/Equity ratio of 1.02. This is a high value indicating a heavy dependency on external financing.
SRE has a better Debt to Equity ratio (1.02) than 96.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.02 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.06 |
ROIC/WACC0.44
WACC6.69%
2.3 Liquidity
A Current Ratio of 1.59 indicates that SRE should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.59, SRE belongs to the top of the industry, outperforming 96.15% of the companies in the same industry.
A Quick Ratio of 1.56 indicates that SRE should not have too much problems paying its short term obligations.
The Quick ratio of SRE (1.56) is better than 96.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.59 | ||
| Quick Ratio | 1.56 |
3. Growth
3.1 Past
SRE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 16.24%, which is quite good.
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.
Looking at the last year, SRE shows a small growth in Revenue. The Revenue has grown by 6.14% in the last 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)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
SRE is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.96% yearly.
The Revenue is expected to decrease by -0.54% on average over the next years.
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
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 18.72, which indicates a rather expensive current valuation of SRE.
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.
SRE's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.45.
With a Price/Forward Earnings ratio of 18.01, SRE is valued on the expensive side.
SRE's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. SRE is more expensive than 65.38% of the companies in the same industry.
SRE's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 34.46.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.72 | ||
| Fwd PE | 18.01 |
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 | 16.09 |
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
With a Yearly Dividend Yield of 2.84%, SRE has a reasonable but not impressive dividend return.
With a Dividend Yield of 2.84, SRE pays less dividend than the industry average, which is at 3.43. 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 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.84% |
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 2Y5.43%
EPS Next 3Y6.4%
92.5
+1.79 (+1.97%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners91.76%
Inst Owner Change3.48%
Ins Owners0.04%
Ins Owner Change-9.02%
Market Cap60.35B
Revenue(TTM)13.71B
Net Income(TTM)2.11B
Analysts77.14
Price Target103.57 (11.97%)
Short Float %2.1%
Short Ratio3.5
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.84% |
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)18.63%
PT rev (3m)22.46%
EPS NQ rev (1m)-4.18%
EPS NQ rev (3m)2.35%
EPS NY rev (1m)0.1%
EPS NY rev (3m)0.35%
Revenue NQ rev (1m)-3.67%
Revenue NQ rev (3m)12.46%
Revenue NY rev (1m)-0.16%
Revenue NY rev (3m)-2.91%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.72 | ||
| Fwd PE | 18.01 | ||
| P/S | 4.4 | ||
| P/FCF | N/A | ||
| P/OCF | 12.73 | ||
| P/B | 1.94 | ||
| P/tB | 1.94 | ||
| EV/EBITDA | 16.09 |
EPS(TTM)4.94
EY5.34%
EPS(NY)5.14
Fwd EY5.55%
FCF(TTM)-9.02
FCFYN/A
OCF(TTM)7.27
OCFY7.86%
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 | 1.06 |
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-0.85%
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.