SEMPRA (SRE) Stock Fundamental Analysis
NYSE:SRE - New York Stock Exchange, Inc. - US8168511090 - Common Stock - Currency: USD
Taking everything into account, SRE scores 4 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 does not seem to be growing, but still is valued expensively.
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.
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 3.08%, SRE belongs to the top of the industry, outperforming 92.00% of the companies in the same industry.
SRE has a Return On Equity of 9.72%. This is comparable to the rest of the industry: SRE outperforms 56.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 2.11%, SRE is doing worse than 96.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for SRE is in line with the industry average of 3.64%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.08% | ||
| ROE | 9.72% | ||
| ROIC | 2.11% |
ROA(3y)2.63%
ROA(5y)3.33%
ROE(3y)7.7%
ROE(5y)9.9%
ROIC(3y)2.93%
ROIC(5y)3.06%
1.3 Margins
SRE's Profit Margin of 22.36% is amongst the best of the industry. SRE outperforms 96.00% of its industry peers.
SRE's Profit Margin has improved in the last couple of years.
The Operating Margin of SRE (20.10%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of SRE has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.1% | ||
| PM (TTM) | 22.36% | ||
| GM | N/A |
OM growth 3Y-3.75%
OM growth 5Y4.98%
PM growth 3Y-18.2%
PM growth 5Y14.59%
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.
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 better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.91, we must say that SRE is in the distress zone and has some risk of bankruptcy.
SRE's Altman-Z score of 0.91 is fine compared to the rest of the industry. SRE outperforms 68.00% of its industry peers.
SRE has a Debt/Equity ratio of 1.12. This is a high value indicating a heavy dependency on external financing.
SRE has a Debt to Equity ratio of 1.12. This is amongst the best in the industry. SRE outperforms 92.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.12 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.91 |
ROIC/WACC0.31
WACC6.81%
2.3 Liquidity
A Current Ratio of 0.52 indicates that SRE may have some problems paying its short term obligations.
SRE has a worse Current ratio (0.52) than 88.00% of its industry peers.
SRE has a Quick Ratio of 0.52. This is a bad value and indicates that SRE is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.47, SRE is doing worse than 80.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.52 | ||
| Quick Ratio | 0.47 |
3. Growth
3.1 Past
SRE shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -8.70%.
SRE shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -3.71% yearly.
The Revenue for SRE has decreased by -22.57% in the past year. This is quite bad
The Revenue has been growing by 10.66% on average over the past years. This is quite good.
EPS 1Y (TTM)-8.7%
EPS 3Y-16.58%
EPS 5Y-3.71%
EPS Q2Q%-17.59%
Revenue 1Y (TTM)-22.57%
Revenue growth 3Y13.72%
Revenue growth 5Y10.66%
Sales Q2Q%-16.74%
3.2 Future
SRE is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.28% yearly.
Based on estimates for the next years, SRE will show a small growth in Revenue. The Revenue will grow by 2.86% on average per year.
EPS Next Y4.05%
EPS Next 2Y6.3%
EPS Next 3Y6.96%
EPS Next 5Y7.28%
Revenue Next Year-5.4%
Revenue Next 2Y0.23%
Revenue Next 3Y1.5%
Revenue Next 5Y2.86%
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.
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
The Price/Earnings ratio is 19.49, which indicates a rather expensive current valuation of SRE.
Compared to the rest of the industry, the Price/Earnings ratio of SRE indicates a slightly more expensive valuation: SRE is more expensive than 60.00% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of SRE to the average of the S&P500 Index (29.39), we can say SRE is valued slightly cheaper.
SRE is valuated correctly with a Price/Forward Earnings ratio of 15.90.
SRE's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 94.38, SRE is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.49 | ||
| Fwd PE | 15.9 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SRE is valued expensively inside the industry as 92.00% of the companies are valued cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 16.95 |
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.
SRE has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)4.81
PEG (5Y)N/A
EPS Next 2Y6.3%
EPS Next 3Y6.96%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.02%, SRE has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.86, SRE is paying slightly less dividend.
SRE's Dividend Yield is a higher than the S&P500 average which is at 2.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.02% |
5.2 History
The dividend of SRE decreases each year by -8.00%.
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)-8%
Div Incr Years7
Div Non Decr Years7
5.3 Sustainability
53.27% of the earnings are spent on dividend by SRE. This is a bit on the high side, but may be sustainable.
DP53.27%
EPS Next 2Y6.3%
EPS Next 3Y6.96%
SEMPRA
NYSE:SRE (2/12/2025, 2:46:11 PM)
82.82
-0.61 (-0.73%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners92.13%
Inst Owner Change-12.13%
Ins Owners0.02%
Ins Owner Change3.98%
Market Cap52.46B
Analysts82.5
Price Target96.37 (16.36%)
Short Float %1.33%
Short Ratio2.09
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.02% |
Yearly Dividend2.42
Dividend Growth(5Y)-8%
DP53.27%
Div Incr Years7
Div Non Decr Years7
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-11.14%
Min EPS beat(2)-16.27%
Max EPS beat(2)-6.01%
EPS beat(4)1
Avg EPS beat(4)-5.73%
Min EPS beat(4)-16.27%
Max EPS beat(4)0.01%
EPS beat(8)5
Avg EPS beat(8)0.99%
EPS beat(12)9
Avg EPS beat(12)3.28%
EPS beat(16)12
Avg EPS beat(16)4.27%
Revenue beat(2)0
Avg Revenue beat(2)-17.38%
Min Revenue beat(2)-22.35%
Max Revenue beat(2)-12.42%
Revenue beat(4)0
Avg Revenue beat(4)-21.01%
Min Revenue beat(4)-35.37%
Max Revenue beat(4)-12.42%
Revenue beat(8)1
Avg Revenue beat(8)-6.13%
Revenue beat(12)5
Avg Revenue beat(12)-0.43%
Revenue beat(16)7
Avg Revenue beat(16)-0.09%
PT rev (1m)0%
PT rev (3m)5.2%
EPS NQ rev (1m)4.21%
EPS NQ rev (3m)9.45%
EPS NY rev (1m)-0.15%
EPS NY rev (3m)-0.39%
Revenue NQ rev (1m)9.99%
Revenue NQ rev (3m)-3.46%
Revenue NY rev (1m)0.95%
Revenue NY rev (3m)0.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.49 | ||
| Fwd PE | 15.9 | ||
| P/S | 4.06 | ||
| P/FCF | N/A | ||
| P/OCF | 11.33 | ||
| P/B | 1.76 | ||
| P/tB | 1.89 | ||
| EV/EBITDA | 16.95 |
EPS(TTM)4.25
EY5.13%
EPS(NY)5.21
Fwd EY6.29%
FCF(TTM)-6.73
FCFYN/A
OCF(TTM)7.31
OCFY8.83%
SpS20.39
BVpS46.93
TBVpS43.92
PEG (NY)4.81
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.08% | ||
| ROE | 9.72% | ||
| ROCE | 3.09% | ||
| ROIC | 2.11% | ||
| ROICexc | 2.12% | ||
| ROICexgc | 2.17% | ||
| OM | 20.1% | ||
| PM (TTM) | 22.36% | ||
| GM | N/A | ||
| FCFM | N/A |
ROA(3y)2.63%
ROA(5y)3.33%
ROE(3y)7.7%
ROE(5y)9.9%
ROIC(3y)2.93%
ROIC(5y)3.06%
ROICexc(3y)2.95%
ROICexc(5y)3.08%
ROICexgc(3y)3.03%
ROICexgc(5y)3.17%
ROCE(3y)4.38%
ROCE(5y)4.55%
ROICexcg growth 3Y-0.58%
ROICexcg growth 5Y7.81%
ROICexc growth 3Y-0.38%
ROICexc growth 5Y8.01%
OM growth 3Y-3.75%
OM growth 5Y4.98%
PM growth 3Y-18.2%
PM growth 5Y14.59%
GM growth 3YN/A
GM growth 5YN/A
F-Score4
Asset Turnover0.14
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.12 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 6.65 | ||
| Cap/Depr | 372.6% | ||
| Cap/Sales | 68.85% | ||
| Interest Coverage | 2.26 | ||
| Cash Conversion | 92.94% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.52 | ||
| Quick Ratio | 0.47 | ||
| Altman-Z | 0.91 |
F-Score4
WACC6.81%
ROIC/WACC0.31
Cap/Depr(3y)342.2%
Cap/Depr(5y)337.65%
Cap/Sales(3y)47.43%
Cap/Sales(5y)47.76%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-8.7%
EPS 3Y-16.58%
EPS 5Y-3.71%
EPS Q2Q%-17.59%
EPS Next Y4.05%
EPS Next 2Y6.3%
EPS Next 3Y6.96%
EPS Next 5Y7.28%
Revenue 1Y (TTM)-22.57%
Revenue growth 3Y13.72%
Revenue growth 5Y10.66%
Sales Q2Q%-16.74%
Revenue Next Year-5.4%
Revenue Next 2Y0.23%
Revenue Next 3Y1.5%
Revenue Next 5Y2.86%
EBIT growth 1Y-23.6%
EBIT growth 3Y9.46%
EBIT growth 5Y16.17%
EBIT Next Year58.89%
EBIT Next 3Y22.47%
EBIT Next 5Y14.65%
FCF growth 1Y-25.57%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y99.96%
OCF growth 3Y33.88%
OCF growth 5Y12.08%