SEMPRA (SRE) Stock Fundamental Analysis
USA - NYSE:SRE - US8168511090 - Common Stock
92.58 USD
+0.64 (+0.7%)
92.58 USD
0 (0%)
SRE gets a fundamental rating of 2 out of 10. The analysis compared the fundamentals against 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
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 2.67%. This is comparable to the rest of the industry: SRE outperforms 57.69% of its industry peers.
Looking at the Return On Equity, with a value of 8.42%, SRE is doing worse than 61.54% of the companies in the same industry.
SRE has a Return On Invested Capital of 2.77%. This is amonst the worse of the industry: SRE underperforms 96.15% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SRE is in line with the industry average of 3.89%.
| 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 better Profit Margin (20.02%) than 96.15% of its industry peers.
SRE's Profit Margin has improved in the last couple of years.
SRE has a Operating Margin of 22.76%. This is in the better half of the industry: SRE outperforms 69.23% of its industry peers.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SRE 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.
Compared to 1 year ago, SRE has a worse debt to assets ratio.
2.2 Solvency
SRE has an Altman-Z score of 0.95. 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 (0.95) than 73.08% of its industry peers.
SRE has a Debt/Equity ratio of 1.17. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of SRE (1.17) is better than 80.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.17 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.95 |
ROIC/WACC0.41
WACC6.73%
2.3 Liquidity
A Current Ratio of 0.48 indicates that SRE may have some problems paying its short term obligations.
The Current ratio of SRE (0.48) is worse than 96.15% of its industry peers.
A Quick Ratio of 0.41 indicates that SRE may have some problems paying its short term obligations.
SRE has a worse Quick ratio (0.41) than 88.46% 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.
Looking at the last year, SRE shows a decrease in Revenue. The Revenue has decreased by -1.04% in the last year.
The Revenue has been growing slightly by 4.04% on average over the past years.
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
SRE is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.98% yearly.
The Revenue is expected to decrease by -0.87% on average over the next years.
EPS Next Y-0.96%
EPS Next 2Y5.44%
EPS Next 3Y6.44%
EPS Next 5Y6.98%
Revenue Next Year-11.17%
Revenue Next 2Y-3.61%
Revenue Next 3Y-3.36%
Revenue Next 5Y-0.87%
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. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 19.61 indicates a rather expensive valuation of SRE.
SRE's Price/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 is valuated rather cheaply when we compare the Price/Earnings ratio to 26.51, which is the current average of the S&P500 Index.
SRE is valuated rather expensively with a Price/Forward Earnings ratio of 18.03.
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 is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.53, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.61 | ||
| Fwd PE | 18.03 |
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 | 17.27 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y5.44%
EPS Next 3Y6.44%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.79%, SRE has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 4.12, 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!
SRE's Dividend Yield is comparable with the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.79% |
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
SRE pays out 59.51% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP59.51%
EPS Next 2Y5.44%
EPS Next 3Y6.44%
92.58
+0.64 (+0.7%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners91.76%
Inst Owner Change-0.52%
Ins Owners0.04%
Ins Owner Change-7.4%
Market Cap60.41B
Revenue(TTM)13.34B
Net Income(TTM)2.67B
Analysts71.25
Price Target98.24 (6.11%)
Short Float %2.04%
Short Ratio3.43
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.79% |
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)15.2%
PT rev (3m)18.6%
EPS NQ rev (1m)-0.7%
EPS NQ rev (3m)2.55%
EPS NY rev (1m)0.12%
EPS NY rev (3m)0.28%
Revenue NQ rev (1m)-5.34%
Revenue NQ rev (3m)-2.49%
Revenue NY rev (1m)1.86%
Revenue NY rev (3m)-3.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.61 | ||
| Fwd PE | 18.03 | ||
| P/S | 4.53 | ||
| P/FCF | N/A | ||
| P/OCF | 12.98 | ||
| P/B | 1.9 | ||
| P/tB | 2.02 | ||
| EV/EBITDA | 17.27 |
EPS(TTM)4.72
EY5.1%
EPS(NY)5.14
Fwd EY5.55%
FCF(TTM)-8.26
FCFYN/A
OCF(TTM)7.13
OCFY7.7%
SpS20.44
BVpS48.61
TBVpS45.73
PEG (NY)N/A
PEG (5Y)N/A
Graham Number71.85
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%
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-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 | 0.95 |
F-Score4
WACC6.73%
ROIC/WACC0.41
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-0.96%
EPS Next 2Y5.44%
EPS Next 3Y6.44%
EPS Next 5Y6.98%
Revenue 1Y (TTM)-1.04%
Revenue growth 3Y0.84%
Revenue growth 5Y4.04%
Sales Q2Q%-0.37%
Revenue Next Year-11.17%
Revenue Next 2Y-3.61%
Revenue Next 3Y-3.36%
Revenue Next 5Y-0.87%
EBIT growth 1Y9.84%
EBIT growth 3Y1.29%
EBIT growth 5Y1.48%
EBIT Next Year58.5%
EBIT Next 3Y22.25%
EBIT Next 5Y12.63%
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%
SEMPRA / SRE FAQ
What is the fundamental rating for SRE stock?
ChartMill assigns a fundamental rating of 2 / 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 1 / 10.
What is the expected EPS growth for SEMPRA (SRE) stock?
The Earnings per Share (EPS) of SEMPRA (SRE) is expected to decline by -0.96% in the next year.