SEMPRA (SRE) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SRE - US8168511090 - Common Stock
86.36 USD
-1.34 (-1.53%)
86.4868 USD
+0.13 (+0.15%)
Overall SRE gets a fundamental rating of 3 out of 10. We evaluated SRE 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
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.
In the past 5 years SRE always reported a positive cash flow from operatings.
1.2 Ratios
SRE has a worse Return On Assets (1.97%) than 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.
The Return On Invested Capital of SRE (2.94%) is worse than 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 3.94%.
| 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 has a Profit Margin of 15.38%. This is amongst the best in the industry. SRE outperforms 80.77% of its industry peers.
In the last couple of years the Profit Margin of SRE has grown nicely.
SRE's Operating Margin of 22.51% is fine compared to the rest of the industry. SRE outperforms 65.38% of its industry peers.
In the last couple of years the Operating Margin of SRE has declined.
| 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
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
Based on the Altman-Z score of 1.03, we must say that SRE is in the distress zone and has some risk of bankruptcy.
SRE has a better Altman-Z score (1.03) than 76.92% of its industry peers.
A Debt/Equity ratio of 1.02 is on the high side and indicates that SRE has dependencies on debt financing.
With an excellent Debt to Equity ratio value of 1.02, SRE belongs to the best of the industry, outperforming 96.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.02 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.03 |
ROIC/WACC0.44
WACC6.68%
2.3 Liquidity
A Current Ratio of 1.59 indicates that SRE should not have too much problems paying its short term obligations.
The Current ratio of SRE (1.59) is better 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 better Quick ratio (1.56) than 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.
Measured over the past years, SRE shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.77% 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.
Measured over the past years, SRE shows a small growth in Revenue. The Revenue has been growing by 4.04% on average per year.
EPS 1Y (TTM)16.24%
EPS 3Y3.06%
EPS 5Y8.77%
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.
SRE is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.86% yearly.
EPS Next Y0.01%
EPS Next 2Y5.66%
EPS Next 3Y6.79%
EPS Next 5Y6.96%
Revenue Next Year-11.51%
Revenue Next 2Y-3.43%
Revenue Next 3Y-2.46%
Revenue Next 5Y-0.86%
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 decreasing.
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
A Price/Earnings ratio of 17.48 indicates a rather expensive valuation of SRE.
SRE's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of SRE to the average of the S&P500 Index (26.92), we can say SRE is valued slightly cheaper.
With a Price/Forward Earnings ratio of 16.75, SRE is valued correctly.
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 23.57.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.48 | ||
| Fwd PE | 16.75 |
4.2 Price Multiples
SRE's Enterprise Value to EBITDA ratio is rather expensive when compared to the industry. SRE is more expensive than 92.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 15.55 |
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)1327.08
PEG (5Y)1.99
EPS Next 2Y5.66%
EPS Next 3Y6.79%
5. Dividend
5.1 Amount
SRE has a Yearly Dividend Yield of 2.92%.
Compared to an average industry Dividend Yield of 4.62, 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 1.94, SRE pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.92% |
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
76.67% of the earnings are spent on dividend by SRE. This is not a sustainable payout ratio.
DP76.67%
EPS Next 2Y5.66%
EPS Next 3Y6.79%
86.36
-1.34 (-1.53%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners95.78%
Inst Owner Change0%
Ins Owners0.04%
Ins Owner Change-10.23%
Market Cap56.37B
Revenue(TTM)13.71B
Net Income(TTM)2.11B
Analysts78.18
Price Target102.01 (18.12%)
Short Float %2.11%
Short Ratio3.87
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.92% |
Yearly Dividend2.41
Dividend Growth(5Y)-9.71%
DP76.67%
Div Incr Years7
Div Non Decr Years7
Ex-DateN/A
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)-1.51%
PT rev (3m)16.84%
EPS NQ rev (1m)-2.3%
EPS NQ rev (3m)-4.12%
EPS NY rev (1m)0.12%
EPS NY rev (3m)1.1%
Revenue NQ rev (1m)-0.11%
Revenue NQ rev (3m)10.55%
Revenue NY rev (1m)-0.16%
Revenue NY rev (3m)1.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.48 | ||
| Fwd PE | 16.75 | ||
| P/S | 4.11 | ||
| P/FCF | N/A | ||
| P/OCF | 11.89 | ||
| P/B | 1.81 | ||
| P/tB | 1.81 | ||
| EV/EBITDA | 15.55 |
EPS(TTM)4.94
EY5.72%
EPS(NY)5.16
Fwd EY5.97%
FCF(TTM)-9.02
FCFYN/A
OCF(TTM)7.26
OCFY8.41%
SpS21.01
BVpS47.76
TBVpS47.76
PEG (NY)1327.08
PEG (5Y)1.99
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 | 1.03 |
F-Score5
WACC6.68%
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 3Y3.06%
EPS 5Y8.77%
EPS Q2Q%24.72%
EPS Next Y0.01%
EPS Next 2Y5.66%
EPS Next 3Y6.79%
EPS Next 5Y6.96%
Revenue 1Y (TTM)6.14%
Revenue growth 3Y0.84%
Revenue growth 5Y4.04%
Sales Q2Q%13.51%
Revenue Next Year-11.51%
Revenue Next 2Y-3.43%
Revenue Next 3Y-2.46%
Revenue Next 5Y-0.86%
EBIT growth 1Y18.88%
EBIT growth 3Y1.29%
EBIT growth 5Y1.48%
EBIT Next Year58.31%
EBIT Next 3Y19.77%
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.
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 4 / 10.
What is the valuation of SEMPRA based on its PE and PB ratios?
The Price/Earnings (PE) ratio for SEMPRA (SRE) is 17.48 and the Price/Book (PB) ratio is 1.81.
Is the dividend of SEMPRA sustainable?
The dividend rating of SEMPRA (SRE) is 4 / 10 and the dividend payout ratio is 76.67%.