SEMPRA (SRE) Stock Fundamental Analysis
NYSE:SRE - New York Stock Exchange, Inc. - US8168511090 - Common Stock - Currency: USD
We assign a fundamental rating of 3 out of 10 to SRE. 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 is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
SRE had positive earnings in the past year.
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 better Return On Assets (2.95%) than 72.00% of its industry peers.
With a Return On Equity value of 9.23%, SRE perfoms like the industry average, outperforming 48.00% of the companies in the same industry.
SRE has a Return On Invested Capital of 2.83%. This is amonst the worse of the industry: SRE underperforms 96.00% 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 3.93%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.95% | ||
| ROE | 9.23% | ||
| ROIC | 2.83% |
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
The Profit Margin of SRE (21.89%) is better than 96.00% of its industry peers.
SRE's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 22.65%, SRE is doing good in the industry, outperforming 64.00% of the companies in the same industry.
In the last couple of years the Operating Margin of SRE has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.65% | ||
| PM (TTM) | 21.89% | ||
| 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.
The number of shares outstanding for SRE has been increased compared to 1 year ago.
SRE has more shares outstanding than it did 5 years ago.
SRE has a worse debt/assets ratio than last year.
2.2 Solvency
SRE has an Altman-Z score of 0.86. This is a bad value and indicates that SRE is not financially healthy and even has some risk of bankruptcy.
SRE has a Altman-Z score (0.86) which is in line with its industry peers.
A Debt/Equity ratio of 1.12 is on the high side and indicates that SRE has dependencies on debt financing.
SRE has a better Debt to Equity ratio (1.12) than 84.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.12 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.86 |
ROIC/WACC0.43
WACC6.63%
2.3 Liquidity
SRE has a Current Ratio of 0.57. This is a bad value and indicates that SRE is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of SRE (0.57) is worse than 88.00% of its industry peers.
A Quick Ratio of 0.51 indicates that SRE may have some problems paying its short term obligations.
SRE has a worse Quick ratio (0.51) than 88.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.57 | ||
| Quick Ratio | 0.51 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 5.12% over the past year.
The Earnings Per Share has been decreasing by -5.31% on average over the past years.
SRE shows a decrease in Revenue. In the last year, the revenue decreased by -3.28%.
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)5.12%
EPS 3Y-18.2%
EPS 5Y-5.31%
EPS Q2Q%7.46%
Revenue 1Y (TTM)-3.28%
Revenue growth 3Y0.84%
Revenue growth 5Y4.04%
Sales Q2Q%4.45%
3.2 Future
Based on estimates for the next years, SRE will show a small growth in Earnings Per Share. The EPS will grow by 6.81% on average per year.
The Revenue is expected to grow by 2.14% on average over the next years.
EPS Next Y-1.23%
EPS Next 2Y4.57%
EPS Next 3Y5.83%
EPS Next 5Y6.81%
Revenue Next Year-7.99%
Revenue Next 2Y-1.71%
Revenue Next 3Y0.24%
Revenue Next 5Y2.14%
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
A Price/Earnings ratio of 15.79 indicates a correct valuation of SRE.
The rest of the industry has a similar Price/Earnings ratio as SRE.
The average S&P500 Price/Earnings ratio is at 27.52. SRE is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 14.76, which indicates a correct valuation of SRE.
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 35.58, SRE is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.79 | ||
| Fwd PE | 14.76 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SRE is valued expensively inside the industry as 88.00% of the companies are valued cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 14.98 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y4.57%
EPS Next 3Y5.83%
5. Dividend
5.1 Amount
SRE has a Yearly Dividend Yield of 3.44%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.73, SRE pays a bit more dividend than its industry peers.
SRE's Dividend Yield is a higher than the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.44% |
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.
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
53.42% of the earnings are spent on dividend by SRE. This is a bit on the high side, but may be sustainable.
DP53.42%
EPS Next 2Y4.57%
EPS Next 3Y5.83%
74.55
-0.01 (-0.01%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners90.23%
Inst Owner Change0%
Ins Owners0.03%
Ins Owner Change12.61%
Market Cap48.62B
Analysts73.64
Price Target82.89 (11.19%)
Short Float %1.08%
Short Ratio1.77
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.44% |
Yearly Dividend2.41
Dividend Growth(5Y)-9.71%
DP53.42%
Div Incr Years7
Div Non Decr Years7
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.43%
Min EPS beat(2)-7.18%
Max EPS beat(2)8.03%
EPS beat(4)1
Avg EPS beat(4)-5.36%
Min EPS beat(4)-16.27%
Max EPS beat(4)8.03%
EPS beat(8)4
Avg EPS beat(8)-1.23%
EPS beat(12)8
Avg EPS beat(12)2.43%
EPS beat(16)11
Avg EPS beat(16)2.54%
Revenue beat(2)0
Avg Revenue beat(2)-9.28%
Min Revenue beat(2)-14.67%
Max Revenue beat(2)-3.89%
Revenue beat(4)0
Avg Revenue beat(4)-13.33%
Min Revenue beat(4)-22.35%
Max Revenue beat(4)-3.89%
Revenue beat(8)0
Avg Revenue beat(8)-15.32%
Revenue beat(12)3
Avg Revenue beat(12)-3.67%
Revenue beat(16)7
Avg Revenue beat(16)-0.69%
PT rev (1m)0.08%
PT rev (3m)-1.67%
EPS NQ rev (1m)0.73%
EPS NQ rev (3m)5.46%
EPS NY rev (1m)-0.15%
EPS NY rev (3m)0.18%
Revenue NQ rev (1m)-4.74%
Revenue NQ rev (3m)-2.07%
Revenue NY rev (1m)-0.96%
Revenue NY rev (3m)-6.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.79 | ||
| Fwd PE | 14.76 | ||
| P/S | 3.64 | ||
| P/FCF | N/A | ||
| P/OCF | 10.71 | ||
| P/B | 1.54 | ||
| P/tB | 1.63 | ||
| EV/EBITDA | 14.98 |
EPS(TTM)4.72
EY6.33%
EPS(NY)5.05
Fwd EY6.78%
FCF(TTM)-7.76
FCFYN/A
OCF(TTM)6.96
OCFY9.33%
SpS20.47
BVpS48.55
TBVpS45.66
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.95% | ||
| ROE | 9.23% | ||
| ROCE | 3.39% | ||
| ROIC | 2.83% | ||
| ROICexc | 2.89% | ||
| ROICexgc | 2.95% | ||
| OM | 22.65% | ||
| PM (TTM) | 21.89% | ||
| 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%
ROICexcg growth 3Y-8.37%
ROICexcg 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 | 1.12 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 6.43 | ||
| Cap/Depr | 386.71% | ||
| Cap/Sales | 71.94% | ||
| Interest Coverage | 2.57 | ||
| Cash Conversion | 82.42% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.57 | ||
| Quick Ratio | 0.51 | ||
| Altman-Z | 0.86 |
F-Score4
WACC6.63%
ROIC/WACC0.43
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)5.12%
EPS 3Y-18.2%
EPS 5Y-5.31%
EPS Q2Q%7.46%
EPS Next Y-1.23%
EPS Next 2Y4.57%
EPS Next 3Y5.83%
EPS Next 5Y6.81%
Revenue 1Y (TTM)-3.28%
Revenue growth 3Y0.84%
Revenue growth 5Y4.04%
Sales Q2Q%4.45%
Revenue Next Year-7.99%
Revenue Next 2Y-1.71%
Revenue Next 3Y0.24%
Revenue Next 5Y2.14%
EBIT growth 1Y1.34%
EBIT growth 3Y1.29%
EBIT growth 5Y1.48%
EBIT Next Year60.88%
EBIT Next 3Y22.79%
EBIT Next 5Y14.31%
FCF growth 1Y0.84%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y199.54%
OCF growth 3Y8.5%
OCF growth 5Y9.71%