SEMPRA (SRE)
US8168511090 - Common Stock
Overall SRE gets a fundamental rating of 4 out of 10. We evaluated SRE against 25 industry peers in the Multi-Utilities industry. There are concerns on the financial health of SRE while its profitability can be described as average. 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.
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
Looking at the Return On Assets, with a value of 3.28%, SRE belongs to the top of the industry, outperforming 96.00% of the companies in the same industry.
SRE has a Return On Equity (10.07%) which is in line with its industry peers.
SRE's Return On Invested Capital of 2.33% is on the low side compared to the rest of the industry. SRE is outperformed by 88.00% 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 3.68%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.28% | ||
| ROE | 10.07% | ||
| ROIC | 2.33% |
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
The Profit Margin of SRE (22.05%) is better than 96.00% of its industry peers.
In the last couple of years the Profit Margin of SRE has grown nicely.
SRE has a Operating Margin of 20.50%. This is comparable to the rest of the industry: SRE outperforms 56.00% of its industry peers.
SRE's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.5% | ||
| PM (TTM) | 22.05% | ||
| 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.
Compared to 5 years ago, SRE has more shares outstanding
Compared to 1 year ago, SRE has an improved debt to assets ratio.
2.2 Solvency
SRE has an Altman-Z score of 0.94. This is a bad value and indicates that SRE is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of SRE (0.94) is better than 76.00% of its industry peers.
A Debt/Equity ratio of 1.06 is on the high side and indicates that SRE has dependencies on debt financing.
The Debt to Equity ratio of SRE (1.06) is better than 92.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.06 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.94 |
ROIC/WACC0.37
WACC6.25%
2.3 Liquidity
A Current Ratio of 0.46 indicates that SRE may have some problems paying its short term obligations.
SRE has a worse Current ratio (0.46) than 96.00% 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 92.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.46 | ||
| Quick Ratio | 0.41 |
3. Growth
3.1 Past
The earnings per share for SRE have decreased by -2.63% in the last year.
The Earnings Per Share has been decreasing by -3.71% on average over the past years.
SRE shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -20.58%.
SRE shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.66% yearly.
EPS 1Y (TTM)-2.63%
EPS 3Y-16.58%
EPS 5Y-3.71%
EPS Q2Q%-5.32%
Revenue 1Y (TTM)-20.58%
Revenue growth 3Y13.72%
Revenue growth 5Y10.66%
Sales Q2Q%-9.72%
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 6.60% on average per year.
The Revenue is expected to grow by 0.58% on average over the next years.
EPS Next Y4.32%
EPS Next 2Y6.22%
EPS Next 3Y6.62%
EPS Next 5Y6.6%
Revenue Next Year-6.13%
Revenue Next 2Y-0.31%
Revenue Next 3Y1.2%
Revenue Next 5Y0.58%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 18.40, which indicates a rather expensive current valuation of SRE.
SRE's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 30.24. SRE is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 15.71 indicates a correct valuation of SRE.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SRE is on the same level as its industry peers.
SRE is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.81, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.4 | ||
| Fwd PE | 15.71 |
4.2 Price Multiples
92.00% of the companies in the same industry are cheaper than SRE, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 16.07 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
SRE has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)4.26
PEG (5Y)N/A
EPS Next 2Y6.22%
EPS Next 3Y6.62%
5. Dividend
5.1 Amount
SRE has a Yearly Dividend Yield of 2.98%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.95, SRE's dividend is way lower than its industry peers. On top of this 80.00% of the companies listed in the same industry pay a better dividend than SRE!
Compared to an average S&P500 Dividend Yield of 2.26, SRE pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.98% |
5.2 History
The dividend of SRE decreases each year by -8.00%.
SRE has paid a dividend for at least 10 years, which is 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)-8%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
51.62% of the earnings are spent on dividend by SRE. This is a bit on the high side, but may be sustainable.
DP51.62%
EPS Next 2Y6.22%
EPS Next 3Y6.62%
SEMPRA
NYSE:SRE (9/12/2024, 8:04:01 PM)
After market: 81.72 +0.02 (+0.02%)81.7
+0.33 (+0.41%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap51.70B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.98% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.4 | ||
| Fwd PE | 15.71 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)4.26
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.28% | ||
| ROE | 10.07% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 20.5% | ||
| PM (TTM) | 22.05% | ||
| GM | N/A | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.15
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.06 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.46 | ||
| Quick Ratio | 0.41 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-2.63%
EPS 3Y-16.58%
EPS 5Y
EPS Q2Q%
EPS Next Y4.32%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-20.58%
Revenue growth 3Y13.72%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y