SEMPRA (SRE) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SRE - US8168511090 - Common Stock
88.43 USD
-4.12 (-4.45%)
89.69 USD
+1.26 (+1.42%)
We assign a fundamental rating of 3 out of 10 to SRE. SRE was compared to 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 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.
- 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
- With a Return On Assets value of 1.97%, SRE is not doing good in the industry: 84.62% of the companies in the same industry are doing better.
- With a Return On Equity value of 6.77%, SRE is not doing good in the industry: 84.62% of the companies in the same industry are doing better.
- With a Return On Invested Capital value of 2.94%, SRE is not doing good in the industry: 96.15% of the companies in the same industry are doing better.
- The Average Return On Invested Capital over the past 3 years for SRE 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
- With an excellent Profit Margin value of 15.38%, SRE belongs to the best of the industry, outperforming 80.77% of the companies in the same industry.
- SRE's Profit Margin has improved in the last couple of years.
- The Operating Margin of SRE (22.51%) is better than 65.38% of its industry peers.
- SRE's Operating Margin has declined in the last couple of years.
| 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
- SRE has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- The number of shares outstanding for SRE has been increased compared to 1 year ago.
- The number of shares outstanding for SRE has been increased compared to 5 years ago.
- The debt/assets ratio for SRE is higher compared to a year ago.
2.2 Solvency
- SRE has an Altman-Z score of 1.04. 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 (1.04) than 76.92% of its industry peers.
- SRE has a Debt/Equity ratio of 1.02. This is a high value indicating a heavy dependency on external financing.
- SRE's Debt to Equity ratio of 1.02 is amongst the best of the industry. SRE outperforms 96.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.02 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.04 |
ROIC/WACC0.44
WACC6.75%
2.3 Liquidity
- SRE has a Current Ratio of 1.59. This is a normal value and indicates that SRE is financially healthy and should not expect problems in meeting its short term obligations.
- SRE's Current ratio of 1.59 is amongst the best of the industry. SRE outperforms 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.
- Looking at the Quick ratio, with a value of 1.56, SRE belongs to the top of the industry, outperforming 96.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.59 | ||
| Quick Ratio | 1.56 |
3. Growth
3.1 Past
- SRE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 16.24%, which is quite good.
- The Earnings Per Share has been growing by 8.77% on average over the past years. This is quite good.
- Looking at the last year, SRE shows a small growth in Revenue. The Revenue has grown by 6.14% in the last year.
- SRE shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.04% yearly.
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 7.08% yearly.
- SRE is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.81% yearly.
EPS Next Y0.01%
EPS Next 2Y5.66%
EPS Next 3Y6.79%
EPS Next 5Y7.08%
Revenue Next Year-11.51%
Revenue Next 2Y-3.43%
Revenue Next 3Y-2.46%
Revenue Next 5Y-0.81%
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 stable.
- 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 17.90 indicates a rather expensive valuation of SRE.
- The rest of the industry has a similar Price/Earnings ratio as SRE.
- SRE is valuated rather cheaply when we compare the Price/Earnings ratio to 26.94, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 17.15, SRE is valued on the expensive side.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of SRE is on the same level as its industry peers.
- When comparing the Price/Forward Earnings ratio of SRE to the average of the S&P500 Index (23.94), we can say SRE is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.9 | ||
| Fwd PE | 17.15 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, SRE is valued more expensive than 92.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 15.63 |
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)1358.88
PEG (5Y)2.04
EPS Next 2Y5.66%
EPS Next 3Y6.79%
5. Dividend
5.1 Amount
- SRE has a Yearly Dividend Yield of 2.82%.
- With a Dividend Yield of 2.82, SRE pays less dividend than the industry average, which is at 4.14. 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 1.83, SRE pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.82% |
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.
- SRE has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)-9.71%
Div Incr Years7
Div Non Decr Years7
5.3 Sustainability
- SRE pays out 76.67% of its income as dividend. This is not a sustainable payout ratio.
DP76.67%
EPS Next 2Y5.66%
EPS Next 3Y6.79%
88.43
-4.12 (-4.45%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)11-05 2025-11-05/bmo
Earnings (Next)02-23 2026-02-23/amc
Inst Owners95.78%
Inst Owner Change0.04%
Ins Owners0.04%
Ins Owner Change-17.66%
Market Cap57.72B
Revenue(TTM)13.71B
Net Income(TTM)2.11B
Analysts78.18
Price Target101.94 (15.28%)
Short Float %2.04%
Short Ratio3.78
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.82% |
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)-0.66%
PT rev (3m)16.76%
EPS NQ rev (1m)-1.03%
EPS NQ rev (3m)-6.52%
EPS NY rev (1m)0.12%
EPS NY rev (3m)1.1%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.21%
Revenue NY rev (1m)-0.16%
Revenue NY rev (3m)1.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.9 | ||
| Fwd PE | 17.15 | ||
| P/S | 4.21 | ||
| P/FCF | N/A | ||
| P/OCF | 12.17 | ||
| P/B | 1.85 | ||
| P/tB | 1.85 | ||
| EV/EBITDA | 15.63 |
EPS(TTM)4.94
EY5.59%
EPS(NY)5.16
Fwd EY5.83%
FCF(TTM)-9.02
FCFYN/A
OCF(TTM)7.26
OCFY8.21%
SpS21.01
BVpS47.76
TBVpS47.76
PEG (NY)1358.88
PEG (5Y)2.04
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 | 1.04 |
F-Score5
WACC6.75%
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 5Y7.08%
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-0.81%
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 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.
What is the valuation of SEMPRA based on its PE and PB ratios?
The Price/Earnings (PE) ratio for SEMPRA (SRE) is 17.9 and the Price/Book (PB) ratio is 1.85.
Is the dividend of SEMPRA sustainable?
The dividend rating of SEMPRA (SRE) is 4 / 10 and the dividend payout ratio is 76.67%.