SEMPRA (SRE) Stock Fundamental Analysis
NYSE:SRE - New York Stock Exchange, Inc. - US8168511090 - Common Stock - Currency: USD
SRE gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 25 industry peers in the Multi-Utilities industry. SRE has a medium profitability rating, but doesn't score so well on its financial health evaluation. 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.
In the past 5 years SRE has always been profitable.
In the past 5 years SRE always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of SRE (2.93%) is better than 88.00% of its industry peers.
With a Return On Equity value of 9.02%, SRE perfoms like the industry average, outperforming 44.00% of the companies in the same industry.
With a Return On Invested Capital value of 2.86%, SRE is not doing good in the industry: 96.00% 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 3.76%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.93% | ||
| ROE | 9.02% | ||
| ROIC | 2.86% |
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 (21.37%) is better than 96.00% of its industry peers.
In the last couple of years the Profit Margin of SRE has grown nicely.
The Operating Margin of SRE (22.46%) is better than 64.00% of its industry peers.
SRE's Operating Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.46% | ||
| PM (TTM) | 21.37% | ||
| 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 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 of 0.86. This is comparable to the rest of the industry: SRE outperforms 56.00% of its industry peers.
SRE has a Debt/Equity ratio of 1.07. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.07, SRE belongs to the top of the industry, outperforming 92.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.07 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.86 |
ROIC/WACC0.44
WACC6.51%
2.3 Liquidity
SRE has a Current Ratio of 0.55. This is a bad value and indicates that SRE is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.55, SRE is not doing good in the industry: 88.00% of the companies in the same industry are doing better.
A Quick Ratio of 0.49 indicates that SRE may have some problems paying its short term obligations.
SRE has a Quick ratio of 0.49. This is in the lower half of the industry: SRE underperforms 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.55 | ||
| Quick Ratio | 0.49 |
3. Growth
3.1 Past
SRE shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.22%.
The Earnings Per Share has been decreasing by -5.31% on average over the past years.
The Revenue for SRE has decreased by -21.14% in the past year. This is quite bad
The Revenue has been growing slightly by 4.04% on average over the past years.
EPS 1Y (TTM)0.22%
EPS 3Y-18.2%
EPS 5Y-5.31%
EPS Q2Q%32.74%
Revenue 1Y (TTM)-21.14%
Revenue growth 3Y0.84%
Revenue growth 5Y4.04%
Sales Q2Q%7.65%
3.2 Future
SRE is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.58% yearly.
The Revenue is expected to grow by 2.19% on average over the next years.
EPS Next Y-1.41%
EPS Next 2Y4.46%
EPS Next 3Y5.56%
EPS Next 5Y6.58%
Revenue Next Year-2.1%
Revenue Next 2Y1.11%
Revenue Next 3Y0.49%
Revenue Next 5Y2.19%
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
SRE is valuated correctly with a Price/Earnings ratio of 15.39.
Based on the Price/Earnings ratio, SRE is valued a bit cheaper than the industry average as 64.00% of the companies are valued more expensively.
SRE is valuated rather cheaply when we compare the Price/Earnings ratio to 28.29, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 15.61, which indicates a correct valuation of SRE.
SRE's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of SRE to the average of the S&P500 Index (21.08), we can say SRE is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.39 | ||
| Fwd PE | 15.61 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SRE indicates a rather expensive valuation: SRE more expensive than 84.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 14.56 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y4.46%
EPS Next 3Y5.56%
5. Dividend
5.1 Amount
SRE has a Yearly Dividend Yield of 3.86%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.87, SRE pays a bit more dividend than its industry peers.
SRE's Dividend Yield is rather good when compared to the S&P500 average which is at 2.57.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.86% |
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 54.77% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP54.77%
EPS Next 2Y4.46%
EPS Next 3Y5.56%
71.12
+0.73 (+1.04%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners93.92%
Inst Owner Change0%
Ins Owners0.03%
Ins Owner Change14.4%
Market Cap46.36B
Analysts75.65
Price Target84.29 (18.52%)
Short Float %1.4%
Short Ratio1.63
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.86% |
Yearly Dividend2.41
Dividend Growth(5Y)-9.71%
DP54.77%
Div Incr Years7
Div Non Decr Years7
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-11.73%
Min EPS beat(2)-16.27%
Max EPS beat(2)-7.18%
EPS beat(4)0
Avg EPS beat(4)-7.52%
Min EPS beat(4)-16.27%
Max EPS beat(4)-0.63%
EPS beat(8)4
Avg EPS beat(8)-1.67%
EPS beat(12)8
Avg EPS beat(12)2.1%
EPS beat(16)11
Avg EPS beat(16)2.53%
Revenue beat(2)0
Avg Revenue beat(2)-18.51%
Min Revenue beat(2)-22.35%
Max Revenue beat(2)-14.67%
Revenue beat(4)0
Avg Revenue beat(4)-21.2%
Min Revenue beat(4)-35.37%
Max Revenue beat(4)-12.42%
Revenue beat(8)1
Avg Revenue beat(8)-6.76%
Revenue beat(12)4
Avg Revenue beat(12)-2.25%
Revenue beat(16)7
Avg Revenue beat(16)-0.59%
PT rev (1m)-1.74%
PT rev (3m)-12.53%
EPS NQ rev (1m)1.32%
EPS NQ rev (3m)-17.24%
EPS NY rev (1m)-12.44%
EPS NY rev (3m)-12.64%
Revenue NQ rev (1m)0.93%
Revenue NQ rev (3m)-3.99%
Revenue NY rev (1m)-6.17%
Revenue NY rev (3m)-8.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.39 | ||
| Fwd PE | 15.61 | ||
| P/S | 3.52 | ||
| P/FCF | N/A | ||
| P/OCF | 9.45 | ||
| P/B | 1.48 | ||
| P/tB | 1.58 | ||
| EV/EBITDA | 14.56 |
EPS(TTM)4.62
EY6.5%
EPS(NY)4.55
Fwd EY6.4%
FCF(TTM)-6.44
FCFYN/A
OCF(TTM)7.53
OCFY10.58%
SpS20.23
BVpS47.92
TBVpS45.02
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.93% | ||
| ROE | 9.02% | ||
| ROCE | 3.43% | ||
| ROIC | 2.86% | ||
| ROICexc | 2.91% | ||
| ROICexgc | 2.98% | ||
| OM | 22.46% | ||
| PM (TTM) | 21.37% | ||
| 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-Score5
Asset Turnover0.14
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.07 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 6.22 | ||
| Cap/Depr | 373.57% | ||
| Cap/Sales | 69.05% | ||
| Interest Coverage | 2.46 | ||
| Cash Conversion | 90.89% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.55 | ||
| Quick Ratio | 0.49 | ||
| Altman-Z | 0.86 |
F-Score5
WACC6.51%
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)0.22%
EPS 3Y-18.2%
EPS 5Y-5.31%
EPS Q2Q%32.74%
EPS Next Y-1.41%
EPS Next 2Y4.46%
EPS Next 3Y5.56%
EPS Next 5Y6.58%
Revenue 1Y (TTM)-21.14%
Revenue growth 3Y0.84%
Revenue growth 5Y4.04%
Sales Q2Q%7.65%
Revenue Next Year-2.1%
Revenue Next 2Y1.11%
Revenue Next 3Y0.49%
Revenue Next 5Y2.19%
EBIT growth 1Y-20.27%
EBIT growth 3Y1.29%
EBIT growth 5Y1.48%
EBIT Next Year63.85%
EBIT Next 3Y22.01%
EBIT Next 5Y14.31%
FCF growth 1Y-50.48%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-21.08%
OCF growth 3Y8.5%
OCF growth 5Y9.71%