SEMPRA (SRE) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SRE - US8168511090 - Common Stock
90.66 USD
+0.59 (+0.66%)
90.66 USD
0 (0%)
SRE gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 26 industry peers in the Multi-Utilities industry. SRE has only an average score on both its financial health and profitability. 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.
In the past 5 years SRE has always been profitable.
SRE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
SRE's Return On Assets of 1.97% is on the low side compared to the rest of the industry. SRE is outperformed by 84.62% of its industry peers.
SRE's Return On Equity of 6.77% is on the low side compared to the rest of the industry. SRE is outperformed by 84.62% of its industry peers.
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 3.96%.
| 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 better Profit Margin (15.38%) than 80.77% of its industry peers.
In the last couple of years the Profit Margin of SRE has grown nicely.
With a decent Operating Margin value of 22.51%, SRE is doing good in the industry, outperforming 65.38% of the companies in the same industry.
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SRE 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.
Compared to 1 year ago, SRE has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.05, we must say that SRE is in the distress zone and has some risk of bankruptcy.
With an excellent Altman-Z score value of 1.05, SRE belongs to the best of the industry, outperforming 80.77% of the companies in the same industry.
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 | 1.05 |
ROIC/WACC0.44
WACC6.7%
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.
SRE has a Quick Ratio of 1.56. This is a normal value and indicates that SRE is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of SRE (1.56) is better than 96.15% of its industry peers.
| 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.
SRE shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -5.31% yearly.
The Revenue has been growing slightly by 6.14% in the past 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 3Y-18.2%
EPS 5Y-5.31%
EPS Q2Q%24.72%
Revenue 1Y (TTM)6.14%
Revenue growth 3Y0.84%
Revenue growth 5Y4.04%
Sales Q2Q%13.51%
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 6.96% on average per year.
Based on estimates for the next years, SRE will show a decrease in Revenue. The Revenue will decrease by -0.86% on average per year.
EPS Next Y-0.85%
EPS Next 2Y5.43%
EPS Next 3Y6.4%
EPS Next 5Y6.96%
Revenue Next Year-11.31%
Revenue Next 2Y-3.91%
Revenue Next 3Y-3.57%
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 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
The Price/Earnings ratio is 18.35, which indicates a rather expensive current 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 26.46. SRE is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 17.65, which indicates a rather expensive current valuation of SRE.
65.38% of the companies in the same industry are cheaper than SRE, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 36.10. SRE is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.35 | ||
| Fwd PE | 17.65 |
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 | 15.82 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y5.43%
EPS Next 3Y6.4%
5. Dividend
5.1 Amount
SRE has a Yearly Dividend Yield of 2.75%. Purely for dividend investing, there may be better candidates out there.
With a Dividend Yield of 2.75, SRE pays less dividend than the industry average, which is at 3.37. 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 2.32, SRE has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.75% |
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
76.67% of the earnings are spent on dividend by SRE. This is not a sustainable payout ratio.
DP76.67%
EPS Next 2Y5.43%
EPS Next 3Y6.4%
90.66
+0.59 (+0.66%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners91.76%
Inst Owner Change3.48%
Ins Owners0.04%
Ins Owner Change-10.23%
Market Cap59.17B
Revenue(TTM)13.71B
Net Income(TTM)2.11B
Analysts77.14
Price Target103.57 (14.24%)
Short Float %2.31%
Short Ratio4.02
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.75% |
Yearly Dividend2.41
Dividend Growth(5Y)-9.71%
DP76.67%
Div Incr Years7
Div Non Decr Years7
Ex-Date
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)18.63%
PT rev (3m)22.46%
EPS NQ rev (1m)-4.62%
EPS NQ rev (3m)-2.8%
EPS NY rev (1m)0.1%
EPS NY rev (3m)0.35%
Revenue NQ rev (1m)0.22%
Revenue NQ rev (3m)14.36%
Revenue NY rev (1m)-0.16%
Revenue NY rev (3m)-2.91%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.35 | ||
| Fwd PE | 17.65 | ||
| P/S | 4.32 | ||
| P/FCF | N/A | ||
| P/OCF | 12.48 | ||
| P/B | 1.9 | ||
| P/tB | 1.9 | ||
| EV/EBITDA | 15.82 |
EPS(TTM)4.94
EY5.45%
EPS(NY)5.14
Fwd EY5.66%
FCF(TTM)-9.02
FCFYN/A
OCF(TTM)7.26
OCFY8.01%
SpS21.01
BVpS47.76
TBVpS47.76
PEG (NY)N/A
PEG (5Y)N/A
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 | 1.05 |
F-Score5
WACC6.7%
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 3Y-18.2%
EPS 5Y-5.31%
EPS Q2Q%24.72%
EPS Next Y-0.85%
EPS Next 2Y5.43%
EPS Next 3Y6.4%
EPS Next 5Y6.96%
Revenue 1Y (TTM)6.14%
Revenue growth 3Y0.84%
Revenue growth 5Y4.04%
Sales Q2Q%13.51%
Revenue Next Year-11.31%
Revenue Next 2Y-3.91%
Revenue Next 3Y-3.57%
Revenue Next 5Y-0.86%
EBIT growth 1Y18.88%
EBIT growth 3Y1.29%
EBIT growth 5Y1.48%
EBIT Next Year58.5%
EBIT Next 3Y22.25%
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.
What is the valuation status of SEMPRA (SRE) stock?
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.
Can you provide the financial health for SRE stock?
The financial health rating of SEMPRA (SRE) is 4 / 10.
What is the expected EPS growth for SEMPRA (SRE) stock?
The Earnings per Share (EPS) of SEMPRA (SRE) is expected to decline by -0.85% in the next year.