SEMPRA (SRE)
US8168511090 - Common Stock
We assign a fundamental rating of 4 out of 10 to SRE. SRE was compared to 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 does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
In the past year SRE was profitable.
In the past year SRE had a positive cash flow from operations.
SRE had positive earnings in each of the past 5 years.
In the past 5 years SRE always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of SRE (3.08%) is better than 92.00% of its industry peers.
With a Return On Equity value of 9.72%, SRE perfoms like the industry average, outperforming 56.00% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 2.11%, SRE is doing worse than 96.00% of the companies in the same industry.
SRE had an Average Return On Invested Capital over the past 3 years of 2.93%. This is in line with the industry average of 3.68%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.08% | ||
| ROE | 9.72% | ||
| ROIC | 2.11% |
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
SRE's Profit Margin of 22.36% is amongst the best of the industry. SRE outperforms 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 (20.10%) is comparable to the rest of the industry.
SRE's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.1% | ||
| PM (TTM) | 22.36% | ||
| 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.
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.
The debt/assets ratio for SRE has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.91, we must say that SRE is in the distress zone and has some risk of bankruptcy.
SRE has a Altman-Z score of 0.91. This is in the better half of the industry: SRE outperforms 72.00% of 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 Debt to Equity ratio of 1.12. This is amongst the best in the industry. SRE outperforms 92.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.12 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.91 |
ROIC/WACC0.3
WACC6.92%
2.3 Liquidity
A Current Ratio of 0.52 indicates that SRE may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.52, SRE is doing worse than 88.00% of the companies in the same industry.
A Quick Ratio of 0.47 indicates that SRE may have some problems paying its short term obligations.
The Quick ratio of SRE (0.47) is worse than 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.52 | ||
| Quick Ratio | 0.47 |
3. Growth
3.1 Past
SRE shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -8.70%.
The Earnings Per Share has been decreasing by -3.71% on average over the past years.
The Revenue for SRE has decreased by -22.57% in the past year. This is quite bad
The Revenue has been growing by 10.66% on average over the past years. This is quite good.
EPS 1Y (TTM)-8.7%
EPS 3Y-16.58%
EPS 5Y-3.71%
EPS Q2Q%-17.59%
Revenue 1Y (TTM)-22.57%
Revenue growth 3Y13.72%
Revenue growth 5Y10.66%
Sales Q2Q%-16.74%
3.2 Future
SRE is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.24% yearly.
Based on estimates for the next years, SRE will show a small growth in Revenue. The Revenue will grow by 2.86% on average per year.
EPS Next Y4.2%
EPS Next 2Y6.35%
EPS Next 3Y6.84%
EPS Next 5Y7.24%
Revenue Next Year-7.42%
Revenue Next 2Y-0.01%
Revenue Next 3Y1.47%
Revenue Next 5Y2.86%
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
A Price/Earnings ratio of 19.49 indicates a rather expensive valuation of SRE.
SRE's Price/Earnings ratio is a bit more expensive when compared to the industry. SRE is more expensive than 64.00% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.34. SRE is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 15.88, SRE is valued correctly.
The rest of the industry has a similar Price/Forward Earnings ratio as SRE.
When comparing the Price/Forward Earnings ratio of SRE to the average of the S&P500 Index (23.61), we can say SRE is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.49 | ||
| Fwd PE | 15.88 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SRE is valued expensively inside the industry as 92.00% of the companies are valued cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 16.87 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of SRE may justify a higher PE ratio.
PEG (NY)4.64
PEG (5Y)N/A
EPS Next 2Y6.35%
EPS Next 3Y6.84%
5. Dividend
5.1 Amount
SRE has a Yearly Dividend Yield of 2.85%.
Compared to an average industry Dividend Yield of 3.86, SRE's dividend is way lower than its industry peers. On top of this 84.00% of the companies listed in the same industry pay a better dividend than SRE!
SRE's Dividend Yield is a higher than the S&P500 average which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.85% |
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.
As SRE did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)-8%
Div Incr Years7
Div Non Decr Years7
5.3 Sustainability
SRE pays out 53.27% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP53.27%
EPS Next 2Y6.35%
EPS Next 3Y6.84%
SEMPRA
NYSE:SRE (1/8/2025, 8:04:01 PM)
After market: 82.82 0 (0%)82.82
-1.41 (-1.67%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners92.13%
Inst Owner Change0%
Ins Owners0.02%
Ins Owner Change0.66%
Market Cap52.46B
Analysts82.5
Price Target96.37 (16.36%)
Short Float %2.54%
Short Ratio4.81
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.85% |
Dividend Growth(5Y)-8%
DP53.27%
Div Incr Years7
Div Non Decr Years7
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-11.14%
Min EPS beat(2)-16.27%
Max EPS beat(2)-6.01%
EPS beat(4)1
Avg EPS beat(4)-5.73%
Min EPS beat(4)-16.27%
Max EPS beat(4)0.01%
EPS beat(8)5
Avg EPS beat(8)0.99%
EPS beat(12)9
Avg EPS beat(12)3.28%
EPS beat(16)12
Avg EPS beat(16)4.27%
Revenue beat(2)0
Avg Revenue beat(2)-17.38%
Min Revenue beat(2)-22.35%
Max Revenue beat(2)-12.42%
Revenue beat(4)0
Avg Revenue beat(4)-21.01%
Min Revenue beat(4)-35.37%
Max Revenue beat(4)-12.42%
Revenue beat(8)1
Avg Revenue beat(8)-6.13%
Revenue beat(12)5
Avg Revenue beat(12)-0.43%
Revenue beat(16)7
Avg Revenue beat(16)-0.09%
PT rev (1m)1.37%
PT rev (3m)7.29%
EPS NQ rev (1m)0%
EPS NQ rev (3m)15.08%
EPS NY rev (1m)-0.04%
EPS NY rev (3m)-0.11%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-9.06%
Revenue NY rev (1m)0.68%
Revenue NY rev (3m)-1.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.49 | ||
| Fwd PE | 15.88 | ||
| P/S | 4.06 | ||
| P/FCF | N/A | ||
| P/OCF | 11.33 | ||
| P/B | 1.76 | ||
| P/tB | 1.89 | ||
| EV/EBITDA | 16.87 |
EPS(TTM)4.25
EY5.13%
EPS(NY)5.21
Fwd EY6.3%
FCF(TTM)-6.73
FCFYN/A
OCF(TTM)7.31
OCFY8.83%
SpS20.39
BVpS46.93
TBVpS43.92
PEG (NY)4.64
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.08% | ||
| ROE | 9.72% | ||
| ROCE | 3.09% | ||
| ROIC | 2.11% | ||
| ROICexc | 2.12% | ||
| ROICexgc | 2.17% | ||
| OM | 20.1% | ||
| PM (TTM) | 22.36% | ||
| GM | N/A | ||
| FCFM | N/A |
ROA(3y)2.63%
ROA(5y)3.33%
ROE(3y)7.7%
ROE(5y)9.9%
ROIC(3y)2.93%
ROIC(5y)3.06%
ROICexc(3y)2.95%
ROICexc(5y)3.08%
ROICexgc(3y)3.03%
ROICexgc(5y)3.17%
ROCE(3y)4.38%
ROCE(5y)4.55%
ROICexcg growth 3Y-0.58%
ROICexcg growth 5Y7.81%
ROICexc growth 3Y-0.38%
ROICexc growth 5Y8.01%
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
F-Score4
Asset Turnover0.14
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.12 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 6.65 | ||
| Cap/Depr | 372.6% | ||
| Cap/Sales | 68.85% | ||
| Interest Coverage | 2.26 | ||
| Cash Conversion | 92.94% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.52 | ||
| Quick Ratio | 0.47 | ||
| Altman-Z | 0.91 |
F-Score4
WACC6.92%
ROIC/WACC0.3
Cap/Depr(3y)342.2%
Cap/Depr(5y)337.65%
Cap/Sales(3y)47.43%
Cap/Sales(5y)47.76%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-8.7%
EPS 3Y-16.58%
EPS 5Y-3.71%
EPS Q2Q%-17.59%
EPS Next Y4.2%
EPS Next 2Y6.35%
EPS Next 3Y6.84%
EPS Next 5Y7.24%
Revenue 1Y (TTM)-22.57%
Revenue growth 3Y13.72%
Revenue growth 5Y10.66%
Sales Q2Q%-16.74%
Revenue Next Year-7.42%
Revenue Next 2Y-0.01%
Revenue Next 3Y1.47%
Revenue Next 5Y2.86%
EBIT growth 1Y-23.6%
EBIT growth 3Y9.46%
EBIT growth 5Y16.17%
EBIT Next Year58.3%
EBIT Next 3Y22.68%
EBIT Next 5Y14.81%
FCF growth 1Y-25.57%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y99.96%
OCF growth 3Y33.88%
OCF growth 5Y12.08%