SEMPRA (SRE) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SRE - US8168511090 - Common Stock
92.55 USD
+0.98 (+1.07%)
92.65 USD
+0.1 (+0.11%)
Overall SRE gets a fundamental rating of 3 out of 10. We evaluated SRE against 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 has a expensive valuation and it also scores bad on growth.
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.
- Each year in the past 5 years SRE had a positive operating cash flow.
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.
- SRE's Return On Invested Capital of 2.94% is on the low side compared to the rest of the industry. SRE is outperformed by 96.15% 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 3.94%.
| 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
- Looking at the Profit Margin, with a value of 15.38%, SRE belongs to the top 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SRE is destroying value.
- SRE has more shares outstanding than it did 1 year ago.
- The number of shares outstanding for SRE has been increased compared to 5 years ago.
- SRE has a worse debt/assets ratio than last year.
2.2 Solvency
- Based on the Altman-Z score of 1.06, we must say that SRE is in the distress zone and has some risk of bankruptcy.
- SRE has a Altman-Z score of 1.06. This is in the better half of the industry: SRE outperforms 76.92% of its industry peers.
- A Debt/Equity ratio of 1.02 is on the high side and indicates that SRE has dependencies on debt financing.
- SRE has a better Debt to Equity ratio (1.02) than 96.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.02 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.06 |
ROIC/WACC0.43
WACC6.81%
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.
- 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
- The Earnings Per Share has grown by an nice 16.24% over the past year.
- SRE shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.77% yearly.
- SRE shows a small growth in Revenue. In the last year, the Revenue has grown by 6.14%.
- 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
- Based on estimates for the next years, SRE will show a small growth in Earnings Per Share. The EPS will grow by 7.08% on average per year.
- Based on estimates for the next years, SRE will show a decrease in Revenue. The Revenue will decrease by -0.81% on average per year.
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.
- 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 rather expensively with a Price/Earnings ratio of 18.73.
- SRE's Price/Earnings ratio is in line with the industry average.
- SRE's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.38.
- A Price/Forward Earnings ratio of 17.95 indicates a rather expensive valuation of SRE.
- Based on the Price/Forward Earnings ratio, SRE is valued a bit more expensive than the industry average as 69.23% of the companies are valued more cheaply.
- SRE's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.73 | ||
| Fwd PE | 17.95 |
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 | 16.1 |
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)1422.2
PEG (5Y)2.14
EPS Next 2Y5.66%
EPS Next 3Y6.79%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 2.82%, SRE has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 4.14, SRE's dividend is way lower than its industry peers. On top of this 80.77% of the companies listed in the same industry pay a better dividend than SRE!
- SRE's Dividend Yield is rather good when compared to the S&P500 average which is at 1.85.
| 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%
92.55
+0.98 (+1.07%)
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 Cap60.41B
Revenue(TTM)13.71B
Net Income(TTM)2.11B
Analysts78.18
Price Target101.94 (10.15%)
Short Float %2.11%
Short Ratio3.87
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 | 18.73 | ||
| Fwd PE | 17.95 | ||
| P/S | 4.41 | ||
| P/FCF | N/A | ||
| P/OCF | 12.74 | ||
| P/B | 1.94 | ||
| P/tB | 1.94 | ||
| EV/EBITDA | 16.1 |
EPS(TTM)4.94
EY5.34%
EPS(NY)5.16
Fwd EY5.57%
FCF(TTM)-9.02
FCFYN/A
OCF(TTM)7.26
OCFY7.85%
SpS21.01
BVpS47.76
TBVpS47.76
PEG (NY)1422.2
PEG (5Y)2.14
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 | 1.06 |
F-Score5
WACC6.81%
ROIC/WACC0.43
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 18.73 and the Price/Book (PB) ratio is 1.94.
Is the dividend of SEMPRA sustainable?
The dividend rating of SEMPRA (SRE) is 4 / 10 and the dividend payout ratio is 76.67%.