SEMPRA - SRE 5 3/4 07/01/2079 (SREA) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SREA - US8168516040
22.82 USD
-0.05 (-0.22%)
Overall SREA gets a fundamental rating of 4 out of 10. We evaluated SREA against 26 industry peers in the Multi-Utilities industry. SREA has a medium profitability rating, but doesn't score so well on its financial health evaluation. SREA has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- In the past year SREA was profitable.
- In the past year SREA had a positive cash flow from operations.
- Each year in the past 5 years SREA has been profitable.
- Each year in the past 5 years SREA had a positive operating cash flow.
1.2 Ratios
- The Return On Assets of SREA (1.97%) is worse than 80.77% of its industry peers.
- The Return On Equity of SREA (6.77%) is worse than 80.77% of its industry peers.
- The Return On Invested Capital of SREA (2.94%) is worse than 92.31% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for SREA 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
- SREA has a Profit Margin of 15.38%. This is amongst the best in the industry. SREA outperforms 84.62% of its industry peers.
- SREA's Profit Margin has improved in the last couple of years.
- The Operating Margin of SREA (22.51%) is better than 69.23% of its industry peers.
- In the last couple of years the Operating Margin of SREA has declined.
| 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 SREA is destroying value.
- Compared to 1 year ago, SREA has more shares outstanding
- SREA has more shares outstanding than it did 5 years ago.
- SREA has a worse debt/assets ratio than last year.
2.2 Solvency
- Based on the Altman-Z score of 0.70, we must say that SREA is in the distress zone and has some risk of bankruptcy.
- Looking at the Altman-Z score, with a value of 0.70, SREA is in line with its industry, outperforming 42.31% of the companies in the same industry.
- SREA has a Debt/Equity ratio of 1.02. This is a high value indicating a heavy dependency on external financing.
- The Debt to Equity ratio of SREA (1.02) is better than 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.02 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.7 |
ROIC/WACC0.6
WACC4.87%
2.3 Liquidity
- A Current Ratio of 1.59 indicates that SREA should not have too much problems paying its short term obligations.
- SREA has a better Current ratio (1.59) than 100.00% of its industry peers.
- A Quick Ratio of 1.56 indicates that SREA should not have too much problems paying its short term obligations.
- With an excellent Quick ratio value of 1.56, SREA belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.59 | ||
| Quick Ratio | 1.56 |
3. Growth
3.1 Past
- SREA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 16.24%, which is quite good.
- Measured over the past years, SREA shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.77% on average per year.
- The Revenue has been growing slightly by 6.14% in the past year.
- SREA 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
- The Earnings Per Share is expected to grow by 7.08% on average over the next years.
- SREA 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
- The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
- 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 4.62 indicates a rather cheap valuation of SREA.
- SREA's Price/Earnings ratio is rather cheap when compared to the industry. SREA is cheaper than 84.62% of the companies in the same industry.
- SREA's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.30.
- With a Price/Forward Earnings ratio of 4.42, the valuation of SREA can be described as very cheap.
- 84.62% of the companies in the same industry are more expensive than SREA, based on the Price/Forward Earnings ratio.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.32, SREA is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.62 | ||
| Fwd PE | 4.42 |
4.2 Price Multiples
- SREA's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. SREA is cheaper than 84.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.08 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)350.67
PEG (5Y)0.53
EPS Next 2Y5.66%
EPS Next 3Y6.79%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 2.82%, SREA has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 4.14, SREA's dividend is way lower than its industry peers. On top of this 84.62% of the companies listed in the same industry pay a better dividend than SREA!
- Compared to an average S&P500 Dividend Yield of 1.82, SREA pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.82% |
5.2 History
- The dividend of SREA decreases each year by -9.71%.
- SREA has been paying a dividend for over 5 years, so it has already some track record.
- The dividend of SREA decreased recently.
Dividend Growth(5Y)-9.71%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
- 76.67% of the earnings are spent on dividend by SREA. This is not a sustainable payout ratio.
DP76.67%
EPS Next 2Y5.66%
EPS Next 3Y6.79%
SEMPRA - SRE 5 3/4 07/01/2079 / SREA FAQ
Can you provide the ChartMill fundamental rating for SEMPRA - SRE 5 3/4 07/01/2079?
ChartMill assigns a fundamental rating of 4 / 10 to SREA.
Can you provide the valuation status for SEMPRA - SRE 5 3/4 07/01/2079?
ChartMill assigns a valuation rating of 6 / 10 to SEMPRA - SRE 5 3/4 07/01/2079 (SREA). This can be considered as Fairly Valued.
How profitable is SEMPRA - SRE 5 3/4 07/01/2079 (SREA) stock?
SEMPRA - SRE 5 3/4 07/01/2079 (SREA) has a profitability rating of 4 / 10.
What is the expected EPS growth for SEMPRA - SRE 5 3/4 07/01/2079 (SREA) stock?
The Earnings per Share (EPS) of SEMPRA - SRE 5 3/4 07/01/2079 (SREA) is expected to grow by 0.01% in the next year.
Is the dividend of SEMPRA - SRE 5 3/4 07/01/2079 sustainable?
The dividend rating of SEMPRA - SRE 5 3/4 07/01/2079 (SREA) is 3 / 10 and the dividend payout ratio is 76.67%.