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SEMPRA - SRE 5 3/4 07/01/2079 (SREA) Stock Fundamental Analysis

NYSE:SREA - New York Stock Exchange, Inc. - US8168516040

23.55  +0.03 (+0.13%)

Fundamental Rating

4

SREA gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 25 industry peers in the Multi-Utilities industry. There are concerns on the financial health of SREA while its profitability can be described as average. SREA is valued correctly, but it does not seem to be growing.


Dividend Valuation Growth Profitability Health

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6

1. Profitability

1.1 Basic Checks

In the past year SREA was profitable.
SREA had a positive operating cash flow in the past year.
SREA had positive earnings in each of the past 5 years.
Each year in the past 5 years SREA had a positive operating cash flow.
SREA Yearly Net Income VS EBIT VS OCF VS FCFSREA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 2B -2B 4B -4B 6B

1.2 Ratios

With an excellent Return On Assets value of 3.08%, SREA belongs to the best of the industry, outperforming 96.00% of the companies in the same industry.
SREA has a Return On Equity of 9.72%. This is comparable to the rest of the industry: SREA outperforms 60.00% of its industry peers.
SREA has a Return On Invested Capital of 2.11%. This is amonst the worse of the industry: SREA underperforms 92.00% 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 3.68%.
Industry RankSector 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%
SREA Yearly ROA, ROE, ROICSREA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 5 10 15

1.3 Margins

SREA has a better Profit Margin (22.36%) than 100.00% of its industry peers.
SREA's Profit Margin has improved in the last couple of years.
SREA has a Operating Margin of 20.10%. This is comparable to the rest of the industry: SREA outperforms 60.00% of its industry peers.
SREA's Operating Margin has improved in the last couple of years.
Industry RankSector 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
SREA Yearly Profit, Operating, Gross MarginsSREA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 20 40 60 80

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1

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SREA is destroying value.
SREA has more shares outstanding than it did 1 year ago.
SREA has more shares outstanding than it did 5 years ago.
SREA has a better debt/assets ratio than last year.
SREA Yearly Shares OutstandingSREA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M
SREA Yearly Total Debt VS Total AssetsSREA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 20B 40B 60B 80B

2.2 Solvency

SREA has an Altman-Z score of 0.56. This is a bad value and indicates that SREA is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 0.56, SREA is not doing good in the industry: 88.00% of the companies in the same industry are doing better.
SREA has a Debt/Equity ratio of 1.12. This is a high value indicating a heavy dependency on external financing.
With an excellent Debt to Equity ratio value of 1.12, SREA belongs to the best of the industry, outperforming 96.00% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 1.12
Debt/FCF N/A
Altman-Z 0.56
ROIC/WACC0.43
WACC4.89%
SREA Yearly LT Debt VS Equity VS FCFSREA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 10B 20B

2.3 Liquidity

A Current Ratio of 0.52 indicates that SREA may have some problems paying its short term obligations.
With a Current ratio value of 0.52, SREA is not doing good in the industry: 84.00% of the companies in the same industry are doing better.
SREA has a Quick Ratio of 0.52. This is a bad value and indicates that SREA is not financially healthy enough and could expect problems in meeting its short term obligations.
SREA's Quick ratio of 0.47 is on the low side compared to the rest of the industry. SREA is outperformed by 76.00% of its industry peers.
Industry RankSector Rank
Current Ratio 0.52
Quick Ratio 0.47
SREA Yearly Current Assets VS Current LiabilitesSREA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2B 4B 6B 8B 10B

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3

3. Growth

3.1 Past

The earnings per share for SREA have decreased by -8.70% in the last year.
SREA shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -3.71% yearly.
The Revenue for SREA 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

SREA 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, SREA 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-6.29%
Revenue Next 2Y0.41%
Revenue Next 3Y1.75%
Revenue Next 5Y2.86%

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.
SREA Yearly Revenue VS EstimatesSREA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 5B 10B 15B 20B
SREA Yearly EPS VS EstimatesSREA Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2 4 6 8

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6

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 5.54, the valuation of SREA can be described as very cheap.
SREA's Price/Earnings ratio is rather cheap when compared to the industry. SREA is cheaper than 88.00% 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 28.19.
Based on the Price/Forward Earnings ratio of 4.52, the valuation of SREA can be described as very cheap.
Based on the Price/Forward Earnings ratio, SREA is valued cheaper than 88.00% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.37, SREA is valued rather cheaply.
Industry RankSector Rank
PE 5.54
Fwd PE 4.52
SREA Price Earnings VS Forward Price EarningsSREA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, SREA is valued a bit cheaper than 72.00% of the companies in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 9.33
SREA Per share dataSREA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 20 30 40

4.3 Compensation for Growth

SREA's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of SREA may justify a higher PE ratio.
PEG (NY)1.32
PEG (5Y)N/A
EPS Next 2Y6.35%
EPS Next 3Y6.84%

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3

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 2.95%, SREA has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.82, SREA's dividend is way lower than its industry peers. On top of this 80.00% of the companies listed in the same industry pay a better dividend than SREA!
Compared to an average S&P500 Dividend Yield of 2.28, SREA pays a bit more dividend than the S&P500 average.
Industry RankSector Rank
Dividend Yield 2.95%

5.2 History

The dividend of SREA decreases each year by -8.00%.
SREA has been paying a dividend for over 5 years, so it has already some track record.
SREA has decreased its dividend recently.
Dividend Growth(5Y)-8%
Div Incr Years0
Div Non Decr Years1
SREA Yearly Dividends per shareSREA Yearly Dividends per shareYearly Dividends per share 2020 2021 2022 2023 2024 0.5 1

5.3 Sustainability

SREA 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%
SREA Yearly Income VS Free CF VS DividendSREA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 2B -2B -4B
SREA Dividend Payout.SREA Dividend Payout, showing the Payout Ratio.SREA Dividend Payout.PayoutRetained Earnings

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SEMPRA - SRE 5 3/4 07/01/2079

NYSE:SREA (1/22/2025, 4:15:01 PM)

23.55

+0.03 (+0.13%)

Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)11-06 2024-11-06/bmo
Earnings (Next)N/A N/A
Inst Owners92.13%
Inst Owner ChangeN/A
Ins Owners0.02%
Ins Owner ChangeN/A
Market Cap14.92B
Analysts82.5
Price Target26.02 (10.49%)
Short Float %0.02%
Short Ratio1.9
Dividend
Industry RankSector Rank
Dividend Yield 2.95%
Yearly Dividend2.42
Dividend Growth(5Y)-8%
DP53.27%
Div Incr Years0
Div Non Decr Years1
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)6.67%
PT rev (3m)-2.03%
EPS NQ rev (1m)0%
EPS NQ rev (3m)15.08%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.11%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-9.06%
Revenue NY rev (1m)1.22%
Revenue NY rev (3m)-0.18%
Valuation
Industry RankSector Rank
PE 5.54
Fwd PE 4.52
P/S 1.15
P/FCF N/A
P/OCF 3.22
P/B 0.5
P/tB 0.54
EV/EBITDA 9.33
EPS(TTM)4.25
EY18.05%
EPS(NY)5.21
Fwd EY22.14%
FCF(TTM)-6.73
FCFYN/A
OCF(TTM)7.31
OCFY31.05%
SpS20.39
BVpS46.93
TBVpS43.92
PEG (NY)1.32
PEG (5Y)N/A
Profitability
Industry RankSector 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 RankSector 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 0.56
F-Score4
WACC4.89%
ROIC/WACC0.43
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-6.29%
Revenue Next 2Y0.41%
Revenue Next 3Y1.75%
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%