SEMPRA - SRE 5 3/4 07/01/2079 (SREA) Stock Fundamental Analysis
USA - NYSE:SREA - US8168516040
23.24 USD
-0.05 (-0.21%)
22.5 USD
-0.74 (-3.18%)
Overall SREA gets a fundamental rating of 3 out of 10. We evaluated SREA against 25 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 is valued correctly, 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.
SREA had positive earnings in each of the past 5 years.
SREA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
SREA's Return On Assets of 2.67% is in line compared to the rest of the industry. SREA outperforms 44.00% of its industry peers.
SREA has a Return On Equity (8.42%) which is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 2.77%, SREA is doing worse than 92.00% of the companies in the same industry.
SREA had an Average Return On Invested Capital over the past 3 years of 3.30%. This is in line with the industry average of 3.82%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.67% | ||
| ROE | 8.42% | ||
| ROIC | 2.77% |
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
With an excellent Profit Margin value of 20.02%, SREA belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
In the last couple of years the Profit Margin of SREA has grown nicely.
Looking at the Operating Margin, with a value of 22.76%, SREA is in the better half of the industry, outperforming 72.00% of the companies in the same industry.
In the last couple of years the Operating Margin of SREA has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.76% | ||
| PM (TTM) | 20.02% | ||
| 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), SREA is destroying value.
The number of shares outstanding for SREA has been increased compared to 1 year ago.
Compared to 5 years ago, SREA has more shares outstanding
Compared to 1 year ago, SREA has a worse debt to assets ratio.
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.
A Debt/Equity ratio of 1.17 is on the high side and indicates that SREA has dependencies on debt financing.
SREA's Debt to Equity ratio of 1.17 is amongst the best of the industry. SREA outperforms 84.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.17 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.56 |
ROIC/WACC0.58
WACC4.81%
2.3 Liquidity
A Current Ratio of 0.48 indicates that SREA may have some problems paying its short term obligations.
With a Current ratio value of 0.48, SREA is not doing good in the industry: 92.00% of the companies in the same industry are doing better.
A Quick Ratio of 0.41 indicates that SREA may have some problems paying its short term obligations.
The Quick ratio of SREA (0.41) is worse than 88.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.48 | ||
| Quick Ratio | 0.41 |
3. Growth
3.1 Past
SREA shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.31%.
Measured over the past years, SREA shows a decrease in Earnings Per Share. The EPS has been decreasing by -5.31% on average per year.
SREA shows a decrease in Revenue. In the last year, the revenue decreased by -1.04%.
SREA shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.04% yearly.
EPS 1Y (TTM)6.31%
EPS 3Y-18.2%
EPS 5Y-5.31%
EPS Q2Q%0%
Revenue 1Y (TTM)-1.04%
Revenue growth 3Y0.84%
Revenue growth 5Y4.04%
Sales Q2Q%-0.37%
3.2 Future
Based on estimates for the next years, SREA will show a small growth in Earnings Per Share. The EPS will grow by 6.98% on average per year.
Based on estimates for the next years, SREA will show a decrease in Revenue. The Revenue will decrease by -0.87% on average per year.
EPS Next Y-1.07%
EPS Next 2Y4.64%
EPS Next 3Y5.94%
EPS Next 5Y6.98%
Revenue Next Year-12.8%
Revenue Next 2Y-4.25%
Revenue Next 3Y-3.19%
Revenue Next 5Y-0.87%
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
SREA is valuated cheaply with a Price/Earnings ratio of 4.92.
88.00% of the companies in the same industry are more expensive than SREA, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of SREA to the average of the S&P500 Index (27.57), we can say SREA is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 4.59, the valuation of SREA can be described as very cheap.
88.00% of the companies in the same industry are more expensive than SREA, based on the Price/Forward Earnings ratio.
SREA is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.09, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.92 | ||
| Fwd PE | 4.59 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SREA is valued a bit cheaper than the industry average as 68.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.22 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y4.64%
EPS Next 3Y5.94%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.83%, SREA has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.74, SREA'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 SREA!
SREA's Dividend Yield is a higher than the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.83% |
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
SREA pays out 59.51% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP59.51%
EPS Next 2Y4.64%
EPS Next 3Y5.94%
23.24
-0.05 (-0.21%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners91.76%
Inst Owner ChangeN/A
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap15.16B
Revenue(TTM)13.34B
Net Income(TTM)2.67B
Analysts71.25
Price Target23.21 (-0.13%)
Short Float %0%
Short Ratio0.46
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.83% |
Yearly Dividend2.41
Dividend Growth(5Y)-9.71%
DP59.51%
Div Incr Years0
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.09%
Min EPS beat(2)4.16%
Max EPS beat(2)8.03%
EPS beat(4)2
Avg EPS beat(4)-2.82%
Min EPS beat(4)-16.27%
Max EPS beat(4)8.03%
EPS beat(8)4
Avg EPS beat(8)-1.5%
EPS beat(12)8
Avg EPS beat(12)1.82%
EPS beat(16)11
Avg EPS beat(16)2.7%
Revenue beat(2)0
Avg Revenue beat(2)-3.99%
Min Revenue beat(2)-4.09%
Max Revenue beat(2)-3.89%
Revenue beat(4)0
Avg Revenue beat(4)-11.25%
Min Revenue beat(4)-22.35%
Max Revenue beat(4)-3.89%
Revenue beat(8)0
Avg Revenue beat(8)-15%
Revenue beat(12)2
Avg Revenue beat(12)-5.44%
Revenue beat(16)6
Avg Revenue beat(16)-1.39%
PT rev (1m)-4.16%
PT rev (3m)-2.7%
EPS NQ rev (1m)1.76%
EPS NQ rev (3m)2.93%
EPS NY rev (1m)0.13%
EPS NY rev (3m)0.16%
Revenue NQ rev (1m)-3.25%
Revenue NQ rev (3m)-4.39%
Revenue NY rev (1m)-3.47%
Revenue NY rev (3m)-5.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.92 | ||
| Fwd PE | 4.59 | ||
| P/S | 1.14 | ||
| P/FCF | N/A | ||
| P/OCF | 3.26 | ||
| P/B | 0.48 | ||
| P/tB | 0.51 | ||
| EV/EBITDA | 9.22 |
EPS(TTM)4.72
EY20.31%
EPS(NY)5.06
Fwd EY21.77%
FCF(TTM)-8.26
FCFYN/A
OCF(TTM)7.13
OCFY30.68%
SpS20.44
BVpS48.61
TBVpS45.73
PEG (NY)N/A
PEG (5Y)N/A
Graham Number71.85
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.67% | ||
| ROE | 8.42% | ||
| ROCE | 3.32% | ||
| ROIC | 2.77% | ||
| ROICexc | 2.78% | ||
| ROICexgc | 2.83% | ||
| OM | 22.76% | ||
| PM (TTM) | 20.02% | ||
| 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-Score4
Asset Turnover0.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.17 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 6.68 | ||
| Cap/Depr | 396.53% | ||
| Cap/Sales | 75.31% | ||
| Interest Coverage | 2.3 | ||
| Cash Conversion | 83.55% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.48 | ||
| Quick Ratio | 0.41 | ||
| Altman-Z | 0.56 |
F-Score4
WACC4.81%
ROIC/WACC0.58
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)6.31%
EPS 3Y-18.2%
EPS 5Y-5.31%
EPS Q2Q%0%
EPS Next Y-1.07%
EPS Next 2Y4.64%
EPS Next 3Y5.94%
EPS Next 5Y6.98%
Revenue 1Y (TTM)-1.04%
Revenue growth 3Y0.84%
Revenue growth 5Y4.04%
Sales Q2Q%-0.37%
Revenue Next Year-12.8%
Revenue Next 2Y-4.25%
Revenue Next 3Y-3.19%
Revenue Next 5Y-0.87%
EBIT growth 1Y9.84%
EBIT growth 3Y1.29%
EBIT growth 5Y1.48%
EBIT Next Year58.5%
EBIT Next 3Y22.25%
EBIT Next 5Y12.63%
FCF growth 1Y-0.07%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y84.97%
OCF growth 3Y8.5%
OCF growth 5Y9.71%