SEMPRA - SRE 5 3/4 07/01/2079 (SREA) Stock Fundamental Analysis
NYSE:SREA - New York Stock Exchange, Inc. - US8168516040 - Currency: USD
SREA gets a fundamental rating of 3 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 has a valuation in line with the averages, but on the other hand it scores bad on growth.
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 has a Return On Assets of 2.95%. This is in the better half of the industry: SREA outperforms 76.00% of its industry peers.
SREA has a Return On Equity (9.23%) which is comparable to the rest of the industry.
With a Return On Invested Capital value of 2.83%, SREA is not doing good in the industry: 92.00% of the companies in the same industry are doing better.
Measured over the past 3 years, the Average Return On Invested Capital for SREA is in line with the industry average of 3.93%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.95% | ||
| ROE | 9.23% | ||
| ROIC | 2.83% |
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 21.89%. This is amongst the best in the industry. SREA outperforms 100.00% of its industry peers.
SREA's Profit Margin has improved in the last couple of years.
SREA has a better Operating Margin (22.65%) than 68.00% of its industry peers.
In the last couple of years the Operating Margin of SREA has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.65% | ||
| PM (TTM) | 21.89% | ||
| 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.
SREA has more shares outstanding than it did 1 year ago.
SREA has more shares outstanding than it did 5 years ago.
The debt/assets ratio for SREA is higher compared to a year ago.
2.2 Solvency
SREA has an Altman-Z score of 0.55. This is a bad value and indicates that SREA is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.55, SREA is doing worse than 88.00% of the companies in the same industry.
SREA has a Debt/Equity ratio of 1.12. This is a high value indicating a heavy dependency on external financing.
SREA has a better Debt to Equity ratio (1.12) than 88.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.12 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.55 |
ROIC/WACC0.59
WACC4.77%
2.3 Liquidity
A Current Ratio of 0.57 indicates that SREA may have some problems paying its short term obligations.
SREA has a worse Current ratio (0.57) than 84.00% of its industry peers.
SREA has a Quick Ratio of 0.57. This is a bad value and indicates that SREA is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.51, SREA is not doing good in the industry: 84.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.57 | ||
| Quick Ratio | 0.51 |
3. Growth
3.1 Past
SREA shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.12%.
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.
The Revenue has decreased by -3.28% in the past year.
The Revenue has been growing slightly by 4.04% on average over the past years.
EPS 1Y (TTM)5.12%
EPS 3Y-18.2%
EPS 5Y-5.31%
EPS Q2Q%7.46%
Revenue 1Y (TTM)-3.28%
Revenue growth 3Y0.84%
Revenue growth 5Y4.04%
Sales Q2Q%4.45%
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 6.81% on average per year.
The Revenue is expected to grow by 2.14% on average over the next years.
EPS Next Y-1.18%
EPS Next 2Y4.66%
EPS Next 3Y5.75%
EPS Next 5Y6.81%
Revenue Next Year-7.1%
Revenue Next 2Y-1.37%
Revenue Next 3Y0.48%
Revenue Next 5Y2.14%
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.
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
With a Price/Earnings ratio of 4.48, the valuation of SREA can be described as very cheap.
Compared to the rest of the industry, the Price/Earnings ratio of SREA indicates a rather cheap valuation: SREA is cheaper than 88.00% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.28, SREA is valued rather cheaply.
The Price/Forward Earnings ratio is 4.18, which indicates a rather cheap valuation of SREA.
Based on the Price/Forward Earnings ratio, SREA is valued cheaply inside the industry as 88.00% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 21.76. SREA is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.48 | ||
| Fwd PE | 4.18 |
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 Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.6 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y4.66%
EPS Next 3Y5.75%
5. Dividend
5.1 Amount
SREA has a Yearly Dividend Yield of 3.44%.
SREA's Dividend Yield is comparable with the industry average which is at 4.00.
Compared to an average S&P500 Dividend Yield of 2.42, SREA pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.44% |
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
53.42% of the earnings are spent on dividend by SREA. This is a bit on the high side, but may be sustainable.
DP53.42%
EPS Next 2Y4.66%
EPS Next 3Y5.75%
NYSE:SREA (7/2/2025, 8:04:00 PM)
21.13
+0.43 (+2.08%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners90.23%
Inst Owner ChangeN/A
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap13.78B
Analysts74.78
Price Target22.95 (8.61%)
Short Float %0%
Short Ratio0.13
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.44% |
Yearly Dividend2.41
Dividend Growth(5Y)-9.71%
DP53.42%
Div Incr Years0
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.43%
Min EPS beat(2)-7.18%
Max EPS beat(2)8.03%
EPS beat(4)1
Avg EPS beat(4)-5.36%
Min EPS beat(4)-16.27%
Max EPS beat(4)8.03%
EPS beat(8)4
Avg EPS beat(8)-1.23%
EPS beat(12)8
Avg EPS beat(12)2.43%
EPS beat(16)11
Avg EPS beat(16)2.54%
Revenue beat(2)0
Avg Revenue beat(2)-9.28%
Min Revenue beat(2)-14.67%
Max Revenue beat(2)-3.89%
Revenue beat(4)0
Avg Revenue beat(4)-13.33%
Min Revenue beat(4)-22.35%
Max Revenue beat(4)-3.89%
Revenue beat(8)0
Avg Revenue beat(8)-15.32%
Revenue beat(12)3
Avg Revenue beat(12)-3.67%
Revenue beat(16)7
Avg Revenue beat(16)-0.69%
PT rev (1m)3.74%
PT rev (3m)-12.81%
EPS NQ rev (1m)1.82%
EPS NQ rev (3m)9.52%
EPS NY rev (1m)-0.11%
EPS NY rev (3m)0.23%
Revenue NQ rev (1m)-0.18%
Revenue NQ rev (3m)4.04%
Revenue NY rev (1m)-2.35%
Revenue NY rev (3m)-10.96%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.48 | ||
| Fwd PE | 4.18 | ||
| P/S | 1.03 | ||
| P/FCF | N/A | ||
| P/OCF | 3.04 | ||
| P/B | 0.44 | ||
| P/tB | 0.46 | ||
| EV/EBITDA | 8.6 |
EPS(TTM)4.72
EY22.34%
EPS(NY)5.06
Fwd EY23.95%
FCF(TTM)-7.76
FCFYN/A
OCF(TTM)6.96
OCFY32.93%
SpS20.47
BVpS48.55
TBVpS45.66
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.95% | ||
| ROE | 9.23% | ||
| ROCE | 3.39% | ||
| ROIC | 2.83% | ||
| ROICexc | 2.89% | ||
| ROICexgc | 2.95% | ||
| OM | 22.65% | ||
| PM (TTM) | 21.89% | ||
| 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%
ROICexcg growth 3Y-8.37%
ROICexcg 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 | 1.12 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 6.43 | ||
| Cap/Depr | 386.71% | ||
| Cap/Sales | 71.94% | ||
| Interest Coverage | 2.57 | ||
| Cash Conversion | 82.42% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.57 | ||
| Quick Ratio | 0.51 | ||
| Altman-Z | 0.55 |
F-Score4
WACC4.77%
ROIC/WACC0.59
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)5.12%
EPS 3Y-18.2%
EPS 5Y-5.31%
EPS Q2Q%7.46%
EPS Next Y-1.18%
EPS Next 2Y4.66%
EPS Next 3Y5.75%
EPS Next 5Y6.81%
Revenue 1Y (TTM)-3.28%
Revenue growth 3Y0.84%
Revenue growth 5Y4.04%
Sales Q2Q%4.45%
Revenue Next Year-7.1%
Revenue Next 2Y-1.37%
Revenue Next 3Y0.48%
Revenue Next 5Y2.14%
EBIT growth 1Y1.34%
EBIT growth 3Y1.29%
EBIT growth 5Y1.48%
EBIT Next Year60.88%
EBIT Next 3Y22.79%
EBIT Next 5Y14.31%
FCF growth 1Y0.84%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y199.54%
OCF growth 3Y8.5%
OCF growth 5Y9.71%