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SRE

SempraNYSE:SRE Stock Report

Market Cap

US$41.3b

7D

4.0%

1Y

-0.2%

Updated

19 Oct, 2021

Data

Company Financials +
SRE fundamental analysis
Snowflake Score
Valuation3/6
Future Growth1/6
Past Performance2/6
Financial Health1/6
Dividends5/6

SRE Overview

Sempra operates as an energy-services holding company in the United States and internationally.

Sempra Competitors

Consolidated Edison

NYSE:ED

US$26.1b

DTE Energy

NYSE:DTE

US$22.2b

Ameren

NYSE:AEE

US$21.5b

NiSource

NYSE:NI

US$9.7b

Price History & Performance

Summary of all time highs, changes and price drops for Sempra
Historical stock prices
Current Share PriceUS$129.44
52 Week HighUS$114.66
52 Week LowUS$144.93
Beta0.66
1 Month Change-2.95%
3 Month Change-0.66%
1 Year Change-0.19%
3 Year Change13.36%
5 Year Change21.64%
Change since IPO353.17%

Recent News & Updates

Sep 18

Sempra In The Lone Star State

Texas has become a key market for Sempra, helping diversify its regulatory risk and providing a clear avenue for growth. Sempra has recently increased (again) its five-year capital plans in the state, now almost doubling the five-year plan at acquisition, only four years ago. Valuation remains fair using a rough sum of the parts analysis that incorporates the "mark" on Sempra Infrastructure from a KKR minority sale and a conservative multiple for Sempra Texas.

Aug 27

Sempra Is A High-Yield Blue Chip Retirees Can Trust

In today's ultra-low rate, growth-obsessed world, dangerous speculative bubbles and "reaching for yield and returns" are all around us. However, reasonable and prudent high-yield blue chips retirees can depend on for inflation-beating income are always available if you know where to look. Today Sempra Energy is 6% undervalued, yielding a safe and attractive 3.4%, and analysts expect it to deliver about 10% annual total returns over the next five years. Its mission-critical energy infrastructure in America's two largest states, combined with tens of billions in growth projects in the coming decades, could help it beat modest analyst expectations and grow at its historical 6% rate. For anyone comfortable with its risk profile, Sempra represents a potential 94% A excellent high-yield investment idea, and one of the most reasonable and prudent utilities you can buy in today's 30% overvalued market.

Shareholder Returns

SREUS Integrated UtilitiesUS Market
7D4.0%2.3%4.0%
1Y-0.2%-0.3%30.5%

Return vs Industry: SRE exceeded the US Integrated Utilities industry which returned -1.2% over the past year.

Return vs Market: SRE underperformed the US Market which returned 30% over the past year.

Price Volatility

Is SRE's price volatile compared to industry and market?
SRE volatility
SRE Beta0.66
Industry Beta0.51
Market Beta1

Stable Share Price: SRE is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: SRE's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
199814,706Jeff Martinhttps://www.sempra.com

Sempra operates as an energy-services holding company in the United States and internationally. The company’s San Diego Gas & Electric Company segment generates, transmits, and distributes electricity; and supplies natural gas. It offers electric services to approximately 3.7 million population and natural gas services to approximately 3.4 million population that covers 4,100 square miles.

Sempra Fundamentals Summary

How do Sempra's earnings and revenue compare to its market cap?
SRE fundamental statistics
Market CapUS$41.33b
Earnings (TTM)US$2.07b
Revenue (TTM)US$11.82b

20.0x

P/E Ratio

3.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SRE income statement (TTM)
RevenueUS$11.82b
Cost of RevenueUS$7.47b
Gross ProfitUS$4.35b
ExpensesUS$2.28b
EarningsUS$2.07b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Nov 05, 2021

Earnings per share (EPS)6.48
Gross Margin36.80%
Net Profit Margin17.52%
Debt/Equity Ratio93.3%

How did SRE perform over the long term?

See historical performance and comparison

Dividends

3.4%

Current Dividend Yield

62%

Payout Ratio

Valuation

Is Sempra undervalued compared to its fair value and its price relative to the market?

7.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SRE ($129.44) is trading below our estimate of fair value ($139.73)

Significantly Below Fair Value: SRE is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: SRE is poor value based on its PE Ratio (20x) compared to the US Integrated Utilities industry average (19.8x).

PE vs Market: SRE is poor value based on its PE Ratio (20x) compared to the US market (18.1x).


Price to Earnings Growth Ratio

PEG Ratio: SRE is poor value based on its PEG Ratio (2.8x)


Price to Book Ratio

PB vs Industry: SRE is good value based on its PB Ratio (1.7x) compared to the US Integrated Utilities industry average (2x).


Future Growth

How is Sempra forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

7.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SRE's forecast earnings growth (7.2% per year) is above the savings rate (2%).

Earnings vs Market: SRE's earnings (7.2% per year) are forecast to grow slower than the US market (15.1% per year).

High Growth Earnings: SRE's earnings are forecast to grow, but not significantly.

Revenue vs Market: SRE's revenue (3.7% per year) is forecast to grow slower than the US market (9.9% per year).

High Growth Revenue: SRE's revenue (3.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SRE's Return on Equity is forecast to be low in 3 years time (11%).


Past Performance

How has Sempra performed over the past 5 years?

18.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SRE has high quality earnings.

Growing Profit Margin: SRE's current net profit margins (17.5%) are lower than last year (18.4%).


Past Earnings Growth Analysis

Earnings Trend: SRE's earnings have grown by 18.5% per year over the past 5 years.

Accelerating Growth: SRE's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: SRE had negative earnings growth (-0.2%) over the past year, making it difficult to compare to the Integrated Utilities industry average (10.9%).


Return on Equity

High ROE: SRE's Return on Equity (8.7%) is considered low.


Financial Health

How is Sempra's financial position?


Financial Position Analysis

Short Term Liabilities: SRE's short term assets ($3.8B) do not cover its short term liabilities ($7.3B).

Long Term Liabilities: SRE's short term assets ($3.8B) do not cover its long term liabilities ($35.6B).


Debt to Equity History and Analysis

Debt Level: SRE's debt to equity ratio (93.3%) is considered high.

Reducing Debt: SRE's debt to equity ratio has reduced from 126.3% to 93.3% over the past 5 years.

Debt Coverage: SRE's debt is not well covered by operating cash flow (15.9%).

Interest Coverage: SRE's interest payments on its debt are not well covered by EBIT (2.6x coverage).


Balance Sheet


Dividend

What is Sempra current dividend yield, its reliability and sustainability?

3.40%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SRE's dividend (3.4%) is higher than the bottom 25% of dividend payers in the US market (1.29%).

High Dividend: SRE's dividend (3.4%) is low compared to the top 25% of dividend payers in the US market (3.49%).


Stability and Growth of Payments

Stable Dividend: SRE's dividends per share have been stable in the past 10 years.

Growing Dividend: SRE's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (61.5%), SRE's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SRE's dividends in 3 years are forecast to be covered by earnings (56.4% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.8yrs

Average management tenure


CEO

Jeff Martin (59 yo)

3.42yrs

Tenure

US$23,181,719

Compensation

Mr. Jeffrey Walker Martin, also known as Jeff, serves as Senior Vice President and Chief Administrative & Diversity Officer at Southern California Gas Company since November 2020. Mr. Martin has been Presi...


CEO Compensation Analysis

Compensation vs Market: Jeff's total compensation ($USD23.18M) is above average for companies of similar size in the US market ($USD11.18M).

Compensation vs Earnings: Jeff's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: SRE's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

Experienced Board: SRE's board of directors are considered experienced (4.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 10.4%.


Top Shareholders

Company Information

Sempra's employee growth, exchange listings and data sources


Key Information

  • Name: Sempra
  • Ticker: SRE
  • Exchange: NYSE
  • Founded: 1998
  • Industry: Multi-Utilities
  • Sector: Utilities
  • Market Cap: US$41.334b
  • Shares outstanding: 319.33m
  • Website: https://www.sempra.com

Number of Employees


Location

  • Sempra
  • 488 8th Avenue
  • San Diego
  • California
  • 92101
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/19 23:34
End of Day Share Price2021/10/19 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.