Sempra operates as an energy-services holding company in the United States and internationally.
Price History & Performance
|Historical stock prices|
|Current Share Price||US$129.44|
|52 Week High||US$114.66|
|52 Week Low||US$144.93|
|1 Month Change||-2.95%|
|3 Month Change||-0.66%|
|1 Year Change||-0.19%|
|3 Year Change||13.36%|
|5 Year Change||21.64%|
|Change since IPO||353.17%|
Recent News & Updates
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.
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.
|SRE||US Integrated Utilities||US Market|
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.
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
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
|SRE fundamental statistics|
Is SRE overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|SRE income statement (TTM)|
|Cost of Revenue||US$7.47b|
Last Reported Earnings
Jun 30, 2021
Next Earnings Date
Nov 05, 2021
|Earnings per share (EPS)||6.48|
|Net Profit Margin||17.52%|
How did SRE perform over the long term?See historical performance and comparison
3.4%Current Dividend Yield
Is Sempra undervalued compared to its fair value and its price relative to the market?
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).
How is Sempra forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?
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%).
How has Sempra performed over the past 5 years?
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.
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 ($35.6B).
Debt to Equity History and Analysis
Debt Level: SRE's debt to equity ratio (93.3%) is considered high.
Reducing Debt: SRE's debt to equity ratio has reduced from 126.3% to 93.3% over the past 5 years.
Debt Coverage: SRE's debt is not well covered by operating cash flow (15.9%).
Interest Coverage: SRE's interest payments on its debt are not well covered by EBIT (2.6x coverage).
What is Sempra current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: SRE's dividend (3.4%) is higher than the bottom 25% of dividend payers in the US market (1.29%).
High Dividend: SRE's dividend (3.4%) is low compared to the top 25% of dividend payers in the US market (3.49%).
Stability and Growth of Payments
Stable Dividend: SRE's dividends per share have been stable in the past 10 years.
Growing Dividend: SRE's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (61.5%), SRE's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: SRE's dividends in 3 years are forecast to be covered by earnings (56.4% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Jeff Martin (59 yo)
Mr. Jeffrey Walker Martin, also known as Jeff, serves as Senior Vice President and Chief Administrative & Diversity Officer at Southern California Gas Company since November 2020. Mr. Martin has been Presi...
CEO Compensation Analysis
Compensation vs Market: Jeff's total compensation ($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.
Experienced Management: SRE's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.
Experienced Board: SRE's board of directors are considered experienced (4.6 years average tenure).
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
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 10.4%.
Sempra's employee growth, exchange listings and data sources
- 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
- 488 8th Avenue
- San Diego
- United States
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/10/19 23:34|
|End of Day Share Price||2021/10/19 00:00|
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.