Sempra Energy
Market Cap
US$35.4b
Last Updated
2020/07/05 23:47 UTC
Data Sources
Company Financials +
Executive Summary
Sempra Energy operates as an energy-services holding company in the United States and internationally.
Snowflake Analysis
Established dividend payer with proven track record.
Similar Companies
Share Price & News
How has Sempra Energy's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: SRE has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
7.4%
SRE
5.5%
US Integrated Utilities
4.0%
US Market
1 Year Return
-12.6%
SRE
-8.4%
US Integrated Utilities
5.0%
US Market
Return vs Industry: SRE underperformed the US Integrated Utilities industry which returned -8.4% over the past year.
Return vs Market: SRE underperformed the US Market which returned 4.9% over the past year.
Shareholder returns
| SRE | Industry | Market | |
|---|---|---|---|
| 7 Day | 7.4% | 5.5% | 4.0% |
| 30 Day | -9.6% | -3.7% | -1.1% |
| 90 Day | 6.1% | 4.5% | 21.1% |
| 1 Year | -9.7%-12.6% | -5.2%-8.4% | 7.2%5.0% |
| 3 Year | 20.2%9.4% | 21.4%9.0% | 36.0%27.1% |
| 5 Year | 39.3%19.6% | 58.3%32.3% | 65.3%46.9% |
Price Volatility Vs. Market
How volatile is Sempra Energy's share price compared to the market and industry in the last 5 years?
Simply Wall St News
4 days ago | Simply Wall St
Should You Rely On Sempra Energy's (NYSE:SRE) Earnings Growth?2 weeks ago | Simply Wall St
How Much Are Sempra Energy (NYSE:SRE) Insiders Taking Off The Table?3 weeks ago | Simply Wall St
Key Things To Consider Before Buying Sempra Energy (NYSE:SRE) For Its DividendValuation
Is Sempra Energy undervalued compared to its fair value and its price relative to the market?
18.08x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: SRE ($120.94) is trading above our estimate of fair value ($95.22)
Significantly Below Fair Value: SRE is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: SRE is good value based on its PE Ratio (18.1x) compared to the Integrated Utilities industry average (18.9x).
PE vs Market: SRE is poor value based on its PE Ratio (18.1x) compared to the US market (16.5x).
Price to Earnings Growth Ratio
PEG Ratio: SRE is poor value based on its PEG Ratio (2.3x)
Price to Book Ratio
PB vs Industry: SRE is overvalued based on its PB Ratio (2x) compared to the US Integrated Utilities industry average (1.8x).
Next Steps
Future Growth
How is Sempra Energy forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?
7.9%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: SRE's forecast earnings growth (7.9% per year) is above the savings rate (2.2%).
Earnings vs Market: SRE's earnings (7.9% per year) are forecast to grow slower than the US market (22.8% per year).
High Growth Earnings: SRE's earnings are forecast to grow, but not significantly.
Revenue vs Market: SRE's revenue (3.4% per year) is forecast to grow slower than the US market (9.2% per year).
High Growth Revenue: SRE's revenue (3.4% 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 (11.8%).
Next Steps
Past Performance
How has Sempra Energy performed over the past 5 years?
-0.3%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: SRE has high quality earnings.
Growing Profit Margin: SRE's current net profit margins (17.2%) are higher than last year (8.7%).
Past Earnings Growth Analysis
Earnings Trend: SRE's earnings have declined by -0.3% per year over the past 5 years.
Accelerating Growth: SRE's earnings growth over the past year (107.2%) exceeds its 5-year average (-0.3% per year).
Earnings vs Industry: SRE earnings growth over the past year (107.2%) exceeded the Integrated Utilities industry -6.1%.
Return on Equity
High ROE: SRE's Return on Equity (10.4%) is considered low.
Next Steps
Financial Health
How is Sempra Energy's financial position?
Financial Position Analysis
Short Term Liabilities: SRE's short term assets ($5.4B) do not cover its short term liabilities ($12.2B).
Long Term Liabilities: SRE's short term assets ($5.4B) do not cover its long term liabilities ($34.0B).
Debt to Equity History and Analysis
Debt Level: SRE's debt to equity ratio (122.7%) is considered high.
Reducing Debt: SRE's debt to equity ratio has increased from 116.3% to 122.7% over the past 5 years.
Debt Coverage: SRE's debt is not well covered by operating cash flow (12.7%).
Interest Coverage: SRE's interest payments on its debt are not well covered by EBIT (2.9x coverage).
Balance Sheet
Next Steps
Dividend
What is Sempra Energy current dividend yield, its reliability and sustainability?
3.46%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: SRE's dividend (3.46%) is higher than the bottom 25% of dividend payers in the US market (1.67%).
High Dividend: SRE's dividend (3.46%) is low compared to the top 25% of dividend payers in the US market (4.5%).
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 (59%), 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 (58.9% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
1.0yrs
Average management tenure
CEO
Jeff Martin (58yo)
2.17yrs
Tenure
US$19,806,346
Compensation
Mr. Jeffrey Walker Martin, also known as Jeff, has been President at Sempra Energy since March 31, 2020. Mr. Martin has been the Chief Executive Officer and Director of Sempra Energy from May 1, 2018 and c ...
CEO Compensation Analysis
Compensation vs Market: Jeff's total compensation ($USD19.81M) is above average for companies of similar size in the US market ($USD11.50M).
Compensation vs Earnings: Jeff's compensation has increased by more than 20% in the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | 2.17yrs | US$19.81m | 0.010% $3.5m | |
| CFO & Executive VP | 2.17yrs | US$5.24m | 0.0049% $1.7m | |
| Senior VP | 2.17yrs | no data | 0.00085% $300.7k | |
| Vice President of Security & Technology and Chief Security Officer | no data | no data | no data | |
| Vice President of Corporate Development | 0.83yr | no data | no data | |
| Senior VP | 1.25yrs | no data | no data | |
| Executive VP & Group President of California Utilities | 0.083yr | no data | 0.0070% $2.5m | |
| Chief Tax Counsel & VP of Corporate Tax | no data | no data | no data | |
| Senior Vice President of Finance | 0.50yr | no data | no data | |
| Senior Vice President of Corporate Affairs | 0.50yr | no data | no data |
1.0yrs
Average Tenure
50yo
Average Age
Experienced Management: SRE's management team is not considered experienced ( 1 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | 2.17yrs | US$19.81m | 0.010% $3.5m | |
| CEO & Director of Southern California Gas Company | 1.58yrs | no data | no data | |
| Independent Director | 9.42yrs | US$258.78k | 0.0021% $725.3k | |
| Independent Lead Director | 1.5yrs | US$376.57k | 0.0014% $495.3k | |
| Independent Director | 6.67yrs | US$245.00k | 0.0016% $580.2k | |
| Independent Director | 7.17yrs | US$280.00k | no data | |
| Independent Director | 7.08yrs | US$276.46k | 0.00025% $88.5k | |
| Director | 1.08yrs | US$165.63k | no data | |
| Independent Director | 7.42yrs | US$309.20k | 0.000040% $14.2k | |
| Independent Director | 3.42yrs | US$257.13k | 0.0017% $615.6k |
5.0yrs
Average Tenure
62.5yo
Average Age
Experienced Board: SRE's board of directors are considered experienced (5 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: SRE insiders have only sold shares 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 6.6%.
Top Shareholders
Company Information
Sempra Energy's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Sempra Energy
- Ticker: SRE
- Exchange: NYSE
- Founded: 1998
- Industry: Multi-Utilities
- Sector: Utilities
- Market Cap: US$35.380b
- Shares outstanding: 292.55m
- Website: https://www.sempra.com
Number of Employees
Location
- Sempra Energy
- 488 8th Avenue
- San Diego
- California
- 92101
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| SRE | NYSE (New York Stock Exchange) | Yes | Common Shares | US | USD | Jun 1998 |
| SE4 | DB (Deutsche Boerse AG) | Yes | Common Shares | DE | EUR | Jun 1998 |
| SRE * | BMV (Bolsa Mexicana de Valores) | Yes | Common Shares | MX | MXN | Jun 1998 |
| 0L5A | LSE (London Stock Exchange) | Yes | Common Shares | GB | USD | Jun 1998 |
| SRE.PRA | NYSE (New York Stock Exchange) | 6% PFD CONV A | US | USD | Jan 2018 | |
| SRE.PRB | NYSE (New York Stock Exchange) | 6.75% CNV PFD B | US | USD | Jul 2018 | |
| S1RE34 | BOVESPA (Bolsa de Valores de Sao Paulo) | BDR EACH 4 REPR 1 COM | BR | BRL | Jan 2020 |
Biography
Sempra Energy 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 provides electric services to a population of approximately 3.7 million and natural gas services to approximately 3.4 million of that population covering an area of 4,100 square miles. Its Southern California Gas Company segment owns and operates a natural gas distribution, transmission, and storage system that supplies natural gas to a population of approximately 22 million covering an area of 24,000 square miles. The company’s Sempra Texas Utilities segment is involved in the regulated transmission and distribution of electricity serving approximately 3.6 million homes and businesses, and operating approximately 139,000 miles of transmission and distribution lines. Its transmission system included 17,799 circuit miles of transmission lines, 349 transmission stations, and 775 distribution substations; distribution system consisted of 121,747 miles of overhead and underground lines; and approximately 65 miles of electric transmission lines. Its Sempra Mexico segment develops, owns and operates, or holds interests in natural gas, electric, liquefied natural gas (LNG), liquid petroleum gas (LPG), ethane, and liquid fuels infrastructure; and engages in the purchase of LNG, and purchase and sale of natural gas. This segment operates a natural-gas-fired combined-cycle plant, and wind and solar power generation facilities. Its assets/facilities consisted of 1,850 miles of natural gas transmission pipelines, 13 compressor stations, 139 miles of ethane pipelines, 118 miles of LPG pipelines, and one LPG storage terminal. The company’s Sempra LNG segment develops and holds interest in export of LNG; and owns, operates, buys, sells, and transports natural gas. The company was founded in 1998 and is headquartered in San Diego, California.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/07/05 23:47 |
| End of Day Share Price | 2020/07/02 00:00 |
| Earnings | 2020/03/31 |
| Annual Earnings | 2019/12/31 |
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.