NYSE:SRE

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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

SREIndustryMarket
7 Day7.4%5.5%4.0%
30 Day-9.6%-3.7%-1.1%
90 Day6.1%4.5%21.1%
1 Year-9.7%-12.6%-5.2%-8.4%7.2%5.0%
3 Year20.2%9.4%21.4%9.0%36.0%27.1%
5 Year39.3%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

Valuation

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

NamePositionTenureCompensationOwnership
Jeffrey Martin
Chairman2.17yrsUS$19.81m0.010% $3.5m
Trevor Mihalik
CFO & Executive VP2.17yrsUS$5.24m0.0049% $1.7m
Peter Wall
Senior VP2.17yrsno data0.00085% $300.7k
Eric Trapp
Vice President of Security & Technology and Chief Security Officerno datano datano data
Sandeep Mor
Vice President of Corporate Development0.83yrno datano data
Randall Clark
Senior VP1.25yrsno datano data
Kevin Sagara
Executive VP & Group President of California Utilities0.083yrno data0.0070% $2.5m
Paul Yong
Chief Tax Counsel & VP of Corporate Taxno datano datano data
Faisel Khan
Senior Vice President of Finance0.50yrno datano data
Lisa M. Alexander
Senior Vice President of Corporate Affairs0.50yrno datano 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

NamePositionTenureCompensationOwnership
Jeffrey Martin
Chairman2.17yrsUS$19.81m0.010% $3.5m
J. Lane
CEO & Director of Southern California Gas Company1.58yrsno datano data
Alan Boeckmann
Independent Director9.42yrsUS$258.78k0.0021% $725.3k
William Jones
Independent Lead Director1.5yrsUS$376.57k0.0014% $495.3k
Pablo A. Ferrero
Independent Director6.67yrsUS$245.00k0.0016% $580.2k
James Yardley
Independent Director7.17yrsUS$280.00kno data
Kathleen Brown
Independent Director7.08yrsUS$276.46k0.00025% $88.5k
Bethany Mayer
Director1.08yrsUS$165.63kno data
Jack Taylor
Independent Director7.42yrsUS$309.20k0.000040% $14.2k
Andrés Conesa
Independent Director3.42yrsUS$257.13k0.0017% $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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SRENYSE (New York Stock Exchange)YesCommon SharesUSUSDJun 1998
SE4DB (Deutsche Boerse AG)YesCommon SharesDEEURJun 1998
SRE *BMV (Bolsa Mexicana de Valores)YesCommon SharesMXMXNJun 1998
0L5ALSE (London Stock Exchange)YesCommon SharesGBUSDJun 1998
SRE.PRANYSE (New York Stock Exchange)6% PFD CONV AUSUSDJan 2018
SRE.PRBNYSE (New York Stock Exchange)6.75% CNV PFD BUSUSDJul 2018
S1RE34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 4 REPR 1 COMBRBRLJan 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/05 23:47
End of Day Share Price2020/07/02 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


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.