NYSE:SRE

Stock Analysis Report

Executive Summary

Sempra Energy, together with its subsidiaries, invests in, develops, and operates energy infrastructure, as well as provides electric and gas services in the United States and internationally.

Snowflake

Fundamentals

Established dividend payer with questionable 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


Market Performance


7 Day Return

3.0%

NYSE:SRE

2.7%

US Integrated Utilities

2.9%

US Market


1 Year Return

22.0%

NYSE:SRE

15.0%

US Integrated Utilities

0.2%

US Market

SRE outperformed the Integrated Utilities industry which returned 13.5% over the past year.

SRE outperformed the Market in United States of America which returned -0.7% over the past year.


Share holder returns

SREIndustryMarket
7 Day3.0%2.7%2.9%
30 Day0.2%1.5%-2.3%
90 Day3.6%2.0%3.1%
1 Year25.8%22.0%19.1%15.0%2.4%0.2%
3 Year44.4%31.9%37.2%23.4%41.7%32.4%
5 Year56.7%35.5%72.4%38.8%55.1%37.9%

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 based on future cash flows and its price relative to the stock market?

18.37x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Sempra Energy's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Sempra Energy's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Sempra Energy is good value based on earnings compared to the US Integrated Utilities industry average.

Sempra Energy is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Sempra Energy is poor value based on expected growth next year.


Price Based on Value of Assets

Sempra Energy is overvalued based on assets compared to the US Integrated Utilities industry average.


Next Steps

Future Growth

How is Sempra Energy expected to perform in the next 1 to 3 years based on estimates from 8 analysts?

10.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Sempra Energy's revenue is expected to grow by 3.7% yearly, however this is not considered high growth (20% yearly).

Sempra Energy's earnings are expected to grow by 10.8% yearly, however this is not considered high growth (20% yearly).

Sempra Energy's revenue growth is positive but not above the United States of America market average.

Sempra Energy's earnings growth is positive but not above the United States of America market average.

Sempra Energy's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Sempra Energy is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Sempra Energy performed over the past 5 years?

-11.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Sempra Energy's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.

Sempra Energy has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.

Sempra Energy has become profitable in the last year making it difficult to compare the US Integrated Utilities industry average.


Return on Equity

Sempra Energy has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Sempra Energy used its assets more efficiently than the US Integrated Utilities industry average last year based on Return on Assets.


Return on Capital Employed

Sempra Energy has improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Sempra Energy's financial position?


Financial Position Analysis

Sempra Energy's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

Sempra Energy's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Sempra Energy's level of debt (127%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (114.2% vs 127% today).

Debt is not well covered by operating cash flow (14.1%, less than 20% of total debt).

Interest payments on debt are not well covered by earnings (EBIT is 2.7x annual interest expense, ideally 3x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.1x debt.


Next Steps

Dividend

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

2.99%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Sempra Energy's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.49%).

Sempra Energy's dividend is below the markets top 25% of dividend payers in United States of America (3.85%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (2.1x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (1.7x coverage).


Next Steps

Management

What is the CEO of Sempra Energy's salary, the management and board of directors tenure and is there insider trading?

1.3yrs

Average management tenure


CEO

Jeff Martin (57yo)

1.3yrs

Tenure

US$9,324,491

Compensation

Mr. Jeffrey Walker Martin, also known as Jeff, has been the Chief Executive Officer and Director of Sempra Energy from May 1, 2018 and chairman since December 01, 2018. Mr. Martin served as the Chairman of ...


CEO Compensation Analysis

Jeff's remuneration is about average for companies of similar size in United States of America.

Jeff's compensation has increased in line with Sempra Energy recently becoming profitable.


Management Age and Tenure

1.3yrs

Average Tenure

57yo

Average Age

The average tenure for the Sempra Energy management team is less than 2 years, this suggests a new team.


Board Age and Tenure

6.5yrs

Average Tenure

67yo

Average Age

The tenure for the Sempra Energy board of directors is about average.


Insider Trading

Sempra Energy individual insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$97,94523 May 19
Peter Wall
EntityIndividual
Role
Chief Accounting Officer
VP, Controller & Chief Accounting Officer
Shares723
Max PriceUS$135.47
SellUS$6,793,85723 May 19
Joseph Householder
EntityIndividual
Role
President
President & COO
Shares50,400
Max PriceUS$135.41
SellUS$554,90613 Nov 18
Trevor Mihalik
EntityIndividual
Role
Chief Financial Officer
CFO & Executive VP
Shares4,744
Max PriceUS$116.97
SellUS$670,79413 Nov 18
Jeffrey Martin
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares5,705
Max PriceUS$117.58

Ownership Breakdown


Management Team

  • G. Rowland (64yo)

    Senior VP & Chief Culture Officer

    • Tenure: 1.0yrs
    • Compensation: US$3.11m
  • Joe Householder (64yo)

    President & COO

    • Tenure: 1.3yrs
    • Compensation: US$9.10m
  • Dennis Arriola (58yo)

    Executive VP & Group President

    • Tenure: 0.0yrs
    • Compensation: US$3.25m
  • Erbin Keith (58yo)

    Deputy General Counsel

    • Tenure: 0.0yrs
  • Trevor Mihalik (52yo)

    CFO & Executive VP

    • Tenure: 1.3yrs
    • Compensation: US$3.78m
  • Jeff Martin (57yo)

    Chairman & CEO

    • Tenure: 1.3yrs
    • Compensation: US$9.32m
  • Randall Clark (49yo)

    Deputy General Counsel & Chief HR Officer

    • Tenure: 0.3yrs
  • Peter Wall (47yo)

    VP, Controller & Chief Accounting Officer

    • Tenure: 1.3yrs
  • Faisel Khan (42yo)

    Senior Vice President of Finance & Investor Relations

    • Tenure: 1.3yrs
  • Lisa M. Alexander

    Vice President of Corporate Communications & Sustainability

    • Tenure: 1.3yrs

Board Members

  • William Rusnack (74yo)

    Lead Independent Director

    • Tenure: 0.0yrs
    • Compensation: US$375.08k
  • Alan Boeckmann (70yo)

    Director

    • Tenure: 8.5yrs
    • Compensation: US$265.00k
  • Lynn Schenk (74yo)

    Director

    • Tenure: 11.4yrs
    • Compensation: US$290.00k
  • William Jones (63yo)

    Director

    • Tenure: 21.6yrs
    • Compensation: US$291.44k
  • Kevin Sagara (57yo)

    Chairman & CEO of San Diego Gas & Electric Company

    • Tenure: 0.0yrs
  • Jim Yardley (67yo)

    Director

    • Tenure: 6.3yrs
    • Compensation: US$280.00k
  • Kathleen Brown (73yo)

    Director

    • Tenure: 6.2yrs
    • Compensation: US$265.00k
  • Jeff Martin (57yo)

    Chairman & CEO

    • Tenure: 1.3yrs
    • Compensation: US$9.32m
  • J. Lane (60yo)

    Executive Chairman & CEO of Southern California Gas Company

    • Tenure: 0.0yrs
  • Jack Taylor (67yo)

    Director

    • Tenure: 6.5yrs
    • Compensation: US$307.80k

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$38.665b
  • Shares outstanding: 274.55m
  • 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

Biography

Sempra Energy, together with its subsidiaries, invests in, develops, and operates energy infrastructure, as well as provides electric and gas services in the United States and internationally. The company’ ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/21 23:42
End of Day Share Price2019/08/21 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.