Sempra
Exchange: NYSESector: UtilitiesIndustry: Utilities - Diversified
Sempra's mission is to build America's leading utility growth business. As owner of one of the largest energy networks on the continent, Sempra is electrifying and improving energy resilience in California and Texas, the two largest economies in the U.S. The company is recognized as a leader in responsible business practices and for its high-performance culture focused on safety and operational excellence, as demonstrated by Sempra's inclusion in The Wall Street Journal's Management Top 250 and Fortune's World's Most Admired Companies.
Did you know?
Profit margin stands at 13.4%.
Current Price
$94.67
-0.47%GoodMoat Value
$37.03
60.9% overvaluedProfile
Valuation (TTM)
Market Cap$61.79B
P/E34.40
EV$95.99B
P/B1.96
Shares Out652.68M
P/Sales4.51
Revenue$13.70B
EV/EBITDA17.97
Sempra (SRE) Stock Analysis
GoodMoat Analysis
Sempra is a regulated utility with a potential moat from regulatory barriers and scale, but it fails the initial quality and valuation gates for a value investor. The stock appears significantly overvalued with weak growth and cash flow metrics.
Read full analysis
Sempra (SRE) is a large, diversified utility company operating regulated electric and natural gas infrastructure in California and Texas, along with a growing portfolio of LNG export facilities. Applying the GoodMoat framework, its primary competitive advantage lies in Section 1: Moat Identification. It likely scores points for Regulatory Barriers (operating under state-granted monopolies) and Scale Privilege (owning extensive, critical infrastructure). However, its overall business quality, as defined in Section 2, is unfavourable. Key metrics like Revenue Growth YoY (-0.2%), FCF Yield (-1.2%), and ROE (5.8%) are weak and fall short of the high-return, cash-generative profile sought. The Debt/Equity ratio of 1.11 also indicates a leveraged balance sheet. Proceeding to the Decision Framework (Section 6), the stock likely fails the 'Moat & Quality Gate' due to insufficient quality indicators. Furthermore, the valuation is a severe concern. The current P/E of 34.6 is high for a utility with minimal growth, and the GoodMoat Target price of $37.03 suggests the market price of $95.32 implies a deeply unfavourable margin of safety. For a value investor, Sempra does not meet the foundational criteria of a high-quality business trading at an attractive price, making further investigation unfavourable based on this framework.
Market Cap$61.79B
Current Price$94.67
P/E Ratio34.40
Forward P/E—
PEG Ratio-0.72
EPS$2.75
Book Value$48.41
P/B Ratio1.96
SRE Financial Charts
FCF vs CAPEX
FCFCAPEX
Cash vs Debt
Net Debt: 35.0B
Revenue
10.8B
FY19
11.4B
FY20
12.9B
FY21
14.4B
FY22
16.7B
FY23
13.2B
FY24
13.7B
FY25
Net Income
2.2B
FY19
3.9B
FY20
1.3B
FY21
2.1B
FY22
3.1B
FY23
2.9B
FY24
1.8B
FY25
SRE 52-Week Range
$71.61
$99.75
50-Day MA: $94.80200-Day MA: $88.37
Did you know?
Price sits at 82% of its 52-week range.
Sempra (SRE) Financial Summary
Sempra (SRE) is a Utilities company in the Utilities - Diversified industry, listed on NYSE. The stock currently trades at $94.67 with a market capitalization of $61.79B.
Key valuation metrics include a P/E ratio of 34.40, price-to-book ratio of 1.96, and EPS of $2.75. The company reports a profit margin of 13.4% and return on equity of 5.8%.
SRE Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $61.79B |
| P/E Ratio | 34.40 |
| EPS | $2.75 |
| P/B Ratio | 1.96 |
| P/S Ratio | 4.51 |
| EV/EBITDA | 17.97 |
| Dividend Yield | 0.32% |
| Profit Margin | 13.4% |
| Return on Equity | 5.8% |
| Debt/Equity | 1.11 |
SRE Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY19 | $10.83B | $2.20B |
| FY20 | $11.37B | $3.93B |
| FY21 | $12.86B | $1.32B |
| FY22 | $14.44B | $2.14B |
| FY23 | $16.72B | $3.08B |
| FY24 | $13.19B | $2.86B |
| FY25 | $13.70B | $1.84B |
Sempra (SRE) Valuation
Based on GoodMoat's DCF model, Sempra has a fair value estimate of $37.03. At the current price of $94.67, the stock appears 155.7% overvalued relative to our intrinsic value estimate.
SRE Quality Indicators
Sempra maintains a profit margin of 13.4% and an operating margin of 17.7%. Return on equity stands at 5.8%. The current ratio is 1.59. Debt-to-equity ratio is 1.11.
About Sempra
Sempra's mission is to build America's leading utility growth business. As owner of one of the largest energy networks on the continent, Sempra is electrifying and improving energy resilience in California and Texas, the two largest economies in the U.S. The company is recognized as a leader in responsible business practices and for its high-performance culture focused on safety and operational excellence, as demonstrated by Sempra's inclusion in The Wall Street Journal's Management Top 250 and Fortune's World's Most Admired Companies.
SRE Free Cash Flow
Sempra generated $-763.00M in trailing twelve-month free cash flow, representing an FCF yield of -1.23%. This low FCF yield may reflect heavy reinvestment or growth spending.
SRE Shares Outstanding
Sempra has 0.65 billion shares outstanding at a share price of $94.67, giving it a market capitalization of $61.79B.
SRE Recent Insider Trades
Recent insider transactions at Sempra include:
| Insider | Type | Shares | Value |
|---|---|---|---|
| BIRD JUSTIN CHRISTOPHER (Executive Vice President) | SELL | 1,128 | $109066.32 |
| Wold Dyan Z. (VP, Controller and CAO) | SELL | 1,539 | $146789.82 |
| Kirk Jennifer M | BUY | 1,000 | $93440.00 |