SRE Sempra - Fundamental Analysis
NEUTRAL
SRE Stock | Fundamental Analysis & Investment Insights
NYSE
•
Utilities
•
Utilities - Diversified
Current Price
$92.0
Analyst Target
$99.13
+7.8% Upside
52W High
$95.77
52W Low
$61.9
AI Analysis
Powered by advanced machine learning algorithms
Confidence Score
65%
Analysis Accuracy
Sempra (SRE) trades at a premium valuation with a current P/E of 28.31 and forward P/E of 17.90, above sector averages, despite materially decelerating earnings growth and a recent string of negative earnings surprises. While the company maintains solid revenue growth of 13.5% YoY and a respectable 2.8% dividend yield, its profitability metrics—particularly ROE of 6.77% and ROA of 1.85%—lag behind peers like SO and DUK. Price momentum has weakened recently, with a -1.8% one-week return and a -85.4% Q/Q earnings decline, offsetting longer-term gains. Analysts maintain a 'buy' recommendation with a $99.13 target, implying 7.8% upside, but insider selling worth $4.67M over the past six months raises caution about near-term sentiment.
Key Strengths
Revenue growth of 13.5% YoY significantly outpaces sector average of 5.87% and peers like NEE (5.3%) and DUK (4.8%)
Forward P/E of 17.90 suggests valuation compression already priced in, below current P/E of 28.31 and near sector median
Dividend yield of 2.8% is above sector average and provides income appeal in a low-growth environment
Debt/Equity of 0.81 is well below sector average of 1.69, indicating conservative capital structure relative to peers
Gross margin of 41.33% reflects strong pricing power and cost control in regulated utility operations
Key Risks
Earnings growth of -88.2% YoY and -85.4% Q/Q indicates severe profitability contraction, the worst in peer group
ROE of 6.77% lags sector average of 9.86% and peers SO (11.43%) and DUK (9.90%), signaling weak capital efficiency
Quick ratio of 0.09 signals acute liquidity risk, far below 1.0 threshold and peer group norms
Recent insider selling totaling $4.67M across five transactions suggests lack of confidence among executives and directors
Payout ratio of 78.62% is high for a capital-intensive utility, limiting reinvestment flexibility and increasing dividend sustainability risk
AI Fair Value Estimate
Based on comprehensive analysis
$99.13
+7.7% above current price
Performance Snowflake
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Stock Price & Analyst Targets
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Historical Performance Trends
Long-term financial metrics and growth patterns
Valuation Metrics
Key valuation ratios and pricing indicators
Profitability, Growth & Financial Health
Detailed profit margins, ROE, debt ratios, and liquidity metrics
Sector Comparison & Peer Analysis
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Insider Trading & Analyst Ratings
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