Sempra
Sempra Fundamental Analysis
Sempra (SRE) shows weak financial fundamentals with a PE ratio of 34.09, profit margin of 13.36%, and ROE of 5.51%. The company generates $13.7B in annual revenue with weak year-over-year growth of -18.00%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 0.9/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze SRE's fundamental strength across five key dimensions:
Efficiency Score
WeakSRE struggles to generate sufficient returns from assets.
Valuation Score
ModerateSRE shows balanced valuation metrics.
Growth Score
WeakSRE faces weak or negative growth trends.
Financial Health Score
ModerateSRE shows balanced financial health with some risks.
Profitability Score
WeakSRE struggles to sustain strong margins.
Key Financial Metrics
Is SRE Expensive or Cheap?
P/E Ratio
SRE trades at 34.09 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, SRE's PEG of -2.19 indicates potential undervaluation.
Price to Book
The market values Sempra at 1.61 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 4.45 times EBITDA. This is generally considered low.
How Well Does SRE Make Money?
Net Profit Margin
For every $100 in sales, Sempra keeps $13.36 as profit after all expenses.
Operating Margin
Core operations generate 23.89 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $5.51 in profit for every $100 of shareholder equity.
ROA
Sempra generates $1.66 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Sempra generates strong operating cash flow of $3.86B, reflecting robust business health.
Free Cash Flow
Sempra generates weak or negative free cash flow of $-3.34B, restricting financial flexibility.
FCF Per Share
Each share generates $-5.11 in free cash annually.
FCF Yield
SRE converts -5.33% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
34.09
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-2.19
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.61
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.55
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.90
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.009
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.06
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.04
vs 25 benchmark
How SRE Stacks Against Its Sector Peers
| Metric | SRE Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 34.09 | 19.75 | Worse (Expensive) |
| ROE | 5.51% | 920.00% | Weak |
| Net Margin | 13.36% | 8803.00% | Weak |
| Debt/Equity | 0.90 | 1.80 | Strong (Low Leverage) |
| Current Ratio | 0.01 | 1.53 | Weak Liquidity |
| ROA | 1.66% | -6162.00% (disorted) | Weak |
SRE outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Sempra's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
5.11%
Industry Style: Defensive, Dividend, Income
GrowingEPS CAGR
14.19%
Industry Style: Defensive, Dividend, Income
High GrowthFCF CAGR
39.35%
Industry Style: Defensive, Dividend, Income
High Growth