Sempra Energy (SRE) AI Stock Analysis

• Market Cap: $56.37B
• Dividend Yield: 2.91%
• Average Volume (3M): 2.85M
• Price to Earnings (P/E): 27.1
• Beta (1Y): 0.61
• Revenue Growth: 9.07%
• EPS Growth: -28.58%
• Country: US
• Employees: 16,773
• Sector: Utilities
• Sector Strength: 65
• Industry: Diversified Utilities
• EPS (TTM): 1.11
• Shares Outstanding: 652,681,500
• 10 Day Avg. Volume: 1,715,690
• 30 Day Avg. Volume: 2,851,923
• PEG Ratio: -2.54
• Price to Book (P/B): 1.78
• Price to Sales (P/S): 4.29
• P/FCF Ratio: -16.81
• Enterprise Value/Market Cap: 1.80
• Enterprise Value/Revenue: 7.39
• Enterprise Value/Gross Profit: 25.52
• Enterprise Value/Ebitda: 15.47
• 1Y Price Target: $100.58
• Price Target Upside: 14.26% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 12
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: $93.00 ▲(5.65% Upside)

Sempra Energy's overall score reflects strong earnings growth and strategic initiatives, offset by high leverage, negative cash flow, and regulatory challenges. While the earnings call was positive, technical indicators and corporate events suggest caution.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business operations, supporting long-term financial health.

Strategic Capital Deployment

Significant capital deployment enhances infrastructure and capacity, positioning Sempra for future growth and competitive advantage.

LNG Project Progress

Progress in LNG projects strengthens Sempra's energy portfolio, ensuring long-term revenue streams and market leadership in energy infrastructure.

Negative Factors

High Leverage

High leverage can limit financial flexibility and increase risk, potentially impacting Sempra's ability to invest in growth opportunities.

Negative Free Cash Flow

Negative free cash flow indicates cash management challenges, which could constrain operational investments and shareholder returns.

Regulatory Challenges

Pending regulatory issues in key markets could lead to operational disruptions and increased costs, affecting Sempra's financial performance.

Sempra Energy Business Overview & Revenue Model

Company Description

Sempra operates as an energy-services holding company in the United States and internationally. The company's San Diego Gas & Electric Company segment provides electric services; and supplies natural gas. It offers electric services to approximately 3.6 million population and natural gas services to approximately 3.3 million population that covers 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 engages in the regulated transmission and distribution of electricity serving 3.8 million homes and businesses, and operation of 140,000 miles of transmission and distribution lines. Its transmission system includes 18,249 circuit miles of transmission lines, a total of 1,174 transmission and distribution substations, and interconnection to 130 third-party generation facilities totaling 45,403 megawatts. The company was formerly known as Sempra Energy and changed its name to Sempra in July 2021. Sempra was founded in 1998 and is headquartered in San Diego, California.

How the Company Makes Money

Sempra Energy generates revenue primarily through the sale of electricity and natural gas to residential, commercial, and industrial customers. The company operates regulated utility businesses that earn revenue through rate-based pricing, which allows them to charge customers based on state-approved rates that ensure recovery of costs and a reasonable return on investment. Additionally, Sempra Infrastructure's operations in LNG and renewable energy projects provide revenue through long-term contracts and sales agreements with energy companies and governments. The company also benefits from partnerships with other energy firms and investments in large-scale infrastructure projects, further diversifying its revenue streams and enhancing its profitability.

Sempra Energy Financial Statement Overview

Summary

Sempra Energy demonstrates strong profitability with a solid income statement, but faces challenges with high leverage and negative free cash flow. The company needs to improve operational efficiency and cash flow management to enhance financial stability.

Income Statement

Sempra Energy shows a solid performance in its income statement with a consistent revenue growth rate of 3.83% in the TTM period. The gross profit margin is stable at 28.01%, and the net profit margin is strong at 20.52%. However, the EBIT margin slightly decreased to 26.22% from the previous year, indicating some pressure on operating efficiency. Overall, the company maintains healthy profitability metrics, though there is room for improvement in operational efficiency.

Balance Sheet

The balance sheet reflects a moderate financial position with a debt-to-equity ratio of 1.22, indicating a relatively high leverage. The return on equity is 8.73%, which is decent but shows a decline from previous years. The equity ratio stands at 30.70%, suggesting a balanced capital structure. While the company is leveraging its equity effectively, the high debt levels could pose a risk if not managed carefully.

Cash Flow

Cash flow analysis reveals challenges with negative free cash flow, although there is a 12.31% growth in free cash flow in the TTM period. The operating cash flow to net income ratio is 0.54, indicating that operating cash flows are not fully covering net income. The negative free cash flow to net income ratio of -0.94 highlights the need for improved cash management. While there is some improvement, the cash flow situation remains a concern.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	13.73B	12.96B	15.80B	15.55B	13.06B	11.35B
Gross Profit	3.98B	3.52B	3.75B	4.16B	3.64B	3.28B
EBITDA	6.56B	5.85B	6.12B	4.42B	3.26B	4.23B
Net Income	2.16B	2.86B	3.08B	2.14B	1.32B	3.93B
Balance Sheet
Total Assets	106.92B	96.16B	87.18B	78.57B	72.05B	66.62B
Cash, Cash Equivalents and Short-Term Investments	126.00M	1.56B	236.00M	370.00M	559.00M	960.00M
Total Debt	33.59B	35.85B	31.08B	28.92B	24.64B	24.21B
Total Liabilities	66.70B	58.37B	53.53B	49.32B	44.63B	41.69B
Stockholders Equity	31.17B	31.24B	28.70B	27.14B	26.00B	23.39B
Cash Flow
Free Cash Flow	-4.91B	-3.31B	-2.18B	-4.21B	-1.17B	-2.08B
Operating Cash Flow	4.74B	4.91B	6.22B	1.14B	3.84B	2.59B
Investing Cash Flow	-11.40B	-9.12B	-8.72B	-5.04B	-5.51B	553.00M
Financing Cash Flow	8.99B	5.42B	2.42B	3.78B	1.26B	-2.37B

Sempra Energy Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 88.03
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SRE, the sentiment is Positive. The current price of 88.03 is below the 20-day moving average (MA) of 88.16, below the 50-day MA of 90.05, and above the 200-day MA of 80.93, indicating a neutral trend. The MACD of -0.56 indicates Positive momentum. The RSI at 47.10 is Neutral, neither overbought nor oversold. The STOCH value of 34.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SRE.

Sempra Energy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BKH	74 Outperform	$5.43B	17.97	7.90%	3.91%	7.03%	6.64%
CIG	70 Outperform	$6.43B	8.13	13.35%	12.98%	-0.38%	-53.94%
BIP	69 Neutral	$15.44B	52.79	6.28%	4.92%	8.14%	―
SO	68 Neutral	$94.99B	21.68	13.06%	3.40%	9.40%	-6.05%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
AES	65 Neutral	$10.29B	8.66	23.02%	5.06%	-1.55%	12.83%
SRE	61 Neutral	$56.37B	27.11	7.10%	2.91%	9.07%	-28.58%

Sempra Energy Corporate Events

Sempra Updates 2025 Earnings Outlook, Reaffirms 2026 Guidance

On December 19, 2025, Sempra said it now expects full-year 2025 adjusted diluted EPS to come in at the high end of its previously announced $4.30–$4.70 range, while updating its 2025 GAAP EPS guidance to $2.38–$2.78 to reflect nine-month results and a sizeable estimated fourth-quarter charge tied to a proposed California Public Utilities Commission decision on San Diego Gas & Electric’s Track 2 rate case and other regulatory disallowances, as well as foreign currency, derivatives and tax items related to assets held for sale. The company also reaffirmed its 2026 adjusted EPS guidance of $4.80–$5.30, underscoring confidence in underlying operational performance despite regulatory and tax headwinds and signaling that, once one-off items are stripped out, management sees earnings power strengthening across its regulated utility and infrastructure portfolio.

The most recent analyst rating on (SRE) stock is a Hold with a $96.00 price target. To see the full list of analyst forecasts on Sempra Energy stock, see the SRE Stock Forecast page.

Sempra Energy Faces Operational Risks and Uncertainties

Sempra Energy has highlighted various risks and uncertainties that could impact its operations, including disruptions in electric power and natural gas availability, as well as potential work stoppages and facility damages. These challenges could affect the company’s ability to maintain satisfactory insurance levels and meet regulatory requirements, potentially influencing its financial stability and stakeholder interests.

The most recent analyst rating on (SRE) stock is a Buy with a $106.00 price target. To see the full list of analyst forecasts on Sempra Energy stock, see the SRE Stock Forecast page.