Sempra Energy (SRE)
NYSE:SRE
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Sempra Energy
(NYSE:SRE)
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Rating:64Neutral
Price Target:
$103.00
▲(7.11% Upside)
Action:ReiteratedDate:03/31/26
The score is held back primarily by weakening financial statement trends (recent revenue declines, uneven cash conversion with historically negative free cash flow, and 2025 operating-profit volatility). Offsetting this, technicals are positive with a strong moving-average structure and supportive momentum, while the latest earnings call provided clear long-term guidance and a funded regulated growth plan. Valuation remains a restraint due to the high P/E, with only moderate support from the dividend yield.
Positive Factors
Large regulated capital plan & rate-base growth
A $65B, 2026–2030 plan focused 95% on regulated utilities and a projected rate base growing from $57B to $97B by 2030 creates durable earnings visibility. Steady rate-base expansion supports allowed returns and predictable cash flows tied to regulated frameworks over the medium term.
Negative Factors
Sharp recent revenue declines & profit volatility
Material top-line declines and abnormal 2025 operating-profit swings weaken earnings quality and lower return on capital. Persistent revenue pressure reduces cushion for elevated capex and interest costs and makes multi-year EPS guidance more execution-sensitive to regulatory and operating outcomes.
Read all positive and negative factors
Positive Factors
Negative Factors
Large regulated capital plan & rate-base growth
A $65B, 2026–2030 plan focused 95% on regulated utilities and a projected rate base growing from $57B to $97B by 2030 creates durable earnings visibility. Steady rate-base expansion supports allowed returns and predictable cash flows tied to regulated frameworks over the medium term.
Read all positive factors
Sempra Energy (SRE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$62.87B
Dividend Yield2.91%
Average Volume (3M)3.22M
Price to Earnings (P/E)31.4
Beta (1Y)0.58
Revenue Growth9.07%
EPS Growth-28.58%
CountryUS
Employees16,773
SectorUtilities
Sector Strength65
IndustryDiversified Utilities
Share Statistics
EPS (TTM)1.28
Shares Outstanding653,284,100
10 Day Avg. Volume2,696,623
30 Day Avg. Volume3,222,084
Financial Highlights & Ratios
PEG Ratio-0.82
Price to Book (P/B)1.82
Price to Sales (P/S)4.20
P/FCF Ratio-9.53
Enterprise Value/Market Cap1.57
Enterprise Value/Revenue7.18
Enterprise Value/Gross Profit24.49
Enterprise Value/Ebitda16.21
Forecast
1Y Price Target
$105.50Price Target Upside9.71% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering13
EPS Forecast (FY)5.11
Revenue Forecast (FY)$14.33B
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 approximate...
How the Company Makes Money
Sempra Energy primarily makes money through (1) regulated utility earnings and (2) contracted energy infrastructure revenues, with results influenced by rate regulation, customer demand, and long-term commercial agreements.
1) Regulated utility r...
Sempra Energy Key Performance Indicators (KPIs)
Any
Earnings breakdown
Offers a detailed view of earnings sources, helping to assess the sustainability of profits and identify key drivers of financial performance.
Offers a detailed view of earnings sources, helping to assess the sustainability of profits and identify key drivers of financial performance.
Data provided by:
The Fly
The FlySempra Energy Earnings Call Summary
Earnings Call Date:Feb 26, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 30, 2026
Earnings Call Sentiment Positive
The call conveyed a largely constructive and growth-oriented outlook: management reported record adjusted EPS, meaningful improvements in operating cash flow (+$5 billion vs prior plan), an aggressive $65 billion 2026–2030 capital plan (17% increase) focused 95% on regulated utility investments, and strategic portfolio actions (sale of 45% SIP, Ecogas sale, LNG project progress) that together strengthen funding flexibility and support guidance through 2030. Notable near-term weaknesses include material year-over-year GAAP declines (quarterly and full-year), Q4 adjusted softness, continued cost and interest expense pressures, and execution/closing risks tied to transactions and regulatory outcomes (California GRC, Oncor final order, ERCOT batch-zero). On balance, the highlights—strong cash generation, secured funding strategy for the base plan, clear growth visibility, and reiterated multi-year guidance—outweigh the lowlights, though several execution and regulatory risks remain.Positive Updates
Record Adjusted EPS and Strong Annual Results
Full-year 2025 adjusted EPS of $4.69 per share (record), at the high end of guidance; full-year adjusted earnings $3.066 billion vs $2.969 billion in 2024 (+3.3% in dollars, +0.9% on a per-share basis).
Negative Updates
Quarterly and GAAP Earnings Declines
Q4 2025 GAAP earnings $352 million ($0.54/share) vs Q4 2024 $665 million ($1.04/share), a decline of ~47% in dollars and ~48% in EPS; full-year 2025 GAAP earnings $1.796 billion ($2.75/share) vs 2024 $2.081 billion ($4.42/share), a decline of ~13.7% in dollars and ~37.8% in EPS.
Read all updates
Q4-2025 Updates
Positive
Negative
Record Adjusted EPS and Strong Annual Results
Full-year 2025 adjusted EPS of $4.69 per share (record), at the high end of guidance; full-year adjusted earnings $3.066 billion vs $2.969 billion in 2024 (+3.3% in dollars, +0.9% on a per-share basis).
Read all positive updates
Company Guidance
Sempra reaffirmed 2026 adjusted EPS guidance of $4.80–$5.30, introduced 2027 guidance of $5.10–$5.70 and a 2030 EPS outlook of $6.70–$7.50 (midpoint ≈ $7.10), implying roughly a 7–9% CAGR from the 2026 base and supported by a target annual dividend growth rate of 2–4%; it launched a record $65 billion 2026–2030 capital plan (up 17% year-over-year) with 95% allocated to utility investments, is tracking $9 billion of upside (≈$8B to Sempra on a proportionate basis; Oncor cites ~$10B incremental opportunities gross), expects rate base to grow from $57B in 2025 to $97B in 2030 (~11% five‑year CAGR) with Sempra Texas rate base ~18% CAGR and ~70% of Oncor’s CapEx dedicated to transmission, plans to fund the base plan without new common equity using >$50B of operational cash flows and transaction proceeds (operating cash flows up ~$5B vs. last year; ~$2.2B from the SIP transaction falls outside the plan period) while retaining a 25% SIP stake (implied value ≈ $5.5B), and after closing expects regulated earnings to comprise ~95% of the business with a targeted 50–150 bps cushion above FFO‑to‑debt downgrade thresholds.Sempra Energy Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
63
Positive
Cash Flow
46
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 13.71B | 12.96B | 15.80B | 15.55B | 13.06B |
| Gross Profit | 4.00B | 3.52B | 3.75B | 4.16B | 3.64B |
| EBITDA | 6.87B | 5.85B | 6.12B | 4.42B | 3.26B |
| Net Income | 1.84B | 2.86B | 3.08B | 2.14B | 1.32B |
Balance Sheet | |||||
| Total Assets | 110.88B | 96.16B | 87.18B | 78.57B | 72.05B |
| Cash, Cash Equivalents and Short-Term Investments | 2.00M | 1.56B | 236.00M | 370.00M | 559.00M |
| Total Debt | 36.29B | 35.85B | 31.08B | 28.92B | 24.64B |
| Total Liabilities | 68.88B | 58.37B | 53.53B | 49.32B | 44.63B |
| Stockholders Equity | 31.61B | 31.24B | 28.70B | 27.14B | 26.00B |
Cash Flow | |||||
| Free Cash Flow | -6.05B | -3.31B | -2.18B | -4.21B | -1.17B |
| Operating Cash Flow | 4.57B | 4.91B | 6.22B | 1.14B | 3.84B |
| Investing Cash Flow | -12.21B | -9.12B | -8.72B | -5.04B | -5.51B |
| Financing Cash Flow | 9.60B | 5.42B | 2.42B | 3.78B | 1.26B |
Sempra Energy Technical Analysis
Positive
96.16
Price Trends
93.61
Positive
90.98
Positive
87.04
Positive
Market Momentum
1.24
Positive
50.97
Neutral
29.05
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 96.16 is below the 20-day moving average (MA) of 96.42, above the 50-day MA of 93.61, and above the 200-day MA of 87.04, indicating a neutral trend. The MACD of 1.24 indicates Positive momentum. The RSI at 50.97 is Neutral, neither overbought nor oversold. The STOCH value of 29.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SRE.
Sempra Energy Risk Analysis
Sempra Energy disclosed 47 risk factors in its most recent earnings report. Sempra Energy reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Sempra Energy Peers Comparison
UnderperformOutperform
Sector (66)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | $9.03B | 6.53 | 17.23% | 12.98% | -0.38% | -53.94% | |
66 Neutral | $107.38B | 22.16 | 12.50% | 3.40% | 9.40% | -6.05% | |
66 Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% | |
64 Neutral | $62.87B | 31.37 | 5.82% | 2.91% | 9.07% | -28.58% | |
62 Neutral | $5.49B | 17.38 | 7.85% | 3.91% | 7.03% | 6.64% | |
59 Neutral | $16.96B | 35.60 | 9.74% | 4.92% | 8.14% | ― | |
55 Neutral | $10.27B | 10.76 | 20.40% | 5.06% | -1.55% | 12.83% |
* Utilities Sector Average
SRE
Sempra Energy
96.16
27.85
40.78%
BKH
Black Hills
76.60
19.03
33.06%
BIP
Brookfield Infrastructure
37.23
10.09
37.20%
CIG
Companhia Energetica Minas Gerais
2.69
1.21
81.76%
SO
Southern Co
95.96
8.36
9.55%
AES
AES
14.40
4.98
52.85%
Sempra Energy Corporate Events
Business Operations and StrategyRegulatory Filings and Compliance
Sempra Subsidiary SDG&E Reaches FERC Rate Settlement
Positive
Mar 26, 2026
On March 23, 2026, SDGE, a subsidiary of Sempra, filed an unopposed settlement offer in its TO6 rate proceeding with the U.S. Federal Energy Regulatory Commission, following its original TO6 filing in October 2024. The deal would raise SDGE’...
Business Operations and StrategyPrivate Placements and Financing
Sempra’s SDG&E Unit Prices $1.1 Billion Bond Offering
Positive
Mar 20, 2026
On March 20, 2026, San Diego Gas Electric closed a public offering of $625 million of 5.200% First Mortgage Bonds due 2036 and $475 million of 5.950% First Mortgage Bonds due 2056, raising proceeds at 99.104% and 98.517% of par, respectively, bef...
Private Placements and FinancingRegulatory Filings and Compliance
Sempra’s SDG&E Prices Dual-Tranche First Mortgage Bonds
Positive
Mar 17, 2026
On March 16, 2026, San Diego Gas Electric Company entered into an underwriting agreement with a syndicate of investment banks to issue and sell $625 million of 5.200% First Mortgage Bonds due 2036 and $475 million of 5.950% First Mortgage Bonds d...
Business Operations and StrategyPrivate Placements and Financing
Sempra Energy Completes $800 Million Senior Notes Offering
Positive
Mar 13, 2026
On March 13, 2026, Sempra completed a public offering of $800 million aggregate principal amount of 5.250% notes due March 15, 2036, generating approximately $793.4 million in net proceeds after underwriting discounts but before offering expenses....
Business Operations and StrategyFinancial DisclosuresRegulatory Filings and Compliance
Sempra’s Oncor Unit Reaches Settlement in Texas Rate Case
Positive
Jan 29, 2026
On January 29, 2026, Oncor Electric Delivery Company, 80.25%-owned by Sempra Energy, filed an unopposed settlement in its comprehensive base rate review in Texas, seeking approval for an annual revenue requirement of about $6.975 billion, represen...
Business Operations and StrategyLegal Proceedings
SoCalGas Addresses Edison Cross-Claims in Eaton Fire Litigation
Negative
Jan 21, 2026
On January 21, 2026, SoCalGas responded publicly to cross-claims filed on January 16, 2026 by Southern California Edison in the ongoing Eaton Fire litigation, in which Edison named SoCalGas and more than a dozen other defendants. SoCalGas criticiz...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.