Sempra Energy (SRE) AI Stock Analysis

• Market Cap: $51.15B
• Dividend Yield: 3.19%
• Average Volume (3M): 4.27M
• Price to Earnings (P/E): 17.3
• Beta (1Y): 0.62
• Revenue Growth: -0.39%
• EPS Growth: 0.75%
• Country: US
• Employees: 16,773
• Sector: Utilities
• Sector Strength: 80
• Industry: Diversified Utilities
• EPS (TTM): 1.44
• Shares Outstanding: 652,170,400
• 10 Day Avg. Volume: 3,849,783
• 30 Day Avg. Volume: 4,265,273
• PEG Ratio: -6.39
• Price to Book (P/B): 1.53
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -14.86
• Enterprise Value/Market Cap: 1.63
• Enterprise Value/Revenue: 1.58
• Enterprise Value/Gross Profit: 16.89
• Enterprise Value/Ebitda: 3.88
• 1Y Price Target: $81.17
• Price Target Upside: 3.76% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 14

Sempra Energy presents a solid investment profile with strong profitability, strategic growth initiatives, and positive technical trends. While high leverage and cash flow challenges exist, the company's strategic focus on infrastructure and technology, combined with steady earnings growth and a fair valuation, support a favorable outlook.

Positive Factors

Earnings

Sempra Energy's 1Q25 EPS of $1.44 beat consensus estimates, indicating stronger than expected financial performance.

Growth Outlook

The company's growth outlook into 2029 is expected to be at or above the high end of the projected 7-9% EPS CAGR range, showcasing strong future growth potential.

Negative Factors

Credit Concerns

Credit concerns remain following Moody's outlook downgrade to Negative.

Earnings Revision

SRE shares' relative multiple has derated by more than ~10% on the lower implied EPS reflecting the surprise earnings revision, the uncertainty of achieving the revised growth expectations, and investors' confidence in management.

Regulatory Environment

Regulatory reservations and rate case concerns hang over reduced guidance.

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 its utility operations in California and Texas. The company earns money by providing electricity and natural gas services to millions of customers, charging them for the energy consumed. Sempra's regulated utilities, SDG&E and SoCalGas, derive income from fixed charges and usage-based rates approved by regulatory bodies. Additional revenue streams include infrastructure investments and the development of renewable energy projects. Sempra's joint ventures and partnerships, such as its stake in Oncor Electric Delivery Company, also contribute to its earnings by expanding its market reach and enhancing operational efficiencies.

Sempra Energy Financial Statement Overview

Summary

Sempra Energy demonstrates strong profitability and efficient operations but faces challenges in revenue growth consistency and cash flow management. Solid returns on equity and effective cost controls are notable strengths. Attention to cash flow stability and revenue growth trajectory is recommended to enhance financial health.

Income Statement

Sempra Energy shows a strong net profit margin due to substantial net income growth. Gross profit margin remains healthy, indicating efficient cost management. However, the revenue growth rate is inconsistent, with a recent decline. EBIT and EBITDA margins are strong, indicating efficient core operations despite a recent drop in EBITDA.

Balance Sheet

The balance sheet displays a moderate debt-to-equity ratio, suggesting manageable leverage levels. Return on Equity (ROE) is strong, indicative of effective use of equity to generate profits. The equity ratio is moderate, reflecting a balanced approach to financing through equity and liabilities.

Cash Flow

Operating cash flow is robust, supporting net income well. However, free cash flow growth is concerning due to significant capital expenditures. The free cash flow to net income ratio indicates effective cash generation relative to earnings, but recent free cash flow figures are negative, highlighting potential cash management challenges.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
13.19B	16.72B	14.44B	12.86B	11.37B
	Gross Profit
6.09B	5.94B	5.21B	5.30B	5.04B
	EBIT
2.96B	5.84B	2.66B	2.98B	2.88B
	EBITDA
5.85B	6.12B	4.52B	4.63B	4.23B
	Net Income Common Stockholders
2.86B	3.08B	787.00M	120.00M	1.24B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.56B	236.00M	370.00M	559.00M	960.00M
	Total Assets
96.16B	87.18B	78.57B	72.05B	66.62B
	Total Debt
35.85B	31.75B	28.92B	24.64B	24.21B
	Net Debt
34.28B	31.46B	28.55B	24.09B	23.25B
	Total Liabilities
58.37B	53.53B	49.32B	44.63B	41.69B
	Stockholders Equity
25.36B	28.70B	27.14B	26.00B	23.39B
Cash Flow		Free Cash Flow
-3.31B	-2.18B	-4.21B	-1.17B	-2.08B
	Operating Cash Flow
4.91B	6.22B	1.14B	3.84B	2.59B
	Investing Cash Flow
-9.12B	-8.72B	-5.04B	-5.51B	553.00M
	Financing Cash Flow
5.42B	2.42B	3.78B	1.26B	-2.37B

Sempra Energy Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 78.23
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 78.23 is above the 20-day moving average (MA) of 75.59, above the 50-day MA of 71.86, and below the 200-day MA of 79.86, indicating a neutral trend. The MACD of 1.52 indicates Negative momentum. The RSI at 67.66 is Neutral, neither overbought nor oversold. The STOCH value of 94.82 is Negative, 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
CIG	82 Outperform	$6.07B	4.14	26.38%	15.46%	-4.14%	13.02%
ELP	79 Outperform	$6.36B	12.56	9.22%	4.88%	-7.02%	17.33%
SRE	74 Outperform	$51.15B	17.26	9.76%	3.19%	-0.39%	0.75%
BKH	70 Outperform	$4.27B	15.05	8.02%	4.46%	3.28%	-3.49%
Sector *	63 Neutral	$8.57B	10.13	4.66%	4.38%	3.79%	-12.91%
AES	55 Neutral	$8.34B	6.67	29.79%	5.92%	-3.22%	141.11%
BIP	54 Neutral	$21.50B	2,867.59	0.47%	4.99%	12.40%	-108.27%

Sempra Energy Corporate Events

Sempra Energy Subsidiary Completes $1.1 Billion Bond Offering

On May 16, 2025, Southern California Gas Company, an indirect subsidiary of Sempra, completed a public offering of $600 million in 5.450% First Mortgage Bonds due 2035 and $500 million in 6.000% First Mortgage Bonds due 2055. The proceeds from these offerings will support the company’s financial activities, potentially strengthening its market position and providing benefits to stakeholders.

The most recent analyst rating on (SRE) stock is a Buy with a $85.00 price target. To see the full list of analyst forecasts on Sempra Energy stock, see the SRE Stock Forecast page.

Spark’s Take on SRE Stock

According to Spark, TipRanks’ AI Analyst, SRE is a Outperform.

Sempra Energy receives a solid overall score due to strong profitability and strategic initiatives like infrastructure investments and asset sales. The positive technical indicators and fair valuation further support the stock’s outlook. However, high leverage and safety incidents present challenges that could impact future performance.

To see Spark’s full report on SRE stock, click here.

Sempra Energy Shareholders Approve Key Proposals

On May 13, 2025, Sempra held its Annual Shareholders Meeting where shareholders elected all eleven director nominees, ratified Deloitte & Touche LLP as the independent public accounting firm for 2025, and approved the company’s executive compensation. These decisions reflect strong shareholder support for the company’s leadership and strategic direction, potentially reinforcing Sempra’s position in the energy sector and influencing its future operations.

The most recent analyst rating on (SRE) stock is a Buy with a $85.00 price target. To see the full list of analyst forecasts on Sempra Energy stock, see the SRE Stock Forecast page.

Spark’s Take on SRE Stock

According to Spark, TipRanks’ AI Analyst, SRE is a Outperform.

Sempra Energy receives a solid overall score due to its strong profitability, efficient operations, and positive earnings guidance. The technical analysis supports a favorable trend, while the valuation remains fair with a decent dividend yield. Challenges such as inconsistent revenue growth, high leverage, and safety incidents are noted but do not overshadow the company’s strategic initiatives and positive earnings outlook.

To see Spark’s full report on SRE stock, click here.

Sempra Energy Subsidiary Issues $1.1 Billion Bonds

On May 12, 2025, Southern California Gas Company, a subsidiary of Sempra, entered into an underwriting agreement to issue $1.1 billion in First Mortgage Bonds. This strategic move aims to strengthen the company’s financial position and enhance its market offerings, potentially impacting stakeholders positively by ensuring long-term financial stability.

The most recent analyst rating on (SRE) stock is a Buy with a $85.00 price target. To see the full list of analyst forecasts on Sempra Energy stock, see the SRE Stock Forecast page.

Spark’s Take on SRE Stock

According to Spark, TipRanks’ AI Analyst, SRE is a Outperform.

Sempra Energy receives a solid overall score due to its strong profitability, efficient operations, and positive earnings guidance. The technical analysis supports a favorable trend, while the valuation remains fair with a decent dividend yield. Challenges such as inconsistent revenue growth and safety incidents are noted but do not overshadow the company’s strategic initiatives and positive earnings outlook.

To see Spark’s full report on SRE stock, click here.