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Sempra Energy
(NYSE:SRE)
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Rating:60Neutral
Price Target:
$84.00
▼(-1.50% Downside)
Action:Reiterated
Date:10/08/26
The score is anchored by solid profitability but held back by persistent negative free cash flow and leverage-driven funding needs. A constructive earnings call (reaffirmed guidance, large regulated capital opportunities, and expected debt deconsolidation) supports the outlook, but technicals remain weak with price below key moving averages, and valuation looks only moderate given the P/E despite a supportive dividend yield.
Positive Factors
Utility rate-base expansion and Texas demand
Sempra is directing substantial investment toward regulated utilities, where completed projects can expand rate base and support recurring earnings. Strong Texas load growth, transmission needs, and additional Oncor opportunities provide a durable pipeline for capital deployment over the next several years.
Negative Factors
Persistent negative free cash flow
Persistent negative free cash flow shows that capital spending continues to exceed internally generated cash, increasing reliance on debt or equity financing. Although large utility buildouts can create future rate-base growth, the magnitude of the deficit remains a durable constraint on financial flexibility.
Read all positive and negative factors
Positive Factors
Negative Factors
Utility rate-base expansion and Texas demand
Sempra is directing substantial investment toward regulated utilities, where completed projects can expand rate base and support recurring earnings. Strong Texas load growth, transmission needs, and additional Oncor opportunities provide a durable pipeline for capital deployment over the next several years.
Read all positive factors
Sempra Energy Key Performance Indicators (KPIs)
Any
Gross Profit by Segment
Highlights the profitability of each business segment, revealing which areas are driving earnings and where there may be challenges or opportunities for growth.
Highlights the profitability of each business segment, revealing which areas are driving earnings and where there may be challenges or opportunities for growth.
Data provided by:
The Fly
The FlySempra Energy (SRE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$54.97B
Dividend Yield3.11%
Average Volume (3M)3.45M
Price to Earnings (P/E)24.2
Beta (1Y)0.43
Revenue Growth0.88%
EPS Growth-16.61%
CountryUS
Employees15,938
SectorUtilities
Sector Strength65
IndustryDiversified Utilities
Share Statistics
EPS (TTM)3.47
Shares Outstanding653,900,300
10 Day Avg. Volume3,146,763
30 Day Avg. Volume3,445,577
Financial Highlights & Ratios
PEG Ratio-0.84
Price to Book (P/B)1.82
Price to Sales (P/S)4.20
P/FCF Ratio-9.53
Enterprise Value/Market Cap1.97
Enterprise Value/Revenue7.94
Enterprise Value/Gross Profit19.04
Enterprise Value/Ebitda16.58
Forecast
1Y Price Target
$97.73Price Target Upside14.60% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering14
EPS Forecast (FY)5.13
Revenue Forecast (FY)$13.57B
Sempra Energy Business Overview & Revenue Model
Company Description
Sempra, an energy holding company founded in 1998 and headquartered in San Diego, California, conducts its operations both domestically and internationally. The firm adopted its current name in July 2021, having previously been known as Sempra Ene...
How the Company Makes Money
Sempra primarily makes money through a mix of regulated utility earnings and contracted/regulated infrastructure revenues. (1) Regulated utilities: Its utility subsidiaries earn revenue by delivering electricity and/or natural gas to residential, ...
Sempra Energy Earnings Call Summary
Earnings Call Date:Aug 06, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 05, 2026
Earnings Call Sentiment Positive
The call was predominantly positive, supported by strong second-quarter and year-to-date earnings growth, reaffirmed guidance, progress on strategic asset sales, substantial utility capital opportunities, and rising Texas electricity demand. The main challenges were ECA LNG equipment damage, uncertainty around ERCOT's batch zero process and 765-kV approvals, unresolved California wildfire legislation, and Moody's negative outlook. Management nevertheless characterized its outlook for Sempra, Oncor, Texas growth, and the balance sheet as improving and constructive.Positive Updates
Strong Second-Quarter Earnings Growth
Second-quarter 2026 GAAP earnings were $796 million, or $1.21 per diluted share, compared with $461 million, or $0.71 per share, in the second quarter of 2025. Adjusted earnings were $762 million, or $1.16 per share, versus $583 million, or $0.89 per share, a year earlier.
Negative Updates
ECA LNG Equipment Damage and Commissioning Complexity
After the first cargo was exported from ECA LNG in July, the plant was shut down for planned maintenance and inspections, during which damage was discovered to equipment connected to the mixed-refrigerant compressors. Sempra is working with its EPC contractor and equipment vendor on root cause analysis and remediation. Substantial completion is expected in the fourth quarter of 2026, with sales under long-term agreements commencing shortly thereafter.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Second-Quarter Earnings Growth
Second-quarter 2026 GAAP earnings were $796 million, or $1.21 per diluted share, compared with $461 million, or $0.71 per share, in the second quarter of 2025. Adjusted earnings were $762 million, or $1.16 per share, versus $583 million, or $0.89 per share, a year earlier.
Read all positive updates
Company Guidance
Sempra affirmed full year 2026 adjusted EPS guidance range of $4.80 to $5.30, 2027 EPS guidance range of $5.10 to $5.70, and projected long-term EPS growth rate of 7% to 9%; it is advancing its record $65 billion capital plan, with a goal for Sempra Texas to comprise over 60% of Sempra's total rate base in 2023, while Oncor is executing a 5 year base capital plan of $47.5 billion with $10 billion of incremental capital opportunities through 2030, expects its roll forward capital plan to go up, and is expected to update its 5-year plan on the fourth-quarter call, with batch related capital not expected to have a lot more definition until later in 2027; the SI Partners transaction is expected to close later in the quarter and deconsolidate close to $9 billion of debt, ECA LNG Phase 1 is expected to reach substantial completion in the fourth quarter of 26 with sales under its long term sale and purchase agreements commencing shortly thereafter, California is growing rate base at about 5% versus utility platform growth at about 11% annually, or closer to 13% with additional upside at Encore, and Sempra expects to have cushion of at least 50 to 150 basis points on average above rating-agency thresholds.Sempra Energy Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
62
Positive
Cash Flow
44
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 13.60B | 13.71B | 12.96B | 15.80B | 15.55B | 13.06B |
| Gross Profit | 5.67B | 4.00B | 3.52B | 3.75B | 4.16B | 3.64B |
| EBITDA | 6.52B | 6.87B | 5.85B | 6.12B | 4.42B | 3.26B |
| Net Income | 2.28B | 1.84B | 2.86B | 3.08B | 2.14B | 1.32B |
Balance Sheet | ||||||
| Total Assets | 115.28B | 110.88B | 96.16B | 87.18B | 78.57B | 72.05B |
| Cash, Cash Equivalents and Short-Term Investments | 154.00M | 2.00M | 1.56B | 236.00M | 370.00M | 559.00M |
| Total Debt | 36.66B | 36.29B | 35.85B | 31.08B | 28.92B | 24.64B |
| Total Liabilities | 71.97B | 68.88B | 58.37B | 53.53B | 49.32B | 44.63B |
| Stockholders Equity | 32.70B | 31.61B | 31.24B | 28.70B | 27.14B | 26.00B |
Cash Flow | ||||||
| Free Cash Flow | -5.24B | -6.05B | -3.31B | -2.18B | -4.21B | -1.17B |
| Operating Cash Flow | 5.42B | 4.57B | 4.91B | 6.22B | 1.14B | 3.84B |
| Investing Cash Flow | -16.09B | -12.21B | -9.12B | -8.72B | -5.04B | -5.51B |
| Financing Cash Flow | 13.19B | 9.60B | 5.42B | 2.42B | 3.78B | 1.26B |
Sempra Energy Technical Analysis
Neutral
85.28
Price Trends
81.97
Positive
85.94
Negative
88.38
Negative
Market Momentum
0.70
Negative
60.24
Neutral
88.40
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SRE, the sentiment is Neutral. The current price of 85.28 is above the 20-day moving average (MA) of 80.86, above the 50-day MA of 81.97, and below the 200-day MA of 88.38, indicating a neutral trend. The MACD of 0.70 indicates Negative momentum. The RSI at 60.24 is Neutral, neither overbought nor oversold. The STOCH value of 88.40 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SRE.
Sempra Energy Risk Analysis
Sempra Energy disclosed 48 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 |
|---|---|---|---|---|---|---|---|
66 Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% | |
64 Neutral | $70.60B | 22.28 | 10.01% | 2.93% | 8.63% | -14.89% | |
63 Neutral | $97.45B | 18.77 | 9.88% | 3.42% | 6.33% | 8.98% | |
62 Neutral | $106.86B | 22.28 | 12.61% | 3.23% | 6.40% | 6.90% | |
60 Neutral | $54.97B | 24.22 | 7.14% | 3.11% | 0.88% | -16.61% | |
58 Neutral | $57.35B | 22.56 | 8.89% | 4.10% | 21.98% | -0.39% | |
56 Neutral | $27.82B | 9.36 | 9.21% | 1.58% | 4.09% | 14.06% |
* Utilities Sector Average
SRE
Sempra Energy
84.06
-6.38
-7.06%
AEP
American Electric Power
129.69
16.80
14.88%
D
Dominion Energy
65.20
6.89
11.82%
DUK
Duke Energy
124.98
1.81
1.47%
PCG
PG&E
12.63
-3.59
-22.12%
SO
Southern Co
92.89
0.54
0.58%
Sempra Energy Corporate Events
Private Placements and Financing
Sempra’s SoCalGas Raises $500 Million in Bond Offering
Positive
Aug 21, 2026
On August 21, 2026, Southern California Gas Company closed a public offering and sale of $500 million of its 5.500% First Mortgage Bonds, Series GGG, due 2036, at 98.755% of principal after underwriting discounts and before estimated expenses of a...
Private Placements and FinancingRegulatory Filings and Compliance
Sempra Energy Subsidiary Issues New Long-Term Bonds
Positive
Aug 18, 2026
On August 17, 2026, Southern California Gas Company entered into an underwriting agreement with a syndicate of banks to issue $500 million of 5.500% First Mortgage Bonds, Series GGG, due 2036. The bonds will be sold to the underwriters for resale ...
Business Operations and StrategyExecutive/Board Changes
Sempra Energy Names Justin Bird as New CFO
Positive
Jul 9, 2026
On July 6, 2026, Sempra’s board appointed long‑time executive Justin C. Bird as Executive Vice President and Chief Financial Officer, effective around the closing of the planned sale of part of Sempra’s equity interest in Sempra ...
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.