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Sempra Energy
(NYSE:SRE)
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Rating:64Neutral
Price Target:
$102.00
▲(8.49% Upside)
Action:Reiterated
Date:07/10/26
The score is held back primarily by persistently negative free cash flow and meaningful leverage, which increase dependence on external funding during a heavy capex cycle. Offsetting this, technicals are supportive with the stock trading above key moving averages, and the earnings call was constructive with reaffirmed guidance and notable regulatory wins supporting rate-base/earnings growth. Valuation remains a moderate headwind due to a relatively high P/E versus the dividend yield.
Positive Factors
Regulatory win at Oncor improves allowed returns
The PUCT decision raises Oncor's allowed returns and resets capital structure, which sustainably improves earned returns on deployed T&D capital. Higher authorized ROE and surcharge recovery reduce regulatory lag, supporting longer-term earnings, cash flow and credit metrics as the company executes its capital plan.
Negative Factors
Persistently negative free cash flow
Despite positive operating cash flow, FCF is persistently deeply negative due to heavy capex. This structural cash shortfall increases reliance on external financing and asset sales to fund investment. Low operating cash coverage (~0.23) reduces the company's internal cushion and raises refinancing and liquidity sensitivity over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Regulatory win at Oncor improves allowed returns
The PUCT decision raises Oncor's allowed returns and resets capital structure, which sustainably improves earned returns on deployed T&D capital. Higher authorized ROE and surcharge recovery reduce regulatory lag, supporting longer-term earnings, cash flow and credit metrics as the company executes its capital plan.
Read all positive factors
Sempra Energy Key Performance Indicators (KPIs)
Any
Revenue by Segment
Breaks down income from various business areas, providing insight into diversification, market trends, and which segments are contributing most to overall growth.
Breaks down income from various business areas, providing insight into diversification, market trends, and which segments are contributing most to overall growth.
Data provided by:
The Fly
The FlySempra Energy (SRE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$61.58B
Dividend Yield2.91%
Average Volume (3M)3.71M
Price to Earnings (P/E)30.1
Beta (1Y)0.44
Revenue Growth2.23%
EPS Growth-35.44%
CountryUS
Employees15,938
SectorUtilities
Sector Strength65
IndustryDiversified Utilities
Share Statistics
EPS (TTM)3.13
Shares Outstanding653,707,400
10 Day Avg. Volume2,978,355
30 Day Avg. Volume3,708,489
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 Cap1.54
Enterprise Value/Revenue6.96
Enterprise Value/Gross Profit22.73
Enterprise Value/Ebitda14.24
Forecast
1Y Price Target
$106.33Price Target Upside13.10% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering12
EPS Forecast (FY)5.11
Revenue Forecast (FY)$13.72B
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 Energy makes money primarily through (1) regulated utility earnings and (2) contracted energy infrastructure cash flows.
1) Regulated utilities (electric and gas)
- Revenue model: Utility subsidiaries deliver electricity and/or natural gas...
Sempra Energy Earnings Call Summary
Earnings Call Date:May 07, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 30, 2026
Earnings Call Sentiment Positive
The call conveyed a constructive and forward-looking tone: management reported solid Q1 results, affirmed full-year guidance, and highlighted meaningful regulatory wins (Oncor rate decision, UTM filing) and project progress (ECA feed gas, Cimarron COD, Port Arthur on time). The company is executing an aggressive capital plan with clear upside in Texas and is advancing capital recycling (SI Partners, Ecogas) to strengthen the balance sheet. Headwinds include timing of some rate benefits, higher interest expense and tax impacts in segments, near-term rating-agency timing, and execution risks tied to regulatory processes, labor and remaining transactional consents. Overall, the positives (earnings growth, regulatory approvals, large-scale capital opportunities, project milestones, and affirmed guidance) materially outweigh the lowlights.Positive Updates
Strong Q1 Financial Results and Affirmed Guidance
Reported Q1 2026 GAAP earnings of $1.37 billion ($1.58/share) versus $906 million ($1.39/share) in Q1 2025 (≈+51% GAAP earnings; ≈+13.7% GAAP EPS). Adjusted earnings were $991 million ($1.51/share) versus $942 million ($1.44/share) a year ago (≈+5.2% adjusted earnings; ≈+4.9% adjusted EPS). Management affirmed full-year 2026 adjusted EPS guidance of $4.80–$5.30, 2027 EPS guidance of $5.10–$5.70, and long-term EPS growth of 7%–9%.
Negative Updates
Timing of Rate Case Benefits
Positive financial impact from Oncor base rate review largely to be recognized in Q2 (PUCT order issued in April), so some lift is backloaded into the year rather than reflected in Q1.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Q1 Financial Results and Affirmed Guidance
Reported Q1 2026 GAAP earnings of $1.37 billion ($1.58/share) versus $906 million ($1.39/share) in Q1 2025 (≈+51% GAAP earnings; ≈+13.7% GAAP EPS). Adjusted earnings were $991 million ($1.51/share) versus $942 million ($1.44/share) a year ago (≈+5.2% adjusted earnings; ≈+4.9% adjusted EPS). Management affirmed full-year 2026 adjusted EPS guidance of $4.80–$5.30, 2027 EPS guidance of $5.10–$5.70, and long-term EPS growth of 7%–9%.
Read all positive updates
Company Guidance
Sempra affirmed its full‑year 2026 adjusted EPS guidance of $4.80–$5.30 and 2027 EPS guidance of $5.10–$5.70 and reiterated a long‑term EPS growth target of 7–9%; Q1 results included GAAP earnings of $1.37 (per transcript) and $1.58 per share and adjusted Q1 earnings of $991 million or $1.51 per share (vs. Q1‑2025 adjusted $942M/$1.44). Management also reiterated a $65 billion capital plan supporting roughly 11% annual rate‑base growth through 2030, plans to invest approximately $13 billion in T&D in 2026 (with $3 billion deployed in Q1), Oncor’s $47.5 billion capital plan with ~30% annual earnings growth through the midpoint of 2027 and $10 billion of identified incremental CapEx (plus ~127 GW of large‑load queue and a $4.4 billion UTM filing), visibility to ~$9 billion incremental opportunities, Oncor authorized metrics of 43.5% equity / 9.75% ROE / 4.94% cost of debt, SDG&E’s proposed ROE of 10.28% (54% equity hypothetical), and expectations to close the SI Partners transaction in 2026 and the Ecogas sale in Q2–Q3 to deconsolidate assets and strengthen the parent balance sheet.Sempra Energy Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
63
Positive
Cash Flow
38
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 13.61B | 13.71B | 12.96B | 15.80B | 15.55B | 13.06B |
| Gross Profit | 4.16B | 4.00B | 3.52B | 3.75B | 4.16B | 3.64B |
| EBITDA | 6.64B | 6.87B | 5.85B | 6.12B | 4.42B | 3.26B |
| Net Income | 2.07B | 1.84B | 2.86B | 3.08B | 2.14B | 1.32B |
Balance Sheet | ||||||
| Total Assets | 113.52B | 110.88B | 96.16B | 87.18B | 78.57B | 72.05B |
| Cash, Cash Equivalents and Short-Term Investments | 796.00M | 2.00M | 1.56B | 236.00M | 370.00M | 559.00M |
| Total Debt | 36.43B | 36.29B | 35.85B | 31.08B | 28.92B | 24.64B |
| Total Liabilities | 70.79B | 68.88B | 58.37B | 53.53B | 49.32B | 44.63B |
| Stockholders Equity | 32.26B | 31.61B | 31.24B | 28.70B | 27.14B | 26.00B |
Cash Flow | ||||||
| Free Cash Flow | -5.84B | -6.05B | -3.31B | -2.18B | -4.21B | -1.17B |
| Operating Cash Flow | 4.89B | 4.57B | 4.91B | 6.22B | 1.14B | 3.84B |
| Investing Cash Flow | -16.02B | -12.21B | -9.12B | -8.72B | -5.04B | -5.51B |
| Financing Cash Flow | 13.32B | 9.60B | 5.42B | 2.42B | 3.78B | 1.26B |
Sempra Energy Technical Analysis
Positive
94.02
Price Trends
91.55
Positive
92.77
Positive
90.60
Positive
Market Momentum
0.93
Negative
57.44
Neutral
72.50
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 94.02 is above the 20-day moving average (MA) of 92.49, above the 50-day MA of 91.55, and above the 200-day MA of 90.60, indicating a bullish trend. The MACD of 0.93 indicates Negative momentum. The RSI at 57.44 is Neutral, neither overbought nor oversold. The STOCH value of 72.50 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 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 | $107.78B | 24.27 | 12.28% | 3.40% | 8.33% | -6.26% | |
66 Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% | |
64 Neutral | $61.58B | 30.09 | 6.53% | 2.91% | 2.23% | -35.44% | |
64 Neutral | $5.73B | 19.48 | 7.60% | 3.91% | 3.58% | -1.83% | |
59 Neutral | $7.33B | 9.71 | 16.88% | 12.98% | 10.16% | -29.63% | |
58 Neutral | $10.54B | 7.86 | 28.87% | 5.06% | 2.76% | 5.46% | |
55 Neutral | $17.40B | 49.74 | 7.74% | 4.92% | 13.02% | ― |
* Utilities Sector Average
SRE
Sempra Energy
94.20
21.75
30.02%
BKH
Black Hills
75.21
20.29
36.94%
BIP
Brookfield Infrastructure
37.65
6.80
22.03%
CIG
Companhia Energetica Minas Gerais
2.20
0.50
29.41%
SO
Southern Co
95.61
5.86
6.53%
AES
AES
14.78
2.81
23.53%
Sempra Energy Corporate Events
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 ...
Business Operations and StrategyRegulatory Filings and Compliance
Sempra Utilities File 2028 General Rate Case Applications
Neutral
Jun 16, 2026
On June 15, 2026, SDGE and SoCalGas filed their 2028 General Rate Case applications with the California Public Utilities Commission, seeking approval of test year 2028 revenue requirements and attrition-year adjustments through 2031 to cover opera...
Private Placements and Financing
Sempra Energy Completes $1 Billion Floating Rate Notes Offering
Positive
Jun 9, 2026
On June 9, 2026, Sempra closed a public offering of $1 billion in floating rate notes due January 7, 2028, issued at par and bearing interest at Compounded SOFR plus 0.670% per annum, with interest payable quarterly starting October 7, 2026. Net p...
Private Placements and FinancingRegulatory Filings and Compliance
Sempra’s SoCalGas Issues $650 Million Long-Term Bonds
Positive
May 15, 2026
On May 15, 2026, Southern California Gas Company closed a public offering of $650 million aggregate principal amount of 5.900% First Mortgage Bonds, Series FFF, due June 1, 2056, with net proceeds to the company of 98.661% of the principal amount ...
Executive/Board ChangesShareholder Meetings
Sempra Shareholders Back Board, Governance at 2026 Meeting
Positive
May 14, 2026
Sempra held its 2026 Annual Shareholders Meeting on May 12, 2026, where investors elected all eleven director nominees for one-year terms and ratified Deloitte Touche LLP as the independent registered public accounting firm for 2026. Shareholders...
Private Placements and FinancingRegulatory Filings and Compliance
Sempra’s SoCalGas Issues $650 Million Long-Term Bonds
Neutral
May 12, 2026
On May 11, 2026, Southern California Gas Company entered into an underwriting agreement with a syndicate of investment banks to issue $650 million of 5.900% First Mortgage Bonds, Series FFF, due 2056. The bonds were priced at 99.536% of face value...
Business Operations and StrategyRegulatory Filings and Compliance
Texas Commission Approves Oncor Rate Increase Benefiting Sempra
Positive
Apr 17, 2026
On April 17, 2026, the Public Utility Commission of Texas approved a final order in Oncor’s comprehensive base rate review, granting an annual revenue requirement of about $6.97 billion, an 8.7% increase over adjusted annualized revenues. Th...
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.