Sempra Energy (SE4) AI Stock Analysis

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Sempra Energy

(BX Swiss:SE4)

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Positive Factors

Rate-Base ExpansionRapid rate-base expansion increases the regulated asset platform on which Sempra earns authorized returns. The planned growth across utility operations can support recurring earnings and infrastructure investment, providing a durable foundation for multi-year profit expansion.

Negative Factors

High Absolute DebtAlthough leverage has improved, the large debt burden remains a persistent constraint on financial flexibility. Refinancing needs and interest-rate exposure can raise funding costs, reduce cash available for investment, and make the company more sensitive to operating or regulatory setbacks.

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 Energy...

Sempra Energy Earnings Call Summary

Earnings Call Date:Nov 04, 2026(Q3-2026)|Next Earnings Date:Mar 01, 2027

Earnings Call SentimentPositive

The call was broadly positive, supported by 26% adjusted earnings growth, strong Texas demand, a projected approximately 20% increase in Oncor's base capital plan, high-end 2026 guidance, and multiple funding and infrastructure growth opportunities. The primary negatives were California's proposed regulatory decision and related 2027 earnings risk, unresolved wildfire policy, and uncertainty around Texas regulatory processes and batch zero. Management characterized the California issue as limited to 2027 and continued to express confidence in the broader growth outlook.

Positive Updates

Strong Third-Quarter Earnings Growth

Third-quarter 2026 GAAP earnings were $877 million, or $1.34 per diluted share, compared with $77 million, or $0.12 per share, in the third quarter of 2025. Adjusted earnings were $917 million, or $1.40 per share, up 26% from $728 million, or $1.11 per share.

Negative Updates

California Regulatory Decision Creates 2027 Earnings Risk

The CPUC issued a proposed decision denying Sempra's petition for modification related to the 2024 GRC capital attrition rates. Management said that, absent correction, Sempra California segment earnings in 2027 would be toward the low end of its guidance range. The potential financial impact is limited to 2027 because new rates are expected to take effect in January 2028.

Company Guidance

Sempra guided to the high end of its full year 2026 adjusted EPS guidance range of $4.80-$5.30, affirmed its 2027 EPS guidance range of $5.10-$5.70 while recognizing that pending regulatory outcomes could cause results to be in the lower half of this range, and affirmed its projected long term EPS growth rate of 7%-9%; 2026 rate base is now projected to exceed $65 billion later this year, with approximately 11% rate base growth expected in the 2026 to 2030 plan. Oncor’s 2027 through 2031 base capital plan is expected to reflect a significant increase of approximately 20% over its existing $47.5 billion capital plan, while Sempra California segment earnings in 2027 would be toward the low end of its guidance range if the regulatory issue is not corrected, with the potential financial impact limited to 2027 only; Project 58 thousand proposals are expected to reduce the residential customer bill between 15 and $35 per year, or about a $1.14 billion of savings over 10 years.

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

1 New Risk

1.When evaluating our company and its businesses and any investment in our or their securities, you should carefully consider the risk factors and all other information contained in this report and the other documents we file with the SEC (including those filed subsequent to this report), including the factors discussed in “Part I –Q2, 2026

Sempra Energy Peers Comparison

Overall Rating

UnderperformOutperform

Sector (66)

Financial Indicators

CH:SE4 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DUK	79Outperform	$101.04B	19.02	9.96%	3.29%	6.80%	7.66%
SO	75Outperform	$107.12B	21.26	12.90%	3.21%	7.91%	8.18%
AEP	73Outperform	$70.37B	20.51	10.49%	3.00%	9.75%	-9.77%
D	66Neutral	$61.35B	23.06	9.28%	3.83%	23.11%	2.81%
Sector *	66Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
PCG	59Neutral	$29.51B	9.80	9.21%	1.51%	4.09%	14.06%

* Utilities Sector Average

Performance Comparison

CH:SE4 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
AEP	American Electric Power Company, Inc.	126.77	6.96	5.81%
D	Dominion Energy Inc	69.64	11.26	19.29%
DUK	Duke Energy	130.08	11.32	9.53%
PCG	Pacific Gas & Electric Co.	13.23	-3.12	-19.06%
SO	The Southern Company	93.34	5.48	6.24%

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.

Sempra Energy AI Stock Analysis