Overall Fundamental outlook

Business Operations:

Sector: Utilities
Industry: Utilities - Diversified

Sempra operates as an energy infrastructure company in the United States and internationally. It operates through three segments: Sempra California, Sempra Texas Utilities, and Sempra Infrastructure. The Sempra California segment provides natural gas and electric services to Southern California and part of central California. As of December 31, 2024, it offered electric services to approximately 3.6 million population and natural gas services to approximately 3.3 million population that covers 4,100 square miles. This segment owns and operates a natural gas distribution, transmission, and storage system that supplies natural gas. As of December 31, 2024, it served a population of 21.1 million covering an area of 24,000 square miles. The Sempra Texas Utilities segment engages in the regulated electricity transmission and distribution business. As of December 31, 2024, its transmission system included 18,324 circuit miles of transmission lines; 1,288 transmission and distribution substations; interconnection to 192 third-party generation facilities totaling 58,597 MW; and distribution system included approximately 4 million points of delivery and consisted of 125,975 miles of overhead and underground lines. The Sempra Infrastructure segment develops, builds, operates, and invests in energy infrastructure to help enable the access to cleaner energy in markets in the United States, Mexico, and internationally. The company was formerly known as Sempra Energy and changed its name to Sempra in May 2023. Sempra was incorporated in 1996 and is based in San Diego, California.

Revenue projections:

Revenue projections for SRE
Revenue projections for SRE

The projected decline in Sempra's revenues compared to last year is expected to make investors cautious. A drop in revenue often has a direct negative effect on the company's bottom line, signaling potential challenges that could undermine investor confidence and reduce overall profitability.

Financial Ratios:

currentRatio 1.591000
forwardPE 17.110159
debtToEquity 83.385000
earningsGrowth -0.482000
revenueGrowth -0.002000
grossMargins 0.411840
operatingMargins 0.277410
trailingEps 2.750000
forwardEps 5.532970

SRE's current ratio 1.591, suggesting the company has sufficient liquidity to service its short-term debt. With its cash reserves and current assets in good shape, SRE can comfortably meet its immediate liabilities, reflecting a healthy financial standing.
SRE's Forward PE ratio is favorable, meaning the stock price aligns well with earnings and isn't overvalued. This allows room for growth, making it an attractive investment for those seeking potential upside while ensuring the stock is not overpriced.
Sempra's high debt-to-equity ratio reveals that the company is heavily reliant on debt for financing. This high level of leverage increases the risk of financial strain if profits decline or interest rates rise.
SRE's low growth in earnings and revenue points to a likely reduction in profits. This signals a weakening financial performance, indicating the company might face difficulties in staying profitable.
Positive gross and operating margins for SRE demonstrate the company's profitability. These margins reflect strong financial performance, with efficient operations contributing to the company's ability to generate consistent profits.
SRE's forward EPS is greater than its trailing EPS, indicating that the company is expected to deliver higher profitability this year. This suggests that SRE is projected to improve its earnings, reflecting positive growth compared to last year's financial performance.

Price projections:

Price projections for SRE
Price projections for SRE

SRE's price projections have been gradually revised upward, reflecting increased confidence in the company's future performance. This trend suggests analysts expect SRE to achieve greater success in the coming periods.

Insider Transactions:

Insider Transactions for SRE
Insider Transactions for SRE


Recent trading of SRE stock saw 14 sales, with market price at 85.94702584402901 per share.Sempra saw 6 transactions to buy shares, with a market price of 77.29873275756836.With more selling than buying at SRE's current price levels, there is a risk of further price decline. If this trend continues, it may suggest investor pessimism, leading to a continued downward trajectory for the stock.

Recommendation changes over time:

Recommendations trend for SRE
Recommendations trend for SRE


Analysts' recent buy bias toward Sempra suggests the stock is gaining favor as a strong investment choice. This optimism could drive more investors to see Sempra as a smart place to invest, further bolstering confidence in the company's long-term growth and potential returns.