DBA Sempra SRE
Sempra is a diversified utility operating in the generation, transmission, and distribution of electricity and natural gas, primarily in California and Texas, with a regulated business model and energy infrastructure. Sempra presents acceptable financial health (6.88) weighed down by high leverage (net debt/EBITDA of 6.23), but its valuation is demanding (P/E 22.59) and quality is weak (ROIC 5.54). The 20-year LNG agreements provide visibility, but the 71.3% earnings growth is not sustainable.
Detailed metrics
Market and fundamental data as of the analysis date.
Full AI report
Generated automatically from the metrics, the macro context and the company's news.
Sempra is a diversified utility operating in the generation, transmission, and distribution of electricity and natural gas, primarily in California and Texas, with a regulated business model and energy infrastructure. Sempra presents acceptable financial health (6.88) weighed down by high leverage (net debt/EBITDA of 6.23), but its valuation is demanding (P/E 22.59) and quality is weak (ROIC 5.54). The 20-year LNG agreements provide visibility, but the 71.3% earnings growth is not sustainable.
Score by category
| Category | Score |
|---|---|
| Financial health | 6.9 |
| Quality / Moat | 3.3 |
| Valuation | 4.1 |
| Growth | 6.3 |
| Dividend | 6.7 |
| Momentum | 2.7 |
| Risk & Context | 7.7 |
OVERALL SCORE: 5.7/10
Context and risks
Sempra's LNG business is exposed to volatility in international gas prices and geopolitical tensions that could affect long-term demand. However, 20-year agreements partially mitigate this risk.
News considered in the analysis
- Sempra (SRE) Adds a 20-Year LNG Agreement. How Much Commercial Risk Does it Remove? — Un acuerdo de GNL a 20 años asegura flujos de caja a largo plazo, reduciendo el riesgo de demanda y mejorando la visibilidad de ingresos.
- Sempra (SRE) Just Locked In Two Decades of LNG Demand — La confirmación de demanda de GNL a dos décadas vista apuntala la estabilidad de ingresos y respalda la estrategia de crecimiento de la compañía.
- Sempra's Dividend Analysis — Análisis genérico de dividendo sin información nueva o material.
- Edison International’s Dividend Looks Attractive. The $40 Billion Question Is What Comes Next — Noticia sobre un competidor (Edison International), sin impacto directo en Sempra.
- How Low Can PG&E Stock Go When The Risk Is Its Own? — Noticia sobre PG&E, un competidor, sin impacto directo en Sempra.
Verdict: Hold. Long-term revenue visibility from LNG agreements is positive, but valuation offers no margin of safety.
Main risk: High leverage (net debt/EBITDA of 6.23) and exposure to the LNG business, sensitive to international prices and geopolitics, are the main risks for Sempra.
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