Sempra (SRE) Stock Analysis

Why this analysis is different

• A sector-relative MoonshotScore — five pillars (business quality, financial safety, valuation, growth durability, momentum) re-ranked nightly against the full universe of US-listed common stocks.
• An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
• Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.

Sempra (SRE) Utility Operations & Dividend Profile

Sempra is a leading energy infrastructure company focused on regulated utilities and infrastructure in North America. With a substantial market capitalization and a diversified portfolio of energy solutions, Sempra delivers electricity and natural gas services to millions of customers, balancing growth with a commitment to sustainability and shareholder value.

What Is the Investment Thesis for SRE?

Sempra presents a notable research candidate due to its strategic focus on regulated energy infrastructure and its diversified portfolio of utility assets. With a market capitalization of $54.9B and a dividend yield of 2.83%, Sempra offers a blend of stability and income. The company's regulated business segments provide a predictable revenue stream, while investments in infrastructure modernization and renewable energy projects drive long-term growth. Sempra's beta of 0.68 indicates lower volatility compared to the broader market. Key catalysts include ongoing investments in grid modernization and expansion of renewable energy infrastructure. Potential risks include regulatory challenges and fluctuations in commodity prices.

Based on FMP financials and quantitative analysis

SRE Key Highlights

Market capitalization of $54.9B, reflecting significant investor confidence in the company's market position.

• P/E ratio of 24.22, indicating a premium valuation based on earnings expectations.
• Profit margin of 15.2%, demonstrating efficient operations and profitability.
• Gross margin of 30.6%, showcasing the company's ability to manage production costs effectively.
• Dividend yield of 2.83%, providing a steady income stream for investors.

Who Are SRE's Competitors?

SRE is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance This table mixes two scoring engines — compare a number only with others carrying the same tag.

What Are SRE's Key Strengths?

Regulated business model provides stable revenue streams.

• Diversified portfolio of utility assets reduces risk.
• Extensive infrastructure network creates a competitive advantage.
• Strong financial performance with consistent profitability.

What Are SRE's Weaknesses?

Exposure to regulatory risks and policy changes.

• Dependence on commodity prices for natural gas operations.
• Capital-intensive business model requires significant investments.
• Vulnerability to weather-related events and natural disasters.

What Could Drive SRE Stock Higher?

Investments in grid modernization and smart grid technologies to improve reliability and efficiency.

• Expansion of renewable energy infrastructure, including solar and wind farms, to meet growing demand for clean energy.
• Development of LNG export facilities to capitalize on global demand for natural gas.
• Regulatory approvals for infrastructure projects and rate adjustments.

What Are the Key Risks for SRE?

Financial-distress signal — its Altman Z-Score of 1.06 sits in the distress zone (elevated bankruptcy risk).

• Rich valuation — a P/E of 24.22 runs well above the Utilities sector’s ~16.60x, leaving little room for a miss.
• Insider selling — insiders were net sellers of roughly $1.3M recently.
• Changes in government regulations and environmental policies impacting operations.
• Fluctuations in commodity prices affecting profitability of natural gas operations.
• Cybersecurity threats and potential disruptions to operations.
• Weather-related events and natural disasters impacting infrastructure and service delivery.

What Are the Growth Opportunities for SRE?

• Expansion of Renewable Energy Infrastructure: Sempra has the opportunity to invest further in renewable energy projects, such as solar and wind farms, to meet growing demand for clean energy. Sempra can leverage its existing infrastructure and expertise to develop and operate renewable energy facilities, enhancing its long-term growth prospects.
• Grid Modernization Investments: Sempra can capitalize on the need for grid modernization to improve reliability and efficiency. The U.S. Department of Energy estimates that upgrading the nation's grid will require hundreds of billions of dollars in investment over the next decade. Sempra's investments in smart grid technologies and advanced metering infrastructure can enhance grid resilience and reduce energy losses, creating value for customers and shareholders.
• Strategic Acquisitions and Partnerships: Sempra can pursue strategic acquisitions and partnerships to expand its geographic footprint and diversify its service offerings. The company can target companies with complementary assets and expertise, such as renewable energy developers or energy storage providers. These acquisitions can provide Sempra with access to new markets and technologies, accelerating its growth trajectory.
• Development of LNG Export Facilities: Sempra has the opportunity to develop and operate liquefied natural gas (LNG) export facilities to meet growing global demand for natural gas. The global LNG market is expected to grow significantly in the coming years, driven by increasing energy demand in Asia and Europe. Sempra can leverage its expertise in natural gas infrastructure to develop LNG export facilities, creating a new revenue stream and enhancing its position in the global energy market.
• Electrification of Transportation: Sempra can benefit from the increasing electrification of transportation by providing electricity to charging stations and supporting the development of electric vehicle (EV) infrastructure. The EV market is projected to grow rapidly in the coming years, driven by government incentives and consumer demand. Sempra can partner with EV manufacturers and charging station operators to develop and deploy EV infrastructure, creating new opportunities for growth and innovation.

What Are SRE's Competitive Advantages?

• Regulated Business Model: Operates in a regulated environment, providing a stable and predictable revenue stream.
• Extensive Infrastructure Network: Owns and operates an extensive network of transmission and distribution lines, creating a barrier to entry for competitors.
• Geographic Diversification: Has a diversified geographic footprint, reducing its exposure to regional economic downturns.

What Does SRE Do?

Sempra, formerly known as Sempra Energy, was founded in 1998 and is headquartered in San Diego, California. The company operates as an energy-services holding company with a focus on regulated energy infrastructure. Sempra's operations are divided into key segments, including San Diego Gas & Electric (SDG&E), Southern California Gas Company (SoCalGas), and Sempra Texas Utilities. SDG&E provides electricity and natural gas services to approximately 3.6 million and 3.3 million people, respectively, across a 4,100 square mile area. SoCalGas owns and operates a natural gas distribution, transmission, and storage system serving around 22 million people in a 24,000 square mile region. Sempra Texas Utilities engages in the regulated transmission and distribution of electricity, serving 3.8 million homes and businesses with an extensive network of transmission and distribution lines. Sempra's strategic focus on regulated utilities provides a stable revenue base and opportunities for long-term growth through infrastructure investments and operational efficiencies. The company changed its name to Sempra in July 2021, reflecting its evolution and strategic direction in the energy sector.

What Products and Services Does SRE Offer?

• Operates as an energy-services holding company.
• Provides electric services through San Diego Gas & Electric Company.
• Supplies natural gas through San Diego Gas & Electric Company.
• Owns and operates a natural gas distribution, transmission, and storage system through Southern California Gas Company.
• Engages in the regulated transmission and distribution of electricity through Sempra Texas Utilities.
• Maintains 140,000 miles of transmission and distribution lines in Texas.
• Interconnects to 130 third-party generation facilities totaling 45,403 megawatts.

How Does SRE Make Money?

• Regulated Utility Operations: Generates revenue through the regulated transmission and distribution of electricity and natural gas.
• Infrastructure Investments: Invests in infrastructure modernization and expansion to enhance reliability and efficiency.
• Long-Term Contracts: Secures long-term contracts with customers to provide a stable revenue stream.

What Industry Does SRE Operate In?

Sempra operates within the diversified utilities industry, which is characterized by stable demand and regulated pricing. The industry is undergoing a transformation driven by the increasing adoption of renewable energy sources and the need for grid modernization. Sempra competes with other major players like NextEra Energy, Inc. (NEE) and Dominion Energy, Inc. (D). The industry is also influenced by government regulations, environmental policies, and technological advancements. Sempra's focus on regulated utilities positions it well to capitalize on infrastructure investments and the transition to cleaner energy sources.

Who Are SRE's Key Customers?

• Residential Customers: Provides electricity and natural gas services to residential customers in California and Texas.
• Commercial Customers: Serves commercial customers, including businesses and institutions.
• Industrial Customers: Supplies energy to industrial customers, such as manufacturing plants and refineries.

Company Profile

Sempra operates in the Diversified Utilities industry within the Utilities sector. It is headquartered in San Diego, US. The company is led by CEO Jeffrey Walker Martin. SRE has traded publicly since 1998.

Sempra Financial Trajectory

Sempra (SRE) reported $3.00B in revenue for Q2 FY2026, a decline of 18.0% compared to the prior quarter. The company recorded net income of $797.0M, with diluted EPS of $1.22. Revenue has contracted over three consecutive quarters, which investors in this large-cap Utilities stock should monitor closely. Across the four most recent quarters, SRE averaged $0.87 in diluted EPS.

How Sempra Is Valued

Sempra carries a market capitalization of $54.9B, placing it in the large-cap category. Analyst price targets span from $84.00 to $118.00, with a consensus of $101.14. At the current price of $84.03, that implies approximately 20% upside potential. Relative to its peer group, SRE's quantitative score of 48/100 is roughly in line with the peer average of 51/100.

Return on equity for Sempra stands at 6.5%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 1.8%, showing how much profit it generates from its asset base. SRE trades at a trailing price-to-earnings ratio of 24.22, above the Utilities sector average of ~16.60x. Its free cash flow yield is -9.8%, a gauge of the cash the business throws off relative to its market value. A current ratio of 1.69 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is 3.5%, the inverse of the P/E and a quick read on earnings relative to price.

Sempra's Piotroski F-Score is 7/9, a 9-point checklist of profitability, leverage and efficiency — signaling solid underlying fundamentals. Its Altman Z-Score of 1.06 places it in the distress zone, a signal of elevated financial risk.

Sempra has beaten Wall Street's EPS estimate in 6 of its last 8 reported quarters — a consistent record of delivering on expectations. Reported results have landed about 5.1% above estimates on average.

Over the past six months, Sempra insiders filed 15 SEC Form 4 transactions — 4 sales and 11 purchases. On net that is roughly 8K shares disposed (about $1.3M), a signal worth weighing alongside the fundamentals.

SRE Financials

SRE earnings history & estimates →

SRE Latest News

SRE Analyst Consensus

SRE MoonshotScore

Latest Sempra Analysis

SRE Utilities Stock FAQ

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

Official Resources