Sempra (SREA)
Sempra is an energy-service holding company focused on developing and operating energy infrastructure. It provides electric and gas services through its various segments, including Sempra California, Sempra Texas Utilities, and Sempra Infrastructure.
Company Overview
Sempra, a leading energy infrastructure company with a $14.76B market cap, offers a compelling investment opportunity through its regulated utilities and strategic infrastructure projects, delivering consistent dividends (2.98% yield) and stable growth in the expanding energy sector.
Investment Thesis
Sempra presents a compelling investment opportunity due to its strategic positioning in the regulated utilities and energy infrastructure sectors. The company's diverse portfolio, spanning California, Texas, and infrastructure projects, provides a stable revenue base and growth potential. With a market capitalization of $14.76 billion and a consistent dividend yield of 2.98%, Sempra offers a blend of value and income. Key value drivers include the continued expansion of its infrastructure segment and the stable performance of its regulated utilities. The company's commitment to innovation and sustainable energy solutions further enhances its long-term growth prospects. Sempra's P/E ratio of 26.18 reflects investor confidence in its earnings potential.
Key Highlights
- Market Cap of $14.76B demonstrates Sempra's significant presence in the energy sector.
- Profit Margin of 15.7% showcases the company's ability to generate profits from its operations.
- Gross Margin of 29.0% indicates efficient cost management in its service delivery.
- Dividend Yield of 2.98% provides a steady income stream for investors.
- Beta of 0.74 suggests lower volatility compared to the overall market, making it a relatively stable investment.
Competitors
Strengths
- Diversified portfolio of regulated utilities and energy infrastructure assets.
- Strong financial position and consistent dividend yield.
- Strategic investments in renewable energy and sustainable solutions.
- Experienced management team with a track record of successful acquisitions.
Weaknesses
- Exposure to regulatory risks and changes in government policies.
- Dependence on weather conditions and natural resources.
- Potential for cost overruns and delays in infrastructure projects.
- Vulnerability to cyberattacks and security breaches.
Catalysts
- Ongoing: Continued investments in renewable energy projects will drive long-term growth.
- Ongoing: Modernization of grid infrastructure will improve reliability and efficiency.
- Upcoming: Potential acquisitions and partnerships to expand geographic reach.
- Ongoing: Regulatory approvals for new infrastructure projects will unlock value.
- Ongoing: Growth in the Texas utilities market through Oncor Holdings.
Risks
- Potential: Changes in regulatory policies could negatively impact profitability.
- Potential: Cost overruns and delays in infrastructure projects could reduce returns.
- Potential: Environmental regulations and climate change policies could increase costs.
- Ongoing: Economic downturns and fluctuations in energy prices could reduce demand.
- Potential: Cyberattacks and security breaches could disrupt operations.
Growth Opportunities
- Expansion of Renewable Energy Infrastructure: Sempra has the opportunity to expand its renewable energy infrastructure, including solar and wind projects, to meet the growing demand for clean energy. The market for renewable energy is projected to reach trillions of dollars by 2030, driven by government incentives and corporate sustainability goals. Sempra's expertise in developing and operating energy infrastructure provides a competitive advantage in capturing this growth.
- Investment in Natural Gas Infrastructure: Sempra can capitalize on the increasing demand for natural gas as a transition fuel by investing in natural gas infrastructure projects. This includes pipelines, storage facilities, and LNG export terminals. The global natural gas market is expected to grow significantly in the coming years, driven by its lower carbon footprint compared to other fossil fuels. Sempra's existing infrastructure and strategic partnerships position it well to benefit from this trend.
- Modernization of Grid Infrastructure: Sempra has the opportunity to modernize its grid infrastructure to improve reliability, efficiency, and resilience. This includes investments in smart grids, advanced metering infrastructure, and energy storage systems. The modernization of grid infrastructure is essential to support the integration of renewable energy sources and to meet the growing demand for electricity. Sempra's expertise in grid operations and its strong relationships with regulators provide a competitive advantage in this area.
- Growth in Texas Utilities: Sempra's investment in Oncor Holdings provides a significant growth opportunity in the Texas utilities market. Texas is one of the fastest-growing states in the US, with a rapidly increasing population and economy. This growth is driving demand for electricity and natural gas. Oncor's strong market position and its investments in infrastructure position it well to benefit from this growth. Sempra's strategic partnership with Oncor provides access to this attractive market.
- Strategic Acquisitions and Partnerships: Sempra can pursue strategic acquisitions and partnerships to expand its geographic reach and to enhance its capabilities in key areas such as renewable energy and energy storage. The energy industry is undergoing consolidation, with companies seeking to gain scale and to diversify their operations. Sempra's strong financial position and its track record of successful acquisitions make it a credible player in this market.
Opportunities
- Expansion of renewable energy infrastructure to meet growing demand.
- Investment in natural gas infrastructure to capitalize on the transition fuel market.
- Modernization of grid infrastructure to improve reliability and efficiency.
- Strategic acquisitions and partnerships to expand geographic reach and capabilities.
Threats
- Increasing competition from other energy companies.
- Rising interest rates and inflation.
- Environmental regulations and climate change policies.
- Economic downturns and fluctuations in energy prices.
Competitive Advantages
- Regulated utility operations provide a stable and predictable revenue stream.
- Significant infrastructure assets create a barrier to entry for new competitors.
- Strong relationships with regulators and government entities.
- Strategic investments in renewable energy and sustainable solutions.
About
Founded on October 11, 1996, and headquartered in San Diego, CA, Sempra has evolved into a prominent energy-service holding company. The company engages in the development and operation of energy infrastructure, alongside the provision of electric and gas services. Sempra operates through four key segments: Sempra California, Sempra Texas Utilities, Sempra Infrastructure, and All Other. The Sempra California segment, through its wholly-owned subsidiaries SDG&E and SoCalGas, delivers natural gas and electric service to Southern California and parts of central California. Sempra Texas Utilities holds a significant investment in Oncor Holdings, a key player in the Texas energy market. Sempra Infrastructure encompasses the operating companies of its subsidiary, SI Partners, along with holding and service companies. With a workforce of 16,835 employees, Sempra is committed to delivering reliable energy solutions and expanding its infrastructure footprint across North America.
What They Do
- Develops and operates energy infrastructure.
- Provides electric services to customers in Southern California and parts of central California.
- Offers natural gas services to residential and commercial customers.
- Invests in and manages utilities in Texas through Oncor Holdings.
- Develops and operates LNG export facilities.
- Focuses on sustainable energy solutions and renewable energy projects.
- Modernizes grid infrastructure to improve reliability and efficiency.
Business Model
- Generates revenue through regulated electric and gas utility services.
- Earns income from investments in energy infrastructure projects.
- Receives fees for the development and operation of LNG export facilities.
- Profits from investments in Texas utilities through Oncor Holdings.
Industry Context
Sempra operates within the regulated electric and gas utilities industry, a sector characterized by stable demand and significant infrastructure investments. The industry is undergoing a transformation driven by the increasing adoption of renewable energy sources and the modernization of grid infrastructure. Sempra competes with other major utility companies such as Duke Energy (DUK) and Emera (EMA). The market is influenced by regulatory policies, environmental concerns, and technological advancements. Sempra's focus on sustainable energy solutions and its strategic investments in infrastructure position it favorably within this evolving landscape.
Key Customers
- Residential customers in Southern California and parts of central California.
- Commercial and industrial customers requiring electric and gas services.
- Municipalities and government entities.
- Energy companies and utilities seeking LNG export services.
Financials
Recent Quarterly Results
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $3.15B | $95M | $0.15 |
| Q2 2025 | $3.00B | $472M | $0.72 |
| Q1 2025 | $3.80B | $917M | $1.41 |
| Q4 2024 | $3.75B | $676M | $1.05 |
Source: Company filings
Chart & Info
Price Chart
Sempra (SREA) stock price: $22.67 (+0.31, +1.39%)
Why Bull
- •Recent insider buying suggests confidence in Sempra's future, indicating executives believe in the company's growth potential.
- •Community sentiment has shifted positively, with discussions highlighting Sempra's strategic investments in renewable energy.
- •Analysts are optimistic about Sempra's ability to capitalize on regulatory changes favoring clean energy initiatives.
- •The company's strong infrastructure and expansion plans in key markets are viewed as solid foundations for long-term growth.
Why Bear
- •Concerns over rising operational costs have been echoed in community forums, raising questions about profitability.
- •Some investors remain skeptical about Sempra's ability to navigate regulatory hurdles in the energy sector.
- •Recent discussions reflect apprehension about market volatility impacting Sempra's stock performance.
- •A section of the community is cautious about the pace of transition to renewable energy, fearing it may not meet expectations.
Latest News
No recent news available for SREA.
Technical Analysis
Rationale
AI-generated technical analysis for SREA including trend direction, momentum, and pattern recognition.
What to Watch
Key support and resistance levels, volume signals, and upcoming events.
Risk Management
Position sizing, stop-loss levels, and risk-reward assessment.
Community
Discussion
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Sentiment
Community sentiment and discussion activity for SREA.
Make a Prediction
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Current price: $22.67
Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for SREA.
Price Targets
Wall Street price target analysis for SREA.
Insider Flow (30d)
MoonshotScore
Score Factors
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Revenue Growth 5/100
Revenue growth data is currently unavailable for this company.
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Gross Margin 5/100
Gross margin data is currently unavailable for this company.
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Operating Leverage 4/100
Limited operating leverage due to slower revenue growth, keeping profit scaling constrained.
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Cash Runway 5/100
Cash position data is currently unavailable for this company.
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R&D Intensity 5/100
R&D spending data is currently unavailable for this company.
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Insider Activity 6/100
No significant insider buying or selling recently, which is neutral for the stock outlook.
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Short Interest 5/100
Float and volume data unavailable for liquidity analysis.
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Price Momentum 0/100
No bullish technical signals detected. The stock lacks upward price momentum currently.
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News Sentiment 5/100
No sentiment data available
What does this score mean?
The MoonshotScore rates SREA's growth potential on a scale of 0-100 across multiple factors including innovation, market disruption, financial health, and momentum.
Frequently Asked Questions
What does Sempra do?
Sempra is an energy-service holding company that develops and operates energy infrastructure and provides electric and gas services. The company operates through segments like Sempra California, Sempra Texas Utilities, and Sempra Infrastructure. Sempra California delivers natural gas and electric service to Southern and central California through SDG&E and SoCalGas. Sempra Texas Utilities holds an investment in Oncor Holdings. Sempra Infrastructure includes SI Partners. Sempra focuses on sustainable energy solutions and modernizing grid infrastructure to improve reliability and efficiency.
Is SREA stock a good buy?
Sempra's stock presents a balanced investment profile. With a market cap of $14.76B and a dividend yield of 2.98%, it offers stability and income. The company's profit margin of 15.7% and gross margin of 29.0% indicate financial health. Growth opportunities in renewable energy and infrastructure modernization, coupled with its strategic position in California and Texas, enhance its long-term potential. However, regulatory risks and economic factors should be considered. Overall, SREA is a potentially attractive investment for those seeking stability and moderate growth.
What are the main risks for SREA?
Sempra faces several key risks. Changes in regulatory policies could impact profitability, as the company operates in a heavily regulated industry. Cost overruns and delays in infrastructure projects could reduce returns. Environmental regulations and climate change policies may increase operating costs. Economic downturns and fluctuations in energy prices could decrease demand for its services. Additionally, Sempra is vulnerable to cyberattacks and security breaches, which could disrupt operations and damage its reputation. These risks should be carefully considered before investing in SREA.
Is SREA a good stock to buy?
Whether SREA is a good investment depends on your financial goals, risk tolerance, and investment horizon. Key factors to evaluate include the company's revenue growth trajectory, profit margins, debt-to-equity ratio, competitive moat, and valuation multiples (P/E, P/S, EV/EBITDA) relative to industry peers. Our AI-generated Investment Thesis and SWOT analysis on this page provide a data-driven starting point. Always do your own research and consider consulting a financial advisor before making investment decisions.
What is the SREA MoonshotScore?
The MoonshotScore for SREA is an AI-powered rating from 0 to 100 that evaluates a stock across four dimensions: growth potential (revenue and earnings trajectory), financial health (balance sheet strength, cash flow), market momentum (price trends, volume patterns, institutional flows), and risk factors (volatility, debt levels, sector headwinds). Scores above 70 indicate strong potential, 50-70 moderate, and below 50 suggests caution. The score is recalculated daily using the latest financial data and market signals.
How often is SREA data updated?
SREA stock prices are updated in real-time during U.S. market hours (9:30 AM - 4:00 PM ET, Monday through Friday). After-hours and pre-market prices are also tracked. Company fundamentals (earnings, revenue, balance sheet) are refreshed when new quarterly or annual reports are filed. Analyst ratings, price targets, and AI-generated insights are updated daily. Breaking news related to SREA is aggregated continuously from premium financial news sources throughout the day.
What are the growth catalysts for SREA?
Growth catalysts for Sempra (SREA) can include several categories: product catalysts (new launches, FDA approvals, patent grants), financial catalysts (earnings beats, margin expansion, share buybacks), strategic catalysts (acquisitions, partnerships, market expansion into new regions), and macro catalysts (favorable regulation, industry tailwinds, secular growth trends). Our AI analyzes Sempra's specific catalysts using earnings transcripts, SEC filings, and news sentiment to identify the most impactful near-term and long-term drivers.
Who are SREA's main competitors?
Sempra (SREA) competes with companies in its industry that target similar customers, markets, or product categories. Competitor analysis involves comparing key metrics: market share, revenue growth rates, profit margins, R&D spending, and valuation multiples. Understanding competitive positioning helps investors assess whether SREA has a sustainable competitive advantage (moat) through brand strength, network effects, cost leadership, or switching costs. Our Competitors section provides a side-by-side comparison with relevant peers.
What do analysts say about SREA?
Wall Street analyst coverage for SREA includes consensus ratings (buy, hold, or sell), 12-month price targets, and earnings estimates. Analyst opinions are aggregated from major investment banks and research firms. Key metrics to watch include the consensus price target (average, high, and low estimates), the number of analysts covering the stock, any recent rating changes (upgrades or downgrades), and how actual earnings compare to analyst estimates (beat or miss history). Our platform aggregates these from multiple data providers for a comprehensive view.
What is SREA's market cap?
Market capitalization (market cap) for SREA is calculated by multiplying the current share price by the total number of outstanding shares. It represents the market's total valuation of the company. Stocks are typically categorized as mega-cap ($200B+), large-cap ($10B-$200B), mid-cap ($2B-$10B), small-cap ($300M-$2B), or micro-cap (under $300M). Market cap influences index inclusion, institutional ownership eligibility, and risk profile. Our Key Statistics section shows SREA's current market cap alongside enterprise value and other valuation metrics.
How has SREA stock performed recently?
SREA's recent stock performance can be evaluated across multiple timeframes: daily price changes, week-over-week momentum, monthly trends, and year-to-date returns. Important performance indicators include the stock's 52-week high and low, moving averages (50-day and 200-day SMA), relative strength index (RSI), and volume trends. Comparing SREA's performance against its sector index and the S&P 500 provides context on whether it is outperforming or underperforming the broader market.
What are the risks of investing in SREA?
Key risk categories for SREA include: market risk (overall market downturns affecting stock prices), company-specific risk (management changes, product failures, competitive threats), financial risk (high debt levels, cash burn, dilution from stock issuance), regulatory risk (government policy changes, lawsuits, compliance issues), and macroeconomic risk (interest rate changes, inflation, currency fluctuations). Beta measures SREA's volatility relative to the market - a beta above 1.0 means higher volatility than the S&P 500. Our AI-generated risk assessment identifies the most relevant risk factors for this specific stock.
Are insiders buying or selling SREA?
Insider trading activity for SREA tracks purchases and sales by company executives, directors, and major shareholders (10%+ owners) as reported in SEC Form 4 filings. Insider buying is generally considered a bullish signal because insiders have the deepest knowledge of company operations, while selling may have various motivations (diversification, tax planning, pre-planned 10b5-1 trading plans). Key metrics include the buy-to-sell ratio, total dollar value of insider transactions, and whether multiple insiders are trading in the same direction. Our Insider Flow tab shows recent transactions with dates and dollar amounts.
Is SREA a good stock for beginners?
Sempra (SREA) can be suitable for beginner investors depending on several factors. Look at the MoonshotScore on this page for an overall AI-powered assessment of growth potential and risk. Beginners should also check the company's market cap (larger companies tend to be less volatile), gross margin (higher margins mean stronger business fundamentals), and cash position (healthy cash reduces bankruptcy risk). Always start with a small position size and never invest money you cannot afford to lose.
How risky is SREA for first-time investors?
Every stock carries risk, including Sempra (SREA). First-time investors should review the Risk Factors section on this page for company-specific risks. Key risk indicators include price volatility (check the chart for daily swings), insider selling activity (see Insider Flow tab), and cash runway (see MoonshotScore breakdown). A diversified portfolio with an index fund like the S&P 500 as a core holding is generally recommended before adding individual stocks like SREA.
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.
Data provided for informational purposes only.
- Financial data is based on the most recent available information.
- Growth opportunities are based on current market trends and company strategies.
- Risk factors are based on industry analysis and company disclosures.