Sempra (SRE) Stock Analysis — Fair Value, Risk & Moat Rating
NYQ · Utilities · Utilities - Diversified
Is Sempra a safe investment right now?
Sempra is in the Utilities sector — Altman Z-Score does not apply to this type of company. Our fair value estimate is $104.29 (Buy Zone).
Why the Altman Z-Score does not apply to Sempra
The Altman Z-Score is designed for manufacturing and non-financial companies. It uses ratios like Working Capital / Total Assets and Revenue / Total Assets that produce misleading results for Utilities companies.
- Banks hold massive assets (loans) that inflate Total Assets, making WC/TA nearly zero — a false distress signal
- Utilities carry high regulated debt by design — the model misreads leverage as risk
- REITs use Funds From Operations (FFO), not Free Cash Flow — standard cash flow analysis doesn't apply
Altman Z-Score is designed for manufacturing companies and does not apply to banks, utilities, or REITs.
Note: A sector-specific financial health model for Utilities companies is planned for a future update.
What is Sempra actually worth?
How we calculated this
| Input | Value | Source |
|---|---|---|
| Analyst Consensus Target | $104.29 | 17 Wall Street analysts |
| Analyst High / Low | $115.00 / $93.00 | Range of analyst price targets |
| Price / Book | 1.91x | Current market valuation vs book value |
| Return on Equity | 5.2% | Profitability relative to shareholder equity |
Source: Earnings data from SEC EDGAR filings. Market data via Yahoo Finance.
Why standard moat analysis does not apply to Sempra
Our standard moat model uses ROIC stability, gross margin trends, and switching costs — metrics designed for product and service companies. Utilities companies compete on fundamentally different dimensions.
- Banks — moat comes from deposit cost advantage, net interest margin stability, and fee income diversification
- Utilities — moat is a regulatory monopoly with guaranteed rate of return on invested capital
- REITs — moat comes from property portfolio quality, location, tenant mix, and cap rate advantages
Standard moat analysis (ROIC/gross margin/switching costs) does not reliably apply to Utilities companies. Banks compete on net interest margin, utilities on regulated returns, and REITs on occupancy and cap rates.
Note: A sector-specific competitive analysis for Utilities companies is planned for a future update.
Is Sempra's dividend safe?
Can Sempra afford its dividend?
Payout ratio is 93.8%. FCF covers the dividend -2.9x. 29 consecutive years of payments.
Sempra's key financial metrics
| Metric | Latest | 1Y Ago | 3Y Ago | Trend |
|---|---|---|---|---|
| Revenue | $13.7B | $13.2B | $14.4B | Declining |
| Net Income | $1.8B | $2.9B | $2.1B | Declining |
| Free Cash Flow | −$6.0B | −$3.3B | −$4.2B | Declining |
| Gross Margin | 46.6% | 46.2% | 36.1% | Rising |
Recent events that affect our SRE analysis
SRE earnings report scheduled
Upcoming report. Consensus EPS estimate: $1.51. Revenue estimate: $4.17B. Our current Fair Value: $104.29 — a significant beat or miss could shift this estimate.
SRE analyst consensus: 74% bullish (14 of 19 analysts)
3 Strong Buy, 11 Buy, 5 Hold, 0 Sell, 0 Strong Sell. Consensus target: $104.29 (12.9% upside). Compare with our independent Fair Value: $104.29.
SRE filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
SRE filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
SRE filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
SRE paid $0.6580/share dividend
Dividend Safety Grade: C. Payout ratio: 93.8%.
SRE filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
SRE filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
SRE beat EPS estimates by 9.2%
Reported EPS: $1.28 vs estimate $1.17. Earnings strength supports our Fair Value of $104.29 (12.9% above current price).
SRE filed annual report (10-K)
Annual filing with full-year financials. Our Altman Z-Score, Moat, and Fair Value models are derived from this data. View on SEC EDGAR →
SRE filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
SRE filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
SRE filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
SRE filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
SRE paid $0.6450/share dividend
Dividend Safety Grade: C. Payout ratio: 93.8%.
SRE filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
SRE beat EPS estimates by 21.7%
Reported EPS: $1.11 vs estimate $0.91. Earnings strength supports our Fair Value of $104.29 (12.9% above current price).
SRE filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
SRE filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
SRE paid $0.6450/share dividend
Dividend Safety Grade: C. Payout ratio: 93.8%.
SRE filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
SRE filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
SRE filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
SRE beat EPS estimates by 4.8%
Reported EPS: $0.89 vs estimate $0.85. Earnings strength supports our Fair Value of $104.29 (12.9% above current price).
SRE filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
SRE filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
SRE paid $0.6450/share dividend
Dividend Safety Grade: C. Payout ratio: 93.8%.
SRE filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
SRE filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
SRE filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
SRE filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
SRE filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
SRE beat EPS estimates by 9.3%
Reported EPS: $1.44 vs estimate $1.32. Earnings strength supports our Fair Value of $104.29 (12.9% above current price).
SRE filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
SRE filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
SRE filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
SRE filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
SRE filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
SRE paid $0.6450/share dividend
Dividend Safety Grade: C. Payout ratio: 93.8%.
SRE missed EPS estimates by 3.3%
Reported EPS: $1.50 vs estimate $1.55. Our Fair Value of $104.29 may face downward pressure if the trend continues.
SRE filed annual report (10-K)
Annual filing with full-year financials. Our Altman Z-Score, Moat, and Fair Value models are derived from this data. View on SEC EDGAR →
SRE filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
SRE filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
SRE filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
Common questions about Sempra
What is Sempra stock price today?
Sempra (SRE) stock price is $92.38 as of the latest market close, traded on the NYSE exchange.
What does Sempra do?
Sempra engages in the regulated utilities business in the United States and Mexico. It operates through three segments: Sempra California, Sempra Texas Utilities, and Sempra Infrastructure. It also invests in and operates electric and gas utilities and other energy infrastructure that provides energy services to customers.
What is Sempra market cap?
Sempra has a market capitalization of $60.35B, classifying it as a large-cap stock in the Utilities sector.
What sector and industry is SRE in?
Sempra operates in the Utilities sector, specifically within the Utilities - Diversified industry. It trades on the NYSE under the ticker symbol SRE.
Is SRE stock overvalued or undervalued?
Based on our valuation model, Sempra trades 11.4% below our fair value estimate — potentially undervalued.
- FairValueLabs Fair Value: $104.29
- Current Price: $92.38
- Valuation Zone: Buy Zone
What is SRE stock forecast and analyst target price?
Based on 17 Wall Street analysts, the consensus price target for Sempra is $104.29, implying upside of 12.9% from the current price.
- Analyst High Target: $115.00
- Analyst Low Target: $93.00
Note: Analyst targets are shown for reference and are not used in our valuation model.
Is Sempra revenue and earnings growing?
Here are the analyst consensus growth estimates for Sempra:
- Revenue growth (current year est.): 3.7%
- EPS growth (current year est.): 9.0%
- Revenue growth (next year est.): -1.4%
- EPS growth (next year est.): 8.1%
What are Sempra's key financial metrics?
| Metric | Latest | Trend |
|---|---|---|
| Revenue | $13.7B | Declining |
| Net Income | $1.8B | Declining |
| Free Cash Flow | −$6.0B | Declining |
| Gross Margin | 46.6% | Rising |
What is SRE's P/E ratio?
The price-to-earnings ratio measures how much investors pay per dollar of earnings:
- Trailing P/E (last 12 months): 33.6x
- Forward P/E (next 12 months est.): 16.7x
How volatile is SRE stock?
Sempra has a beta of 0.68, meaning it is less volatile than the broader market. A beta above 1.0 indicates higher price swings relative to the S&P 500, while below 1.0 suggests more stability.
How much cash and debt does Sempra have?
Sempra's balance sheet shows:
- Total Cash: $29.0M
- Total Debt: $35.02B
- Net Cash Position: $-34.99B
A positive net cash position means the company holds more cash than debt, reducing financial risk.
What is Sempra's free cash flow?
Sempra generated $-27.73B in trailing twelve-month free cash flow (from $4.57B in operating cash flow). Free cash flow represents the cash available for dividends, buybacks, and debt reduction after all capital expenditures.
Does Sempra pay a dividend, and is it safe?
Yes, Sempra pays a regular dividend. Here are the key metrics:
- Dividend Yield: 2.8%
- Payout Ratio: 93.8%
- Consecutive Years Paid: 29
- 5-Year Dividend Growth: -21.4%
- FairValueLabs Safety Grade: C
Is Sempra financially healthy?
The Altman Z-Score — the standard bankruptcy prediction model — is not applicable to Utilities companies like Sempra. The formula uses ratios designed for manufacturing firms that produce misleading results for banks, utilities, and REITs.
Does Sempra have a competitive moat?
Our standard moat model (based on ROIC, gross margins, and switching costs) does not apply to Utilities companies. These firms compete on fundamentally different dimensions such as regulatory advantages, deposit cost structures, or property portfolios.
What is SRE's return on equity (ROE)?
Sempra's return on equity is 5.2%. ROE measures how efficiently a company generates profits from shareholder equity. An ROE above 15% is generally considered strong, while below 10% may signal inefficiency.
How do I buy SRE stock?
SRE shares can be purchased through any brokerage account that provides access to the NYSE. Common steps:
- Open an account with a broker (e.g., Fidelity, Schwab, Interactive Brokers)
- Search for ticker symbol SRE
- Place a market or limit order for your desired number of shares
This is not investment advice. Always do your own research before buying any stock.
Is SRE a value stock or speculative?
FairValueLabs classifies Sempra as Value Investment. It exhibits consistent profitability, reasonable valuation, and financial stability — characteristics of a traditional value investment.
Who is the CEO of Sempra?
The current CEO of Sempra is Mr. Jeffrey Walker Martin.
What is SRE's earnings per share (EPS)?
Earnings per share measures the company's profit allocated to each outstanding share:
- Trailing EPS (last 12 months): $2.75
- Forward EPS (next 12 months est.): $5.53
- Analyst consensus EPS (this year): $5.11
- Analyst consensus EPS (next year): $5.53
Other Utilities companies analyzed by FairValueLabs
FairValueLabs Disclaimer
All valuations, scores, ratings, and classifications on this page are produced by the FairValueLabs internal valuation system. They do not represent actual market value, guaranteed outcomes, or professional investment advice. These are analytical estimates for educational and research purposes only.
This is not financial advice. All data is sourced from SEC EDGAR public filings. Always consult a qualified financial advisor before making investment decisions.
Last updated: Apr 22, 2026. Data sources: SEC EDGAR (financial statements), Yahoo Finance (market data, analyst consensus). Data may not reflect the most recent quarter.
SRE analysis methodology: How we calculate fair value, Z-Scores, and moat ratings