SRE Sempra

Sempra is an energy infrastructure company operating regulated utilities in California (SoCalGas, SDG&E) and Texas (Oncor), plus LNG export and infrastructure businesses. Sector: Utilities.

Sempra (SRE) is an individual stock. The analysis below presents key financial metrics for the company, covering profitability, capital efficiency, valuation, margins, and growth.

On the question of capital productivity, ROIC is 2.25%, WACC is 6.25%, and the economic spread is -4.00%. On balance, the spread between returns and funding costs is negative — a dynamic that pressures intrinsic value unless operating performance improves. Supporting metrics show ROE at 4.09% and ROA at 1.20%, a combination that helps frame whether profitability strength is broad enough to hold through different market conditions. Taken together, the return profile suggests a company that likely needs operating improvement before returns quality can be considered durable.

Assessed on a multiple basis, trailing P/E of 22.59, forward P/E of 14.46, PEG of 2.18. Forward P/E comes in somewhat below trailing — a gap that is supportive of the valuation case without implying a sharp near-term earnings inflection. Growth-adjusted, the multiple is in an acceptable range — the company is neither pricing in perfection nor offering a meaningful valuation discount. The company carries an aggregate current ratio of 1.64, consistent with adequate near-term liquidity management. Overall, the valuation setup reads as a balance between expected growth and execution risk, with liquidity acting as an important stabilizer if macro conditions become less favorable.

The margin stack reads as follows: gross margin sits at 37.60%, operating margin at 25.09%, and free cash flow margin at 39.39%. Gross margins are in the moderate range, typical of sectors where direct costs consume a larger share of revenue. The company's operating margins are solid, pointing to overhead management that appears to be a relative strength. The company's FCF margin is a standout — reflecting businesses where accounting profits translate cleanly into real cash generation. The profile is not weak, but it is uneven enough that execution and cost control remain central to the forward case.

Where growth and expectations intersect, the estimated 12-month price change of 27.51%, where analyst assumptions support a moderate upside case if execution remains steady, while TTM revenue growth of 3.92% indicating muted but still positive top-line momentum across the company. The projected 12-month EPS growth rate of 56.2% is a standout component of the forward case — meaningful earnings expansion at this scale typically warrants attention from growth-oriented investors. Both signals are useful lenses, but they tend to diverge most sharply near inflection points in both business fundamentals and market sentiment. The durability of both the operating trend and analyst optimism will determine whether the current setup translates into measurable near-term returns. The estimated 12-month price change is based on analyst consensus price target estimates, sourced from publicly available data, and should not be interpreted as a reliable prediction of future performance.

The overall evidence base is constructive, with more signals pointing up than down and no obvious structural impairment to the forward case.

This summary is based on publicly available quantitative data and is not intended as investment advice. Carefully consider your personal financial circumstances before making any decisions.