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Sempra Energy
SRE : NYSE : Utilities
$100.38 | %
Today's Range: 99.14 - 100.50
Avg. Daily Volume: 1,039,600
07/02/15 - 4:02 PM ET

Financial Analysis


SEMPRA ENERGY's gross profit margin for the first quarter of its fiscal year 2015 has significantly increased when compared to the same period a year ago. Even though sales decreased, the net income has increased, representing an increase to the bottom line. SEMPRA ENERGY has very weak liquidity. Currently, the Quick Ratio is 0.44 which clearly shows a lack of ability to cover short-term cash needs. The liquidity decreased from the same period a year ago, despite already having weak liquidity to begin with. This would indicate deteriorating cash flow.

At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 4.19% from the same quarter last year. The key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the near future.

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Income Statement Q1 FY15 Q1 FY14
Net Sales ($mil)2682.02795.0
EBITDA ($mil)957.0708.0
EBIT ($mil)654.0422.0
Net Income ($mil)437.0247.0


Balance Sheet Q1 FY15 Q1 FY14
Cash & Equiv. ($mil)387.0870.0
Total Assets ($mil)39551.037484.0
Total Debt ($mil)14284.012881.0
Equity ($mil)11524.011060.0


Profitability Q1 FY15 Q1 FY14
Gross Profit Margin35.6825.33
EBITDA Margin35.6825.33
Operating Margin24.3815.1
Sales Turnover0.280.29
Return on Assets3.412.87
Return on Equity11.729.67
Debt Q1 FY15 Q1 FY14
Current Ratio0.971.09
Debt/Capital0.550.54
Interest Expense157.0150.0
Interest Coverage4.172.81


Share Data Q1 FY15 Q1 FY14
Shares outstanding (mil)247.0245.0
Div / share0.70.66
EPS1.740.99
Book value / share46.6645.14
Institutional Own % n/a n/a
Avg Daily Volume1028449.01058145.0

Valuation


BUY. SEMPRA ENERGY's P/E ratio indicates a discount compared to an average of 19.16 for the Multi-Utilities industry and a value on par with the S&P 500 average of 20.31. For additional comparison, its price-to-book ratio of 2.12 indicates a discount versus the S&P 500 average of 2.80 and a discount versus the industry average of 2.26. The current price-to-sales ratio is above both the S&P 500 average and the industry average, indicating a premium. Upon assessment of these and other key valuation criteria, SEMPRA ENERGY proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
SRE 18.34 Peers 19.16   SRE 11.81 Peers 7.78

Average. An average P/E ratio can signify an industry neutral price for a stock and an average growth expectation.

SRE is trading at a valuation on par with its peers.

 

Premium. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

SRE is trading at a significant premium to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
SRE 19.01 Peers 16.22   SRE 3.86 Peers 1.42

Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.

SRE is trading at a significant premium to its peers.

 

Premium. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

SRE trades at a significant premium to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
SRE 2.12 Peers 2.26   SRE 25.64 Peers -1.80

Average. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

SRE is trading at a valuation on par with its peers.

 

Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

SRE is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
SRE 2.24 Peers 2.12   SRE 2.05 Peers -3.07

Average. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

SRE is trading at a valuation on par with its industry on this measurement.

 

Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

SRE has a sales growth rate that significantly exceeds its peers.

 

 

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