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Sempra Energy
SRE : NYSE : Utilities
$110.10 | %
Today's Range: 108.92 - 111.00
Avg. Daily Volume: 1,161,700
12/19/14 - 4:02 PM ET

Financial Analysis


SEMPRA ENERGY's gross profit margin for the third quarter of its fiscal year 2014 has decreased when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago. SEMPRA ENERGY has very weak liquidity. Currently, the Quick Ratio is 0.46 which clearly shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.

At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 3.87% 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 Q3 FY14 Q3 FY13
Net Sales ($mil)2815.02551.0
EBITDA ($mil)807.0792.0
EBIT ($mil)515.0506.0
Net Income ($mil)348.0301.0


Balance Sheet Q3 FY14 Q3 FY13
Cash & Equiv. ($mil)689.01089.0
Total Assets ($mil)38982.036901.0
Total Debt ($mil)13934.012441.0
Equity ($mil)11353.010929.0


Profitability Q3 FY14 Q3 FY13
Gross Profit Margin28.6731.05
EBITDA Margin28.6631.04
Operating Margin18.2919.84
Sales Turnover0.280.29
Return on Assets2.942.76
Return on Equity10.099.25
Debt Q3 FY14 Q3 FY13
Current Ratio1.030.82
Debt/Capital0.550.53
Interest Expense155.0152.0
Interest Coverage3.323.33


Share Data Q3 FY14 Q3 FY13
Shares outstanding (mil)246.0244.0
Div / share0.660.63
EPS1.391.19
Book value / share46.1544.79
Institutional Own % n/a n/a
Avg Daily Volume1161189.0919709.0

Valuation


BUY. SEMPRA ENERGY's P/E ratio indicates a premium compared to an average of 20.78 for the Multi-Utilities industry and a premium compared to the S&P 500 average of 19.99. For additional comparison, its price-to-book ratio of 2.38 indicates a discount versus the S&P 500 average of 2.76 and a discount versus the industry average of 2.49. The current price-to-sales ratio is well above the S&P 500 average and above the industry average, indicating a premium. The valuation analysis reveals that, SEMPRA ENERGY seems to be trading at a premium 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 23.95 Peers 20.78   SRE 12.79 Peers 9.81

Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.

SRE is trading at a premium to 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 22.62 Peers 18.97   SRE 1.83 Peers 2.24

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.

 

Discount. 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 discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
SRE 2.38 Peers 2.49   SRE 12.77 Peers 4.86

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 2.46 Peers 2.19   SRE 4.49 Peers 4.68

Premium. 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 premium to its industry on this measurement.

 

Average. Comparing a company's sales growth to its industry helps to determine if the company is adding or losing market share.

SRE is keeping pace with its peers on the basis of sales growth.

 

 

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