Sempra Energy

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SRE : NYSE : Utilities
$112.81 | %
Today's Range: 112.71 - 113.75
Avg. Daily Volume: 1310100.0
06/23/17 - 4:05 PM ET

Financial Analysis


SEMPRA ENERGY's gross profit margin for the first quarter of its fiscal year 2017 has increased when compared to the same period a year ago. Sales and net income have grown, and although the growth in revenues has outpaced the average competitor within the industry, the net income growth has not. SEMPRA ENERGY has very weak liquidity. Currently, the Quick Ratio is 0.31 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.

During the same period, stockholders' equity ("net worth") has increased by 11.01% 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 FY17 Q1 FY16
Net Sales ($mil)3031.02622.0
EBITDA ($mil)1106.0893.0
EBIT ($mil)746.0565.0
Net Income ($mil)441.0353.0


Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)362.0399.0
Total Assets ($mil)48284.041835.0
Total Debt ($mil)17302.015218.0
Equity ($mil)13284.011966.0


Profitability Q1 FY17 Q1 FY16
Gross Profit Margin36.4934.06
EBITDA Margin36.4834.05
Operating Margin24.6121.55
Sales Turnover0.220.24
Return on Assets3.023.02
Return on Equity10.9710.57
Debt Q1 FY17 Q1 FY16
Current Ratio0.510.56
Debt/Capital0.570.56
Interest Expense179.0168.0
Interest Coverage4.173.36


Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)251.0249.0
Div / share0.820.76
EPS1.751.4
Book value / share52.9248.06
Institutional Own % n/a n/a
Avg Daily Volume1291614.0893247.0

Valuation


BUY. This stock's P/E ratio indicates a discount compared to an average of 21.16 for the Multi-Utilities industry and a discount compared to the S&P 500 average of 25.73. For additional comparison, its price-to-book ratio of 2.17 indicates a discount versus the S&P 500 average of 3.08 and a discount versus the industry average of 2.24. The current price-to-sales ratio is well above the S&P 500 average and above 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 19.89 Peers 21.16   SRE 10.56 Peers 8.55

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 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 20.46 Peers 18.69   SRE NM Peers 3.06

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 premium to its peers.

 

Neutral. 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's negative PEG ratio makes this valuation measure meaningless.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
SRE 2.17 Peers 2.24   SRE 14.91 Peers 23.21

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.

 

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

However, SRE is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
SRE 2.72 Peers 2.49   SRE 4.13 Peers 5.07

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.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

SRE trails its peers on the basis of sales growth

 

 

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