Sempra Energy

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SRE : NYSE : Utilities
$118.21 -0.07 | -0.059%
Today's Range: 117.04 - 118.35
Avg. Daily Volume: 1170900.0
08/23/17 - 12:48 PM ET

Financial Analysis


SEMPRA ENERGY's gross profit margin for the second quarter of its fiscal year 2017 has significantly increased 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 0.26 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 13.14% 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 Q2 FY17 Q2 FY16
Net Sales ($mil)2533.02156.0
EBITDA ($mil)896.0323.0
EBIT ($mil)528.09.0
Net Income ($mil)260.017.0


Balance Sheet Q2 FY17 Q2 FY16
Cash & Equiv. ($mil)293.0633.0
Total Assets ($mil)49376.042875.0
Total Debt ($mil)18113.015862.0
Equity ($mil)13352.011801.0


Profitability Q2 FY17 Q2 FY16
Gross Profit Margin35.3714.98
EBITDA Margin35.3714.98
Operating Margin20.840.42
Sales Turnover0.220.23
Return on Assets3.442.3
Return on Equity12.738.35
Debt Q2 FY17 Q2 FY16
Current Ratio0.460.59
Debt/Capital0.580.57
Interest Expense181.0170.0
Interest Coverage2.920.05


Share Data Q2 FY17 Q2 FY16
Shares outstanding (mil)251.0248.0
Div / share0.00.76
EPS1.030.06
Book value / share53.247.58
Institutional Own % n/a n/a
Avg Daily Volume1185188.01111178.0

Valuation


BUY. This stock's P/E ratio indicates a discount compared to an average of 21.43 for the Multi-Utilities industry and a discount compared to the S&P 500 average of 24.23. For additional comparison, its price-to-book ratio of 2.18 indicates a discount versus the S&P 500 average of 3.02 and a discount versus the industry average of 2.21. 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 17.15 Peers 21.43   SRE 8.75 Peers 8.18

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

SRE is trading at a discount to its peers.

 

Average. 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 valuation on par 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 20.62 Peers 18.48   SRE NM Peers 2.93

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 2.18 Peers 2.21   SRE 72.19 Peers 29.48

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 2.65 Peers 2.41   SRE 10.13 Peers 7.50

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.

 

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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