Sempra Energy

Find Ratings Reports
SRE : NYSE : Utilities
$109.09 | %
Today's Range: 108.37 - 109.325
Avg. Daily Volume: 939200.0
02/24/17 - 4:02 PM ET

Financial Analysis


SEMPRA ENERGY's gross profit margin for the third quarter of its fiscal year 2016 has 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 decreased from the same period a year ago, despite already having very weak liquidity to begin with. This would indicate deteriorating cash flow.

During the same period, stockholders' equity ("net worth") has increased by 6.19% 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.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. To learn more visit www.TheStreetRatings.com.



Income Statement Q3 FY16 Q3 FY15
Net Sales ($mil)2535.02481.0
EBITDA ($mil)785.0677.0
EBIT ($mil)457.0362.0
Net Income ($mil)622.0248.0


Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)532.0710.0
Total Assets ($mil)45526.040566.0
Total Debt ($mil)17295.014792.0
Equity ($mil)12366.011645.0


Profitability Q3 FY16 Q3 FY15
Gross Profit Margin30.9727.29
EBITDA Margin30.9627.28
Operating Margin18.0314.59
Sales Turnover0.220.25
Return on Assets2.983.15
Return on Equity10.9910.96
Debt Q3 FY16 Q3 FY15
Current Ratio0.430.7
Debt/Capital0.580.56
Interest Expense169.0167.0
Interest Coverage2.72.17


Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)250.0248.0
Div / share0.760.7
EPS2.460.99
Book value / share49.4646.96
Institutional Own % n/a n/a
Avg Daily Volume968583.01436470.0

Valuation


BUY. This stock's P/E ratio indicates a premium compared to an average of 18.61 for the Multi-Utilities industry and a discount compared to the S&P 500 average of 26.35. For additional comparison, its price-to-book ratio of 2.14 indicates a discount versus the S&P 500 average of 2.94 and a discount versus the industry average of 2.17. 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 19.61 Peers 18.61   SRE 10.55 Peers 7.50

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 20.81 Peers 17.31   SRE NM Peers 2.58

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.

 

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 2.14 Peers 2.17   SRE 6.29 Peers -53.12

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 2.64 Peers 2.36   SRE -2.56 Peers -1.04

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.

 

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

SRE significantly trails its peers on the basis of sales growth

 

 

Latest Stock Upgrades/Downgrades