Sempra (SRE) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

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Constellation Energy Corp.

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The Southern Co.

Exelon Corp.

NextEra Energy, Inc.

Xcel Energy, Inc.

Dominion Energy, Inc.

Sempra

Why is Sempra ?

Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 5.43%

Negative results in Jun 25

PRE-TAX PROFIT(Q) At USD 261 MM has Fallen at -42.19%
ROCE(HY) Lowest at 8.87%
INVENTORY TURNOVER RATIO(HY) Lowest at 17.43 times

With ROCE of 4.37%, it has a expensive valuation with a 1.27 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -1.39%, its profits have risen by 6.6% ; the PEG ratio of the company is 4.3

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -1.39% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Power)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Sempra for you?

Medium Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Sempra

-1.56%

0.68

30.54%

S&P 500

13.22%

0.64

20.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

3.36%

EBIT Growth (5y)

-1.19%

EBIT to Interest (avg)

2.52

Debt to EBITDA (avg)

5.62

Net Debt to Equity (avg)

1.14

Sales to Capital Employed (avg)

0.24

Tax Ratio

5.06%

Dividend Payout Ratio

56.16%

Pledged Shares

Institutional Holding

92.37%

ROCE (avg)

5.43%

ROE (avg)

10.72%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.58

EV to EBIT

29.14

EV to EBITDA

15.83

EV to Capital Employed

1.27

EV to Sales

6.52

PEG Ratio

4.32

Dividend Yield

ROCE (Latest)

4.37%

ROE (Latest)

10.59%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

Bearish

No Signal

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bullish

Dow Theory

Mildly Bullish

No Trend

OBV

No Trend

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

4What is working for the Company

DIVIDEND PER SHARE(HY)

Highest at USD 6.15

DIVIDEND PAYOUT RATIO(Y)

Highest at 91.4%

RAW MATERIAL COST(Y)

Fallen by -2.78% (YoY

-13What is not working for the Company

PRE-TAX PROFIT(Q)

At USD 261 MM has Fallen at -42.19%

ROCE(HY)

Lowest at 8.87%

INVENTORY TURNOVER RATIO(HY)

Lowest at 17.43 times

DEBT-EQUITY RATIO (HY)

Highest at 121.1 %

NET SALES(Q)

At USD 2,966 MM has Fallen at -10.1%

NET PROFIT(Q)

Lowest at USD 457.36 MM

EPS(Q)

Lowest at USD 0.71

Here's what is working for Sempra

Dividend per share

Highest at USD 6.15 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Dividend Payout Ratio

Highest at 91.4%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by -2.78% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at USD 653 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Here's what is not working for Sempra

Pre-Tax Profit

At USD 261 MM has Fallen at -42.19%

over average net sales of the previous four periods of USD 451.5 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Net Profit

At USD 457.36 MM has Fallen at -34.27%

over average net sales of the previous four periods of USD 695.83 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Inventory Turnover Ratio

Lowest at 17.43 times and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Net Sales

At USD 2,966 MM has Fallen at -10.1%

over average net sales of the previous four periods of USD 3,299.25 MM

MOJO Watch

Near term sales trend is negative

Net Sales (USD MM)

Net Profit

Lowest at USD 457.36 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

EPS

Lowest at USD 0.71

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (USD)

Debt-Equity Ratio

Highest at 121.1 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio