Sempra Energy (SRE) Stock

Sempra Energy trades at a P/E ratio of 21.46, which is near the market average of approximately 20, suggesting the market views it as fairly valued relative to its earnings. Looking ahead, the forward P/E of 17.33 is lower than the current P/E, indicating analysts expect earnings to grow over the next year. The PEG ratio of 1.97 indicates reasonable value when growth is considered.

With a beta of 0.66, Sempra Energy is less volatile than the overall market. This means when the market moves up or down by 10%, this stock typically moves less than 10% in the same direction. Lower beta stocks are often preferred by conservative investors seeking stability. The price-to-book ratio of 1.88 shows investors value the company above its book value, which often reflects intangible assets or growth prospects.

Sempra Energy achieves a profit margin of 20.30%, meaning it retains $20.30 from every $100 in revenue after all expenses. This is an impressive margin, indicating strong pricing power and efficient cost management that allows the company to generate substantial profits. The operating margin of 18.40% reveals how efficiently the company runs its core business operations before interest and taxes. With ROE at 8.64% and ROA at 1.92%, the company achieves moderate returns on invested capital.

Sempra Energy's revenue declined by 0.40% year-over-year, indicating challenges in maintaining sales momentum. This contraction may reflect market headwinds, competitive pressures, or strategic transitions. Earnings decreased by 36.90% year-over-year, reflecting the bottom-line impact of business performance. These growth metrics should be evaluated against UTILITIES - DIVERSIFIED industry averages for proper context.

Sempra Energy offers a dividend yield of 2.86%, paying $2.53 per share annually. This above-average yield of 2-4% provides meaningful income while still allowing the company to reinvest for growth. It compares favorably to the S&P 500 average and offers competitive returns versus bonds in the current rate environment. To receive the next dividend, shares must be purchased before the ex-dividend date of Oct 1, 2025.

The dividend sustainability can be assessed through the payout ratio - Sempra Energy pays $2.53 per share in dividends against earnings of $4.18 per share, resulting in a payout ratio of 60.53%. This high payout ratio of 60-90% leaves limited earnings for reinvestment. While currently sustainable, there's less buffer for dividend growth or protection during earnings downturns. The next dividend payment is scheduled for Oct 15, 2025.

Sempra Energy has a market capitalization of $58.5B, classifying it as a large-cap stock ($10B-$200B). Large-caps are typically industry leaders with established business models, offering a balance of stability and growth potential. They often provide dividend income and are core holdings in institutional portfolios. With 652.47M shares outstanding, the company's ownership is relatively concentrated. As a participant in the UTILITIES - DIVERSIFIED industry, it competes with other firms in this sector.

Sempra Energy's book value per share is $47.23, while the current stock price is $92.71, resulting in a price-to-book (P/B) ratio of 1.96. This reasonable premium to book value suggests the market values the company's earnings power and intangible assets appropriately. Most profitable companies trade between 1-3x book value. As a common stock, this represents equity ownership with voting rights.

15 analysts cover SRE with 47% recommending buy/strong buy ratings. Analyst predictions have mixed reliability - studies show consensus rarely beats market returns consistently. The mixed views reflect uncertainty about the outlook. The consensus target of $86.20 implies -7.0% downside, but targets are often adjusted to follow price moves rather than predict them.

Current analyst recommendations:1 Strong Buy, 6 Buy, 8 Hold, 00The neutral stance suggests uncertainty or fair valuation at current levels.Remember that analyst opinions often lag price movements and can be influenced by investment banking relationships.