Sempra Energy (SRE) Stock

Sempra Energy trades at a P/E ratio of 34.59, which is above the market average of approximately 20. This premium valuation suggests investors expect above-average growth or the company has competitive advantages justifying the higher multiple. Looking ahead, the forward P/E of 18.59 is lower than the current P/E, indicating analysts expect earnings to grow over the next year. The PEG ratio of 2.04 indicates a premium valuation even accounting for growth.

With a beta of 0.70, 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 1.97 shows investors value the company above its book value, which often reflects intangible assets or growth prospects.

Sempra Energy achieves a profit margin of 13.40%, meaning it retains $13.40 from every $100 in revenue after all expenses. This represents a solid margin typical of well-run businesses, showing the company can effectively balance revenue generation with cost control. The operating margin of 27.70% reveals how efficiently the company runs its core business operations before interest and taxes. With ROE at 5.19% and ROA at 1.77%, the company achieves moderate returns on invested capital.

Sempra Energy's revenue declined by 0.20% year-over-year, indicating challenges in maintaining sales momentum. This contraction may reflect market headwinds, competitive pressures, or strategic transitions. Earnings decreased by 48.20% 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 2.77%, paying $2.58 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 Mar 19, 2026.

The dividend sustainability can be assessed through the payout ratio - Sempra Energy pays $2.58 per share in dividends against earnings of $2.75 per share, resulting in a payout ratio of 93.82%. This very high payout exceeding 90% raises sustainability concerns, as nearly all earnings go to dividends. Any earnings decline could force a dividend cut. The next dividend payment is scheduled for Apr 15, 2026.

Sempra Energy has a market capitalization of $62.1B, 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 653.28M 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 $48.40, while the current stock price is $95.11, resulting in a price-to-book (P/B) ratio of 1.97. 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.

18 analysts cover SRE with 67% 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 $101.75 implies 7.0% upside, but targets are often adjusted to follow price moves rather than predict them.

Current analyst recommendations:3 Strong Buy, 9 Buy, 6 Hold, 00The bullish tilt suggests optimism about future prospects, though investors should conduct independent research.Remember that analyst opinions often lag price movements and can be influenced by investment banking relationships.