Last Updated: 15 Sep 2024
Executive Summary
Sempra Energy (SRE) is a North American energy infrastructure company with a focus on electric and natural gas infrastructure. The company's strong financial performance, including a 17.73 trailing P/E ratio, 2.416 PEG ratio, and 0.224 profit margin, indicates its potential for growth. However, its low dividend yield of 0.0299% and quarterly revenue growth of -0.097% year-over-year suggest areas for improvement.
Company Overview
Sempra Energy operates through its subsidiaries, including Southern California Gas Company (SoCalGas), San Diego Gas & Electric (SDG&E), Oncor Electric Delivery Company (Oncor), Sempra LNG, and IEnova. The company's operations span the United States and Mexico, providing essential energy services to millions of customers.
Fundamental Analysis
Earnings: SRE reported diluted EPS of $4.68 in its latest quarter, representing a 0.179% growth year-over-year.
Revenue: Quarterly revenue declined by 0.097% year-over-year to $13.48 billion.
Valuation: The stock is currently trading at a trailing P/E ratio of 17.73, which is in line with industry peers.
Profitability: SRE's profit margin of 0.224 indicates efficient operations.
Debt: The company has a relatively low debt-to-equity ratio, suggesting a healthy financial position.
Technical Analysis
Moving Averages: The stock is currently trading above both its 50-day and 200-day moving averages, indicating a bullish trend.
Support and Resistance: The stock has support at $80.00 and resistance at $85.00.
RSI: The Relative Strength Index (RSI) is currently at 55, indicating that the stock is neither overbought nor oversold.
Short Term Outlook
In the short term, SRE is likely to continue its bullish trend as it approaches its resistance level at $85.00. However, the stock may face some resistance due to its low dividend yield and quarterly revenue growth.
Long Term Outlook
Sempra Energy's long-term outlook is positive due to its strong financial performance, focus on sustainable energy, and growing demand for energy infrastructure. The company's investments in renewable energy and its expansion into new markets are expected to drive growth in the coming years.
Analyst Recommendations
Analysts have a consensus rating of "Buy" for SRE, with an average target price of $88.06. Four analysts recommend a "Strong Buy," nine recommend a "Buy," five recommend a "Hold," and none recommend a "Sell" or "Strong Sell."
