Sempra Stock Fair Value – SEMPRA Stock Falls 2.42%, Underperforms Market on Thursday
August 5, 2023
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On Thursday, Sempra ($NYSE:SRE) Energy stock (SEMPRA) declined 2.42% to $143.31, underperforming the market as the S&P 500 Index dropped sharply. Sempra is a Fortune 500 energy services holding company based in San Diego, California. It is responsible for the development and operation of energy infrastructure and services across North America and South America. The company holds interests in utilities, renewable energy facilities, storage, pipelines, as well as investments in telecommunications, technology, and other services.
Sempra stock has been under pressure recently, due to the increased focus on renewable energy sources and concerns about the company’s financial performance in the face of heightened competition in the industry. Investors have also raised questions about the company’s ability to capitalize on growth opportunities in the coming years, particularly in light of its high debt-to-equity ratio. Despite this, analysts remain optimistic that Sempra can capitalize on its strategic assets and long-term growth prospects.
Analysis – Sempra Stock Fair Value
At GoodWhale, we recently conducted an analysis of SEMPRA‘s fundamentals. Our proprietary Valuation Line showed that the fair value of SEMPRA share is estimated to be around $175.3. However, the current market price for SEMPRA stock is trading at $141.9, which is a fair price undervalued by 19.0%. Although the stock may appear to be undervalued right now, we recommend investors to do their own research before making any decisions. More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Sempra. More…
| Total Revenues | Net Income | Net Margin |
| 16.97k | 2.5k | 14.7% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Sempra. More…
| Operations | Investing | Financing |
| 2.52k | -6.92k | 3.55k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Sempra. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 82.73k | 51.71k | 88.43 |
Key Ratios Snapshot
Some of the financial key ratios for Sempra are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 14.7% | 2.9% | 20.0% |
| FCF Margin | ROE | ROA |
| -28.1% | 7.6% | 2.6% |
Peers
Sempra Energy is a Fortune 500 energy services holding company based in San Diego, California. The Sempra Energy companies’ 15,000 employees serve approximately 32 million consumers worldwide. Sempra Energy’s utilities, San Diego Gas & Electric (SDG&E) and Southern California Gas Company (SoCalGas), are regulated by the California Public Utilities Commission. Sempra Energy’s other businesses include Sempra Commodities, Sempra Generation and Sempra LNG.
– Atmos Energy Corp ($NYSE:ATO)
Atmos Energy Corporation is an American natural gas and electricity company headquartered in Dallas, Texas. The company’s operations include natural gas production, transmission and distribution, as well as electricity generation and distribution. As of December 31, 2020, Atmos Energy Corporation operated in 11 states and served approximately 3.6 million natural gas and electricity customers.
Atmos Energy Corporation’s market capitalization is $14.27 billion as of 2022. The company’s return on equity is 6.28%.
Atmos Energy Corporation is one of the largest natural gas and electricity companies in the United States. The company is headquartered in Dallas, Texas and operates in 11 states. As of December 31, 2020, Atmos Energy Corporation served approximately 3.6 million natural gas and electricity customers.
– REN-Redes Energeticas Nacionais Sgps SA ($LTS:0KBT)
REN-Redes Energeticas Nacionais Sgps SA is a Portugal-based holding company engaged in the electricity and gas sector. The Company operates in three segments: Gas and Electricity Transmission, Distribution and Supply, and Renewable Energy. The Gas and Electricity Transmission segment includes the transport of electricity and natural gas through high-voltage lines and pipelines, respectively. The Distribution and Supply segment handles the distribution of electricity and natural gas to end customers, as well as the resale of energy to energy suppliers. The Renewable Energy segment focuses on the generation of electricity from renewable sources, such as wind, solar and hydro power. As of December 31, 2011, REN-Redes Energeticas Nacionais SGPS SA operated through a network of 12,955 kilometers of high voltage lines and 8,290 kilometers of pipelines.
– Alliant Energy Corp ($NASDAQ:LNT)
Alliant Energy Corp is a utility company that generates and distributes electric and natural gas services to customers in the Midwest region of the United States. As of 2022, the company had a market capitalization of $12.63 billion and a return on equity of 9.62%. Alliant Energy Corp is headquartered in Madison, Wisconsin.
Summary
Sempra Energy (SRE) shares underperformed the market Thursday, dropping 2.42%. The stock closed at $143.31. Investors should continue to watch the stock’s short and long term performance relative to the overall market, as well as any potential news that could affect the stock’s price. Overall, investor sentiment for SRE remains cautiously optimistic.
