Sempra Stock Intrinsic Value – SEMPRA Stock Rises on Friday, Despite Underperforming Market
November 16, 2023
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Friday saw Sempra ($NYSE:SRE) stock rise in the market, however it still lagged behind overall market performance. Sempra is an energy and infrastructure company based in San Diego, California. It has a portfolio of utilities and infrastructure businesses including regulated electric and natural gas utilities, as well as a portfolio of energy-related businesses in the areas of energy storage, renewable energy, and natural gas storage. The stock has seen some volatility throughout the year, with many investors remaining cautious due to the ongoing pandemic.
Despite this, the stock was able to rise on Friday, though it still underperformed the broader market. This could be due to the company’s performance in its core markets or the hopes of potential stimulus from the newly elected government. Investors are keeping a close eye on Sempra stock as they wait to see how it will fare in the coming months.
Market Price
On Friday, despite its underperformance in comparison to the stock market, the stock of SEMPRA managed to increase. It opened on Monday at $70.1 and closed the day at $70.0, a 0.5% drop from its previous closing price of $70.3. This indicates that investors remain confident in the company’s potential despite its recent stumble. This is reassuring news for those who have invested in SEMPRA and suggests that the company has the capacity to continue to grow in the future. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Sempra. More…
| Total Revenues | Net Income | Net Margin |
| 16.68k | 2.73k | 15.9% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Sempra. More…
| Operations | Investing | Financing |
| 4.82k | -8.16k | 4.04k |
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 |
| 85.73k | 52.48k | 44.9 |
Key Ratios Snapshot
Some of the financial key ratios for Sempra are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 14.4% | 7.3% | 21.4% |
| FCF Margin | ROE | ROA |
| -18.4% | 8.0% | 2.6% |
Analysis – Sempra Stock Intrinsic Value
At GoodWhale, we recently conducted an analysis of SEMPRA‘s fundamentals. Our proprietary Valuation Line calculation resulted in a calculated intrinsic value of the SEMPRA stock of around $84.9. Meanwhile, the stock is currently being traded at $70.0, representing a 17.5% discount from its intrinsic value. We believe this to be an attractive buying opportunity for investors looking for companies undervalued in the market. More…
Peers
Sempra Energy is a Fortune 500 energy services holding company based in San Diego, California. The Sempra Energy companies’ 15,000 employees serve approximately 32 million consumers worldwide. Sempra Energy’s utilities, San Diego Gas & Electric (SDG&E) and Southern California Gas Company (SoCalGas), are regulated by the California Public Utilities Commission. Sempra Energy’s other businesses include Sempra Commodities, Sempra Generation and Sempra LNG.
– Atmos Energy Corp ($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
Investing in Sempra is a risky decision, as the stock has seen continuous underperformance compared to the overall market. On Friday, the stock rose slightly, but this does not indicate any large-scale recovery in the near future. Analysts have cited factors such as economic uncertainties, trade wars, and poor earnings as a few headwinds that may have caused the stock to decline.
Moreover, the company has been involved in a few legal battles recently, which could further dampen investor sentiment. Therefore, it is important to consider all these factors before investing in Sempra.
