Sempra (SRE)

FairStock Score: 41/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

Sempra is a regulated utility, which usually gives a business a modest moat: essential service, protected territories, and steady demand. But the figures here are not what I want from a conservatively financed utility. Revenue slipped from $14.8B in fiscal year 2023 to $12.4B in fiscal year 2025, while net income fell from $3.1B to $1.8B and diluted EPS from $4.79 to $2.75. Fiscal year 2024 was also weaker than 2023: revenue $11.8B, net income $2.9B, EPS $4.42. The most recent filed quarter, fiscal Q1 2026 ended 2026-03-31, was better at $3.4B revenue, $1.0B net income, and $1.58 diluted EPS, but fiscal Q3 2025 ended 2025-09-30 earned only $95M, or $0.12 per share, showing lumpiness. FairStock labels it a SLOW GROWER — Shrinking, with profit down 14.9% a year over five years and revenue up 3.8%. Financial health is mixed. Debt-to-equity is 0.85. FairStock's ROE is 6.68% and ROCE only 1.96%, both modest for a capital-intensive utility. Trailing free cash flow is -$5.2B, a -9.7% FCF yield, meaning the business is consuming cash. FairStock's Altman Z-score is 0.87 and Piotroski F-Score is 5/9, not signs of fortress balance sheet. At the 2026-10-13 close of $82.37, valuation looks full. FairStock's P/E is 23.88, P/B 1.65, PEG 1.82, and EV/EBITDA 16.07. Its Graham Number is $62.32, giving a -32.17% margin of safety. The 3.23% dividend yield and beta of 0.56 are comforts, but I prefer a wider discount for uncertain cash flow and shrinking profits.

In plain English: Sempra is a utility company that provides electricity and natural gas, mainly in California and Texas, and also owns energy infrastructure in Mexico. Its profits have been uneven and it is currently spending more cash than it brings in, so the business looks only fair rather than strong. At $82.37 a share, the price looks expensive compared with its recent earnings and cash flow.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · fiscal Q1 2025 10-Q (period ended 2025-03-31) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer