SRE Stock Analysis — Sempra Energy
Sector: Utilities
AI Verdict
Sempra is cheap for the growth you're getting if its regulated utility moat delivers on the 47.3% EPS forecast, but any stumble on execution or regulation could quickly erase the valuation gap.
Competitive Moat
Sempra Energy owns and operates regulated natural gas and electric infrastructure across California and Texas, giving it stable cash flows protected by state utility commissions. Its scale and regulatory relationships create high barriers to entry for competitors in these essential service regions.
Summary
Sempra trades at 16.8x next year's earnings with analysts forecasting a 47.3% jump in EPS, making it unusually growth-heavy for a utility.
Where It Stands
With a 3.67% 1-year return, an RSI of 54.5 (neutral), and a forward P/E of 16.8x versus the utility sector median of 18x, Sempra is trading slightly below sector valuation while offering higher expected growth.
Key Metrics
- RSI: 54.5 — Neutral
- Trailing P/E: 24.7x
- Forward P/E: 16.8x
- PEG Ratio: 0.54
- Earnings Growth: +0.5%
- Revenue Growth: +0.0%
- Market Cap: $55.8B
- Dividend Yield: 0.03%
- 1-Year Return: 3.67%
- 52-Week High: $101.04
- 52-Week Low: $78.97
Analyst Consensus
19 Buy · 6 Hold · 0 Sell (25 analysts)
Bull Case
The 47.3% forward EPS growth against a 16.8x forward P/E means you're paying a low price for unusually strong earnings momentum in a defensive sector.
Bear Case
If Sempra's P/E reverts from 16.8x to the sector median of 18x, upside is limited to about 7%, and any miss on that 47.3% EPS growth could see a sharp rerating.
Catalyst to Watch
Watch for upcoming regulatory decisions or rate cases in California and Texas, as approval or rejection of new infrastructure investments will directly impact earnings visibility.