SRE Stock Analysis — Sempra Energy
Sector: Utilities
AI Verdict
Sempra trades at 18.4x next year's earnings while analysts expect a huge 86.3% EPS jump—this is cheap for the growth you're getting if the utility's regulatory moat holds up.
Competitive Moat
Sempra Energy owns and operates regulated utility infrastructure in California and Texas, giving it stable cash flows protected by regulatory frameworks. Its scale and geographic positioning in high-growth, energy-hungry regions make it hard for new entrants to compete for these essential assets.
Summary
Sempra's forward P/E of 18.4x with 86.3% expected EPS growth and an oversold RSI of 32.0 make it a rare value standout in the utilities sector.
Where It Stands
A 26.98% 1-year return and RSI of 32.0 signal the stock is oversold despite a forward P/E of 18.4x, which is just above the sector median of 18x.
Key Metrics
- RSI: 32 — Near Oversold
- Trailing P/E: 34.3x
- Forward P/E: 18.4x
- PEG Ratio: 0.39
- Earnings Growth: +0.9%
- Revenue Growth: +0.0%
- Market Cap: $61.6B
- Dividend Yield: 0.03%
- 1-Year Return: 26.98%
- 52-Week High: $101.04
- 52-Week Low: $72.99
Analyst Consensus
17 Buy · 6 Hold · 0 Sell (23 analysts)
Bull Case
With analysts forecasting 86.3% EPS growth and a forward P/E of 18.4x, you're paying a typical utility multiple for unusually high earnings momentum.
Bear Case
If Sempra's P/E falls from 18.4x to the sector median of 18x, that would mean a 2% valuation drop even before considering any earnings miss or RSI mean reversion.
Catalyst to Watch
Watch for regulatory approvals or rate case outcomes—if Sempra secures favorable terms, the high EPS growth forecast becomes more credible.