SEMPRA (SRE) Stock Analysis

Analysis from 10-Q filed 2025-11-05. Data as of Q1 2026.

Overall Grade: F (Concerning)

Grade F (Concerning). ROIC 9.9%. FCF margin -48.0%. D/E 1.1x. Source: 10-Q filed 2025-11-05.

Metric	Value	Context
ROIC	9.9%	Near cost of capital
FCF Margin	-48.0%	Cash flow pressure
Debt/Equity	1.1x	Moderate leverage

ROIC 9.9% — Top 10% of sector peers. FCF margin -48.0% — Top 25%.

Explore SEMPRA: Earnings History | Filings

Programmatic access: Available via MCP at mcp.metricduck.com. Tools for SRE: get_company_overview, get_filing_index (lens: debt_stress, management_outlook, risk_trajectory), get_filing_changes, get_metric_history, compare_companies, screen_filing_signals.

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Profitability: SEMPRA earns 9.9% ROIC, Top 10% in Utilities

ROIC TTM 9.9%, sector median 5.4%, Top 10%. DuPont: NOPAT margin 54.6% × asset turnover 0.1x. Gross margin 84.7%. Operating margin 84.7%. Source: 10-Q filed 2025-11-05.

Metric	SRE	Rating	Context
Return on Invested Capital (ROIC)	9.9%	Adequate	Above sector median of 5.4%
Return on Equity (ROE)	6.2%	Warning	Moderate equity returns
Gross Margin	84.7%	Excellent	Strong pricing power
Operating Margin	84.7%	Excellent	Efficient operations

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Cash Flow: SEMPRA generates $-5.8B FCF at -48.0% margin, positive NaN/8 quarters

FCF TTM $-5.8B. FCF margin -48.0%, Top 25%. OCF/Net income 2.5x. Positive FCF in NaN/8 trailing quarters. Source: 10-Q filed 2025-11-05.

Metric	SRE	Rating	Context
Free Cash Flow Margin	-48.0%	Red flag	Thin cash margins
Free Cash Flow (TTM)	$-5.8B	Red flag	Cash burn
OCF/Net Income	2.5x	Excellent	High earnings quality
FCF Consistency (8Q)	N/A	Warning	Variable cash flow

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Balance Sheet: SEMPRA at 1.1x leverage

Debt/Equity 1.1x. Total debt $36.4B, cash & investments $794.0M. Source: 10-Q filed 2025-11-05.

Metric	SRE	Rating	Context
Debt to Equity	1.1x	Adequate	Moderate leverage
Net Cash Position	$-35.6B	Warning	Net debt position

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Valuation: SEMPRA trades at 32.4x earnings

P/E 32.4x. EV/Sales 7.4x. FCF yield -9.4%. Dividend yield 2.7%. Source: 10-Q filed 2025-11-05.

Metric	SRE	Rating	Context
P/E Ratio	32.4x	Adequate	Premium valuation
EV/Sales	7.4x	Adequate	Growth premium priced in
FCF Yield	-9.4%	Warning	Lower cash yield
Dividend Yield	2.7%	Adequate	Growth focus over income

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Capital Allocation: SEMPRA returns 2.7% shareholder yield

Total shareholder yield 2.7% (div 2.7% + buyback 0.0%). Capital returned $1.7B TTM. Source: 10-Q filed 2025-11-05.

Metric	SRE	Rating	Context
Total Shareholder Yield	2.7%	Adequate	Dividend + buyback yield combined
Buyback Yield	0.0%	Adequate	Minimal buyback activity
Total Capital Returned (TTM)	$1.7B	Good	Dividends + buybacks returned to shareholders

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Sector Rankings

Metric	Value	Percentile	vs Median
Return on Invested Capital (ROIC)	9.9%	Top 10%	1.8x above
Free Cash Flow Margin	-48.0%	Top 25%	-
Gross Margin	84.7%	Top 25%	1.5x above
Operating Margin	84.7%	Top 5%	4.0x above
Return on Equity (ROE)	6.2%	Bottom 50%	0.6x below
P/E Ratio	32.4x	N/A	-

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Financial Scorecard

Metric	SRE	Rating	Sector Context
Return on Invested Capital (ROIC)	9.9%	Adequate	Top 10% of sector (median: 5.4%)
Free Cash Flow Margin	-48.0%	Red flag	Top 25% of sector (median: 0.0%)
Gross Margin	84.7%	Excellent	Top 25% of sector (median: 56.6%)
Debt to Equity Ratio	113.0%	Adequate	Elevated but manageable
P/E Ratio (Price-to-Earnings)	32.4x	Adequate	Growth premium
Free Cash Flow Yield	-9.4%	Red flag	Growth-focused valuation

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Frequently Asked Questions

Q: What is SEMPRA's Return on Invested Capital (ROIC)?

SEMPRA (SRE) has a trailing twelve-month Return on Invested Capital (ROIC) of 9.9%. Sector median 5.4%. Source: 10-Q filed 2025-11-05.

Q: What is SEMPRA's Free Cash Flow Margin?

SEMPRA (SRE) has a free cash flow margin of -48.0%, generating $-5.8 billion in free cash flow over the trailing twelve months. Source: 10-Q filed 2025-11-05.

Q: What is SEMPRA's P/E ratio and how does it compare to peers?

SEMPRA (SRE) trades at a P/E ratio of 32.4x, which is above the sector median of N/A. EV/Sales 7.4x. Source: 10-Q filed 2025-11-05.

Q: Does SEMPRA pay a dividend?

SEMPRA (SRE) currently pays a dividend yield of 2.7%. Total shareholder yield (dividend + buybacks) 2.7%. Source: 10-Q filed 2025-11-05.

Q: How much debt does SEMPRA have?

SEMPRA (SRE) has a debt-to-equity ratio of 1.1x with total debt of $36.4 billion. Net debt $35.6 billion. Source: 10-Q filed 2025-11-05.

Q: What is SEMPRA's revenue and earnings growth?

SEMPRA (SRE) declined revenue by 8.0% year-over-year. EPS -35.3% YoY. Source: 10-Q filed 2025-11-05.

Q: How does SEMPRA compare to competitors in Utilities?

Compared to other companies in Utilities, SEMPRA (SRE) shows: ROIC 9.9%, sector median 5.4% (Top 10%). FCF margin -48.0%, sector median 0.0% (Top 25%). Gross margin 84.7%, 28.1pp above sector median. These rankings are based on MetricDuck's analysis of all Utilities companies with available SEC filings.

Q: What warning signs should I watch for with SEMPRA?

Quantitative warning flags for SEMPRA (SRE): 1) FCF margin -48.0% (below 5%); 2) ROIC declining -6.3% over 8 quarters. Source: 10-Q filed 2025-11-05.

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Data Source: Data sourced from 10-Q filed 2025-11-05. TTM metrics as of Q1 2026.

Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.

Scope: This analysis covers SEC filing fundamentals — profitability, cash flow, balance sheet, and valuation metrics. For analyst estimates and price targets, consult sell-side research.

This analysis is for informational purposes only and does not constitute investment advice.