SEMPRA (SRE) Stock Analysis

Analysis from 10-Q filed 2026-08-06. Data as of Q2 2026.

Overall Grade: F (Concerning)

Grade F (Concerning). ROIC 11.2%. FCF margin -42.8%. D/E 1.1x. Source: 10-Q filed 2026-08-06.

Metric	Value	Context
ROIC	11.2%	Near cost of capital
FCF Margin	-42.8%	Cash flow pressure
Debt/Equity	1.1x	Moderate leverage

ROIC 11.2% — Top 5% of sector peers. FCF margin -42.8% — Top 50%.

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 11.2% ROIC, Top 5% in Utilities

ROIC TTM 11.2%, sector median 5.2%, Top 5%. DuPont: NOPAT margin 61.2% × asset turnover 0.1x. Gross margin 86.9%. Operating margin 86.9%. Source: 10-Q filed 2026-08-06.

Metric	SRE	Rating	Context
Return on Invested Capital (ROIC)	11.2%	Adequate	Above sector median of 5.2%
Return on Equity (ROE)	7.2%	Warning	Moderate equity returns
Gross Margin	86.9%	Excellent	Strong pricing power
Operating Margin	86.9%	Excellent	Efficient operations

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Cash Flow: SEMPRA generates $-5.2B FCF at -42.8% margin, positive NaN/8 quarters

FCF TTM $-5.2B. FCF margin -42.8%, Top 50%. OCF/Net income 2.4x. Positive FCF in NaN/8 trailing quarters. Source: 10-Q filed 2026-08-06.

Metric	SRE	Rating	Context
Free Cash Flow Margin	-42.8%	Red flag	Thin cash margins
Free Cash Flow (TTM)	$-5.2B	Red flag	Cash burn
OCF/Net Income	2.4x	Excellent	High earnings quality
FCF Consistency (8Q)	N/A	Warning	Variable cash flow

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Balance Sheet: SEMPRA at 1.1x leverage, 6.9x interest coverage

Debt/Equity 1.1x. Total debt $36.7B, cash & investments $48.0M. Interest coverage 6.9x. Source: 10-Q filed 2026-08-06.

Metric	SRE	Rating	Context
Debt to Equity	1.1x	Adequate	Moderate leverage
Net Cash Position	$-36.6B	Warning	Net debt position
Interest Coverage	6.9x	Good	Comfortable debt service

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Valuation: SEMPRA trades at 22.6x earnings

P/E 22.6x. EV/Sales 7.2x. FCF yield -10.3%. Dividend yield 3.3%. Source: 10-Q filed 2026-08-06.

Metric	SRE	Rating	Context
P/E Ratio	22.6x	Adequate	Premium valuation
EV/Sales	7.2x	Adequate	Growth premium priced in
FCF Yield	-10.3%	Warning	Lower cash yield
Dividend Yield	3.3%	Adequate	Meaningful income

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Capital Allocation: SEMPRA returns 3.4% shareholder yield

Total shareholder yield 3.4% (div 3.3% + buyback 0.0%). Share count +0.2% YoY. Capital returned $1.7B TTM. Source: 10-Q filed 2026-08-06.

Metric	SRE	Rating	Context
Total Shareholder Yield	3.4%	Good	Dividend + buyback yield combined
Buyback Yield	0.0%	Adequate	Minimal buyback activity
Share Count Change (YoY)	0.2%	Adequate	Net dilution from issuance/SBC
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)	11.2%	Top 5%	2.2x above
Free Cash Flow Margin	-42.8%	Top 50%	-
Gross Margin	86.9%	Top 25%	1.6x above
Operating Margin	86.9%	Top 5%	4.3x above
Return on Equity (ROE)	7.2%	Bottom 50%	0.8x below
P/E Ratio	22.6x	N/A	-

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Financial Scorecard

Metric	SRE	Rating	Sector Context
Return on Invested Capital (ROIC)	11.2%	Adequate	Top 5% of sector (median: 5.2%)
Free Cash Flow Margin	-42.8%	Red flag	Top 50% of sector (median: -7.6%)
Gross Margin	86.9%	Excellent	Top 25% of sector (median: 53.5%)
Debt to Equity Ratio	112.2%	Adequate	Elevated but manageable
P/E Ratio (Price-to-Earnings)	22.6x	Adequate	Fair value
Free Cash Flow Yield	-10.3%	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 11.2%. The 8-quarter median ROIC is 14.9% with a declining trend. Sector median 5.2%. Source: 10-Q filed 2026-08-06.

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

SEMPRA (SRE) has a free cash flow margin of -42.8%, generating $-5.2 billion in free cash flow over the trailing twelve months. Source: 10-Q filed 2026-08-06.

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

SEMPRA (SRE) trades at a P/E ratio of 22.6x, which is above the sector median of N/A. EV/Sales 7.2x. Source: 10-Q filed 2026-08-06.

Q: Does SEMPRA pay a dividend?

SEMPRA (SRE) currently pays a dividend yield of 3.3%. Total shareholder yield (dividend + buybacks) 3.4%. Source: 10-Q filed 2026-08-06.

Q: How much debt does SEMPRA have?

SEMPRA (SRE) has a debt-to-equity ratio of 1.1x with total debt of $36.7 billion. Interest coverage 6.9x. Net debt $36.6 billion. Source: 10-Q filed 2026-08-06.

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

SEMPRA (SRE) declined revenue by 5.0% year-over-year. EPS -16.4% YoY. Source: 10-Q filed 2026-08-06.

Q: How does SEMPRA compare to competitors in Utilities?

Compared to other companies in Utilities, SEMPRA (SRE) shows: ROIC 11.2%, sector median 5.2% (Top 5%). FCF margin -42.8%, sector median -7.6% (Top 50%). Gross margin 86.9%, 33.4pp 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 -42.8% (below 5%); 2) ROIC declining -2.8% over 8 quarters. Source: 10-Q filed 2026-08-06.

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Data Source: Data sourced from 10-Q filed 2026-08-06. TTM metrics as of Q2 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.