Sempra (SRE) Stock

Sempra (SRE) is a Utilities stock trading at $84.56 (as of 2026-09-03), with a market capitalization of $55.28B and a trailing P/E of 28.2. Figures are sourced from first-party U.S. SEC EDGAR filings and market data.

Sempra is an energy-services holding company providing regulated electric and natural gas utility services in the United States and internationally. Its main segments include San Diego Gas & Electric (electric and natural gas distribution) and Southern California Gas and Sempra Texas Utilities (natural gas and electricity transmission and distribution), serving millions of customers across specified service areas.

Understand Sempra: how it makes money

Sempra operates regulated electric and natural gas utilities across Southern California, plus smaller energy trading and infrastructure ventures. Most revenue comes from the SoCalGas natural gas network (59% of sales) serving 22 million people, with SDG&E electric (36%) rounding out the regulated core.

Revenue is largely commodity pass-through; the actual profit engine is the regulated rate base, where every dollar of new pipes or substations earns a fixed regulatory return regardless of gas prices.

Revenue by segment (latest quarter)
Natural Gas	$2.0B
Electric	$1.2B
Energy Businesses	$0.4B

Business quality (Mixed): A 29% operating margin on a capital-intensive utility model, paired with a 5% ROE, shows stable but capital-heavy earnings. The 39% valuation premium over the utility peer group implies growth that the current top line does not yet confirm.

Valuation: At 28× earnings, SRE trades 39% above the Utilities average (20×).

Bull case

Regulated margin provides earnings floor: A 29% operating margin, set by rate cases rather than market prices, gives investors a predictable cash-flow base that supports the dividend. Commodity swings in gas prices flow through to customers and do not erode this margin.
Diversified regulated-plus-growth mix: With natural gas at $2.0B (59% of revenue), electric at $1.2B (36%), and energy businesses at $410M (12%), the company blends a large stable gas franchise with a smaller electric and infrastructure book that carries more rate-base-growth optionality.

Bear case

Valuation outruns current earnings power: Sempra trades at 28.1x earnings versus a 20x utility industry average, a 39% premium, yet quarterly revenue is down 7% year over year at $3.4B. If the market is pricing future rate-base growth that has not yet appeared in the top line, any delay compresses the multiple.
Revenue decline signals near-term drag: Quarterly revenue of $3.4B fell 7% year over year, driven by lower commodity prices flowing through the gas system. While regulated margins hold, the shrinking top line limits near-term FFO growth and tests the 39% valuation premium.

Valuation — source: SEC EDGAR (first-party)
Price	$84.56
Market Cap	$55.28B
P/E Ratio	28.2
EV / EBITDA	12.8
Price / Book	1.40
Price / Sales	4.11
FCF Yield	-10.9%
DCF Value (model)	$36.08
DCF Upside vs Price	-57.3%

Profitability & Growth — source: SEC EDGAR
Revenue (TTM)	$13.70B
Net Margin	13.4%
Revenue Growth (YoY)	-6.9%
EPS Growth (YoY)	14.4%
FCF Growth (YoY)	-23.7%

Financial Health — source: SEC EDGAR
Altman Z-Score	0.99 (distress)

Valuation vs Sector & Industry
Stock P/E	28.2
Sector P/E (Utilities)	21.3
Industry P/E (Utilities)	21.1
vs Sector	32.4%
vs Industry	33.8%

Smart-Money Activity — SEC Form 4 / 13F / Congressional disclosures
Top Institutional Holder	VANGUARD GROUP INC ($6.77B)
Institutional Holders Tracked	10
Congressional Trades (recent)	10

Company
Sector	Utilities
Industry	Utilities
CEO	Jeffrey Walker Martin
Employees	16,773
Country	US
IPO Date	1998-06-29

Sempra earnings call transcripts

SRE Q2 FY25 earnings call transcript (reported 2025-08-07) · analysis

All SRE earnings calls

Related Companies (Utilities; 8 comparable utilities)

Data as of 2026-09-03.

Figures sourced from U.S. Securities and Exchange Commission (SEC EDGAR) filings and market data. Not personalized investment advice.