NYSEUtilitiesDiversified UtilitiesSnapshot 2026-08-31
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Create your account →Warn: Recent financial performance slipped notably this past month, though still top-half.
Sempra grows earnings steadily with EPS guided to $5.3 in 2026 and $5.7 in 2027. New LNG projects boost long-term growth. Profit margins remain stable and the company has a strong energy infrastructure. Debt issuances support expansion without hurting credit.
Revenue missed recently and guidance was cut, raising doubts on growth. Litigation risks and volatile management may pressure earnings. The stock trades expensive relative to peers with negative free cash flow yield.
The price sits about 2% above our fair value near $93, reflecting modest 2% revenue growth expected by analysts. Our fair value is 12% below the Street median, indicating some caution versus consensus optimism.
Breaks if: EPS falls below $4.8 in FY26 or below $5.1 in FY27
Breaks if: Delays or failures in LNG project startups or production
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This investment represents a long-term thesis on a utility company with a focus on capital deployment and earnings growth. The current state reflects mixed management execution and a neutral sector backdrop, indicating some uncertainty in the near term.
The market appears to have priced in a low level of execution quality, suggesting that there is a justified valuation compared to peers. The expectations gap indicates that the market may be cautious about future performance, reflecting a divergence from peer valuations.
Fundamentals are likely to remain neutral as management continues to execute its capital plan, although recent performance has shown some volatility. The reaffirmation of earnings guidance for 2026 and 2027 suggests stability, but mixed results could pose risks.
The long-term thesis hinges on management's ability to execute its capital plan and the performance of sector bellwethers like AES, AVA, and UTL. Any changes in guidance or performance from these peers could significantly impact SRE's trajectory.
The most important moves since the prior daily snapshot.
Yes, our read has strengthened. The latest earnings beat supports a positive outlook. Additionally, securing a partnership for a $65 billion capital plan reinforces execution confidence. There are no significant threats noted at this time.
as of 2026-08-31
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Breaks if: Significant management turnover or strategy reversal
Breaks if: Revenue growth falls below 0% in FY26
Over the next 1 to 3 years, SRE's performance will depend on effective management execution and sector dynamics. Not investment advice.
