Assessing Sempra: Insights From 6 Financial Analysts

In the last three months, 6 analysts have published ratings on Sempra SRE, offering a diverse range of perspectives from bullish to bearish.

In the table below, you'll find a summary of their recent ratings, revealing the shifting sentiments over the past 30 days and comparing them to the previous months.

Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $84.0, along with a high estimate of $93.00 and a low estimate of $76.00. This upward trend is apparent, with the current average reflecting a 1.61% increase from the previous average price target of $82.67.

Breaking Down Analyst Ratings: A Detailed Examination

The perception of Sempra by financial experts is analyzed through recent analyst actions. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Sempra. This insight gives a snapshot of analysts' perspectives on the current state of the company.
• Rating: Analyzing trends, analysts offer qualitative evaluations, ranging from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Sempra compared to the broader market.
• Price Targets: Analysts provide insights into price targets, offering estimates for the future value of Sempra's stock. This comparison reveals trends in analysts' expectations over time.

Understanding these analyst evaluations alongside key financial indicators can offer valuable insights into Sempra's market standing. Stay informed and make well-considered decisions with our Ratings Table.

Stay up to date on Sempra analyst ratings.

Get to Know Sempra Better

Sempra Energy serves one of the largest utility customer bases in the United States. It distributes natural gas and electricity in Southern California and owns 80% of Oncor, a transmission and distribution business in Texas. SoCalGas and San Diego Gas & Electric distribute gas to more than 20 million customers, while Oncor serves more than 10 million Texas customers. Sempra Infrastructure partners, of which Sempra holds a controlling ownership, owns and operates liquefied natural gas facilities in North America and infrastructure in Mexico.

Sempra: Financial Performance Dissected

Market Capitalization Analysis: Above industry benchmarks, the company's market capitalization emphasizes a noteworthy size, indicative of a strong market presence.

Negative Revenue Trend: Examining Sempra's financials over 3 months reveals challenges. As of 30 June, 2024, the company experienced a decline of approximately -9.72% in revenue growth, reflecting a decrease in top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Utilities sector.

Net Margin: Sempra's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 23.68% net margin, the company effectively manages costs and achieves strong profitability.

Return on Equity (ROE): Sempra's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 2.51%, the company showcases efficient use of equity capital and strong financial health.

Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 0.79%, the company showcases effective utilization of assets.

Debt Management: Sempra's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 1.15.

The Core of Analyst Ratings: What Every Investor Should Know

Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically rate each stock once per quarter.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

This article was generated by Benzinga's automated content engine and reviewed by an editor.