Sempra (SRE)
Utilities · NYSE · US
Fundamentals
Valuation and ratings
Sempra trades at $93.15, close to the $85.41 our discounted cash flow model puts on the business. On this measure the market and the model broadly agree, so the interesting question is which of them is wrong.
Our moat model scores it 49 out of 100, which is a moat, but not a deep one. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 32.0 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About Sempra
Sempra engages in the regulated utilities business in the United States and Mexico. It operates through three segments: Sempra California, Sempra Texas Utilities, and Sempra Infrastructure. It also invests in and operates electric and gas utilities and other energy infrastructure that provides energy services to customers. The Sempra California segment provides natural gas and electric services to Southern California and part of central California. As of December 31, 2025, it offered electric services to approximately 3.6 million population and natural gas services to approximately 3.3 million population that covers 4,100 square miles. This segment owns and operates a natural gas distribution, transmission, and storage system that supplies natural gas. As of December 31, 2025, it served a population of 21.3 million covering an area of 24,000 square miles. The Sempra Texas Utilities segment engages in the regulated electricity transmission and distribution utility business. As of December 31, 2025, transmission system included approximately 18,418 circuit miles of transmission lines; 1,333 transmission and distribution substations; interconnection to 230 third-party generation facilities totaling 63,670 MW; and distribution system included more than 4.1 million points of delivery and consisted of 127,398 circuit miles of overhead and underground lines. The Sempra Infrastructure segment develops, constructs, operates, and invests in energy infrastructure to help enable the access to cleaner energy in markets in the United States, Mexico, and internationally. The company was formerly known as Sempra Energy and changed its name to Sempra in May 2023. Sempra was incorporated in 1996 and is headquartered in San Diego, California.
SRE passes 2 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Smart money ownership
13 of the funds we track reported a position in their latest SEC 13F filing. Largest first:
- Capital Research Global, Capital Research Global Investors$513.65M · 0.1% of book
- Israel Englander, MILLENNIUM MANAGEMENT LLC$213.44M · 0.1% of book
- Marshall Wace, MARSHALL WACE, LLP$132.03M · 0.1% of book
- Ken Griffin, CITADEL ADVISORS LLC$122.88M · 0.0% of book
- Travis Cocke, Voss Capital, LP$121.95M · 6.5% of book
A word of warning on reading these figures: a 13F reports the market value of a holding, so a fund that traded nothing at all still appears to have sold when the price fell. We found 102 companies where the standard reading gives the opposite answer. Only the share count is honest.
Common questions
Is Sempra (SRE) undervalued?
Against our discounted cash flow estimate of $85.41, SRE at $93.15 is 8% above fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
Which funds own SRE?
13 of the institutions we track reported a position in SRE in their most recent SEC 13F filing. A 13F is filed up to 45 days after quarter end, so it tells you what a fund held then, not what it holds now.
What is SRE's P/E ratio?
SRE trades at 32.0 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
The full research page for SRE, with financial statements, ownership detail, peer comparison and alerts, is free inside the app.
Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.