📊 SREA Key Takeaways
Is Sempra (SREA) a Good Investment?
Sempra exhibits strong revenue growth and solid operating cash flow, but is critically stressed by massive negative free cash flow (-$6.0B) and a dangerously depleted cash position ($29M) for a $110.9B asset utility company. Declining EPS (-37.8% YoY) despite stable net income suggests significant shareholder dilution, while heavy capex spending ($10.6B) exceeds operational capacity without adequate liquidity reserves.
Why Buy Sempra Stock? SREA Key Strengths
- Strong revenue growth of 10.3% YoY demonstrates demand and operational scale
- Positive operating cash flow of $4.6B supports core business viability
- Conservative leverage ratio of 0.38x debt/equity maintains financial flexibility
- Reasonable operating and net margins (13.1% and 13.4%) for regulated utility sector
SREA Stock Risks: Sempra Investment Risks
- Unsustainable negative free cash flow of -$6.0B indicating capex spending far exceeds cash generation capacity
- Critically low cash reserves of $29M create significant liquidity stress and operational vulnerability
- EPS declining 37.8% YoY despite net income growth signals severe shareholder dilution from capital raising
- Net income growth (2.3% YoY) significantly trailing revenue growth (10.3%) indicates margin compression and operational pressure
- Extremely low returns on equity (5.8%) and assets (1.7%) suggest capital investments are not generating adequate returns
Key Metrics to Watch
- Free cash flow trajectory and management's plan to achieve positive FCF within 12-24 months
- Cash and equivalents level - any further decline below $100M would signal acute distress
- Interest coverage ratio if debt increases to fund continued capex shortfalls
- EPS stabilization relative to net income growth to assess ongoing dilution
Sempra (SREA) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Sempra presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
SREA Profit Margin, ROE & Profitability Analysis
SREA vs Services Sector: How Sempra Compares
How Sempra compares to Services sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Sempra Stock Overvalued? SREA Valuation Analysis 2026
Based on fundamental analysis, Sempra has mixed fundamental signals relative to the Services sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Sempra Balance Sheet: SREA Debt, Cash & Liquidity
SREA Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Sempra's revenue has grown significantly by 27% over the 5-year period, indicating strong business expansion. The most recent EPS of $4.79 reflects profitable operations.
SREA Revenue Growth, EPS Growth & YoY Performance
SREA Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $2.6B | $95.0M | $0.12 |
| Q2 2025 | $2.5B | $473.0M | $0.71 |
| Q1 2025 | $3.7B | $812.0M | $1.26 |
| Q3 2024 | $2.6B | $649.0M | $1.00 |
| Q2 2024 | $2.5B | $615.0M | $0.95 |
| Q1 2024 | $3.7B | $812.0M | $1.26 |
| Q3 2023 | $2.9B | N/A | $0.77 |
| Q2 2023 | $2.9B | N/A | $1.77 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Sempra Dividends, Buybacks & Capital Allocation
SREA SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Sempra (CIK: 0001032208)
📋 Recent SEC Filings
| Date | Form | Document | Action |
|---|---|---|---|
| Apr 2, 2026 | 4 | xslF345X06/wk-form4_1775172472.xml | View → |
| Apr 2, 2026 | 4 | xslF345X06/wk-form4_1775172455.xml | View → |
| Apr 2, 2026 | 4 | xslF345X06/wk-form4_1775172432.xml | View → |
| Apr 2, 2026 | 4 | xslF345X06/wk-form4_1775172384.xml | View → |
| Apr 2, 2026 | 4 | xslF345X06/wk-form4_1775172364.xml | View → |
❓ Frequently Asked Questions about SREA
What is the AI rating for SREA?
Sempra (SREA) has an AI rating of SELL with 78% confidence, based on fundamental analysis of SEC EDGAR filings.
What are SREA's key strengths?
Claude: Strong revenue growth of 10.3% YoY demonstrates demand and operational scale. Positive operating cash flow of $4.6B supports core business viability.
What are the risks of investing in SREA?
Claude: Unsustainable negative free cash flow of -$6.0B indicating capex spending far exceeds cash generation capacity. Critically low cash reserves of $29M create significant liquidity stress and operational vulnerability.
What is SREA's revenue and growth?
Sempra reported revenue of $13.7B.
Does SREA pay dividends?
Sempra pays dividends, with $1,603.0M distributed to shareholders in the trailing twelve months.
Where can I find SREA SEC filings?
Official SEC filings for Sempra (CIK: 0001032208) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is SREA's EPS?
Sempra has a diluted EPS of $2.75.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is SREA a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Sempra has a SELL rating with 78% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is SREA stock overvalued or undervalued?
Valuation metrics for SREA: ROE of 5.8% (sector avg: 16%), net margin of 13.4% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
Should I buy SREA stock in 2026?
Our dual AI analysis gives Sempra a combined SELL rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is SREA's free cash flow?
Sempra's operating cash flow is $4.6B, with capital expenditures of $10.6B. FCF margin is -44.1%.
How does SREA compare to other Services stocks?
Vs Services sector averages: Net margin 13.4% (avg: 10%), ROE 5.8% (avg: 16%), current ratio 1.59 (avg: 1.5).