SRESRE
US • —
$92.86
P/E
31.07
PEG
—
FCF Yield
—
Rev Growth YoY
+0.1% YoY
Gross Margin
—
Health Score
5/10
D/E Ratio
1.11
Confidence
LOW
Business Snapshot
SRE operates as a utility holding company with a focus on electric power generation and distribution, serving a regulated market. Its primary revenue comes from providing electricity to residential, commercial, and industrial customers within its service territory. The company competes in a highly regulated utility market where its position is defined by its service franchise rather than open-market competition. Regulated utilities like SRE benefit from stable demand and regulatory frameworks that allow for cost recovery, but are also subject to state commission oversight on rate structures. Its defining characteristic is the capital-intensive nature of its operations, requiring substantial investment in infrastructure.
Financial Health
With a net margin of 16.7%, SRE demonstrates decent profitability for a regulated utility. The debt/equity ratio stands at 1.11x, which is manageable but indicates the company uses leverage to fund its capital-intensive operations; the current ratio of 1.59x suggests healthy short-term liquidity...
Risk Assessment
- VALUATION — P/E of 31.07x is significantly above the sector average of 22x, indicating a premium that may not be justified given near-zero revenue growth.
- EARNINGS QUALITY — Earnings declined 35.2% year-over-year, a sharp drop that raises questions about earnings sustainability despite beating estimates in 3 of 4 recent quarters.
- REVENUE DECELERATION — Revenue growth of 0.1% YoY is effectively stagnant, with no sequential quarter data available to assess near-term trends.
- INSIDER ACTIVITY — Insiders have executed 0 buys versus 4 sells over the last 90 days, signaling potential caution from those closest to the business.
- TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed....
With a net margin of 16.7%, SRE demonstrates decent profitability for a regulated utility. The debt/equity ratio stands at 1.11x, which is manageable but indicates the company uses leverage to fund its capital-intensive operations; the current ratio of 1.59x suggests healthy short-term liquidity. Free cash flow data is not available, preventing a direct assessment of cash generation versus capital spending needs. Return on equity of 6.2% is modest, reflecting the capital-heavy nature of the utility business. Overall financial health is adequate but not robust, with leverage and the absence of reported free cash flow limiting clarity on the company's ability to fund dividends or growth organically.
- VALUATION — P/E of 31.07x is significantly above the sector average of 22x, indicating a premium that may not be justified given near-zero revenue growth. - EARNINGS QUALITY — Earnings declined 35.2% year-over-year, a sharp drop that raises questions about earnings sustainability despite beating estimates in 3 of 4 recent quarters. - REVENUE DECELERATION — Revenue growth of 0.1% YoY is effectively stagnant, with no sequential quarter data available to assess near-term trends. - INSIDER ACTIVITY — Insiders have executed 0 buys versus 4 sells over the last 90 days, signaling potential caution from those closest to the business. - TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed.
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