SRE Debt-to-Equity Ratio Analysis

The debt-to-equity ratio compares a company’s total liabilities to its shareholders’ equity, so 1.12x means SRE carries $1.12 of debt for every $1.00 of equity.

Relative to sector peers, this is above the sector median of 0.74x, placing SRE at the 69th percentile — meaning roughly 31% of peers have higher leverage, but most are less levered. The trend is N/A: both the year-over-year change and quarter-over-quarter change are reported as N/A, so no directional shift can be observed from the single historical value of 1.12x. With a higher-than-median debt load and no trend data to confirm improvement or deterioration, the metric points to elevated financial risk compared to the sector, though the level is not extreme. As an opportunity, the current leverage could limit flexibility if interest rates rise or earnings weaken, but it does not signal distress by itself. This metric supports the overall NEUTRAL verdict because the debt level is above the peer norm but lacks a trend to warrant shifting toward a negative or positive stance.

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