DBA Sempra logged a -0.8% change during today's morning session, and is now trading at a price of $72.73 per share.
DBA Sempra returned losses of -55.0% last year, with its stock price reaching a high of $84.12 and a low of $68.27. Over the same period, the stock underperformed the S&P 500 index by -72.0%. As of April 2023, the company's 50-day average price was $72.36. Sempra operates as an energy infrastructure company in the United States and internationally. Based in San Diego, CA, the large-cap Utilities company has 15,785 full time employees. DBA Sempra has offered a 3.2% dividend yield over the last 12 months.
Exceptional Profitability Overshadowed by Excessive Leverage:
| 2018-02-27 | 2019-02-26 | 2020-02-27 | 2021-02-25 | 2022-02-25 | 2023-02-28 | |
|---|---|---|---|---|---|---|
| Revenue (MM) | $11,207 | $10,102 | $10,829 | $11,370 | $12,857 | $14,439 |
| Gross Margins | 66.0% | 71.0% | 75.0% | 79.0% | 75.0% | 69.0% |
| Operating Margins | 21% | 20% | 24% | 25% | 22% | 18% |
| Net Margins | 2.0% | 10.0% | 20.0% | 35.0% | 10.0% | 15.0% |
| Net Income (MM) | $257 | $1,050 | $2,198 | $3,933 | $1,318 | $2,139 |
| Net Interest Expense (MM) | -$613 | -$801 | -$990 | -$985 | -$1,129 | -$979 |
| Depreciation & Amort. (MM) | -$1,490 | -$1,491 | -$1,569 | -$1,666 | -$1,855 | -$2,019 |
| Earnings Per Share | $1.01 | $3.42 | $7.29 | $12.88 | $3.93 | $6.55 |
| EPS Growth | n/a | 238.61% | 113.16% | 76.68% | -69.49% | 66.67% |
| Diluted Shares (MM) | 252 | 270 | 282 | 292 | 319 | 320 |
| Free Cash Flow (MM) | $7,557 | $5,480 | $5,897 | $7,919 | $9,490 | $6,875 |
| Capital Expenditures (MM) | -$3,932 | -$1,964 | -$2,809 | -$5,328 | -$5,648 | -$5,733 |
| Net Current Assets (MM) | -$31,803 | -$37,745 | -$40,518 | -$38,064 | -$39,611 | -$43,354 |
| Long Term Debt (MM) | $16,445 | $22,547 | $20,785 | $21,781 | $21,068 | $24,548 |
| Net Debt / EBITDA | 5.01 | 6.88 | 6.13 | 5.17 | 5.12 | 6.24 |
DBA Sempra has strong margins with a stable trend, exceptional EPS growth, and wider gross margins than its peer group. However, the firm has a highly leveraged balance sheet. Finally, we note that DBA Sempra has weak revenue growth and a flat capital expenditure trend and irregular cash flows.
DBA Sempra's Valuation Is in Line With Its Sector Averages:
DBA Sempra has a trailing twelve month P/E ratio of 18.3, compared to an average of 22.89 for the Utilities sector. Based on its EPS guidance of $4.79, the company has a forward P/E ratio of 15.1. The company doesn't provide forward earnings guidance, and the compound average growth rate of its last 6 years of reported EPS is 25.5%. On this basis, DBA Sempra's PEG ratio is 0.72. Using instead the 10.6% weighted average of DBA Sempra's earnings CAGR and the broader market's anticipated 5-year EPS growth rate, the company's PEG ratio is 1.73, which suggests that its shares may be overpriced. Furthermore, DBA Sempra is likely overvalued compared to the book value of its equity, since its P/B ratio of 1.7 is higher than the sector average of 1.03. The company's shares are currently trading -37.4% below their Graham number.
There's an Analyst Consensus of Some Upside Potential for DBA Sempra:
The 14 analysts following DBA Sempra have set target prices ranging from $76.0 to $95.0 per share, for an average of $83.75 with a buy rating. As of April 2023, the company is trading -13.6% away from its average target price, indicating that there is an analyst consensus of some upside potential.
DBA Sempra has a very low short interest because 0.9% of the company's shares are sold short. Institutions own 88.1% of the company's shares, and the insider ownership rate stands at 0.03%, suggesting a small amount of insider investors. The largest shareholder is Vanguard Group Inc, whose 20% stake in the company is worth $4,477,719,533.
