ALTSTATION.IO

Sempra (SRE) Stock Analysis

By Nova Skye | AltStation.io | Updated February 07, 2026

Price

$87.08

Change

+0.49%

Market Cap

$56.84B

Avg Volume

4.0M

Company Overview

Sempra, headquartered in San Diego, operates as an energy infrastructure company in the Utilities sector. They provide essential services like natural gas and electricity primarily in Southern and Central California through their Sempra California segment. This segment serves about 3.6 million residents with electric services and 3.3 million with natural gas. They also have a robust presence in Texas for regulated electricity transmission and distribution. Their Sempra Infrastructure segment focuses on building and operating energy infrastructure, promoting cleaner energy access across the U.S., Mexico, and beyond.

Sempra is positioned as a market leader in its sector, especially in California, where energy demand continues to rise. Their edge lies in a well-established utility network and a push towards cleaner energy solutions, which aligns with increasing regulatory pressures for sustainability. However, they face stiff competition from other utilities like Pacific Gas and Electric (PG&E) and Southern Company, as well as challenges from changing regulations and fluctuating energy prices.

Currently, Sempra is in a growth phase, pivoting toward cleaner energy solutions while maintaining its core utility services. Recent milestones include a strategic rebranding in May 2023 and ongoing investments in energy infrastructure aimed at reducing carbon emissions. Their focus on cleaner energy aligns with market trends favoring sustainability, indicating potential for further growth as consumers and regulators push for greener alternatives.

Key Financials

Market Cap

$56.84B

Revenue

$13.71B

EBITDA

$5.54B

Gross Margin

41.3%

Profit Margin

15.8%

Revenue Growth

13.5%

Total Cash

$5.00M

Total Debt

$32.69B

Free Cash Flow

-$23.34B

52-Week Price Performance Analysis

Price Statistics

P/E Ratio

26.80

Forward P/E

16.87

Beta

0.75

52-Week High

$95.72

52-Week Low

$61.90

EPS

$3.25

50-Day Avg

$88.80

200-Day Avg

$83.80

Price/Book

1.82

Technical Analysis

The overall trend for Sempra (SRE) over the past 52 weeks is upward, although it has experienced some volatility. Current price of $87.08 sits just below a key resistance level at $87.36; if breached, this could enable further momentum toward previous highs near the $90 mark. Support is visible at $80, a level that has historically held firm and could attract buying interest if tested again. Notable price patterns include a series of higher lows, indicating bullish sentiment, particularly from July through the end of 2023. Recent momentum has been positive, as the stock has maintained a close above its 52-week average, suggesting strength in buying pressure. Currently, the price is positioned about 9.7% higher than a year ago but remains below its 52-week high, indicating potential for further appreciation or a need for consolidation before a new upward leg.

Recent News and Developments

Market Update

Here’s a summary of the latest news and developments for Sempra (SRE) stock from the past week (February 1 – February 7, 2026):

Market Update

### Analyst Ratings and Price Target Adjustments
Sempra (SRE) has received continued attention from analysts, with an average rating of “Moderate Buy” from 14 brokerages (7 buys, 6 holds, 1 strong buy) and a consensus 12-month price target of $95.83 as of February 2, 2026. More recently, on February 6, 2026, JPMorgan reinstated its coverage on Sempra with an “Overweight” rating, increasing its pri

Market Update

### Upcoming Earnings Report
Sempra is scheduled to report its Q4 2025 earnings on February 24, 2026, before the market opens. Analysts anticipate an Earnings Per Share (EPS) of $1.13, with the “Most Accurate Estimate” currently at $1.18, suggesting a potential positive earnings surprise with an Earnings ESP of +4.73%. In its last reported quarter (Q3 2025), Sempra exceeded estimates, reporting an

Market Sentiment and Analyst Recommendations

Bull Case

Sempra is firing on multiple cylinders right now. Revenue growth of 13.5% year-over-year is solid for a utility, and the company just beat earnings estimates badly in Q3 with an EPS of 1.11 versus 0.84 expected. The February 6 JPMorgan upgrade to Overweight with a 98 dollar target is meaningful because it specifically calls out Texas infrastructure demand as a tailwind. Sempra trades at a 26.80 P/E, which is not cheap, but justified given the growth trajectory and the fact that 16 analysts rate it a buy with an average target of 99.50. The hydrogen blending petition filed on February 4 could unlock regulatory upside if the CPUC shortens timelines for systemwide implementation. The stock is only 9.7% above its 52-week low but 8.9% below its high, meaning there is room to run toward 100 or beyond if earnings surprise again on February 24.

Bear Case

The debt load is brutal. Sempra carries 32.69 billion in total debt against just 5 million in cash, a ratio that limits financial flexibility and increases vulnerability to rising interest rates. At 26.80 times earnings, the valuation assumes flawless execution and continued growth acceleration. If the Q4 earnings miss expectations or guidance disappoints on February 24, the stock will crack hard given how extended the multiple already is. The hydrogen blending petition is speculative and faces regulatory uncertainty; a rejection or watered-down approval would eliminate a key growth narrative. Utilities are cyclical and sensitive to macro conditions. If a recession hits and energy demand softens, Sempra’s leverage becomes a real problem. The stock has already run 40% off its 52-week low, so much of the near-term upside is priced in.

What to Watch

Mark February 24 on your calendar. The Q4 earnings report is the next major catalyst and analysts expect 1.13 EPS with a 4.73% upside surprise potential based on the most accurate estimate of 1.18. Watch for guidance on 2026 revenue growth and capital expenditure plans, especially anything tied to Texas expansion. Monitor the CPUC’s response to the hydrogen blending petition. If regulators greenlight faster implementation, that removes a key risk and could trigger a re-rating higher. Track the stock’s behavior at the 87.36 resistance level; a clean break above it opens a path to 90 and then 95. Keep an eye on debt reduction progress. If Sempra announces a material deleveraging plan or refinancing at favorable rates, that would ease the bear case significantly. Finally, watch the 80 dollar support level. If the stock breaks below it decisively, the uptrend breaks and you should reassess the bull thesis.

Analyst Consensus

BUY

Based on 16 analyst opinions

Low Target

$87.00

Mean Target

$99.50

High Target

$112.00

Earnings and Financial Data

Sector

Utilities

Industry

Utilities – Diversified

Employees

16,773

Earnings & Dividends

Next Earnings

Nov 05, 2025

EPS (Trailing)

$3.25

Dividend Yield

298.0%

Payout Ratio

78.6%

Frequently Asked Questions

Is Sempra (SRE) a good stock to buy?

Yes, analysts recommend Sempra as a “BUY” with a target price of $99.50. Given its solid fundamentals and diverse utility operations, it’s well-positioned for growth.

What is SRE’s price target?

The analyst consensus sets a price target of $99.50 for Sempra stock. This represents an upside potential of about 14.4% from the current price of $87.08.

Does SRE pay a dividend?

Yes, Sempra has an impressive dividend yield of 298.0%. This makes it an attractive option for income-focused investors.

What is SRE’s P/E ratio?

Sempra has a P/E ratio of 26.80, which suggests it is trading at a premium compared to some peers. However, its forward P/E of 16.87 indicates expected earnings growth that could justify this valuation.

What has been SRE’s performance over the past year?

Sempra’s stock price has fluctuated between $61.90 and $95.72 over the past 52 weeks. The current price of $87.08 shows a strong recovery and growth potential ahead.

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Disclaimer: This report is for informational purposes only and does not constitute financial advice. The analysis and opinions expressed are those of AltStation.io and should not be relied upon as the sole basis for investment decisions. Always conduct your own research and consult with a qualified financial advisor before making investment decisions. Past performance does not guarantee future results. Updated February 07, 2026.