Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.
Operating Margin22.5%
Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.
Net Income Margin13.4%
Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.
Financial Health
D
Years to Pay Off Debt19.1 yrs
Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.
Working Capital vs Long-Term Debt-$16.0B
Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.
Working Capital$12.9B
Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.
Valuation
F
Margin of Safety0.0%
How far below the Graham Number the stock trades. Graham required a 33% discount as a buffer against analytical error. However, the Graham Number itself assumes 1960s-era P/E and P/B norms — for modern asset-light businesses it often understates true intrinsic value, making 0% MoS appear misleadingly bad.
Price-to-Book1.88x
Market price vs book value per share. Rarely below 1.5x for quality businesses today. Intangible assets (brand, software, patents) don't appear on the balance sheet under accounting rules, making P/B artificially high for asset-light companies like software and consumer brands.
Cash Flow
F
Free Cash Flow-$6.0B
Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.
CapEx % of Net Income577.7%
Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.
Owner Earnings$15.0B
Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.
About Sempra
Sempra engages in the regulated utilities business in the United States and Mexico. It operates through three segments: Sempra California, Sempra Texas Utilities, and Sempra Infrastructure. It also invests in and operates electric and gas utilities and other energy infrastructure that provides energy services to customers. The Sempra California segment provides natural gas and electric services to Southern California and part of central California. As of December 31, 2025, it offered electric services to approximately 3.6 million population and natural gas services to approximately 3.3 million population that covers 4,100 square miles. This segment owns and operates a natural gas distribution, transmission, and storage system that supplies natural gas. As of December 31, 2025, it served a population of 21.3 million covering an area of 24,000 square miles. The Sempra Texas Utilities segment engages in the regulated electricity transmission and distribution utility business. As of December 31, 2025, transmission system included approximately 18,418 circuit miles of transmission lines; 1,333 transmission and distribution substations; interconnection to 230 third-party generation facilities totaling 63,670 MW; and distribution system included more than 4.1 million points of delivery and consisted of 127,398 circuit miles of overhead and underground lines. The Sempra Infrastructure segment develops, constructs, operates, and invests in energy infrastructure to help enable the access to cleaner energy in markets in the United States, Mexico, and internationally. The company was formerly known as Sempra Energy and changed its name to Sempra in May 2023. Sempra was incorporated in 1996 and is headquartered in San Diego, California.
Sempra engages in the regulated utilities business in the United States and Mexico. It operates through three segments: Sempra California, Sempra Texas Utilities, and Sempra Infrastructure. It also invests in and operates electric and gas utilities and other energy infrastructure that provides energy services to customers. The Sempra California segment provides natural gas and electric services to Southern California and part of central California. As of December 31, 2025, it offered electric services to approximately 3.6 million population and natural gas services to approximately 3.3 million population that covers 4,100 square miles. This segment owns and operates a natural gas distribution, transmission, and storage system that supplies natural gas. As of December 31, 2025, it served a population of 21.3 million covering an area of 24,000 square miles. The Sempra Texas Utilities segment engages in the regulated electricity transmission and distribution utility business. As of December 31, 2025, transmission system included approximately 18,418 circuit miles of transmission lines; 1,333 transmission and distribution substations; interconnection to 230 third-party generation facilities totaling 63,670 MW; and distribution system included more than 4.1 million points of delivery and consisted of 127,398 circuit miles of overhead and underground lines. The Sempra Infrastructure segment develops, constructs, operates, and invests in energy infrastructure to help enable the access to cleaner energy in markets in the United States, Mexico, and internationally. The company was formerly known as Sempra Energy and changed its name to Sempra in May 2023. Sempra was incorporated in 1996 and is headquartered in San Diego, California.
Metric Explanations
What each dimension measures and where the thresholds come from.
Gross Profit Margin
Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.
Operating Margin
Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.
Net Income Margin
Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.
Years to Pay Off Debt
Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.
Working Capital vs Long-Term Debt
Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.
Working Capital
Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.
Margin of Safety
How far below the Graham Number the stock trades. Graham required a 33% discount as a buffer against analytical error. However, the Graham Number itself assumes 1960s-era P/E and P/B norms — for modern asset-light businesses it often understates true intrinsic value, making 0% MoS appear misleadingly bad.
Price-to-Book
Market price vs book value per share. Rarely below 1.5x for quality businesses today. Intangible assets (brand, software, patents) don't appear on the balance sheet under accounting rules, making P/B artificially high for asset-light companies like software and consumer brands.
Free Cash Flow
Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.
CapEx % of Net Income
Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.
Owner Earnings
Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.
Mr. Market is currently offering Sempra at $90.69.
The business passes only 3 of 7 of Graham's defensive criteria — well below his required standard.
At $90.69, the stock trades at a 66% premium to its Graham Number of $54.68. Graham would consider this price speculative.
There is no margin of safety at the current price. Graham would advise patience and waiting for a better entry point.
Negative NCAV — liabilities exceed current assets. Common in capital-return businesses (buybacks, debt-funded dividends) and capital-intensive industries. Not automatically a warning sign..
Conclusion: By Graham's standards, this stock is speculative at its current price. The intelligent investor would look elsewhere or wait.
Showing Key Metrics
Income Highlights
Metric
2025
2024
2023
2022
2021
Gross Profit %
46.6%▲
46.2%▲
39.6%▲
36.1%•
N/A
Operating Margin %
22.5%▲
22.5%▲
22.2%▲
17.7%•
N/A
Net Income %
13.4%▼
21.7%▲
18.4%▲
14.8%•
N/A
Diluted EPS
2.75▼
4.42▼
4.79▲
3.31•
N/A
Balance Sheet Highlights
Metric
2025
2024
2023
2022
2021
Total Assets
$110.9B
$96.2B
$87.2B
$78.6B
N/A
Total Debt
$35.0B▼
$35.8B▲
$31.1B▲
$28.9B•
N/A
Working Capital
$12.9B▲
-$4.4B▲
-$4.6B▼
-$4.0B•
N/A
Years to Pay Debt
19.06
12.53
10.11
13.52
N/A
Cash Flow Highlights
Metric
2025
2024
2023
2022
2021
Free Cash Flow
-$6.0B▼
-$3.3B▼
-$2.2B▲
-$4.2B•
N/A
Owner Earnings
$15.0B
$13.5B
$13.7B
$9.5B
N/A
CapEx % of Net Income
577.7%
287.0%
273.1%
250.4%
N/A
Income Statement
2025
2024
2023
2022
2021
Tax Effect Of Unusual Items
-161,460
13,760
32,455
-35,910
Tax Rate For Calcs
0
0
0
0
Normalized EBITDA
5,678,000
5,424,000
5,989,000
4,587,000
Total Unusual Items
-414,000
172,000
174,000
-171,000
Total Unusual Items Excluding Goodwill
-414,000
172,000
174,000
-171,000
Net Income From Continuing Operation Net Minority Interest
1,837,000
2,862,000
3,075,000
2,139,000
Reconciled Depreciation
2,563,000
2,437,000
2,227,000
2,019,000
Reconciled Cost Of Revenue
7,315,000
7,093,000
10,100,000
9,228,000
EBITDA
5,264,000
5,596,000
6,163,000
4,416,000
EBIT
2,701,000
3,159,000
3,936,000
2,397,000
Net Interest Income
-1,336,000
-913,000
-1,141,000
-953,000
Interest Expense
1,532,000
1,049,000
1,309,000
1,054,000
Interest Income
196,000
136,000
168,000
101,000
Normalized Income
2,089,540
2,703,760
2,933,455
2,274,090
Net Income From Continuing And Discontinued Operation
1,837,000
2,862,000
3,075,000
2,139,000
Total Expenses
10,622,000
10,223,000
13,004,000
11,882,000
Diluted Average Shares
653,826
637,943
632,733
632,756
Basic Average Shares
652,697
633,795
630,296
630,318
Diluted EPS
0
0
0
0
Basic EPS
0
0
0
0
Diluted NI Availto Com Stockholders
1,796,000
2,817,000
3,030,000
2,094,000
Net Income Common Stockholders
1,796,000
2,817,000
3,030,000
2,094,000
Preferred Stock Dividends
41,000
45,000
45,000
45,000
Net Income
1,837,000
2,862,000
3,075,000
2,139,000
Minority Interests
-235,000
-638,000
-543,000
-146,000
Net Income Including Noncontrolling Interests
2,072,000
3,500,000
3,618,000
2,285,000
Net Income Continuous Operations
2,072,000
3,500,000
3,618,000
2,285,000
Earnings From Equity Interest Net Of Tax
1,604,000
1,609,000
1,481,000
1,498,000
Tax Provision
701,000
219,000
490,000
556,000
Pretax Income
1,169,000
2,110,000
2,627,000
1,343,000
Other Income Expense
-575,000
61,000
52,000
-261,000
Other Non Operating Income Expenses
-161,000
-111,000
-122,000
-90,000
Special Income Charges
-477,000
150,000
140,000
-116,000
Gain On Sale Of Ppe
1,000
0
36,000
Other Special Charges
477,000
-150,000
-140,000
116,000
Impairment Of Capital Assets
3,000
Gain On Sale Of Security
63,000
22,000
34,000
-55,000
Net Non Operating Interest Income Expense
-1,336,000
-913,000
-1,141,000
-953,000
Interest Expense Non Operating
1,532,000
1,049,000
1,309,000
1,054,000
Interest Income Non Operating
196,000
136,000
168,000
101,000
Operating Income
3,080,000
2,962,000
3,716,000
2,557,000
Operating Expense
3,307,000
3,130,000
2,904,000
2,654,000
Other Operating Expenses
635,000
596,000
Other Taxes
744,000
693,000
677,000
635,000
Depreciation Amortization Depletion Income Statement
2,563,000
2,437,000
2,227,000
2,019,000
Depreciation And Amortization In Income Statement
2,563,000
2,437,000
2,227,000
2,019,000
Gross Profit
6,387,000
6,092,000
6,620,000
5,211,000
Cost Of Revenue
7,315,000
7,093,000
10,100,000
9,228,000
Total Revenue
13,702,000
13,185,000
16,720,000
14,439,000
Operating Revenue
13,702,000
13,185,000
16,720,000
14,439,000
Balance Sheet
2025
2024
2023
2022
2021
Preferred Shares Number
5,750
Ordinary Shares Number
652,732
650,630
631,432
628,000
Share Issued
652,732
650,630
631,432
628,000
Net Debt
34,992,000
34,283,000
30,840,000
28,549,000
Total Debt
35,021,000
35,848,000
31,076,000
28,919,000
Tangible Book Value
31,594,000
28,439,000
25,866,000
24,280,000
Invested Capital
66,615,000
66,181,000
58,862,000
55,145,000
Working Capital
12,943,000
-4,391,000
-4,620,000
-3,987,000
Net Tangible Assets
31,614,000
29,348,000
26,775,000
25,189,000
Common Stock Equity
31,594,000
30,333,000
27,786,000
26,226,000
Preferred Stock Equity
20,000
909,000
909,000
909,000
Total Capitalization
60,593,000
62,800,000
56,454,000
51,683,000
Total Equity Gross Minority Interest
41,999,000
37,788,000
33,654,000
29,256,000
Minority Interest
10,385,000
6,546,000
4,959,000
2,121,000
Stockholders Equity
31,614,000
31,242,000
28,695,000
27,135,000
Other Equity Interest
20,000
Gains Losses Not Affecting Retained Earnings
-197,000
-166,000
-150,000
-135,000
Other Equity Adjustments
-197,000
-166,000
-150,000
-135,000
Retained Earnings
17,092,000
16,979,000
15,732,000
14,201,000
Capital Stock
14,719,000
14,429,000
13,113,000
13,069,000
Common Stock
14,699,000
13,520,000
12,204,000
12,160,000
Preferred Stock
20,000
909,000
909,000
909,000
Total Liabilities Net Minority Interest
68,879,000
58,367,000
53,527,000
49,318,000
Total Non Current Liabilities Net Minority Interest
46,985,000
48,691,000
43,437,000
39,419,000
Other Non Current Liabilities
3,762,000
3,214,000
2,329,000
2,682,000
Employee Benefits
124,000
168,000
407,000
410,000
Non Current Pension And Other Postretirement Benefit Plans
124,000
168,000
407,000
410,000
Dueto Related Parties Non Current
0
352,000
307,000
301,000
Non Current Deferred Liabilities
6,127,000
5,845,000
5,254,000
4,591,000
Non Current Deferred Taxes Liabilities
6,127,000
5,845,000
5,254,000
4,591,000
Long Term Debt And Capital Lease Obligation
28,979,000
31,558,000
27,759,000
24,548,000
Long Term Debt
28,979,000
31,558,000
27,759,000
24,548,000
Long Term Provisions
3,743,000
3,737,000
3,642,000
3,546,000
Current Liabilities
21,894,000
9,676,000
10,090,000
9,899,000
Other Current Liabilities
12,889,000
1,609,000
3,116,000
2,025,000
Current Debt And Capital Lease Obligation
6,042,000
4,290,000
3,317,000
4,371,000
Current Debt
6,042,000
4,290,000
3,317,000
4,371,000
Pensionand Other Post Retirement Benefit Plans Current
521,000
558,000
526,000
484,000
Current Provisions
31,000
129,000
1,980,000
Payables And Accrued Expenses
2,442,000
3,219,000
3,131,000
2,890,000
Payables
2,442,000
3,219,000
3,131,000
2,890,000
Other Payable
203,000
208,000
224,000
275,000
Dueto Related Parties Current
8,000
0
5,000
0
Dividends Payable
770,000
773,000
691,000
621,000
Accounts Payable
1,461,000
2,238,000
2,211,000
1,994,000
Total Assets
110,878,000
96,155,000
87,181,000
78,574,000
Total Non Current Assets
76,041,000
90,870,000
81,711,000
72,662,000
Other Non Current Assets
2,521,000
2,597,000
2,008,000
2,230,000
Defined Pension Benefit
605,000
585,000
549,000
505,000
Non Current Deferred Assets
10,000
172,000
129,000
135,000
Non Current Deferred Taxes Assets
10,000
172,000
129,000
135,000
Duefrom Related Parties Non Current
0
637,000
Non Current Accounts Receivable
997,000
Investments And Advances
18,764,000
19,071,000
17,651,000
16,821,000
Other Investments
147,000
2,534,000
2,244,000
2,012,000
Investmentin Financial Assets
1,145,000
1,137,000
1,141,000
1,144,000
Available For Sale Securities
1,145,000
1,137,000
1,141,000
1,144,000
Long Term Equity Investment
17,472,000
15,400,000
14,266,000
13,665,000
Goodwill And Other Intangible Assets
0
1,894,000
1,920,000
1,946,000
Other Intangible Assets
292,000
318,000
344,000
370,000
Goodwill
0
1,602,000
1,602,000
1,602,000
Net PPE
50,273,000
62,614,000
55,683,000
48,437,000
Accumulated Depreciation
-17,889,000
-18,960,000
-17,535,000
-16,111,000
Gross PPE
68,162,000
81,574,000
73,218,000
64,548,000
Construction In Progress
3,925,000
12,604,000
9,019,000
4,982,000
Other Properties
1,351,000
2,024,000
1,556,000
1,468,000
Current Assets
34,837,000
5,285,000
5,470,000
5,912,000
Other Current Assets
1,226,000
657,000
1,471,000
541,000
Hedging Assets Current
91,000
122,000
803,000
179,000
Assets Held For Sale Current
31,024,000
0
0
Restricted Cash
2,000
21,000
49,000
40,000
Prepaid Assets
255,000
273,000
268,000
260,000
Inventory
561,000
559,000
482,000
403,000
Other Inventories
158,000
190,000
183,000
168,000
Receivables
1,995,000
2,483,000
2,837,000
3,487,000
Other Receivables
157,000
397,000
561,000
685,000
Duefrom Related Parties Current
0
13,000
31,000
54,000
Taxes Receivable
71,000
90,000
94,000
113,000
Accounts Receivable
1,767,000
1,983,000
2,151,000
2,635,000
Allowance For Doubtful Accounts Receivable
-235,000
-447,000
-480,000
-140,000
Gross Accounts Receivable
2,002,000
2,430,000
2,631,000
2,775,000
Cash Cash Equivalents And Short Term Investments
29,000
1,565,000
236,000
370,000
Cash And Cash Equivalents
29,000
1,565,000
236,000
370,000
Cash Flow
2025
2024
2023
2022
2021
Free Cash Flow
-6,047,000
-3,308,000
-2,179,000
-4,215,000
Repurchase Of Capital Stock
-958,000
-43,000
-32,000
-478,000
Repayment Of Debt
-5,220,000
-3,339,000
-6,294,000
-4,510,000
Issuance Of Debt
11,282,000
8,674,000
7,669,000
9,984,000
Issuance Of Capital Stock
32,000
1,219,000
145,000
4,000
Capital Expenditure
-10,612,000
-8,215,000
-8,397,000
-5,357,000
Interest Paid Supplemental Data
1,205,000
1,172,000
1,014,000
1,163,000
Income Tax Paid Supplemental Data
289,000
197,000
284,000
230,000
End Cash Position
3,552,000
1,589,000
389,000
462,000
Beginning Cash Position
1,589,000
389,000
462,000
581,000
Effect Of Exchange Rate Changes
5,000
-13,000
6,000
-1,000
Changes In Cash
1,958,000
1,213,000
-79,000
-118,000
Financing Cash Flow
9,930,000
5,424,000
2,419,000
3,779,000
Cash Flow From Continuing Financing Activities
9,930,000
5,424,000
2,419,000
3,779,000
Net Other Financing Charges
5,175,000
1,013,000
1,906,000
1,519,000
Cash Dividends Paid
-1,643,000
-1,543,000
-1,527,000
-1,474,000
Preferred Stock Dividend Paid
-40,000
-44,000
-44,000
-44,000
Common Stock Dividend Paid
-1,603,000
-1,499,000
-1,483,000
-1,430,000
Net Preferred Stock Issuance
-900,000
0
0
0
Preferred Stock Payments
-900,000
0
0
Net Common Stock Issuance
-26,000
1,176,000
113,000
-474,000
Common Stock Payments
-58,000
-43,000
-32,000
-478,000
Common Stock Issuance
32,000
1,219,000
145,000
4,000
Net Issuance Payments Of Debt
7,324,000
4,778,000
1,927,000
4,208,000
Net Short Term Debt Issuance
1,262,000
-557,000
552,000
-1,266,000
Short Term Debt Payments
-1,266,000
Short Term Debt Issuance
1,913,000
Net Long Term Debt Issuance
6,062,000
5,335,000
1,375,000
5,474,000
Long Term Debt Payments
-5,220,000
-3,339,000
-6,294,000
-4,510,000
Long Term Debt Issuance
11,282,000
8,674,000
7,669,000
9,984,000
Investing Cash Flow
-12,537,000
-9,118,000
-8,716,000
-5,039,000
Cash Flow From Continuing Investing Activities
-12,537,000
-9,118,000
-8,716,000
-5,039,000
Net Other Investing Changes
23,000
23,000
12,000
632,000
Dividends Received Cfi
0
9,000
0
0
Net Investment Purchase And Sale
-1,948,000
-935,000
-331,000
-314,000
Sale Of Investment
1,098,000
942,000
661,000
762,000
Purchase Of Investment
-3,046,000
-1,877,000
-992,000
-1,076,000
Capital Expenditure Reported
-10,612,000
-8,215,000
-8,397,000
-5,357,000
Operating Cash Flow
4,565,000
4,907,000
6,218,000
1,142,000
Cash Flow From Continuing Operating Activities
4,565,000
4,907,000
6,218,000
1,142,000
Dividend Received Cfo
1,120,000
1,093,000
912,000
854,000
Change In Working Capital
-975,000
-612,000
835,000
-4,022,000
Change In Other Working Capital
-719,000
-625,000
-166,000
-2,439,000
Change In Other Current Liabilities
177,000
130,000
1,172,000
228,000
Change In Other Current Assets
-296,000
-30,000
11,000
-1,608,000
Change In Payables And Accrued Expense
-7,000
-131,000
-270,000
430,000
Change In Payable
-7,000
-131,000
-270,000
430,000
Change In Account Payable
-7,000
-131,000
-270,000
430,000
Change In Inventory
-64,000
-74,000
-80,000
-17,000
Change In Receivables
-66,000
118,000
168,000
-616,000
Changes In Account Receivables
-66,000
118,000
168,000
-976,000
Other Non Cash Items
635,000
20,000
-14,000
56,000
Stock Based Compensation
64,000
86,000
80,000
71,000
Asset Impairment Charge
65,000
209,000
458,000
122,000
Deferred Tax
533,000
-20,000
249,000
392,000
Deferred Income Tax
533,000
-20,000
249,000
392,000
Depreciation Amortization Depletion
2,563,000
2,437,000
2,227,000
2,019,000
Depreciation And Amortization
2,563,000
2,437,000
2,227,000
2,019,000
Operating Gains Losses
-1,512,000
-1,806,000
-2,147,000
-635,000
Earnings Losses From Equity Investments
-1,604,000
-1,609,000
-1,481,000
-1,498,000
Gain Loss On Investment Securities
92,000
-197,000
-666,000
863,000
Net Foreign Currency Exchange Gain Loss
-2,000
24,000
18,000
Net Income From Continuing Operations
2,072,000
3,500,000
3,618,000
2,285,000
3/7
Graham Score
Speculative Investor
Fails most of Graham's safety criteria. Treat with caution.
Graham's Fair Value
$54.68
Margin of Safety
0%
Market Cap / Net Assets
1.4x
Net Assets: $42.0B
Warren's Owner Earnings
$15.0B
Latest fiscal year
Graham's 7 Criteria
Defensive Investor Checklist
3/7 — Speculative Investor
✅
Adequate Size
Graham required companies large enough to withstand economic downturns. This threshold ($1.5B) is inflation-adjusted from Graham's original $100M — virtually all S&P 500 companies pass this today.
$13.7B
vs > $1.5B revenue
❌
Strong Financial Condition
Current assets must be at least twice current liabilities. Note: highly profitable companies (Apple, Domino's) often run negative or low working capital deliberately — they collect cash fast and stretch payables. A failing score here is not always a warning sign.
1.59x
vs Current Ratio > 2.0x
✅
Earnings Stability
Graham required uninterrupted positive earnings. Any loss year is a red flag for defensive investors. Growth companies and cyclicals may show occasional losses during investment cycles or downturns without being fundamentally unsound.
No loss years (4 yrs data)
vs No negative EPS years
✅
Dividend Record
Graham valued dividends as evidence of financial discipline and shareholder alignment. Many excellent modern businesses (Alphabet, Amazon, Berkshire Hathaway) pay no dividend, preferring to reinvest cash at high rates of return. Failing this criterion does not indicate a poor business — it may indicate a high-growth one.
2.87%
vs Uninterrupted dividends
❌
Earnings Growth
EPS grew from $3.31 to $2.75 over 3 years. Graham's 33% threshold was set over a 10-year period. Measured over fewer years (as here), the bar is proportionally lower. Share buybacks can also inflate EPS growth without reflecting underlying business improvement.
-16.9% EPS growth
vs > 33% EPS growth
❌
Moderate P/E Ratio
Graham's 15x P/E threshold was calibrated to 1960s market averages when interest rates were higher. Today's lower rate environment structurally supports higher multiples — the S&P 500 long-run average P/E is now closer to 20–25x. A stock trading at 20x is not automatically speculative in the modern context.
30.8x
vs P/E ≤ 15.0x
❌
Moderate Price-to-Book
Graham's 1.5x P/B threshold made sense when most company value was tangible. Today, intangible assets — brand, software, patents, network effects — rarely appear on the balance sheet. A high P/B in tech, pharma, or consumer brands often reflects intangible value, not overvaluation. P/FCF or EV/EBITDA are more reliable for asset-light businesses.
1.88x P/B (P/E×P/B: 57.9)
vs P/B ≤ 1.5x | P/E × P/B ≤ 22.5
Graham's 7 Criteria — Explained
What each criterion measures and why it matters.
✅ Adequate Size — $13.7Bvs > $1.5B revenue
Graham required companies large enough to withstand economic downturns. This threshold ($1.5B) is inflation-adjusted from Graham's original $100M — virtually all S&P 500 companies pass this today.
"The minimum size of an enterprise should be not less than $100 million of annual sales."
❌ Strong Financial Condition — 1.59xvs Current Ratio > 2.0x
Current assets must be at least twice current liabilities. Note: highly profitable companies (Apple, Domino's) often run negative or low working capital deliberately — they collect cash fast and stretch payables. A failing score here is not always a warning sign.
"For industrial companies, current assets should be at least twice current liabilities."
✅ Earnings Stability — No loss years (4 yrs data)vs No negative EPS years
Graham required uninterrupted positive earnings. Any loss year is a red flag for defensive investors. Growth companies and cyclicals may show occasional losses during investment cycles or downturns without being fundamentally unsound.
"The company should have shown no deficit in the past ten years."
✅ Dividend Record — 2.87%vs Uninterrupted dividends
Graham valued dividends as evidence of financial discipline and shareholder alignment. Many excellent modern businesses (Alphabet, Amazon, Berkshire Hathaway) pay no dividend, preferring to reinvest cash at high rates of return. Failing this criterion does not indicate a poor business — it may indicate a high-growth one.
"Some current dividend payments — for at least the past 20 years."
EPS grew from $3.31 to $2.75 over 3 years. Graham's 33% threshold was set over a 10-year period. Measured over fewer years (as here), the bar is proportionally lower. Share buybacks can also inflate EPS growth without reflecting underlying business improvement.
"A minimum increase of at least one-third in per-share earnings over ten years."
❌ Moderate P/E Ratio — 30.8xvs P/E ≤ 15.0x
Graham's 15x P/E threshold was calibrated to 1960s market averages when interest rates were higher. Today's lower rate environment structurally supports higher multiples — the S&P 500 long-run average P/E is now closer to 20–25x. A stock trading at 20x is not automatically speculative in the modern context.
"The price-earnings ratio should be no more than 15 times average earnings."
Graham's 1.5x P/B threshold made sense when most company value was tangible. Today, intangible assets — brand, software, patents, network effects — rarely appear on the balance sheet. A high P/B in tech, pharma, or consumer brands often reflects intangible value, not overvaluation. P/FCF or EV/EBITDA are more reliable for asset-light businesses.
"The price should not be more than 1½ times book value. P/E × P/B ≤ 22.5."
These metrics estimate what Sempra is worth based on fundamentals — independent of what the market prices it at.
Graham's Fair Value and NCAV are conservative floors.
EPV assumes zero growth. These are reference points, not price targets.
Net Current Asset Value
$-52.08
Negative NCAV — liabilities exceed current assets. Common in capital-return businesses (buybacks, debt-funded dividends) and capital-intensive industries. Not automatically a warning sign.
"Buy at two-thirds of net current assets." — Graham
Earnings Power Value
$52.35
Per share, no-growth floor. Compare to current price.
ROIC — Return on Invested Capital
2.7%
Return on Invested Capital — Buffett's preferred measure for asset-light businesses. ROIC > 15% consistently signals a durable competitive advantage (moat). More meaningful than P/B for software, pharma, and consumer brand companies where most value is intangible and off-balance-sheet.
Cash Flow Analysis
Metric
2025
2024
2023
2022
2021
Capital Expenditure % of Net Income
577.7%
287.0%
273.1%
250.4%
N/A
Repurchase of Capital Stock
-$958M
-$43M
-$32M
-$478M
N/A
Free Cash Flow
-$6.0B▼
-$3.3B▼
-$2.2B▲
-$4.2B•
N/A•
Warren's Owner Earnings
$15.0B
$13.5B
$13.7B
$9.5B
N/A
Peers & Industry
No auto-detected peers for Utilities - Diversified. You can manually compare SRE against any stock using the Compare tool.
"The management of a business is its most important single factor — more important than market position, patents, or financial structure."
— Benjamin Graham
Capital Allocation & Alignment
Insider Ownership
0.10%
Low — management has little skin in the game
Return on Equity (ROE)
5.8%
Weak — poor returns on equity
Return on Assets (ROA)
1.7%
Poor — assets are not generating adequate returns
Share Buybacks (Latest Year)
$958M
Management is returning capital to shareholders via buybacks
Debt Trend YoY
-2.3% YoY
Debt is declining — management is deleveraging
Leadership Team
Jeffrey Walker Martin
Chairman, President & CEO
Age 63
Pay: $7,763,268
0.423% of net income
Karen Sedgwick
Executive VP & CFO
Age 58
Pay: $1,918,244
0.104% of net income
Justin Christopher Bird
Executive VP & CEO of Sempra Infrastructure
Age 53
Pay: $2,728,686
0.149% of net income
Caroline Winn
Executive Vice President
Age 62
Pay: $2,528,651
0.138% of net income
Louise Bick
Vice President of Investor Relations
Top Institutional Holders
Institution
% Owned
Shares
Blackrock Inc.
9.16%
59,911,827
Wellington Management Group, LLP
7.06%
46,135,422
Vanguard Capital Management LLC
6.49%
42,406,476
State Street Corporation
5.71%
37,302,515
Vanguard Portfolio Management LLC
4.29%
28,017,688
Morgan Stanley
3.72%
24,349,232
Capital International Investors
2.87%
18,754,548
FMR, LLC
2.84%
18,565,102
Risk Analysis
Beta (Market Risk)
0.58
Low volatility — more stable than the market
Short Interest
1.8% of float
Low short interest — market is not heavily bearish
Debt-to-Equity
0.85x
Conservative balance sheet — low financial risk
Current Ratio
1.69x
Adequate liquidity
52-Week Price Range
Low: $73.18Current: $90.69High: $101.04
Currently at 63% of 52-week range
Sempra (SRE) fundamental analysis — Overall grade D based on profitability, financial health, valuation and cash flow. Graham's
Fair Value: $54.68. Margin of safety: 0%. Gross profit margin: 46.6%. Operating margin: 22.5%. Net margin: 13.4%. Market cap: $59.3B. Sector: Utilities. Industry: Utilities - Diversified. Analysis powered by 360investing — free fundamental stock analysis based on Benjamin Graham and Warren Buffett
principles.
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and may be delayed, inaccurate, or incomplete. Past performance is not indicative of future results. Analysis, scores, and valuations are algorithmic and do not represent professional investment recommendations. Always conduct your own due
diligence and consult a qualified financial adviser before making any investment decision. Use of this tool constitutes acceptance that 360investing and its operators bear no liability for decisions made based on information presented here.