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 Margin29.8%
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 Margin28.4%
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 Debt35.1 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-$16.1B
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$14.8B
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-Book1.84x
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-$652M
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 Income237.3%
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$4.1B
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 117% premium to its Graham Number of $41.87. 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
Q1 2026
Q4 2025
Q4 2024
Gross Profit %
52.6%▲
49.0%•
N/A
Operating Margin %
29.8%▲
27.7%•
N/A
Net Income %
28.4%▲
9.4%•
N/A
Diluted EPS
1.58▲
0.54•
N/A
Balance Sheet Highlights
Metric
Q1 2026
Q4 2025
Q4 2024
Total Assets
$113.5B
$110.9B
N/A
Total Debt
$36.4B▲
$35.0B•
N/A
Working Capital
$14.8B▲
$12.9B•
N/A
Years to Pay Debt
35.13
99.49
N/A
Cash Flow Highlights
Metric
Q1 2026
Q4 2025
Q4 2024
Free Cash Flow
-$652M▲
-$2.2B•
N/A
Owner Earnings
$4.1B
$4.4B
N/A
CapEx % of Net Income
237.3%
969.0%
N/A
Income Statement
2026
2025
2024
Tax Effect Of Unusual Items
3,570
-125,790
Tax Rate For Calcs
0
0
Normalized EBITDA
1,800,000
1,604,000
Total Unusual Items
51,000
-599,000
Total Unusual Items Excluding Goodwill
51,000
-599,000
Net Income From Continuing Operation Net Minority Interest
1,037,000
352,000
Reconciled Depreciation
621,000
608,000
Reconciled Cost Of Revenue
1,734,000
1,912,000
EBITDA
1,851,000
1,005,000
EBIT
1,230,000
397,000
Net Interest Income
-323,000
-276,000
Interest Expense
382,000
337,000
Interest Income
59,000
61,000
Normalized Income
989,570
825,210
Net Income From Continuing And Discontinued Operation
1,037,000
352,000
Total Expenses
2,565,000
2,709,000
Diluted Average Shares
655,488
655,040
Basic Average Shares
653,589
653,170
Diluted EPS
0
0
Basic EPS
0
0
Diluted NI Availto Com Stockholders
1,037,000
352,000
Net Income Common Stockholders
1,037,000
352,000
Preferred Stock Dividends
0
11,000
Net Income
1,037,000
352,000
Minority Interests
-113,000
-132,000
Net Income Including Noncontrolling Interests
1,150,000
484,000
Net Income Continuous Operations
1,150,000
484,000
Earnings From Equity Interest Net Of Tax
367,000
414,000
Tax Provision
65,000
-10,000
Pretax Income
848,000
60,000
Other Income Expense
81,000
-704,000
Other Non Operating Income Expenses
30,000
-105,000
Special Income Charges
42,000
-607,000
Other Special Charges
-42,000
607,000
Gain On Sale Of Security
9,000
8,000
Net Non Operating Interest Income Expense
-323,000
-276,000
Interest Expense Non Operating
382,000
337,000
Interest Income Non Operating
59,000
61,000
Operating Income
1,090,000
1,040,000
Operating Expense
831,000
797,000
Other Taxes
210,000
189,000
Depreciation Amortization Depletion Income Statement
621,000
608,000
Depreciation And Amortization In Income Statement
621,000
608,000
Gross Profit
1,921,000
1,837,000
Cost Of Revenue
1,734,000
1,912,000
Total Revenue
3,655,000
3,749,000
Operating Revenue
3,655,000
3,749,000
Balance Sheet
2026
2025
2024
Preferred Shares Number
5,750
5,750
Ordinary Shares Number
653,344
652,732
Share Issued
653,344
652,732
Net Debt
35,639,000
34,992,000
Total Debt
36,433,000
35,021,000
Tangible Book Value
32,239,000
31,594,000
Invested Capital
68,672,000
66,615,000
Working Capital
14,764,000
12,943,000
Net Tangible Assets
32,259,000
31,614,000
Common Stock Equity
32,239,000
31,594,000
Preferred Stock Equity
20,000
20,000
Total Capitalization
63,106,000
60,593,000
Total Equity Gross Minority Interest
42,728,000
41,999,000
Minority Interest
10,469,000
10,385,000
Stockholders Equity
32,259,000
31,614,000
Gains Losses Not Affecting Retained Earnings
-191,000
-197,000
Other Equity Adjustments
-191,000
-197,000
Retained Earnings
17,699,000
17,092,000
Capital Stock
14,751,000
14,719,000
Common Stock
14,731,000
14,699,000
Preferred Stock
20,000
20,000
Total Liabilities Net Minority Interest
70,790,000
68,879,000
Total Non Current Liabilities Net Minority Interest
49,351,000
46,985,000
Other Non Current Liabilities
3,888,000
3,762,000
Employee Benefits
126,000
124,000
Non Current Pension And Other Postretirement Benefit Plans
126,000
124,000
Dueto Related Parties Non Current
0
352,000
Non Current Deferred Liabilities
6,414,000
6,127,000
Non Current Deferred Taxes Liabilities
6,414,000
6,127,000
Long Term Debt And Capital Lease Obligation
30,847,000
28,979,000
Long Term Debt
30,847,000
28,979,000
Long Term Provisions
3,773,000
3,743,000
Current Liabilities
21,439,000
21,894,000
Other Current Liabilities
13,309,000
12,889,000
Current Debt And Capital Lease Obligation
5,586,000
6,042,000
Current Debt
5,586,000
6,042,000
Pensionand Other Post Retirement Benefit Plans Current
316,000
521,000
Payables And Accrued Expenses
2,228,000
2,442,000
Payables
2,228,000
2,442,000
Other Payable
174,000
203,000
Dueto Related Parties Current
0
8,000
0
Dividends Payable
920,000
770,000
Accounts Payable
1,134,000
1,461,000
Total Assets
113,518,000
110,878,000
Total Non Current Assets
77,315,000
76,041,000
Other Non Current Assets
2,639,000
2,521,000
Defined Pension Benefit
588,000
605,000
Non Current Deferred Assets
10,000
10,000
Non Current Deferred Taxes Assets
10,000
10,000
Investments And Advances
19,515,000
18,764,000
Other Investments
148,000
147,000
Investmentin Financial Assets
1,124,000
1,145,000
Available For Sale Securities
1,124,000
1,145,000
Long Term Equity Investment
18,243,000
17,472,000
Goodwill And Other Intangible Assets
0
1,894,000
Other Intangible Assets
292,000
Goodwill
0
1,602,000
Net PPE
50,486,000
50,273,000
Accumulated Depreciation
-18,288,000
-17,889,000
Gross PPE
68,774,000
68,162,000
Construction In Progress
3,925,000
12,604,000
Other Properties
68,774,000
1,351,000
Current Assets
36,203,000
34,837,000
Other Current Assets
994,000
1,226,000
Hedging Assets Current
91,000
Assets Held For Sale Current
31,865,000
31,024,000
0
Restricted Cash
2,000
2,000
Prepaid Assets
255,000
Inventory
530,000
561,000
Other Inventories
134,000
158,000
Receivables
2,018,000
1,995,000
Other Receivables
203,000
157,000
Duefrom Related Parties Current
34,000
0
Taxes Receivable
177,000
71,000
Accounts Receivable
1,604,000
1,767,000
Allowance For Doubtful Accounts Receivable
-219,000
-235,000
Gross Accounts Receivable
1,823,000
2,002,000
Cash Cash Equivalents And Short Term Investments
794,000
29,000
Cash And Cash Equivalents
794,000
29,000
Cash Flow
2026
2025
2024
Free Cash Flow
-652,000
-2,222,000
Repurchase Of Capital Stock
-20,000
-900,000
Repayment Of Debt
-1,131,000
-1,078,000
Issuance Of Debt
3,345,000
2,390,000
Issuance Of Capital Stock
9,000
6,000
Capital Expenditure
-2,461,000
-3,411,000
Interest Paid Supplemental Data
243,000
391,000
Income Tax Paid Supplemental Data
20,000
17,000
End Cash Position
3,959,000
3,552,000
Beginning Cash Position
3,552,000
3,025,000
Effect Of Exchange Rate Changes
-3,000
1,000
Changes In Cash
410,000
526,000
Financing Cash Flow
1,912,000
3,269,000
Cash Flow From Continuing Financing Activities
1,912,000
3,269,000
Net Other Financing Charges
118,000
1,845,000
Cash Dividends Paid
-409,000
-426,000
Preferred Stock Dividend Paid
-18,000
-22,000
Common Stock Dividend Paid
-409,000
-408,000
Net Common Stock Issuance
-11,000
6,000
Common Stock Payments
-20,000
0
Common Stock Issuance
9,000
6,000
Net Issuance Payments Of Debt
2,214,000
2,744,000
Net Short Term Debt Issuance
-458,000
1,432,000
Short Term Debt Payments
-458,000
Net Long Term Debt Issuance
2,672,000
1,312,000
Long Term Debt Payments
-673,000
-1,078,000
Long Term Debt Issuance
3,345,000
2,390,000
Investing Cash Flow
-3,311,000
-3,932,000
Cash Flow From Continuing Investing Activities
-3,311,000
-3,932,000
Net Other Investing Changes
-1,000
20,000
12,000
Net Investment Purchase And Sale
-849,000
-541,000
Sale Of Investment
395,000
267,000
Purchase Of Investment
-1,244,000
-808,000
Capital Expenditure Reported
-2,461,000
-3,411,000
Operating Cash Flow
1,809,000
1,189,000
Cash Flow From Continuing Operating Activities
1,809,000
1,189,000
Dividend Received Cfo
389,000
292,000
Change In Working Capital
-150,000
-342,000
Change In Other Working Capital
-150,000
-86,000
Other Non Cash Items
8,000
632,000
Stock Based Compensation
25,000
39,000
Asset Impairment Charge
18,000
-44,000
Deferred Tax
124,000
-25,000
Deferred Income Tax
124,000
-25,000
Depreciation Amortization Depletion
621,000
608,000
Depreciation And Amortization
621,000
608,000
Operating Gains Losses
-376,000
-455,000
Earnings Losses From Equity Investments
-367,000
-414,000
Gain Loss On Investment Securities
-9,000
-41,000
Net Income From Continuing Operations
1,150,000
484,000
📊Quarterly mode — Graham Fair Value & 7 Criteria require annual data. Switch to Annual for full analysis.
Quarter vs Same Quarter Last Year
YoY strips seasonality
Revenue Growth (YoY)
Prior year: $3.8B▼ $3.7B-3.9%
Revenue growth vs same quarter last year strips seasonality. Consistent double-digit growth is a Buffett hallmark.
Gross Margin
Prior year: 47.2%▲ 52.6%+5.3pp
Buffett: consistent gross margin above 40% signals durable pricing power and competitive moat.
Operating Margin
Prior year: 28.7%▲ 29.8%+1.2pp
Graham: operating margin reflects true business economics before financing. Trend matters as much as level.
Net Margin
Prior year: 24.1%▲ 28.4%+4.3pp
Net margin can be distorted by one-time items, tax timing, or interest costs — compare to operating margin for signal quality.
Quarterly Health Checks
3 Graham/Buffett criteria that are valid and reliable on quarterly data
✅ Adequate Size
Graham required scale for resilience. Quarterly revenue × 4 gives an annualised proxy.
$3.7B/qtr (≈$14.6B ann.)
vs > $1.5B annualised revenue
❌ Financial Condition
Current assets vs current liabilities — a real-time liquidity snapshot. Valid and reliable on quarterly data.
1.69x current ratio
vs ≥ 2.0x
❌ Free Cash Flow
Buffett's most important single metric. A positive FCF quarter means the business generated real cash for owners after maintaining its asset base.
-$652M
vs Positive
Operating Cash Flow
$1.8B
Latest quarter · Buffett's cash reality check
ROIC
0.9%
Based on latest annual operating income
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.
Market Cap / Net Assets
1.4x
Net Assets: $42.7B
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)
3.2%
Weak — poor returns on equity
Return on Assets (ROA)
0.9%
Poor — assets are not generating adequate returns
Share Buybacks (Latest Year)
$958M
Management is returning capital to shareholders via buybacks
Debt Trend YoY
+4.0% YoY
Debt is roughly stable
Leadership Team
Jeffrey Walker Martin
Chairman, President & CEO
Age 63
Pay: $7,763,268
0.749% of net income
Karen Sedgwick
Executive VP & CFO
Age 58
Pay: $1,918,244
0.185% of net income
Justin Christopher Bird
Executive VP & CEO of Sempra Infrastructure
Age 53
Pay: $2,728,686
0.263% of net income
Caroline Winn
Executive Vice President
Age 62
Pay: $2,528,651
0.244% 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: $41.87. Margin of safety: 0%. Gross profit margin: 52.6%. Operating margin: 29.8%. Net margin: 28.4%. 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.
Disclaimer: 360investing is provided for informational and educational purposes only and does not constitute financial, investment, legal, or tax advice. All data is sourced from public third-party providers
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.