SRE Sempra
too hard · 32
Owner-earnings value$52.74
Price$76.89
Margin of safety
-31.4%
Quality gate · 32/100
⚠ sub-hurdle returns (median roic 3% < 9%) · over-levered (net debt/EBITDA 6.2x > 4x)
Median ROIC3.0%
Gross margin49.8%
Net debt / EBITDA6.2x
FCF conversion-159%
Share count / yr+1.3%
Profitable years4/4
Moat & management
Owner-earnings inputs
| Owner earnings (TTM) | 2.28B |
| Owner-earnings yield | 4.5% |
| Free-cash-flow yield | -10.4% |
| Growth used (normalized) | 0.0% |
| Market-implied growth (reverse DCF) | 9.0% |
| Terminal growth | 3.0% |
| Discount rate (hurdle) | 9.0% |
Projected owner earnings
| Yr | Owner earnings | Growth | PV |
|---|---|---|---|
| 1 | 2.28B | 0.0% | 2.09B |
| 2 | 2.29B | 0.3% | 1.93B |
| 3 | 2.30B | 0.7% | 1.78B |
| 4 | 2.33B | 1.0% | 1.65B |
| 5 | 2.36B | 1.3% | 1.53B |
| 6 | 2.40B | 1.7% | 1.43B |
| 7 | 2.45B | 2.0% | 1.34B |
| 8 | 2.50B | 2.3% | 1.26B |
| 9 | 2.57B | 2.7% | 1.18B |
| 10 | 2.65B | 3.0% | 1.12B |
⚠ maintenance capex ≈ min(capex, D&A), capped at FCF · Price pays for ~9%/yr owner-earnings growth over 10y (reverse DCF); model credits 0%.