DBA Sempra has beaten earnings estimates in 3 of the last 4 quarters and displays strong price momentum with rising on-balance volume, but free cash flow is severely negative at -1,444% of net income, it operates at the nexus of California and Texas regulatory environments, and a put-to-call ratio of 2.58 signals elevated hedging activity.
Thesis pillars
- Severely Negative Free Cash Flow→Stable
- Earnings Beat Streak Execution↓Deteriorating
- Price Momentum Volume Accumulation↑Improving
- +1 more pillar — see the Why tab for full reasoning
DBA Sempra (SRE) Stock Analysis
Catalyst-Driven edge
Utilities · Utilities - Diversified
Sell if holding. At $91.52, A.R:R 0.6:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Thin upside margin: 3.1%; Concentration risk — Geographic: California and Texas regulated utilities.
Sempra's regulated utility subsidiaries—SDG&E and SoCalGas in California, and Oncor (80.25%-owned) in Texas—serve approximately 3.6 million electric and 21.3 million gas customers under CPUC and PUCT regulation. Revenue flows from tariff-based cost-of-service rates, with Sempra... Read more
Sell if holding. At $91.52, A.R:R 0.6:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Thin upside margin: 3.1%; Concentration risk — Geographic: California and Texas regulated utilities. Chart setup: No clear chart pattern; technical signals are mixed. Score 5.4/10, moderate confidence.
Passes 5/8 gates (clean insider activity, no SEC red flags, news events none recent, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum and favorable risk/reward ratio. Suitability: moderate.
About DBA Sempra
About DBA Sempra
Sempra's regulated utility subsidiaries served a combined service area population of approximately 24.9 million in California—through SDG&E's electric and gas operations in a 4,100-square-mile Southern California territory and SoCalGas's natural gas network spanning 24,000 square miles—plus more than 4.1 million Oncor distribution points of delivery in Texas. The CPUC and PUCT set rates for California and Texas operations respectively, with Sempra holding an 80.25% interest in Oncor at December 31, 2025.
Sempra earns revenue through three reportable segments: Sempra California (SDG&E and SoCalGas), Sempra Texas Utilities (Oncor Holdings and Sharyland), and Sempra Infrastructure. SDG&E procures electricity from a mix of owned natural-gas plants (26% of 4,778 MW net capacity), wind and solar PPAs (53% combined), and tolling contracts with rates set by the CPUC; SoCalGas purchases natural gas from Canada, the U.S. Rockies, and southwestern U.S. at published indices and holds 137 Bcf of working storage capacity across four facilities. Oncor, ring-fenced and accounted for as an equity method investment, earns transmission and distribution tariff revenues approved by the PUCT across more than 120 Texas counties, with 127,398 circuit miles of overhead and underground distribution lines. Sempra Infrastructure, in which KKR Pinnacle holds 20% and ADIA holds 10% through SI Partners, includes LNG and energy-network assets in the U.S. and Mexico.
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SoCalGas faces a single-facility storage dependency: the Aliso Canyon facility, with a working capacity of 86 Bcf, represents 63% of SoCalGas's total working natural gas storage and is subject to biennial CPUC administrative staff review. The CPUC has authorized up to 68.6 Bcf of working gas at the site, below the facility's full capacity. Any further CPUC-imposed restriction on Aliso Canyon's injection or withdrawal rights could weigh on SoCalGas's ability to balance seasonal gas demand across its 24,000-square-mile service territory.
See also: Utilities · Utilities - Diversified
From DBA Sempra's most recent 10-K filing, extracted June 11, 2026.
Recent developments
updated 2026-07-27Recent Developments — DBA Sempra
Latest news
- NEWS What bull scenario DBA Sempra (SREA)? (On the Radar) 2026-04-29 - AI Stock Signals - Newser — Newser positive
- NEWS What bull scenario DBA Sempra (SREA)? (On the Radar) 2026-04-29 - Price Momentum - Newser — Newser positive
- NEWS Is It Too Late To Consider Sempra (SRE) After A 27% One Year Rally - Yahoo Finance — Yahoo Finance neutral
- NEWS Analysts Offer Insights on Utilities Companies: Sempra Energy (SRE), Brookfield Renewable (BEPC) and Constellation Energ — The Globe and Mail neutral
- NEWS Sempra (SRE) Reports Next Week: Wall Street Expects Earnings Growth - Yahoo Finance — Yahoo Finance positive
Generated 2026-07-28T14:38:51Z.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Options Flow
Concentration Risks(10-K Item 1A)
- HIGHGeographicCalifornia and Texas regulated utilities10-K Item 1: 'principal businesses are regulated utilities in California and Texas'
- MEDIUMregulatoryCPUC10-K Item 1: 'subject to a biennial administrative staff review by the CPUC'
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.
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Rating Breakdown
1 floor-breaker
Revenue shrinking — -3.9% YoY. Growth thesis broken unless recovery story develops.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. At $91.52, A.R:R 0.6:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Thin upside margin: 3.1%; Concentration risk — Geographic: California and Texas regulated utilities. Chart setup: No clear chart pattern; technical signals are mixed. Prior stop was $87.70. Score 5.4/10, moderate confidence.
Take-profit target: $94.33 (+3.1% upside). Prior stop was $87.70. Stop-loss: $87.70.
Concentration risk — Geographic: California and Texas regulated utilities; Thin upside margin: 3.1%; Weak growth.
DBA Sempra trades at a P/E of 31.6 (forward 16.8). TrendMatrix value score: 5.7/10. Verdict: Sell.
24 analysts cover SRE with a consensus score of 4.0/5. Average price target: $105.
What does DBA Sempra do?Sempra's regulated utility subsidiaries—SDG&E and SoCalGas in California, and Oncor (80.25%-owned) in Texas—serve...
Sempra's regulated utility subsidiaries—SDG&E and SoCalGas in California, and Oncor (80.25%-owned) in Texas—serve approximately 3.6 million electric and 21.3 million gas customers under CPUC and PUCT regulation. Revenue flows from tariff-based cost-of-service rates, with Sempra Infrastructure adding LNG and energy-network assets in the U.S. and Mexico.