A stock screener allows users to filter companies based on certain requirements. You might want to rank stocks based on valuation, earnings and revenue growth, dividend yield, profitability, or even market cap. However, Ziggma’s intuitive stock screener tool makes it easier for investors to find quality stocks trading at a discount.
Ziggma has a stock screener that leverages back-tested data to rank companies based on multiple financial metrics. Ziggma will also provide you industry-specific financial data for real estate companies, banks, and insurance firms. Let’s take a look at one energy company that has a Ziggma score of 100 and the reasons behind the same.
Sempra Energy – An overview
Ziggma has assigned Sempra Energy with a score of 100. Sempra Energy operates as an energy services holding company. It has five business segments that include:
- San Diego Gas & Electric Company: This segment generates, transmits, and distributes electricity as well as supplies natural gas. It offers electric services to a population of 3.7 million and natural gas services to a population of 3.4 million covering 4,100 square miles.
- Southern California Gas Company: It owns and operates a natural gas distribution, transmission, and storage system that supplies natural gas to 22 million people covering an area of 24,000 square miles.
- Sempra Texas Utilities: This business is involved in the regulated transmission and distribution of electricity and serves 3.7 million homes and businesses. It also operates 139,000 miles of transmission and distribution lines.
- Sempra Mexico: This segment develops, owns, operates, and holds interests in natural gas, electric, LNG (liquified natural gas), LPG (liquified petroleum gas), ethane, and liquid fuels infrastructure. It also operates natural-gas-fired and wind and solar power generation facilities. Its facilities consist of 1,850 miles of natural gas pipelines, 15 compressor stations, 139 miles of ethane pipelines, and 2,729 miles of natural gas distribution pipelines.
- Sempra LNG segment: It develops and builds natural gas liquefaction export facilities and holds an interest in a facility for the export of LNG.
Recent quarterly results
In the first quarter of 2021, Sempra reported earnings of $874 million or $2.87 per share. In the year-ago quarter, its earnings stood at $760 million or $2.43 per share. On an adjusted basis, Sempra’s Q1 earnings rose to $900 million or $2.95 per share, up from $741 million or $2.47 per share in the prior year period.
In its press release, Sempra Energy CEO, Jeffrey Martin said, “Over the last several years, we have narrowed our market focus, expanded investment in our utilities and worked hard to improve safety and operating results. Taken together, these activities also support our financial commitments and, in part, are reflected in the strength of our first quarter results. The company is well positioned to deliver another strong year of financial performance.”
The company’s Texas-based Oncor Electric Delivery Company continues to play a key role in meeting the rising energy requirement of the state’s economy through the execution of the 2021-2025 capital plan. In Q1 of 2021, Oncor experienced strong organic growth and connected 19,000 new premises, compared to 18,000 in Q1 of 2020.
In April this year, Sempra Energy also disclosed it entered into a definitive agreement to sell a non-controlling 20% interest in Sempra Infrastructure to KKR for $3.37 billion in cash. The deal values Sempra Infrastructure at $25.2 billion which includes the asset-related debt of $8.37 billion. The proceeds of the transaction will be used to fund the growth in the company’s U.S. utilities and strengthen its balance sheet.
Key financial metrics
Valued at a market cap of $41.4 billion, Sempra Energy has increased its earnings from $1.05 billion in 2018 to $3.93 billion in 2020. Analysts tracking the stock expect its earnings to grow from $8.03 per share in fiscal 2021 to $8.52 per share in fiscal 2023.
According to Ziggma, the industry in which Sempra Energy operates shows a projected growth rate of over 5.5% which means the company should continue to expand top-line and earnings going forward.
Ziggma also explains that Sempra’s valuation based on next year’s profit is significantly lower than its long-term PE ratio. Sempra stock is trading at a forward price to 2021 earnings ratio of 16.85x and a price to 2022 earnings multiple of 16.05x. Comparatively, his multiple was higher at 26.4x in 2020 and 30.3x in 2019.
Sempra’s return on assets of 16.88% reflects its high level of profitability which is one of the highest in the industry. In a nutshell, Ziggma has scored Sempra highly in terms of growth (82), profitability (99), and valuation (99).
Sempra is also a solid dividend growth company and pays investors an annual dividend of $4.40 per share indicating a forward yield of 3.24%. Comparatively, companies in the S&P 500 have an average yield of just 1%.
Further, Sempra has increased its annual dividends consistently over the years. For example, in 2010, its dividends per share on an annual basis stood at just $1.56. In the last 10 years, Sempra Energy stock has gained 154.5%.
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