Key Statistics
EV/EBIT = 31x
ROE = 10.4%
Debt/Equity = 112%
FCF Yield = -4.3%
Dividend Yield = 3.16%
Market Cap = $49.63 billion
The Company
Sempra is a public utility holding company based in California that owns various energy infrastructure investments across North America. They develop and operate energy infrastructure, providing electric and gas services. As a regulated utility, Sempra benefits from a predictable stream of business. Texas, in particular, is a growing economy; with that, it should benefit from growth in utility demand.
Sempra was formed in 1998 from the merger of Pacific Enterprises and Enova Corporation.
Pacific Enterprises, based in Los Angeles, was the parent company of SoCalGas, the largest natural gas utility in the U.S., serving Southern California since 1867.
Enova Corporation was the parent company of SDG&E, which has supplied electricity and gas to San Diego and southern Orange counties since 1881.
The merger was driven by the deregulation of the energy industry in the 1990s, which aimed to create more competition and lower prices. This consolidation allowed the companies to combine resources and reduce costs.