Definitive Analysis
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Definitive Analysis

Financial Statements

Mode

Ticker

Industry

Sector

Sempra (0L5A.L)

Company Dividend Discount ModelIndustry: General UtilitiesSector: Utilities

Valuation Snapshot

Stable Growth$90.89 - $314.22$149.70
Multi-Stage$85.65 - $93.72$89.61
Blended Fair Value$119.66
Current Price$89.28
Upside34.03%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS5.72%9.63%2.312.282.272.202.051.751.491.161.060.97
YoY Growth--1.08%0.61%3.08%7.44%17.27%17.49%27.95%10.06%9.24%5.02%
Dividend Yield--3.29%3.18%3.02%2.60%3.11%2.92%2.36%2.10%2.41%2.21%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)2,161.00
(-) Cash Dividends Paid (M)1,573.00
(=) Cash Retained (M)588.00
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)432.20270.13162.08
Cash Retained (M)588.00588.00588.00
(-) Cash Required (M)-432.20-270.13-162.08
(=) Excess Retained (M)155.80317.88425.93
(/) Shares Outstanding (M)650.15650.15650.15
(=) Excess Retained per Share0.240.490.66
LTM Dividend per Share2.422.422.42
(+) Excess Retained per Share0.240.490.66
(=) Adjusted Dividend2.662.913.07
WACC / Discount Rate6.76%6.76%6.76%
Growth Rate3.72%4.72%5.72%
Fair Value$90.89$149.70$314.22
Upside / Downside1.80%67.68%251.94%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)2,161.002,263.022,369.862,481.742,598.902,721.592,803.24
Payout Ratio72.79%76.23%79.67%83.12%86.56%90.00%92.50%
Projected Dividends (M)1,573.001,725.151,888.172,062.722,249.562,449.432,593.00

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate6.76%6.76%6.76%
Growth Rate3.72%4.72%5.72%
Year 1 PV (M)1,600.551,615.991,631.42
Year 2 PV (M)1,625.271,656.761,688.55
Year 3 PV (M)1,647.291,695.401,744.43
Year 4 PV (M)1,666.741,731.961,799.06
Year 5 PV (M)1,683.761,766.511,852.48
PV of Terminal Value (M)47,462.9849,795.5352,218.91
Equity Value (M)55,686.5958,262.1460,934.85
Shares Outstanding (M)650.15650.15650.15
Fair Value$85.65$89.61$93.72
Upside / Downside-4.06%0.37%4.98%

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