SEMPRA

Where It Passes

Where It Falls Short

• Valuation0% pass✓ 3✗ 25▾

  No clean pass — all 13 investors flag at least one valuation criterion

  Net income / market capitalization+5.90%; #1438/6340 (top 22.7%)

  ✓AsnessTop 30% of eligible cross-section✗OshaughnessyTop 10% of eligible cross-section

  Price / 3-yr avg EPS20.0x

  ✗Graham<= 15x

  Price-to-Book Ratio1.6x

  ✗Graham<= 1.5x

  P/E x P/B32.80

  ✗Graham<= 22.5

  Basic earnings-growth PEG (dividends excluded)

  ✗Lynch< 1.0 (ideally < 0.5)

  EBIT / Enterprise Value3.9%

  ✗Greenblatt> 10%

  Earnings Yield + ROC AssessmentEY=3.9%, ROC=5.2%

  ✗GreenblattBoth EY > 10% and ROC > 25%

  Price / EPS28.9x

  ✗Dreman< 12x✗Templeton< 12x (fixed ceiling; proxy for the market's cheapest 40%)

  Price / (CFO / Shares)11.4x

  ✗Dreman< 8x

  Price / Book Value per Share1.6x

  ✗Dreman< 1.2x✗Templeton< 1.5x✗SchlossP/B <= 0.80x (app cutoff)

  Valuation ReasonablenessP/E=28.9x, OE Yield=-12.0%

  ✗MungerP/E < 25 or Owner Earnings Yield > 5%

  P/E or FCF YieldP/E=28.9x, FCF Yield=-11.6%

  ✗PabraiP/E < 15 or FCF Yield > 10%

  P/B or P/E vs. Historical AverageP/E=28.9x, P/B=1.6x

  ✓MarksP/E < 15 or P/B < 2.0

  Discount to Intrinsic Value-33.0% (IV=$59.80 vs Price=$79.54)

  ✗Marks>= 20% below intrinsic value

  Price / FCF per ShareN/A (negative FCF)

  ✗Ackman<= 25

  Price vs. Trailing Low111% of trailing low ($71.36)

  ✓Templeton<= 120% of trailing low (certified split-adjusted live window)

  Positive book equity / market capitalization+0.6406; #2386/6449 (top 37.0%)

  ✗AsnessTop 30% of eligible cross-section

  Price / Diluted EPS28.9x

  ✗NeffP/E <= 15x (app proxy for a P/E 40%-60% below the market)

  (EPS CAGR % + Dividend Yield %) / P/E

  ✗Neff> 0.7 (Neff's published traditional edge)

  Price / Tangible Book Value per Share1.64x

  ✗SchlossP/TBV <= 1.00x (app cutoff)

  Book Value per Share Change

  ✗SchlossLatest BVPS >= earliest BVPS over >= 3 years (app rule)

  Revenue / market capitalization+0.2410; #3590/5247 (top 68.4%)

  ✗OshaughnessyTop 10% of eligible cross-section

  (Operating cash flow - capex) / market capitalization-9.36%; #3206/4519 (top 70.9%)

  ✗OshaughnessyTop 10% of eligible cross-section

  Trailing six-month price return through the evaluation date-10.76%; #3483/6202 (top 56.2%)

  ✗OshaughnessyTop 10% of eligible cross-section
• Valuation models0% pass✗ 6▾

  SRE overvalued: all 6 models price fair value below $79.54 (median $51.02)

  Graham fair value$54.73

  ✗Graham-45.3% margin vs $79.54

  Buffett fair value$33.26

  ✗Buffett-139.1% margin vs $79.54

  Greenblatt fair value$47.30

  ✗Greenblatt-68.2% margin vs $79.54

  Dreman fair value$59.80

  ✗Dreman-33.0% margin vs $79.54

  Pabrai fair value$0.93

  ✗Pabrai-8452.7% margin vs $79.54

  Akre fair value$70.70

  ✗Akre-12.5% margin vs $79.54
• Profitability6% pass✓ 8✗ 27▾

  15 of 16 flag SRE's profitability — Graham, Buffett, Lynch +12 more

  Net income / market capitalization+5.90%; #1438/6340 (top 22.7%)

  ✓AsnessTop 30% of eligible cross-section✗OshaughnessyTop 10% of eligible cross-section

  Positive EPS (10 years)18/25 years positive

  ✗GrahamPositive EPS every year for 10 years

  EPS Growth (3-yr avg, 10-yr window)

  ✗Graham>= 33% growth

  Net Income Positive (10+ years)25/25 years positive

  ✓BuffettPositive every year for 10+ years

  ROE (up to 5-year arithmetic mean)7.7%

  ✗Buffett> 15% arithmetic mean (app rule)

  Operating Margin (10-yr trend)

  ✗BuffettStable or rising over 10 years

  Free Cash Flow Proxy$-4.4B

  ✗BuffettPositive and growing

  Earnings Variance (10-yr CoV)

  ✗BuffettCoV < 0.3

  Retained Earnings Effectiveness

  ✗Buffett$1 retained -> > $1 market value created

  Basic earnings-growth PEG (dividends excluded)

  ✗Lynch< 1.0 (ideally < 0.5)

  3-5 Year EPS CAGR

  ✗Lynch15-30% (Fast Grower); > 0% to pass

  ROE9.2%

  ✗Lynch> 15%

  EBIT / Enterprise Value3.9%

  ✗Greenblatt> 10%

  Earnings Yield + ROC AssessmentEY=3.9%, ROC=5.2%

  ✗GreenblattBoth EY > 10% and ROC > 25%

  Net Income / Total Assets1.66%

  ✓PiotroskiROA > 0

  ROA Change YoY2.98% -> 1.66% (delta: -1.32%)

  ✗PiotroskiCurrent ROA > Prior ROA

  (CFO / Total Assets) vs ROACFO/Assets=4.12%, ROA=1.66%

  ✓PiotroskiCFO/Assets > ROA

  Gross Margin Change YoY

  ✗PiotroskiImproved YoY

  Pre-Tax Income / Revenue20.0%

  ✓Dreman>= 8%

  Net Income / Shareholders' Equity9.2%

  ✗Dreman> 12%

  Margin of SafetyP/E=28.9x, P/B=1.6x

  ✗PabraiP/B < 1.5 or P/E < 15

  Return on Equity8.6% (3-yr avg)

  ✗AkreROE > 20% (3-year avg)

  Discount to Intrinsic Value-33.0% (IV=$59.80 vs Price=$79.54)

  ✗Marks>= 20% below intrinsic value

  Positive Net Income Frequency25/25 years positive

  ✓MarksPositive net income in >= 7 of last 10 years

  Operating Income / Revenue

  ✗Ackman>= 15%

  Net Income / Shareholders Equity9.2%

  ✗Ackman>= 15%

  5-Year EPS CAGR

  ✗Templeton> 0% (5-year EPS CAGR)

  Operating Margin Trend

  ✗TempletonNon-negative operating-margin trend over 3 years

  Revenue growth vs. gross and operating margin trend

  ✗SleepRevenue rising; gross margin flat or falling; operating margin holding

  Gross profit / total assets

  ✗AsnessTop 30% of eligible cross-section

  Net income / positive book equity+9.21%; #1929/5226 (top 36.9%)

  ✗AsnessTop 30% of eligible cross-section

  Negative 5-year standard deviation of ROA-0.0070; #617/5884 (top 10.5%)

  ✓AsnessTop 30% of eligible cross-section

  3-5 Year Diluted EPS CAGR

  ✗Neff7%-20% annualized

  Positive Diluted-EPS Years10/10 years positive

  ✓Schloss>= 70% positive over 5-10 observed years (app rule)
• Growth13% pass✓ 2✗ 11▾

  7 of 8 flag SRE's growth — Graham, Lynch, Dreman +4 more

  EPS Growth (3-yr avg, 10-yr window)

  ✗Graham>= 33% growth

  Basic earnings-growth PEG (dividends excluded)

  ✗Lynch< 1.0 (ideally < 0.5)

  3-5 Year EPS CAGR

  ✗Lynch15-30% (Fast Grower); > 0% to pass

  Inventory Growth vs Revenue GrowthInv: -6.0% vs Rev: -2.8%

  ✓LynchInventory growth < Revenue growth

  EPS Growth Direction

  ✗DremanPositive over recent years

  EPS CAGR

  ✗Dreman> 5% annualized

  Positive Net Income Frequency25/25 years positive

  ✓MarksPositive net income in >= 7 of last 10 years

  3yr Median Revenue Growth3.9%

  ✗Ackman>= 5%

  Positive EPS Growth Frequency

  ✗AckmanPositive EPS growth in >= 3 of last 5 years

  5-Year EPS CAGR

  ✗Templeton> 0% (5-year EPS CAGR)

  Revenue growth vs. gross and operating margin trend

  ✗SleepRevenue rising; gross margin flat or falling; operating margin holding

  5-year Revenue CAGR3.8%

  ✗SleepCAGR > 7%

  3-5 Year Diluted EPS CAGR

  ✗Neff7%-20% annualized
• Efficiency13% pass✓ 2✗ 9▾

  7 of 8 flag SRE's efficiency — Graham, Buffett, Greenblatt +4 more

  Current Ratio1.61

  ✗Graham>= 2.0

  ROIC (3-5 yr avg)

  ✗Buffett> 10%

  ROIC - WACC

  ✗BuffettPositive (WACC = 10%)

  EBIT / (NWC + Net Fixed Assets)5.2%

  ✗Greenblatt> 25%

  Current Ratio Change YoY0.55 -> 1.59

  ✓PiotroskiIncreased YoY

  Revenue / Total Assets Change YoY0.14x -> 0.12x

  ✗PiotroskiImproved YoY

  Current Assets / Current Liabilities1.61

  ✓Dreman> 1.5

  Return on Invested Capital

  ✗Munger> 15%

  ROIC (high and growing)FY2023: ROIC=unavailable; FY2024: ROIC=unavailable; FY2025: ROIC=unavailable

  ✗AkreLatest 3 consecutive FYs: ROIC > 15% in each

  Reinvestment Rate x ROIC

  ✗AkreReinvestment Rate * ROIC > 10%

  ROIC (5-year)

  ✗SleepROIC > 12% in a majority of years
• Verdicts13% pass✓ 2✗ 13▾

  Split decision: 12 FAIL · 2 PASS · 2 NEUTRAL

  Overall verdict

  ✗GrahamFAIL (2/9)✗BuffettFAIL (1/9)✗LynchFAIL (1/7)✗GreenblattRank #1619✓PiotroskiPASS (F-Score 5)✗DremanFAIL (3/11)✗MungerFAIL (1/4)✗PabraiFAIL (0/3)✗AkreFAIL (0/6)✗MarksFAIL (2/5)✗AckmanFAIL (3/9)✓TempletonPASS (4/8)✗SleepFAIL (2/6)•AsnessNEUTRAL (Not ranked)✗NeffFAIL (2/6)•SchlossNEUTRAL (4/7)✗OshaughnessyFAIL (Rank #768/963 (Top 79.8%))
• Cash Flow20% pass✓ 3✗ 9▾

  8 of 10 flag SRE's cash flow — Buffett, Lynch, Dreman +5 more

  Free Cash Flow Proxy$-4.4B

  ✗BuffettPositive and growing

  FCF Positive and Growing$-4.9B

  ✗LynchPositive and growing

  Operating Cash Flow$4.6B

  ✓PiotroskiCFO > 0

  (CFO / Total Assets) vs ROACFO/Assets=4.12%, ROA=1.66%

  ✓PiotroskiCFO/Assets > ROA

  Price / (CFO / Shares)11.4x

  ✗Dreman< 8x

  P/E or FCF YieldP/E=28.9x, FCF Yield=-11.6%

  ✗PabraiP/E < 15 or FCF Yield > 10%

  FCF Positive1/18 years FCF positive

  ✗MarksPositive FCF in majority of recent years

  (OCF - CapEx) / Market Cap-9.4%

  ✗Ackman>= 4%

  Price / FCF per ShareN/A (negative FCF)

  ✗Ackman<= 25

  Positive Operating Cash Flow frequency21/21 years positive

  ✓SleepPositive OCF in >= 70% of available years

  Operating Cash Flow - Capital Expenditures$-4.9B

  ✗Neff> $0 (app proxy for a strong fundamental case)

  (Operating cash flow - capex) / market capitalization-9.36%; #3206/4519 (top 70.9%)

  ✗OshaughnessyTop 10% of eligible cross-section
• Debt & Leverage33% pass✓ 6✗ 9▾

  8 of 12 flag SRE's debt & leverage — Graham, Buffett, Lynch +5 more

  Total Debt / Shareholders' Equity0.99

  ✗Dreman< 0.8✓Templeton< 1.0 (fixed cap; proxy for below-sector-median leverage)✓SchlossD/E < 1.00x

  LT Debt vs Net Current Assets

  ✗GrahamLT Debt <= Net Current Assets

  Debt/Equity & Interest CoverageD/E: 0.99, IC: 2.7x

  ✗BuffettD/E < 0.5 AND Interest Coverage > 5x

  Total Debt / Equity0.99

  ✗Lynch< 0.33

  Cash - Long-term Debt

  ✗LynchPositive preferred

  LT Debt / Total Assets Change0.00% -> 0.00%

  ✓PiotroskiDecreased YoY

  Current Assets / Current Liabilities1.61

  ✓Dreman> 1.5✓SchlossCurrent ratio >= 1.50x (app cutoff)

  Debt Levels0.99

  ✗MungerDebt/Equity < 0.5✗AkreDebt/Equity < 0.3

  Interest Coverage & Debt/EBITDAIC=2.7x, D/EBITDA=5.1x

  ✗MarksInterest Coverage > 3x; Debt/EBITDA < 4x

  Total Debt / Shareholders Equity0.99

  ✓Ackman<= 1.0

  Negative debt-to-equity (higher means less debt)-0.9913; #3219/4210 (top 76.5%)

  ✗AsnessTop 30% of eligible cross-section