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Sempra Energy (Sempra Energy) Operating Margin % : 19.48% (As of Dec. 2023)


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What is Sempra Energy Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Sempra Energy's Operating Income for the three months ended in Dec. 2023 was $680.00 Mil. Sempra Energy's Revenue for the three months ended in Dec. 2023 was $3,491.00 Mil. Therefore, Sempra Energy's Operating Margin % for the quarter that ended in Dec. 2023 was 19.48%.

Warning Sign:

Sempra operating margin has been in a 5-year decline. The average rate of decline per year is -1.8%.

The historical rank and industry rank for Sempra Energy's Operating Margin % or its related term are showing as below:

SREpA.PFD' s Operating Margin % Range Over the Past 10 Years
Min: 15.86   Med: 20.84   Max: 24.91
Current: 22.22


SREpA.PFD's Operating Margin % is ranked better than
75% of 512 companies
in the Utilities - Regulated industry
Industry Median: 12.3 vs SREpA.PFD: 22.22

Sempra Energy's 5-Year Average Operating Margin % Growth Rate was -1.80% per year.

Sempra Energy's Operating Income for the three months ended in Dec. 2023 was $680.00 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was $3,715.00 Mil.


Sempra Energy Operating Margin % Historical Data

The historical data trend for Sempra Energy's Operating Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Sempra Energy Operating Margin % Chart

Sempra Energy Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 24.26 24.91 22.14 17.71 22.22

Sempra Energy Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Operating Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 10.51 24.85 23.75 18.39 19.48

Competitive Comparison of Sempra Energy's Operating Margin %

For the Utilities - Diversified subindustry, Sempra Energy's Operating Margin %, along with its competitors' market caps and Operating Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Sempra Energy's Operating Margin % Distribution in the Utilities - Regulated Industry

For the Utilities - Regulated industry and Utilities sector, Sempra Energy's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Sempra Energy's Operating Margin % falls into.



Sempra Energy Operating Margin % Calculation

Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.

Sempra Energy's Operating Margin % for the fiscal year that ended in Dec. 2023 is calculated as

Operating Margin %=Operating Income (A: Dec. 2023 ) / Revenue (A: Dec. 2023 )
=3715 / 16720
=22.22 %

Sempra Energy's Operating Margin % for the quarter that ended in Dec. 2023 is calculated as

Operating Margin %=Operating Income (Q: Dec. 2023 ) / Revenue (Q: Dec. 2023 )
=680 / 3491
=19.48 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Sempra Energy  (NYSE:SREpA.PFD) Operating Margin % Explanation

Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.


Be Aware

Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia’s Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


Sempra Energy Operating Margin % Related Terms

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Sempra Energy (Sempra Energy) Business Description

Traded in Other Exchanges
Address
488 8th Avenue, San Diego, CA, USA, 92101
Sempra Energy serves one of the largest utility customer bases in the United States. It distributes natural gas and electricity in Southern California and owns 80% of Oncor, a transmission and distribution business in Texas. SoCalGas and San Diego Gas & Electric distribute gas to more than 20 million customers, while Oncor serves more than 10 million Texas customers. Sempra Infrastructure partners, of which Sempra holds a controlling ownership, owns and operates liquefied natural gas facilities in North America and infrastructure in Mexico.