Investment Thesis
.
Competitive Moat
is durable over the next 5-10 years, although threats from renewable energy providers and potential regulatory changes pose risks to its traditional utility model.
Growth Engine
Future revenue growth for Sempra is projected to come from its strategic investments in renewable energy and infrastructure upgrades, aligning with national objectives to reduce carbon emissions. The total addressable market for energy services is expanding as demand for cleaner energy sources increases. While organic growth will be driven by enhancements in existing services, potential acquisitions in complementary sectors may also provide additional revenue streams. Currently, Sempra is gaining market share in the renewable segment, as evidenced by its recent projects and partnerships aimed at diversifying its energy portfolio.