DOMINION ENERGY INC (D)
US25746U1097 - Common Stock
We assign a fundamental rating of 3 out of 10 to D. D was compared to 25 industry peers in the Multi-Utilities industry. D has a medium profitability rating, but doesn't score so well on its financial health evaluation. D does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
D had positive earnings in the past year.
D had a positive operating cash flow in the past year.
Of the past 5 years D 4 years were profitable.
D had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
D has a Return On Assets of 2.36%. This is in the lower half of the industry: D underperforms 76.00% of its industry peers.
With a Return On Equity value of 8.54%, D is not doing good in the industry: 64.00% of the companies in the same industry are doing better.
D's Return On Invested Capital of 3.34% is on the low side compared to the rest of the industry. D is outperformed by 64.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for D is in line with the industry average of 3.69%.
The 3 year average ROIC (2.74%) for D is below the current ROIC(3.34%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.36% | ||
| ROE | 8.54% | ||
| ROIC | 3.34% |
ROA(3y)2.09%
ROA(5y)1.42%
ROE(3y)7.64%
ROE(5y)5.06%
ROIC(3y)2.74%
ROIC(5y)3%
1.3 Margins
D has a Profit Margin of 16.12%. This is amongst the best in the industry. D outperforms 88.00% of its industry peers.
D's Profit Margin has declined in the last couple of years.
D has a Operating Margin of 26.99%. This is amongst the best in the industry. D outperforms 96.00% of its industry peers.
In the last couple of years the Operating Margin of D has remained more or less at the same level.
With an excellent Gross Margin value of 99.52%, D belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
In the last couple of years the Gross Margin of D has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.99% | ||
| PM (TTM) | 16.12% | ||
| GM | 99.52% |
OM growth 3Y-4.65%
OM growth 5Y0.62%
PM growth 3YN/A
PM growth 5Y-9.46%
GM growth 3Y0%
GM growth 5Y0.14%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so D is destroying value.
The number of shares outstanding for D has been increased compared to 1 year ago.
Compared to 5 years ago, D has more shares outstanding
D has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.71, we must say that D is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.71, D is in line with its industry, outperforming 44.00% of the companies in the same industry.
D has a Debt/Equity ratio of 1.50. This is a high value indicating a heavy dependency on external financing.
D has a Debt to Equity ratio (1.50) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.5 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.71 |
ROIC/WACC0.51
WACC6.54%
2.3 Liquidity
D has a Current Ratio of 0.74. This is a bad value and indicates that D is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of D (0.74) is worse than 60.00% of its industry peers.
A Quick Ratio of 0.58 indicates that D may have some problems paying its short term obligations.
With a Quick ratio value of 0.58, D is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.74 | ||
| Quick Ratio | 0.58 |
3. Growth
3.1 Past
The earnings per share for D have decreased strongly by -26.27% in the last year.
Measured over the past years, D shows a decrease in Earnings Per Share. The EPS has been decreasing by -8.58% on average per year.
Looking at the last year, D shows a decrease in Revenue. The Revenue has decreased by -0.47% in the last year.
The Revenue has been growing slightly by 5.15% on average over the past years.
EPS 1Y (TTM)-26.27%
EPS 3Y-12.11%
EPS 5Y-8.58%
EPS Q2Q%27.27%
Revenue 1Y (TTM)-0.47%
Revenue growth 3Y0.52%
Revenue growth 5Y5.15%
Sales Q2Q%3.44%
3.2 Future
Based on estimates for the next years, D will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.74% on average per year.
The Revenue is expected to grow by 2.13% on average over the next years.
EPS Next Y9.55%
EPS Next 2Y15.72%
EPS Next 3Y12.39%
EPS Next 5Y9.74%
Revenue Next Year-8.57%
Revenue Next 2Y-1.81%
Revenue Next 3Y0.15%
Revenue Next 5Y2.13%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 23.63, the valuation of D can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of D indicates a rather expensive valuation: D more expensive than 84.00% of the companies listed in the same industry.
D is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.96, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 16.89, which indicates a correct valuation of D.
D's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 23.82. D is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.63 | ||
| Fwd PE | 16.89 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of D indicates a slightly more expensive valuation: D is more expensive than 72.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.82 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates D does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of D may justify a higher PE ratio.
D's earnings are expected to grow with 12.39% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.47
PEG (5Y)N/A
EPS Next 2Y15.72%
EPS Next 3Y12.39%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.75%, D is a good candidate for dividend investing.
D's Dividend Yield is a higher than the industry average which is at 3.95.
D's Dividend Yield is rather good when compared to the S&P500 average which is at 2.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.75% |
5.2 History
The dividend of D decreases each year by -4.13%.
D has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of D decreased in the last 3 years.
Dividend Growth(5Y)-4.13%
Div Incr Years0
Div Non Decr Years2
5.3 Sustainability
95.11% of the earnings are spent on dividend by D. This is not a sustainable payout ratio.
DP95.11%
EPS Next 2Y15.72%
EPS Next 3Y12.39%
DOMINION ENERGY INC
NYSE:D (11/21/2024, 8:21:53 PM)
After market: 58.4448 +0.07 (+0.13%)58.37
+0.57 (+0.99%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap49.03B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.75% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
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Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.63 | ||
| Fwd PE | 16.89 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.47
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.36% | ||
| ROE | 8.54% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 26.99% | ||
| PM (TTM) | 16.12% | ||
| GM | 99.52% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.15
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.5 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.74 | ||
| Quick Ratio | 0.58 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-26.27%
EPS 3Y-12.11%
EPS 5Y
EPS Q2Q%
EPS Next Y9.55%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-0.47%
Revenue growth 3Y0.52%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y