DOMINION ENERGY INC (D) Stock Fundamental Analysis
NYSE:D - New York Stock Exchange, Inc. - US25746U1097 - Common Stock - Currency: USD
Taking everything into account, D scores 4 out of 10 in our fundamental rating. D was compared to 25 industry peers in the Multi-Utilities industry. While D is still in line with the averages on profitability rating, there are concerns on its financial health. D has a correct valuation and a medium growth rate.
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.
D had positive earnings in 4 of the past 5 years.
In the past 5 years D always reported a positive cash flow from operatings.
1.2 Ratios
D's Return On Assets of 2.00% is on the low side compared to the rest of the industry. D is outperformed by 80.00% of its industry peers.
Looking at the Return On Equity, with a value of 7.51%, D is doing worse than 76.00% of the companies in the same industry.
With a Return On Invested Capital value of 3.32%, D is not doing good in the industry: 72.00% of the companies in the same industry are doing better.
D had an Average Return On Invested Capital over the past 3 years of 3.19%. This is in line with the industry average of 3.76%.
The 3 year average ROIC (3.19%) for D is below the current ROIC(3.32%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2% | ||
| ROE | 7.51% | ||
| ROIC | 3.32% |
ROA(3y)1.69%
ROA(5y)1.58%
ROE(3y)6.47%
ROE(5y)5.83%
ROIC(3y)3.19%
ROIC(5y)3.18%
1.3 Margins
D has a better Profit Margin (14.16%) than 76.00% of its industry peers.
D's Profit Margin has improved in the last couple of years.
D's Operating Margin of 26.60% is amongst the best of the industry. D outperforms 92.00% of its industry peers.
In the last couple of years the Operating Margin of D has grown nicely.
D has a Gross Margin of 99.49%. This is amongst the best in the industry. D outperforms 100.00% of its industry peers.
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 | 26.6% | ||
| PM (TTM) | 14.16% | ||
| GM | 99.49% |
OM growth 3Y5.25%
OM growth 5Y1.54%
PM growth 3Y-21.43%
PM growth 5Y8.73%
GM growth 3Y0.03%
GM growth 5Y0.02%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so D is destroying value.
Compared to 1 year ago, D has more shares outstanding
Compared to 5 years ago, D has more shares outstanding
Compared to 1 year ago, D has a worse debt to assets ratio.
2.2 Solvency
D has an Altman-Z score of 0.62. This is a bad value and indicates that D is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of D (0.62) is worse than 60.00% of its industry peers.
A Debt/Equity ratio of 1.47 is on the high side and indicates that D has dependencies on debt financing.
The Debt to Equity ratio of D (1.47) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.47 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.62 |
ROIC/WACC0.52
WACC6.38%
2.3 Liquidity
A Current Ratio of 0.71 indicates that D may have some problems paying its short term obligations.
D has a Current ratio (0.71) which is comparable to the rest of the industry.
D has a Quick Ratio of 0.71. This is a bad value and indicates that D is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.52, D perfoms like the industry average, outperforming 48.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.71 | ||
| Quick Ratio | 0.52 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 6.98% over the past year.
D shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -8.18% yearly.
Looking at the last year, D shows a small growth in Revenue. The Revenue has grown by 0.46% in the last year.
Measured over the past years, D shows a small growth in Revenue. The Revenue has been growing by 0.08% on average per year.
EPS 1Y (TTM)6.98%
EPS 3Y-10.58%
EPS 5Y-8.18%
EPS Q2Q%100%
Revenue 1Y (TTM)0.46%
Revenue growth 3Y8.19%
Revenue growth 5Y0.08%
Sales Q2Q%-3.79%
3.2 Future
The Earnings Per Share is expected to grow by 9.47% on average over the next years. This is quite good.
Based on estimates for the next years, D will show a small growth in Revenue. The Revenue will grow by 4.89% on average per year.
EPS Next Y25.44%
EPS Next 2Y15.22%
EPS Next 3Y12.25%
EPS Next 5Y9.47%
Revenue Next Year5.07%
Revenue Next 2Y5.01%
Revenue Next 3Y5.14%
Revenue Next 5Y4.89%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 19.26, D is valued on the expensive side.
D's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 28.29. D is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 15.36, which indicates a correct valuation of D.
64.00% of the companies in the same industry are more expensive than D, based on the Price/Forward Earnings ratio.
D's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.08.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.26 | ||
| Fwd PE | 15.36 |
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 68.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.99 |
4.3 Compensation for Growth
D's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
D has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as D's earnings are expected to grow with 12.24% in the coming years.
PEG (NY)0.76
PEG (5Y)N/A
EPS Next 2Y15.22%
EPS Next 3Y12.25%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.14%, D is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.72, D pays a better dividend. On top of this D pays more dividend than 84.00% of the companies listed in the same industry.
D's Dividend Yield is rather good when compared to the S&P500 average which is at 2.52.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.14% |
5.2 History
The dividend of D decreases each year by -7.57%.
D has paid a dividend for at least 10 years, which is a reliable track record.
D has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-7.57%
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
D pays out 109.38% of its income as dividend. This is not a sustainable payout ratio.
DP109.38%
EPS Next 2Y15.22%
EPS Next 3Y12.25%
53.17
+0.11 (+0.21%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners78.34%
Inst Owner Change0.01%
Ins Owners0.1%
Ins Owner Change1.22%
Market Cap45.31B
Analysts68.8
Price Target60.9 (14.54%)
Short Float %2.48%
Short Ratio4.4
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.14% |
Yearly Dividend2.65
Dividend Growth(5Y)-7.57%
DP109.38%
Div Incr Years0
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.72%
Min EPS beat(2)1.78%
Max EPS beat(2)3.67%
EPS beat(4)3
Avg EPS beat(4)4.19%
Min EPS beat(4)-1.51%
Max EPS beat(4)12.82%
EPS beat(8)4
Avg EPS beat(8)0.11%
EPS beat(12)5
Avg EPS beat(12)-0.01%
EPS beat(16)6
Avg EPS beat(16)-0.24%
Revenue beat(2)0
Avg Revenue beat(2)-11.48%
Min Revenue beat(2)-15.42%
Max Revenue beat(2)-7.53%
Revenue beat(4)0
Avg Revenue beat(4)-12.51%
Min Revenue beat(4)-18.71%
Max Revenue beat(4)-7.53%
Revenue beat(8)1
Avg Revenue beat(8)-8.38%
Revenue beat(12)1
Avg Revenue beat(12)-11.03%
Revenue beat(16)1
Avg Revenue beat(16)-15.78%
PT rev (1m)0.99%
PT rev (3m)-0.35%
EPS NQ rev (1m)-0.43%
EPS NQ rev (3m)-6.24%
EPS NY rev (1m)0.13%
EPS NY rev (3m)0.39%
Revenue NQ rev (1m)0.37%
Revenue NQ rev (3m)-0.75%
Revenue NY rev (1m)-0.41%
Revenue NY rev (3m)-1.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.26 | ||
| Fwd PE | 15.36 | ||
| P/S | 3.13 | ||
| P/FCF | N/A | ||
| P/OCF | 9.03 | ||
| P/B | 1.66 | ||
| P/tB | 2.06 | ||
| EV/EBITDA | 12.99 |
EPS(TTM)2.76
EY5.19%
EPS(NY)3.46
Fwd EY6.51%
FCF(TTM)-8.43
FCFYN/A
OCF(TTM)5.89
OCFY11.07%
SpS16.97
BVpS31.98
TBVpS25.78
PEG (NY)0.76
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2% | ||
| ROE | 7.51% | ||
| ROCE | 4.13% | ||
| ROIC | 3.32% | ||
| ROICexc | 3.33% | ||
| ROICexgc | 3.52% | ||
| OM | 26.6% | ||
| PM (TTM) | 14.16% | ||
| GM | 99.49% | ||
| FCFM | N/A |
ROA(3y)1.69%
ROA(5y)1.58%
ROE(3y)6.47%
ROE(5y)5.83%
ROIC(3y)3.19%
ROIC(5y)3.18%
ROICexc(3y)3.2%
ROICexc(5y)3.19%
ROICexgc(3y)3.39%
ROICexgc(5y)3.43%
ROCE(3y)4.02%
ROCE(5y)3.97%
ROICexcg growth 3Y11.6%
ROICexcg growth 5Y0.81%
ROICexc growth 3Y12.92%
ROICexc growth 5Y1.47%
OM growth 3Y5.25%
OM growth 5Y1.54%
PM growth 3Y-21.43%
PM growth 5Y8.73%
GM growth 3Y0.03%
GM growth 5Y0.02%
F-Score6
Asset Turnover0.14
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.47 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 6.17 | ||
| Cap/Depr | 462.22% | ||
| Cap/Sales | 84.36% | ||
| Interest Coverage | 2.02 | ||
| Cash Conversion | 77.38% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.71 | ||
| Quick Ratio | 0.52 | ||
| Altman-Z | 0.62 |
F-Score6
WACC6.38%
ROIC/WACC0.52
Cap/Depr(3y)344.17%
Cap/Depr(5y)292.02%
Cap/Sales(3y)69.92%
Cap/Sales(5y)60.89%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)6.98%
EPS 3Y-10.58%
EPS 5Y-8.18%
EPS Q2Q%100%
EPS Next Y25.44%
EPS Next 2Y15.22%
EPS Next 3Y12.25%
EPS Next 5Y9.47%
Revenue 1Y (TTM)0.46%
Revenue growth 3Y8.19%
Revenue growth 5Y0.08%
Sales Q2Q%-3.79%
Revenue Next Year5.07%
Revenue Next 2Y5.01%
Revenue Next 3Y5.14%
Revenue Next 5Y4.89%
EBIT growth 1Y4.51%
EBIT growth 3Y13.87%
EBIT growth 5Y1.62%
EBIT Next Year75.77%
EBIT Next 3Y27.61%
EBIT Next 5Y20.08%
FCF growth 1Y-97.31%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-23.65%
OCF growth 3Y7.52%
OCF growth 5Y-0.73%