DOMINION ENERGY INC (D) Stock Fundamental Analysis
NYSE:D - New York Stock Exchange, Inc. - US25746U1097 - Common Stock - Currency: USD
D gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 25 industry peers in the Multi-Utilities industry. There are concerns on the financial health of D while its profitability can be described as average. D has a expensive valuation and it also scores bad on growth.
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.
In multiple years D reported negative net income over the last 5 years.
D had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.36%, D is doing worse than 72.00% of the companies in the same industry.
The Return On Equity of D (8.54%) is worse than 60.00% of its industry peers.
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 68.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for D is in line with the industry average of 3.68%.
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.
In the last couple of years the Profit Margin of D has declined.
Looking at the Operating Margin, with a value of 26.99%, D belongs to the top of the industry, outperforming 96.00% of the companies in the same industry.
In the last couple of years the Operating Margin of D has remained more or less at the same level.
D has a Gross Margin of 99.52%. 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 | 26.99% | ||
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), D is destroying value.
There is no outstanding debt for D. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
D has an Altman-Z score of 0.69. 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 (0.69) is worse than 60.00% of its industry peers.
A Debt/Equity ratio of 1.50 is on the high side and indicates that D has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.50, D is in line with its industry, outperforming 48.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.5 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.69 |
ROIC/WACC0.51
WACC6.53%
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.
With a Current ratio value of 0.74, D perfoms like the industry average, outperforming 48.00% of the companies in the same industry.
D has a Quick 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.
D has a better Quick ratio (0.58) than 68.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.74 | ||
| Quick Ratio | 0.58 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 6.98% over the past year.
The Earnings Per Share has been decreasing by -8.18% on average over the past years.
EPS 1Y (TTM)6.98%
EPS 3Y-10.58%
EPS 5Y-8.18%
EPS Q2Q%100%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-3.79%
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 9.11% on average per year.
The Revenue is expected to grow by 4.35% on average over the next years.
EPS Next Y25.28%
EPS Next 2Y15.26%
EPS Next 3Y12.36%
EPS Next 5Y9.11%
Revenue Next Year5.59%
Revenue Next 2Y5.03%
Revenue Next 3Y5.27%
Revenue Next 5Y4.35%
3.3 Evolution
The EPS 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
D is valuated rather expensively with a Price/Earnings ratio of 20.81.
64.00% of the companies in the same industry are cheaper than D, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 29.63, D is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 16.61, the valuation of D can be described as correct.
The rest of the industry has a similar Price/Forward Earnings ratio as D.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.68, D is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.81 | ||
| Fwd PE | 16.61 |
4.2 Price Multiples
64.00% of the companies in the same industry are cheaper than D, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.57 |
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.
A more expensive valuation may be justified as D's earnings are expected to grow with 12.36% in the coming years.
PEG (NY)0.82
PEG (5Y)N/A
EPS Next 2Y15.26%
EPS Next 3Y12.36%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.74%, D is a good candidate for dividend investing.
D's Dividend Yield is a higher than the industry average which is at 3.78.
Compared to an average S&P500 Dividend Yield of 2.29, D pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.74% |
5.2 History
The dividend of D decreases each year by -4.13%.
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)-4.13%
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
D pays out 95.11% of its income as dividend. This is not a sustainable payout ratio.
DP95.11%
EPS Next 2Y15.26%
EPS Next 3Y12.36%
57.43
+1.11 (+1.97%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners77.08%
Inst Owner Change0.82%
Ins Owners0.11%
Ins Owner Change-0.93%
Market Cap48.24B
Analysts68.8
Price Target60.09 (4.63%)
Short Float %2.21%
Short Ratio4.06
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.74% |
Yearly Dividend2.67
Dividend Growth(5Y)-4.13%
DP95.11%
Div Incr Years0
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)8.24%
Min EPS beat(2)3.67%
Max EPS beat(2)12.82%
EPS beat(4)2
Avg EPS beat(4)-2.47%
Min EPS beat(4)-24.85%
Max EPS beat(4)12.82%
EPS beat(8)3
Avg EPS beat(8)-0.11%
EPS beat(12)4
Avg EPS beat(12)-0.4%
EPS beat(16)5
Avg EPS beat(16)-0.38%
Revenue beat(2)0
Avg Revenue beat(2)-7.95%
Min Revenue beat(2)-8.36%
Max Revenue beat(2)-7.53%
Revenue beat(4)0
Avg Revenue beat(4)-13.06%
Min Revenue beat(4)-18.71%
Max Revenue beat(4)-7.53%
Revenue beat(8)1
Avg Revenue beat(8)-7.88%
Revenue beat(12)1
Avg Revenue beat(12)-15.45%
Revenue beat(16)1
Avg Revenue beat(16)-15.98%
PT rev (1m)-1.57%
PT rev (3m)2.43%
EPS NQ rev (1m)-10.79%
EPS NQ rev (3m)-13.55%
EPS NY rev (1m)-0.27%
EPS NY rev (3m)-0.72%
Revenue NQ rev (1m)0.68%
Revenue NQ rev (3m)-1.69%
Revenue NY rev (1m)-0.85%
Revenue NY rev (3m)-1.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.81 | ||
| Fwd PE | 16.61 | ||
| P/S | 3.31 | ||
| P/FCF | N/A | ||
| P/OCF | 8.37 | ||
| P/B | 1.75 | ||
| P/tB | 2.06 | ||
| EV/EBITDA | 12.57 |
EPS(TTM)2.76
EY4.81%
EPS(NY)3.46
Fwd EY6.02%
FCF(TTM)-7.14
FCFYN/A
OCF(TTM)6.86
OCFY11.95%
SpS17.37
BVpS32.77
TBVpS27.84
PEG (NY)0.82
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.36% | ||
| ROE | 8.54% | ||
| ROCE | 4.43% | ||
| ROIC | 3.34% | ||
| ROICexc | 3.41% | ||
| ROICexgc | 3.57% | ||
| OM | 26.99% | ||
| PM (TTM) | 16.12% | ||
| GM | 99.52% | ||
| FCFM | N/A |
ROA(3y)2.09%
ROA(5y)1.42%
ROE(3y)7.64%
ROE(5y)5.06%
ROIC(3y)2.74%
ROIC(5y)3%
ROICexc(3y)2.74%
ROICexc(5y)3.01%
ROICexgc(3y)2.93%
ROICexgc(5y)3.26%
ROCE(3y)3.6%
ROCE(5y)3.9%
ROICexcg growth 3Y-6.44%
ROICexcg growth 5Y0.04%
ROICexc growth 3Y-5.17%
ROICexc growth 5Y0.98%
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%
F-Score6
Asset Turnover0.15
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.5 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 6.13 | ||
| Cap/Depr | 422.86% | ||
| Cap/Sales | 80.61% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 85.76% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.74 | ||
| Quick Ratio | 0.58 | ||
| Altman-Z | 0.69 |
F-Score6
WACC6.53%
ROIC/WACC0.51
Cap/Depr(3y)261.87%
Cap/Depr(5y)233.03%
Cap/Sales(3y)59.2%
Cap/Sales(5y)50.93%
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 Y25.28%
EPS Next 2Y15.26%
EPS Next 3Y12.36%
EPS Next 5Y9.11%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-3.79%
Revenue Next Year5.59%
Revenue Next 2Y5.03%
Revenue Next 3Y5.27%
Revenue Next 5Y4.35%
EBIT growth 1Y1.16%
EBIT growth 3Y-4.16%
EBIT growth 5Y5.8%
EBIT Next Year70.7%
EBIT Next 3Y27.86%
EBIT Next 5Y18.45%
FCF growth 1Y-54.03%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y81.63%
OCF growth 3Y7.93%
OCF growth 5Y6.61%