DOMINION ENERGY INC (D) Stock Fundamental Analysis
NYSE:D - New York Stock Exchange, Inc. - US25746U1097 - Common Stock - Currency: USD
We assign a fundamental rating of 4 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 has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
D had positive earnings in the past year.
In the past year D had a positive cash flow from operations.
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
Looking at the Return On Assets, with a value of 1.94%, D is doing worse than 84.00% of the companies in the same industry.
D has a Return On Equity of 7.41%. This is amonst the worse of the industry: D underperforms 80.00% of its industry peers.
D has a Return On Invested Capital of 3.59%. This is in the lower half of the industry: D underperforms 72.00% 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 3.93%.
The 3 year average ROIC (3.19%) for D is below the current ROIC(3.59%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.94% | ||
| ROE | 7.41% | ||
| ROIC | 3.59% |
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
The Profit Margin of D (13.60%) is better than 68.00% of its industry peers.
D's Profit Margin has improved in the last couple of years.
The Operating Margin of D (28.54%) is better than 100.00% of its industry peers.
D's Operating Margin has improved in the last couple of years.
D's Gross Margin of 99.52% is amongst the best of 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 | 28.54% | ||
| PM (TTM) | 13.6% | ||
| GM | 99.52% |
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
D has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, D has more shares outstanding
Compared to 5 years ago, D has more shares outstanding
D has a worse debt/assets ratio than last year.
2.2 Solvency
D has an Altman-Z score of 0.66. This is a bad value and indicates that D is not financially healthy and even has some risk of bankruptcy.
D has a Altman-Z score of 0.66. This is in the lower half of the industry: D underperforms 60.00% of its industry peers.
D has a Debt/Equity ratio of 1.54. This is a high value indicating a heavy dependency on external financing.
D has a Debt to Equity ratio (1.54) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.54 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.66 |
ROIC/WACC0.55
WACC6.49%
2.3 Liquidity
D has a Current Ratio of 0.73. 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 0.73, D is not doing good in the industry: 76.00% of the companies in the same industry are doing better.
D has a Quick Ratio of 0.73. 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 Quick ratio of D (0.53) is worse than 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.73 | ||
| Quick Ratio | 0.53 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 46.73% 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 5.38% in the last year.
D shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.08% yearly.
EPS 1Y (TTM)46.73%
EPS 3Y-10.58%
EPS 5Y-8.18%
EPS Q2Q%69.09%
Revenue 1Y (TTM)5.38%
Revenue growth 3Y8.19%
Revenue growth 5Y0.08%
Sales Q2Q%12.22%
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 9.45% on average per year.
Based on estimates for the next years, D will show a small growth in Revenue. The Revenue will grow by 6.32% on average per year.
EPS Next Y25.44%
EPS Next 2Y15.01%
EPS Next 3Y12.15%
EPS Next 5Y9.45%
Revenue Next Year8.22%
Revenue Next 2Y6.8%
Revenue Next 3Y6.46%
Revenue Next 5Y6.32%
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
A Price/Earnings ratio of 18.28 indicates a rather expensive valuation of D.
D's Price/Earnings ratio is a bit more expensive when compared to the industry. D is more expensive than 64.00% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.30. D is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 15.72, the valuation of D can be described as correct.
D's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 21.76. D is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.28 | ||
| Fwd PE | 15.72 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, D is valued a bit more expensive than 76.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 13.3 |
4.3 Compensation for Growth
The 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.
D's earnings are expected to grow with 12.15% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.72
PEG (5Y)N/A
EPS Next 2Y15.01%
EPS Next 3Y12.15%
5. Dividend
5.1 Amount
D has a Yearly Dividend Yield of 4.70%, which is a nice return.
Compared to an average industry Dividend Yield of 3.75, 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 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.7% |
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
110.95% of the earnings are spent on dividend by D. This is not a sustainable payout ratio.
DP110.95%
EPS Next 2Y15.01%
EPS Next 3Y12.15%
57.39
-0.77 (-1.32%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners78.45%
Inst Owner Change0%
Ins Owners0.11%
Ins Owner Change1.44%
Market Cap48.91B
Analysts66.67
Price Target60.26 (5%)
Short Float %2.99%
Short Ratio4.17
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.7% |
Yearly Dividend2.65
Dividend Growth(5Y)-7.57%
DP110.95%
Div Incr Years0
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)11.75%
Min EPS beat(2)1.78%
Max EPS beat(2)21.72%
EPS beat(4)4
Avg EPS beat(4)9.99%
Min EPS beat(4)1.78%
Max EPS beat(4)21.72%
EPS beat(8)5
Avg EPS beat(8)2.85%
EPS beat(12)6
Avg EPS beat(12)1.92%
EPS beat(16)7
Avg EPS beat(16)1.16%
Revenue beat(2)1
Avg Revenue beat(2)-7.42%
Min Revenue beat(2)-15.42%
Max Revenue beat(2)0.59%
Revenue beat(4)1
Avg Revenue beat(4)-7.68%
Min Revenue beat(4)-15.42%
Max Revenue beat(4)0.59%
Revenue beat(8)1
Avg Revenue beat(8)-10.24%
Revenue beat(12)2
Avg Revenue beat(12)-10.7%
Revenue beat(16)2
Avg Revenue beat(16)-15.09%
PT rev (1m)-1.65%
PT rev (3m)-1.06%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.92%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1%
Revenue NY rev (1m)-0.36%
Revenue NY rev (3m)3.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.28 | ||
| Fwd PE | 15.72 | ||
| P/S | 3.28 | ||
| P/FCF | N/A | ||
| P/OCF | 11.59 | ||
| P/B | 1.79 | ||
| P/tB | 2.11 | ||
| EV/EBITDA | 13.3 |
EPS(TTM)3.14
EY5.47%
EPS(NY)3.65
Fwd EY6.36%
FCF(TTM)-9.88
FCFYN/A
OCF(TTM)4.95
OCFY8.63%
SpS17.49
BVpS32.11
TBVpS27.25
PEG (NY)0.72
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.94% | ||
| ROE | 7.41% | ||
| ROCE | 4.44% | ||
| ROIC | 3.59% | ||
| ROICexc | 3.6% | ||
| ROICexgc | 3.76% | ||
| OM | 28.54% | ||
| PM (TTM) | 13.6% | ||
| GM | 99.52% | ||
| 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 | 1.54 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 6.13 | ||
| Cap/Depr | 485.3% | ||
| Cap/Sales | 84.83% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 61.52% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.73 | ||
| Quick Ratio | 0.53 | ||
| Altman-Z | 0.66 |
F-Score6
WACC6.49%
ROIC/WACC0.55
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)46.73%
EPS 3Y-10.58%
EPS 5Y-8.18%
EPS Q2Q%69.09%
EPS Next Y25.44%
EPS Next 2Y15.01%
EPS Next 3Y12.15%
EPS Next 5Y9.45%
Revenue 1Y (TTM)5.38%
Revenue growth 3Y8.19%
Revenue growth 5Y0.08%
Sales Q2Q%12.22%
Revenue Next Year8.22%
Revenue Next 2Y6.8%
Revenue Next 3Y6.46%
Revenue Next 5Y6.32%
EBIT growth 1Y26.31%
EBIT growth 3Y13.87%
EBIT growth 5Y1.62%
EBIT Next Year79.33%
EBIT Next 3Y29.13%
EBIT Next 5Y20.69%
FCF growth 1Y-139.49%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-9.7%
OCF growth 3Y7.52%
OCF growth 5Y-0.73%