10Y annualized return is
negative
at -3.1% per year
D has met or exceeded earnings expectations in
the majority of
recent quarters (7/10)
Attractive PB Ratio
Moderate PE Ratio
Strong Gross Profit Margin
Good Net Profit Margin
Strong Interest Coverage
Strong Commitment to Strategic Principles
Resilience in Operating Performance
Successful Project Execution
Regulatory Cooperation
Growing Demand from Data Centers
Substantial Capital Investment Plans
Long-Term Earnings Growth Guidance
High EV/EBITDA Ratio
High Price-to-Sales Ratio
Negative Cash Flow from Operations
High Dividend Payout Ratio
High Debt Levels
Low Liquidity Ratios
Regulatory Challenges in South Carolina
Cost Increases in Offshore Wind Project
Dominion Energy demonstrates a strong business model with effective operational execution and growth potential, particularly in the data center sector. However, regulatory challenges in certain markets and rising project costs present risks that need to be managed carefully.
Analysis Date: February 12, 2025
Last Updated: March 11, 2025
Past performance does not guarantee future results. The data presented is indicative and may not be updated in real-time.
Dominion Energy, Inc. is a company that provides electricity and natural gas to homes and businesses in the United States. They serve millions of customers in places like Virginia, North Carolina, and South Carolina. Their main job is to generate electricity, deliver it through power lines, and supply natural gas for heating and cooking. They also work on renewable energy projects, which help create cleaner energy for the future.
Streams of revenue
Geographic Distribution
Core Products
Business Type
Business to Consumer
Competitive Advantages
Key Business Risks
Latest News
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Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Benjamin Graham's value investing approach focuses on finding stocks with a significant margin of safety between their intrinsic value and market price.
Intrinsic Value
Estimated fair value based on Graham's formula
$95.98
Current Market Price: $52.74
IV/P Ratio: 1.82x (>1.0 indicates undervalued)
Margin of Safety
Gap between intrinsic value and market price
45.0%
Graham recommended a minimum of 20-30% margin of safety
Higher values indicate a greater potential discount to fair value
Graham Criteria Checklist
Benjamin Graham's value investing checklist for D
Positive earnings (5+ years)
Dividend history (5+ years)
P/E ratio ≤ 20 (21.15)
P/B ratio ≤ 1.5 (1.65)
Current ratio ≥ 2.0 (0.71x)
Long-term debt < Net current assets (-14.02x)
Margin of safety (45.0%)
D does not meet all Graham criteria
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
A gross profit margin of 47.87% shows that the company retains a significant portion of revenue after covering the cost of goods sold, indicating healthy profitability.
The net profit margin of 14.69% is indicative of efficient cost management and the ability to convert revenue into profit.
The negative price-to-free cash flow ratio of -6.24 indicates that the company is not generating positive free cash flow, which raises concerns about sustainability.
The dividend payout ratio of 105.41% suggests that the company is paying out more in dividends than it earns, which is unsustainable over the long term.
Profitability metrics measure a company's ability to generate earnings relative to its revenue, operating costs, and other relevant metrics. Higher values generally indicate better performance.
Return on Equity (ROE)
Measures how efficiently a company uses its equity to generate profits
7.77%
Higher values indicate better returns for shareholders
TTM (as of 2025-04-25)
Gross Profit Margin
Percentage of revenue retained after accounting for cost of goods sold
47.87%
Higher values indicate better efficiency in production
TTM (as of 2025-04-25)
Net Profit Margin
Percentage of revenue retained after accounting for all expenses
14.69%
Higher values indicate better overall profitability
TTM (as of 2025-04-25)
An interest coverage ratio of 6.92 indicates that the company can comfortably meet its interest obligations, reflecting good financial stability.
A debt-to-equity ratio of 1.53 indicates that the company is heavily leveraged, which could pose risks if earnings decline.
Current ratio of 0.71 and quick ratio of 0.52 indicate potential liquidity issues, suggesting that the company may struggle to meet short-term obligations.
Financial health metrics assess a company's ability to meet its financial obligations and its overall financial stability.
Debt to Equity Ratio
Total debt divided by total equity
1.38x
Lower values indicate less financial leverage and risk
Less than 1.0 is conservative, 1.0-2.0 is moderate, >2.0 indicates high risk
Q4 2024
Current Ratio
Current assets divided by current liabilities
0.71x
Higher values indicate better short-term liquidity
Less than 1.0 is concerning, 1.0-2.0 is adequate, greater than 2.0 is good
Q4 2024
Meeting Expectations
Higher values indicate better execution and credibility
Recent Results
EPS
Dominion Energy has maintained a clear focus on strategic simplicity, financial execution, and customer experience. This commitment is seen as fundamental to rebuilding trust with stakeholders after a comprehensive business review.
Despite facing weather-related challenges, Dominion achieved operating earnings per share in the top half of their guidance range, reflecting effective risk management and operational resilience.
The Coastal Virginia Offshore Wind project is progressing well, with 50% completion and significant derisking through financing strategies that protect shareholders.
Dominion has demonstrated its ability to work cooperatively with regulators in North Carolina and South Carolina, achieving favorable regulatory outcomes that benefit both customers and shareholders.
Virginia's data center demand is accelerating, with Dominion seeing a substantial increase in contracted capacity. This presents significant growth potential in the utility sector.
Dominion has increased its 5-year capital investment forecast to $50 billion, indicating confidence in addressing growing demand and enhancing infrastructure.
The company reaffirms its annual operating earnings growth guidance of 5% to 7% through 2029, indicating consistent long-term growth expectations.
Dominion faces regulatory lag issues in South Carolina, which could hinder its ability to earn allowed returns compared to neighboring jurisdictions.
The Coastal Virginia Offshore Wind project's costs have increased significantly, which may pose concerns about future financial performance and investor sentiment.