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Dominion Energy (D)
NYSE:D
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Dominion Energy
(NYSE:D)72Outperform
Positive Factors
Capital Investment
Dominion Energy raised its five-year capital plan by $7 billion, indicating a significant investment in growth.
Regulatory Stability
The regulatory structure now offers more stable and predictable outcomes with an opportunity to earn the allowed ROE level.
Negative Factors
Valuation Concerns
Valuation is a concern following the company's outperformance compared to the coverage average by 9%.
Dominion Energy (D) vs. S&P 500 (SPY)
Market Cap
$48.46B
Dividend Yield4.69%
Average Volume (3M)5.07M
Price to Earnings (P/E)23.3
Beta (1Y)0.35
Revenue Growth-10.79%
EPS Growth18.04%
CountryUS
Employees17,700
SectorUtilities
Sector Strength79
IndustryRegulated Utilities
Share Statistics
EPS (TTM)2.70
Shares Outstanding852,050,500
10 Day Avg. Volume5,539,548
30 Day Avg. Volume5,070,878
Financial Highlights & Ratios
PEG Ratio1.29
Price to Book (P/B)N/A
Price to Sales (P/S)3.32
Price to Cash Flow (P/CF)7.90
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$59.67Price Target Upside9.83% Upside
Rating ConsensusHold
Number of Analyst Covering12
Dominion Energy Business Overview & Revenue Model
Company DescriptionVirginia-based Dominion Energy, Inc. is a power and energy company, which provides electricity and natural gas to homes, businesses, and wholesale customers. It operates through the following business segments: Dominion Energy Virginia, Gas Distribution, Dominion Energy South Carolina, Contracted Assets, and Corporate and Other.
How the Company Makes MoneyDominion Energy makes money through several key revenue streams. The primary source of income is the sale of electricity and natural gas to residential, commercial, and industrial customers. The company generates electricity from a mix of sources, including nuclear, natural gas, coal, solar, and wind, which it then distributes to its customer base. Additionally, Dominion Energy earns revenue from the transmission and distribution of natural gas through its extensive pipeline network. The company engages in regulated utility operations, which provide stable income through regulated rates approved by state and federal agencies. Dominion Energy also invests in renewable energy projects, which contribute to its earnings and support its sustainability initiatives. Significant partnerships with state governments, regulatory bodies, and other energy companies play a crucial role in facilitating its operations and expansion efforts.
Dominion Energy Financial Statement Overview
Summary
Dominion Energy shows stable revenue and strong operating cash flows typical of regulated utilities. However, its profitability has been challenged by declining net income and high leverage, indicating potential financial risks.Income Statement
Dominion Energy has shown a consistent revenue base typical for regulated utilities, with stable gross profit margins. However, the net profit margin has significantly decreased in the recent year due to a drop in net income, indicating potential cost pressures or one-off events affecting profitability. Revenue growth has been flat, reflecting the mature nature of the industry.70
Positive
Balance Sheet
The company's balance sheet shows a moderately high debt-to-equity ratio, which is common in capital-intensive industries like utilities but still presents financial risk. The equity ratio indicates that a significant portion of assets is financed by debt, and return on equity has been volatile, impacted by fluctuating net income levels.65
Positive
Cash Flow
Dominion Energy's cash flow statements reveal a strong operating cash flow, but free cash flow has been negative in some years due to high capital expenditures. The operating cash flow to net income ratio is strong, demonstrating good cash generation relative to reported earnings, yet the free cash flow to net income ratio has been under pressure.72
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 14.46B | 14.39B | 17.17B | 13.96B | 14.17B | Gross Profit |
| 14.46B | 6.96B | 5.35B | 10.44B | 10.99B | EBIT |
| 3.25B | 3.41B | 1.60B | 3.02B | 1.55B | EBITDA |
| 6.71B | 6.82B | 7.13B | 7.16B | 6.39B | Net Income Common Stockholders |
| 2.44M | 1.99B | 994.00M | 3.40B | 1.33B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 310.00M | 184.00M | 153.00M | 283.00M | 172.00M | Total Assets |
| 102.42B | 109.03B | 104.24B | 99.59B | 95.91B | Total Debt |
| 19.82B | 44.24B | 45.68B | 40.58B | 37.01B | Net Debt |
| 19.82B | 44.06B | 45.52B | 40.30B | 36.84B | Total Liabilities |
| 72.22B | 81.50B | 76.36B | 72.28B | 69.44B | Stockholders Equity |
| 25.15B | 27.53B | 27.88B | 27.31B | 26.12B |
| Cash Flow | Free Cash Flow | |||
| 4.59B | -3.66B | -3.89B | -1.92B | -793.00M | Operating Cash Flow |
| 4.59B | 6.57B | 3.70B | 4.04B | 5.23B | Investing Cash Flow |
| -10.05B | -7.21B | -6.75B | -6.25B | -2.92B | Financing Cash Flow |
| 5.58B | 595.00M | 2.98B | 2.37B | -2.33B |
Dominion Energy Technical Analysis
Negative
54.33
Price Trends
54.28
Positive
55.35
Negative
53.74
Positive
Market Momentum
0.46
Positive
44.95
Neutral
45.75
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For D, the sentiment is Negative. The current price of 54.33 is below the 20-day moving average (MA) of 55.29, above the 50-day MA of 54.28, and above the 200-day MA of 53.74, indicating a neutral trend. The MACD of 0.46 indicates Positive momentum. The RSI at 44.95 is Neutral, neither overbought nor oversold. The STOCH value of 45.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for D.
Dominion Energy Risk Analysis
Dominion Energy disclosed 27 risk factors in its most recent earnings report. Dominion Energy reported the most risks in the “Legal & Regulatory” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Dominion Energy Peers Comparison
Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $90.39B | 20.48 | 9.03% | 3.50% | 4.46% | 54.09% | |
77 Outperform | $99.64B | 22.75 | 13.25% | 3.17% | 5.83% | 10.23% | |
73 Outperform | $56.12B | 18.85 | 73.81% | 3.36% | 2.76% | 31.53% | |
72 Outperform | $48.46B | 23.33 | <0.01% | 4.69% | -10.79% | 18.04% | |
72 Outperform | $43.91B | 17.81 | 9.14% | 3.46% | 5.98% | 4.99% | |
67 Neutral | $145.74B | 21.00 | 9.07% | 2.95% | 26.91% | -6.43% | |
65 Neutral | $12.05B | 15.92 | 6.71% | 4.32% | 8.04% | 3.76% |
* Utilities Sector Average
Performance Comparison
D
Dominion Energy
54.33
9.42
20.98%
AEP
American Electric Power
105.24
24.43
30.23%
DUK
Duke Energy
116.41
25.84
28.53%
EXC
Exelon
43.68
8.43
23.91%
NEE
NextEra Energy
70.85
16.84
31.18%
SO
Southern Co
89.89
23.61
35.62%
Dominion Energy Earnings Call Summary
Earnings Call Date: Feb 12, 2025 | % Change Since: -1.31% | Next Earnings Date: May 1, 2025
Earnings Call Sentiment Positive
Dominion Energy's earnings call reflected a positive start to their strategic plan with strong financial performance and increased capital investments, alongside significant progress in data center expansion and the CVOW project. However, challenges such as increased project costs and regulatory lag in South Carolina were noted.Highlights
Strong Financial Performance
Operating earnings per share for 2024 were $2.77, in the top half of the guidance range, despite $0.03 impact from adverse weather. GAAP earnings for the full year were $2.44 per share.
Increased Capital Investment
Dominion Energy updated its 5-year capital forecast to $50 billion, a 16% increase from prior guidance, to meet growing demand and ensure reliability.
Data Center Expansion
Data center sales now represent 26% of total sales for Dominion Energy Virginia, with contracted capacity increasing by 88% since July 2024.
Safety and Regulatory Achievements
Achieved near-record employee safety performance and favorable regulatory outcomes in South Carolina and North Carolina, as well as Virginia.
Progress on Coastal Virginia Offshore Wind Project (CVOW)
Project is 50% complete, on schedule for completion in 2026, and has bipartisan support and significant economic impact.
Lowlights
Increased Project Costs
The cost of the Coastal Virginia Offshore Wind project increased from $9.8 billion to $10.7 billion, primarily due to higher network upgrade costs.
Interest Rate Headwinds
Higher interest rates are a headwind affecting Dominion Energy's financial outlook and planning.
Regulatory Lag in South Carolina
The regulatory framework in South Carolina creates lag that affects the ability to earn the allowed return, leading to potential under-earning by 100 to 200 basis points.
Company Guidance
During the Dominion Energy Fourth Quarter 2024 Earnings Conference Call, the company reported operating earnings per share of $2.77 for the full year, with fourth quarter earnings at $0.58 per share, despite adverse weather impacts. They narrowed their 2025 operating earnings guidance to a range of $3.28 to $3.52 per share, maintaining the midpoint at $3.40, and reaffirmed a long-term annual operating earnings growth rate of 5% to 7% through 2029. Dominion Energy also plans a 16% increase in their five-year capital investment forecast from 2025 to 2029, totaling $50 billion, predominantly focused on Dominion Energy Virginia. The Coastal Virginia Offshore Wind project remains on schedule for 2026 with updated costs of $10.7 billion, while the company has secured a 50% noncontrolling equity financing to mitigate project risk. Additionally, Dominion Energy highlighted significant data center demand growth, with approximately 40 gigawatts in various contracting stages, and reaffirmed their commitment to maintaining a dividend of $2.67 per share until reaching an industry-aligned payout ratio.Dominion Energy Corporate Events
Product-Related AnnouncementsPrivate Placements and FinancingBusiness Operations and Strategy
Dominion Energy Updates CVOW Project and Secures Funding
Neutral
Feb 3, 2025
On February 3, 2025, Dominion Energy announced updates to its Coastal Virginia Offshore Wind (CVOW) project, including a cost increase from $9.8 billion to $10.7 billion due to revised network upgrade costs by PJM. Despite the increase, the project remains on schedule for completion by the end of 2026, with significant construction milestones achieved and robust cost-sharing mechanisms in place to mitigate customer impact. The updated project cost is expected to slightly impact residential customer bills by 43 cents per month. Dominion Energy completed a non-controlling equity financing with Stonepeak Partners, which will fund 50% of project costs up to $11.3 billion, reducing financial risk for shareholders.
Executive/Board Changes
Dominion Energy Approves 2025 Incentive Plan and Executive Packages
Neutral
Jan 27, 2025
On January 23, 2025, Dominion Energy’s Compensation and Talent Development Committee approved the 2025 Annual Incentive Plan, which allows officers to receive performance-based cash awards. The plan ties payouts to performance goals, with potential funding ranging from 0% to 200% of target funding. Additionally, the committee approved new compensation packages for key executives, including Edward H. Baine, Carlos M. Brown, and Steven D. Ridge, reflecting their important roles in the company. These packages include cash and restricted stock awards, subject to clawback provisions and vesting conditions.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.