Dominion Energy (D) AI Stock Analysis

• Market Cap: $43.32B
• Dividend Yield: 5.38%
• Average Volume (3M): 5.60M
• Price to Earnings (P/E): 20.9
• Beta (1Y): 0.32
• Revenue Growth: -10.79%
• EPS Growth: 18.04%
• Country: US
• Employees: 14,700
• Sector: Utilities
• Sector Strength: 88
• Industry: Regulated Electric
• EPS (TTM): 2.70
• Shares Outstanding: 852,215,200
• 10 Day Avg. Volume: 6,069,522
• 30 Day Avg. Volume: 5,597,072
• PEG Ratio: 1.16
• Price to Book (P/B): N/A
• Price to Sales (P/S): 3.21
• Price to Cash Flow (P/CF): 18.10
• P/FCF Ratio: 18.10
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $59.50
• Price Target Upside: 13.88% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 12

Dominion Energy's overall score reflects stable revenue and cash flows with risks from high leverage and profitability challenges. Positive earnings guidance and strategic investments bolster the outlook, but increased costs and interest rate pressures remain concerns.

Positive Factors

Capital Investment

Dominion Energy raised its five-year capital plan by $7 billion, indicating a significant investment in growth.

Data Center Development

Dominion Energy provided a positive update on data center development in its service territory that is not included in current guidance.

Financial Performance

Year over year earnings improved at all three operating businesses.

Negative Factors

Earnings Expectations

The expected earnings per share for Dominion Energy are modestly below the consensus expectations.

Market Performance

Shares of D now trade at ~5% discount on the 2027 EPS, indicating that investors might require additional execution on key projects before substantive multiple expansion can occur.

Valuation Concerns

Valuation is a concern following the company's outperformance compared to the coverage average by 9%.

Dominion Energy Business Overview & Revenue Model

Company Description

Dominion Energy, Inc. produces and distributes energy in the United States. The company operates through four segments: Dominion Energy Virginia, Gas Distribution, Dominion Energy South Carolina, and Contracted Assets. The Dominion Energy Virginia segment generates, transmits, and distributes regulated electricity to approximately 2.7 million residential, commercial, industrial, and governmental customers in Virginia and North Carolina. The Gas Distribution segment is involved in the regulated natural gas sales, transportation, gathering, storage, and distribution operations in Ohio, West Virginia, North Carolina, Utah, southwestern Wyoming, and southeastern Idaho that serve approximately 3.1 million residential, commercial and industrial customers. It also has nonregulated renewable natural gas facilities in operation. The Dominion Energy South Carolina segment generates, transmits, and distributes electricity to approximately 772,000 customers in the central, southern, and southwestern portions of South Carolina; and distributes natural gas to approximately 419,000 residential, commercial, and industrial customers in South Carolina. The Contracted Assets segment is involved in the nonregulated long-term contracted renewable electric generation and solar generation facility development operations; and gas transportation, LNG import, and storage operations, as well as in the liquefaction facility. As of December 31, 2021, the company's portfolio of assets included approximately 30.2 gigawatt of electric generating capacity; 10,700 miles of electric transmission lines; 78,000 miles of electric distribution lines; and 95,700 miles of gas distribution mains and related service facilities. The company was formerly known as Dominion Resources, Inc. Dominion Energy, Inc. was incorporated in 1983 and is headquartered in Richmond, Virginia.

How the Company Makes Money

Dominion 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 exhibits stable revenue and operational cash flows typical of regulated utilities. However, profitability challenges and high leverage pose risks. Improvement in net income consistency and debt management is needed.

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.

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.

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.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
14.46B	14.39B	13.94B	11.42B	14.17B
	Gross Profit
14.46B	6.96B	6.38B	5.41B	7.30B
	EBIT
3.25B	3.41B	1.43B	2.00B	2.06B
	EBITDA
6.71B	6.82B	6.37B	5.39B	6.93B
	Net Income Common Stockholders
2.44M	1.99B	1.32B	3.40B	-401.00M
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

• Technical Analysis Sentiment: Negative
• Last Price: 52.25
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 52.25 is below the 20-day moving average (MA) of 54.17, below the 50-day MA of 54.76, and below the 200-day MA of 54.29, indicating a bearish trend. The MACD of 0.07 indicates Negative momentum. The RSI at 58.13 is Neutral, neither overbought nor oversold. The STOCH value of 92.32 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for D.

Dominion Energy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DUK	77 Outperform	$90.80B	20.56	9.10%	3.59%	4.46%	54.09%
SO	77 Outperform	$95.66B	21.84	13.61%	3.31%	5.83%	10.23%
AEP	73 Outperform	$56.96B	18.33	11.37%	3.57%	2.76%	31.53%
EXC	72 Outperform	$44.72B	18.06	9.34%	3.46%	5.98%	4.99%
NEE	72 Outperform	$139.12B	20.03	14.24%	3.29%	26.91%	-6.43%
D	69 Neutral	$43.32B	20.85	7.91%	5.38%	-10.79%	18.04%
Sector *	65 Neutral	$11.76B	15.57	6.23%	4.62%	5.52%	-8.96%

Dominion Energy Corporate Events

Dominion Energy Updates CVOW Project and Secures Funding

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.

Dominion Energy Approves 2025 Incentive Plan and Executive Packages

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.