Now trading at a price of $52.69, Dominion Energy has moved -0.7% so far today.
Dominion Energy returned losses of -33.1% last year, with its stock price reaching a high of $86.28 and a low of $48.48. Over the same period, the stock underperformed the S&P 500 index by -39.0%. As of April 2023, the company's 50-day average price was $55.01. Dominion Energy, Inc. produces and distributes energy in the United States. Based in Richmond, VA, the large-cap Utilities company has 17,200 full time employees. Dominion Energy has returned a 5.0% dividend yield over the last 12 months, but this may not be sustainable seen that the company has a choppy cash flow record.
Increasing Revenues but Narrowing Margins:
| 2019-12-31 | 2020-12-31 | 2021-12-31 | 2022-12-31 | |
|---|---|---|---|---|
| Revenue (MM) | $16,572 | $14,172 | $13,964 | $17,174 |
| Gross Margins | 72.5% | 77.5% | 74.8% | 68.8% |
| Operating Margins | 15.9% | 14.5% | 21.6% | 9.3% |
| Net Margins | 8.74% | -2.83% | 23.55% | 5.79% |
| Net Income (MM) | $1,448 | -$401 | $3,288 | $994 |
| Net Interest Income | -$1,773,000 | -$1,377,000 | -$1,354,000 | -$966,000 |
| Depreciation & Amort. | -$2,977,000 | -$2,836,000 | -$2,768,000 | -$3,113,000 |
| Earnings Per Share | $1.73 | -$0.57 | $3.98 | $1.44 |
| EPS Growth | n/a | -132.95% | 798.25% | -63.82% |
| Diluted Shares (MM) | 838 | 831 | 810 | 836 |
| Free Cash Flow (MM) | $224 | -$793 | -$1,923 | -$3,891 |
| Capital Expenditures (MM) | -$4,980 | -$6,020 | -$5,960 | -$7,591 |
| Net Current Assets (MM) | -$63,702 | -$62,558 | -$65,013 | -$66,512 |
| Current Ratio | 0.61 | 0.64 | 0.84 | 0.73 |
| Long Term Debt (MM) | $33,719 | $33,957 | $37,426 | $38,914 |
| Net Debt / EBITDA | 5.72 | 9.46 | 5.14 | 8.86 |
Dominion Energy has declining EPS growth, negative and highly variable cash flows, and a highly leveraged balance sheet. On the other hand, the company benefits from stable revenues and increasing reinvestment in the business and wider gross margins than its peer group. Furthermore, Dominion Energy has average net margins with a negative growth trend.
Dominion Energy's Valuation Is in Line With Its Sector Averages:
Dominion Energy has a trailing twelve month P/E ratio of 38.2, compared to an average of 22.89 for the Utilities sector. Based on its EPS guidance of $3.77, the company has a forward P/E ratio of 14.6. Dominion Energy's PEG ratio is 3.87 on the basis of the 9.9% weighted average of the company and the broader market's EPS compound average growth rates. This suggests that the company's shares are overvalued. Furthermore, Dominion Energy is likely overvalued compared to the book value of its equity, since its P/B ratio of 1.66 is higher than the sector average of 1.03. The company's shares are currently trading 53.4% above their Graham number.
Dominion Energy Has an Analyst Consensus of Some Upside Potential:
The 13 analysts following Dominion Energy have set target prices ranging from $52.0 to $71.0 per share, for an average of $60.69 with a hold rating. As of April 2023, the company is trading -9.4% away from its average target price, indicating that there is an analyst consensus of some upside potential.
Dominion Energy has a very low short interest because 0.7% of the company's shares are sold short. Institutions own 71.1% of the company's shares, and the insider ownership rate stands at 0.14%, suggesting a small amount of insider investors. The largest shareholder is the Vanguard Group, Inc., whose 9% stake in the company is worth $3,992,798,452.
