Dominion Energy logged a -2.0% change during today's afternoon session, and is now trading at a price of $49.74 per share.
Dominion Energy returned losses of -38.0% 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 -49.0%. As of April 2023, the company's 50-day average price was $52.23. 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 offered a 5.3% dividend yield over the last 12 months.
Exceptional Profitability Overshadowed by Excessive Leverage:
| 2020-02-28 | 2021-02-25 | 2022-02-24 | 2023-02-21 | |
|---|---|---|---|---|
| Revenue (MM) | $14,401 | $14,172 | $13,964 | $17,174 |
| Gross Margins | 68.5% | 77.5% | 74.8% | 68.8% |
| Operating Margins | 20.2% | 28.9% | 23.8% | 23.8% |
| Net Margins | 9.43% | -2.83% | 23.55% | 5.79% |
| Net Income (MM) | $1,358 | -$401 | $3,288 | $994 |
| Net Interest Expense (MM) | -$1,486 | -$1,377 | -$1,354 | -$966 |
| Depreciation & Amort. (MM) | -$2,977 | -$2,836 | -$2,768 | -$3,113 |
| Earnings Per Share | $1.68 | -$0.48 | $4.06 | $1.44 |
| EPS Growth | n/a | -128.57% | 945.83% | -64.53% |
| Diluted Shares (MM) | 809 | 831 | 810 | 836 |
| Free Cash Flow (MM) | $10,078 | $11,558 | $10,098 | $10,731 |
| Capital Expenditures (MM) | -$4,874 | -$6,331 | -$6,061 | -$7,031 |
| Net Current Assets (MM) | -$63,694 | -$62,558 | -$63,403 | -$66,512 |
| Current Ratio | 0.61 | 0.64 | 0.84 | 0.73 |
| Long Term Debt (MM) | $28,998 | $33,957 | $37,426 | $38,914 |
| Net Debt / EBITDA | 5.73 | 9.82 | 5.77 | 9.1 |
Dominion Energy has growing revenues and increasing reinvestment in the business and strong margins with a stable trend. Additionally, the company's financial statements display a steady stream of strong cash flows and wider gross margins than its peer group. However, the firm suffers from declining EPS growth and a highly leveraged balance sheet.
Dominion Energy's Valuation Is in Line With Its Sector Averages:
Dominion Energy has a trailing twelve month P/E ratio of 36.3, compared to an average of 22.89 for the Utilities sector. Based on its EPS guidance of $3.64, the company has a forward P/E ratio of 14.3. Dominion Energy's PEG ratio is 3.68 on the basis of the 9.8% 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 1.56 is higher than the sector average of 1.03. The company's shares are currently trading 43.9% 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 $48.0 to $71.0 per share, for an average of $58.08 with a hold rating. As of April 2023, the company is trading -10.1% 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 72.1% 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 Vanguard Group Inc, whose 9% stake in the company is worth $3,769,479,674.
