Today we're going to take a closer look at large-cap Utilities company Dominion Energy, whose shares are currently trading at $49.34. We've been asking ourselves whether the company is under or over valued at today's prices... let's perform a brief value analysis to find out!
A Lower P/E Ratio Than Its Sector Average but Trades Above Its Graham Number:
Dominion Energy, Inc. produces and distributes energy in the United States. The company belongs to the Utilities sector, which has an average price to earnings (P/E) ratio of 22.89 and an average price to book (P/B) ratio of 1.03. In contrast, Dominion Energy has a trailing 12 month P/E ratio of 18.3 and a P/B ratio of 1.55.
Dominion Energy's PEG ratio is 1.52, which shows that the stock is probably overvalued in terms of its estimated growth. For reference, a PEG ratio near or below 1 is a potential signal that a company is undervalued.
Exceptional Profitability Overshadowed by Excessive Leverage:
2018-02-27 | 2019-02-28 | 2020-02-28 | 2021-02-25 | 2022-02-24 | 2023-02-21 | |
---|---|---|---|---|---|---|
Revenue (MM) | $12,586 | $11,199 | $14,401 | $14,172 | $13,964 | $17,174 |
Gross Margins | 76.0% | 70.0% | 69.0% | 78.0% | 75.0% | 69.0% |
Operating Margins | 30% | 25% | 20% | 28% | 24% | 24% |
Net Margins | 24.0% | 22.0% | 9.0% | -3.0% | 24.0% | 6.0% |
Net Income (MM) | $2,999 | $2,447 | $1,358 | -$401 | $3,288 | $994 |
Net Interest Expense (MM) | -$1,205 | -$1,279 | -$1,486 | -$1,377 | -$1,354 | -$966 |
Depreciation & Amort. (MM) | -$2,202 | -$2,280 | -$2,977 | -$2,836 | -$2,768 | -$3,113 |
Earnings Per Share | $4.72 | $3.74 | $1.68 | -$0.48 | $4.06 | $1.23 |
EPS Growth | n/a | -20.76% | -55.08% | -128.57% | 945.83% | -69.7% |
Diluted Shares (MM) | 636 | 655 | 809 | 831 | 810 | 810 |
Free Cash Flow (MM) | $10,411 | $6,636 | $10,078 | $11,558 | $10,098 | $10,731 |
Capital Expenditures (MM) | -$5,909 | -$1,863 | -$4,874 | -$6,331 | -$6,061 | -$7,031 |
Net Current Assets (MM) | -$52,881 | -$50,705 | -$63,694 | -$62,558 | -$63,403 | -$66,512 |
Long Term Debt (MM) | $30,948 | $31,144 | $28,998 | $33,957 | $37,426 | $38,914 |
Net Debt / EBITDA | 6.19 | 6.91 | 5.46 | 5.28 | 6.62 | 6.32 |