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Market Inference Overview -- D Stock

Now trading at a price of $48.34, Dominion Energy has moved -0.4% so far today.

Dominion Energy returned losses of -39.0% last year, with its stock price reaching a high of $81.61 and a low of $45.77. Over the same period, the stock underperformed the S&P 500 index by -55.0%. As of April 2023, the company's 50-day average price was $50.12. 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 5.5% dividend yield over the last 12 months.

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

A Lower P/E Ratio Than Its Sector Average but Trades Above Its Graham Number:

Dominion Energy has a trailing twelve month P/E ratio of 18.6, compared to an average of 22.89 for the Utilities sector. Based on its EPS guidance of $3.53, the company has a forward P/E ratio of 14.2. The company doesn't issue forward earnings guidance, and the compound average growth rate of its last 6 years of reported EPS is -8.9%. On this basis, the company's PEG ratio is -2.09, which indicates that its shares are overpriced. Furthermore, Dominion Energy is likely overvalued compared to the book value of its equity, since its P/B ratio of 1.52 is higher than the sector average of 1.03. The company's shares are currently trading 56.6% above their Graham number.

There's an Analyst Consensus of Some Upside Potential for Dominion Energy:

The 12 analysts following Dominion Energy have set target prices ranging from $44.0 to $61.0 per share, for an average of $52.08 with a hold rating. As of April 2023, the company is trading -3.8% 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 $3,668,985,798.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.

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