Now trading at a price of $47.12, Dominion Energy has moved 0.3% so far today.
Dominion Energy returned losses of -21.0% last year, with its stock price reaching a high of $63.94 and a low of $39.18. Over the same period, the stock underperformed the S&P 500 index by -34.0%. As of April 2023, the company's 50-day average price was $43.82. 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 5.7% dividend yield over the last 12 months.
The Company Has a Highly Leveraged Balance Sheet and a Declining EPS Growth Trend:
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (MM) | $11,199 | $14,401 | $11,919 | $11,420 | $13,945 | $14,669 |
| Gross Margins | 27% | 11% | 12% | 20% | 6% | 16% |
| Operating Margins | 28% | 12% | 12% | 20% | 6% | 16% |
| Net Margins | 23% | 10% | 9% | 28% | 7% | 12% |
| Net Income (MM) | $2,549 | $1,376 | $1,039 | $3,314 | $994 | $1,717 |
| Net Interest Expense (MM) | $1,279 | $1,486 | $1,339 | $1,255 | $1,002 | $1,395 |
| Depreciation & Amort. (MM) | $1,660 | $2,283 | $1,991 | $2,103 | $2,442 | $2,494 |
| Earnings Per Share | $3.74 | $1.62 | -$0.57 | $3.98 | $1.09 | $1.96 |
| Diluted Shares (MM) | 655 | 809 | 831 | 808 | 824 | 869 |
| Free Cash Flow (MM) | $519 | $224 | $247 | $2,575 | $3,700 | $6,215 |
| Net Current Assets (MM) | -$50,705 | -$63,694 | -$62,558 | -$63,403 | -$66,512 | -$53,236 |
| Long Term Debt (MM) | $31,144 | $28,998 | $33,957 | $33,847 | $34,584 | $33,057 |
| Net Debt / EBITDA | 6.8 | 7.57 | 10.87 | 8.33 | 12.86 | 10.52 |
Dominion Energy has slimmer gross margins than its peers, declining EPS growth, and a highly leveraged balance sheet. On the other hand, the company benefits from growing revenues and no capital expenditures and a pattern of improving cash flows. Furthermore, Dominion Energy has average net margins with a negative growth trend.
A Very Low P/E Ratio but Trades Above Its Graham Number:
Dominion Energy has a trailing twelve month P/E ratio of 14.6, compared to an average of 22.89 for the Utilities sector. Based on its EPS guidance of $3.15, the company has a forward P/E ratio of 13.9. The company doesn't issue forward earnings guidance, and the compound average growth rate of its last 6 years of reported EPS is -10.2%. On this basis, the company's PEG ratio is -1.43, 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 1.5 is higher than the sector average of 1.03. The company's shares are currently trading 24.9% above their Graham number.
Dominion Energy Has an Average Rating of Hold:
The 13 analysts following Dominion Energy have set target prices ranging from $44.0 to $61.0 per share, for an average of $49.38 with a hold rating. As of April 2023, the company is trading -11.3% 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 1.1% 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 $3,586,440,537.
