DOMINION ENERGY INC (D) Stock Fundamental Analysis
NYSE:D - New York Stock Exchange, Inc. - US25746U1097 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to D. D was compared to 25 industry peers in the Multi-Utilities industry. While D is still in line with the averages on profitability rating, there are concerns on its financial health. D is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
D had positive earnings in the past year.
In the past year D had a positive cash flow from operations.
D had positive earnings in 4 of the past 5 years.
In the past 5 years D always reported a positive cash flow from operatings.
1.2 Ratios
D has a worse Return On Assets (1.94%) than 84.00% of its industry peers.
D's Return On Equity of 7.41% is on the low side compared to the rest of the industry. D is outperformed by 80.00% of its industry peers.
The Return On Invested Capital of D (3.59%) is worse than 72.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for D is in line with the industry average of 3.92%.
The last Return On Invested Capital (3.59%) for D is above the 3 year average (3.19%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.94% | ||
| ROE | 7.41% | ||
| ROIC | 3.59% |
ROA(3y)1.69%
ROA(5y)1.58%
ROE(3y)6.47%
ROE(5y)5.83%
ROIC(3y)3.19%
ROIC(5y)3.18%
1.3 Margins
D's Profit Margin of 13.60% is fine compared to the rest of the industry. D outperforms 68.00% of its industry peers.
In the last couple of years the Profit Margin of D has grown nicely.
D has a Operating Margin of 28.54%. This is amongst the best in the industry. D outperforms 100.00% of its industry peers.
In the last couple of years the Operating Margin of D has grown nicely.
The Gross Margin of D (99.52%) is better than 100.00% of its industry peers.
In the last couple of years the Gross Margin of D has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 28.54% | ||
| PM (TTM) | 13.6% | ||
| GM | 99.52% |
OM growth 3Y5.25%
OM growth 5Y1.54%
PM growth 3Y-21.43%
PM growth 5Y8.73%
GM growth 3Y0.03%
GM growth 5Y0.02%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so D is destroying value.
D has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, D has more shares outstanding
The debt/assets ratio for D is higher compared to a year ago.
2.2 Solvency
D has an Altman-Z score of 0.65. This is a bad value and indicates that D is not financially healthy and even has some risk of bankruptcy.
D has a Altman-Z score of 0.65. This is in the lower half of the industry: D underperforms 60.00% of its industry peers.
D has a Debt/Equity ratio of 1.54. This is a high value indicating a heavy dependency on external financing.
D has a Debt to Equity ratio of 1.54. This is comparable to the rest of the industry: D outperforms 48.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.54 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.65 |
ROIC/WACC0.55
WACC6.55%
2.3 Liquidity
A Current Ratio of 0.73 indicates that D may have some problems paying its short term obligations.
The Current ratio of D (0.73) is worse than 76.00% of its industry peers.
D has a Quick Ratio of 0.73. This is a bad value and indicates that D is not financially healthy enough and could expect problems in meeting its short term obligations.
D's Quick ratio of 0.53 is on the low side compared to the rest of the industry. D is outperformed by 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.73 | ||
| Quick Ratio | 0.53 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 46.73% over the past year.
The Earnings Per Share has been decreasing by -8.18% on average over the past years.
D shows a small growth in Revenue. In the last year, the Revenue has grown by 5.38%.
Measured over the past years, D shows a small growth in Revenue. The Revenue has been growing by 0.08% on average per year.
EPS 1Y (TTM)46.73%
EPS 3Y-10.58%
EPS 5Y-8.18%
EPS Q2Q%69.09%
Revenue 1Y (TTM)5.38%
Revenue growth 3Y8.19%
Revenue growth 5Y0.08%
Sales Q2Q%12.22%
3.2 Future
Based on estimates for the next years, D will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.47% on average per year.
D is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.89% yearly.
EPS Next Y25.43%
EPS Next 2Y14.99%
EPS Next 3Y12.19%
EPS Next 5Y9.47%
Revenue Next Year12.23%
Revenue Next 2Y8.25%
Revenue Next 3Y7.87%
Revenue Next 5Y4.89%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 17.93 indicates a rather expensive valuation of D.
D's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 25.91, D is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 15.42, the valuation of D can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of D is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 21.77. D is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.93 | ||
| Fwd PE | 15.42 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, D is valued a bit more expensive than the industry average as 72.00% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 13.07 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of D may justify a higher PE ratio.
D's earnings are expected to grow with 12.19% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.7
PEG (5Y)N/A
EPS Next 2Y14.99%
EPS Next 3Y12.19%
5. Dividend
5.1 Amount
D has a Yearly Dividend Yield of 4.72%, which is a nice return.
Compared to an average industry Dividend Yield of 3.66, D pays a bit more dividend than its industry peers.
D's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.72% |
5.2 History
The dividend of D decreases each year by -7.57%.
D has been paying a dividend for at least 10 years, so it has a reliable track record.
D has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-7.57%
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
D pays out 110.95% of its income as dividend. This is not a sustainable payout ratio.
DP110.95%
EPS Next 2Y14.99%
EPS Next 3Y12.19%
56.29
+0.63 (+1.13%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners78.34%
Inst Owner Change2.53%
Ins Owners0.1%
Ins Owner Change1.46%
Market Cap47.97B
Analysts68
Price Target61.27 (8.85%)
Short Float %2.42%
Short Ratio3.76
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.72% |
Yearly Dividend2.65
Dividend Growth(5Y)-7.57%
DP110.95%
Div Incr Years0
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)11.75%
Min EPS beat(2)1.78%
Max EPS beat(2)21.72%
EPS beat(4)4
Avg EPS beat(4)9.99%
Min EPS beat(4)1.78%
Max EPS beat(4)21.72%
EPS beat(8)5
Avg EPS beat(8)2.85%
EPS beat(12)6
Avg EPS beat(12)1.92%
EPS beat(16)7
Avg EPS beat(16)1.16%
Revenue beat(2)1
Avg Revenue beat(2)-7.42%
Min Revenue beat(2)-15.42%
Max Revenue beat(2)0.59%
Revenue beat(4)1
Avg Revenue beat(4)-7.68%
Min Revenue beat(4)-15.42%
Max Revenue beat(4)0.59%
Revenue beat(8)1
Avg Revenue beat(8)-10.24%
Revenue beat(12)2
Avg Revenue beat(12)-10.7%
Revenue beat(16)2
Avg Revenue beat(16)-15.09%
PT rev (1m)0.6%
PT rev (3m)1.96%
EPS NQ rev (1m)-4.62%
EPS NQ rev (3m)-3.94%
EPS NY rev (1m)0.1%
EPS NY rev (3m)0.12%
Revenue NQ rev (1m)0.79%
Revenue NQ rev (3m)-0.48%
Revenue NY rev (1m)6.35%
Revenue NY rev (3m)6.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.93 | ||
| Fwd PE | 15.42 | ||
| P/S | 3.22 | ||
| P/FCF | N/A | ||
| P/OCF | 11.37 | ||
| P/B | 1.75 | ||
| P/tB | 2.07 | ||
| EV/EBITDA | 13.07 |
EPS(TTM)3.14
EY5.58%
EPS(NY)3.65
Fwd EY6.48%
FCF(TTM)-9.88
FCFYN/A
OCF(TTM)4.95
OCFY8.79%
SpS17.49
BVpS32.11
TBVpS27.25
PEG (NY)0.7
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.94% | ||
| ROE | 7.41% | ||
| ROCE | 4.44% | ||
| ROIC | 3.59% | ||
| ROICexc | 3.6% | ||
| ROICexgc | 3.76% | ||
| OM | 28.54% | ||
| PM (TTM) | 13.6% | ||
| GM | 99.52% | ||
| FCFM | N/A |
ROA(3y)1.69%
ROA(5y)1.58%
ROE(3y)6.47%
ROE(5y)5.83%
ROIC(3y)3.19%
ROIC(5y)3.18%
ROICexc(3y)3.2%
ROICexc(5y)3.19%
ROICexgc(3y)3.39%
ROICexgc(5y)3.43%
ROCE(3y)4.02%
ROCE(5y)3.97%
ROICexcg growth 3Y11.6%
ROICexcg growth 5Y0.81%
ROICexc growth 3Y12.92%
ROICexc growth 5Y1.47%
OM growth 3Y5.25%
OM growth 5Y1.54%
PM growth 3Y-21.43%
PM growth 5Y8.73%
GM growth 3Y0.03%
GM growth 5Y0.02%
F-Score6
Asset Turnover0.14
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.54 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 6.13 | ||
| Cap/Depr | 485.3% | ||
| Cap/Sales | 84.83% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 61.52% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.73 | ||
| Quick Ratio | 0.53 | ||
| Altman-Z | 0.65 |
F-Score6
WACC6.55%
ROIC/WACC0.55
Cap/Depr(3y)344.17%
Cap/Depr(5y)292.02%
Cap/Sales(3y)69.92%
Cap/Sales(5y)60.89%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)46.73%
EPS 3Y-10.58%
EPS 5Y-8.18%
EPS Q2Q%69.09%
EPS Next Y25.43%
EPS Next 2Y14.99%
EPS Next 3Y12.19%
EPS Next 5Y9.47%
Revenue 1Y (TTM)5.38%
Revenue growth 3Y8.19%
Revenue growth 5Y0.08%
Sales Q2Q%12.22%
Revenue Next Year12.23%
Revenue Next 2Y8.25%
Revenue Next 3Y7.87%
Revenue Next 5Y4.89%
EBIT growth 1Y26.31%
EBIT growth 3Y13.87%
EBIT growth 5Y1.62%
EBIT Next Year79.33%
EBIT Next 3Y29.13%
EBIT Next 5Y20.08%
FCF growth 1Y-139.49%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-9.7%
OCF growth 3Y7.52%
OCF growth 5Y-0.73%