DOMINION ENERGY INC (D) Stock Fundamental Analysis
USA - NYSE:D - US25746U1097 - Common Stock
59.82 USD
-0.03 (-0.05%)
60.1 USD
+0.28 (+0.47%)
Taking everything into account, D scores 4 out of 10 in our fundamental rating. 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 valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year D was profitable.
D had a positive operating cash flow in the past year.
D had positive earnings in 4 of the past 5 years.
D had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.08%, D is doing worse than 84.00% of the companies in the same industry.
D's Return On Equity of 8.20% is on the low side compared to the rest of the industry. D is outperformed by 64.00% of its industry peers.
D has a worse Return On Invested Capital (3.71%) than 64.00% 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 3.82%.
The 3 year average ROIC (3.19%) for D is below the current ROIC(3.71%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.08% | ||
| ROE | 8.2% | ||
| ROIC | 3.71% |
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 has a better Profit Margin (14.66%) than 76.00% of its industry peers.
In the last couple of years the Profit Margin of D has grown nicely.
D has a Operating Margin of 29.74%. This is amongst the best in the industry. D outperforms 100.00% of its industry peers.
D's Operating Margin has improved in the last couple of years.
D has a Gross Margin of 99.55%. This is amongst the best in the industry. D outperforms 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 | 29.74% | ||
| PM (TTM) | 14.66% | ||
| GM | 99.55% |
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.
Compared to 1 year ago, D has more shares outstanding
D has more shares outstanding than it did 5 years ago.
D has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.65, we must say that D is in the distress zone and 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.
A Debt/Equity ratio of 1.62 is on the high side and indicates that D has dependencies on debt financing.
D has a Debt to Equity ratio (1.62) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.62 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.65 |
ROIC/WACC0.58
WACC6.43%
2.3 Liquidity
A Current Ratio of 0.67 indicates that D may have some problems paying its short term obligations.
D has a worse Current ratio (0.67) than 76.00% of its industry peers.
A Quick Ratio of 0.49 indicates that D may have some problems paying its short term obligations.
D has a worse Quick ratio (0.49) than 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.67 | ||
| Quick Ratio | 0.49 |
3. Growth
3.1 Past
D shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 43.36%, which is quite impressive.
Measured over the past years, D shows a decrease in Earnings Per Share. The EPS has been decreasing by -8.18% on average per year.
Looking at the last year, D shows a small growth in Revenue. The Revenue has grown by 5.29% in the last year.
The Revenue has been growing slightly by 0.08% on average over the past years.
EPS 1Y (TTM)43.36%
EPS 3Y-10.58%
EPS 5Y-8.18%
EPS Q2Q%15.38%
Revenue 1Y (TTM)5.29%
Revenue growth 3Y8.19%
Revenue growth 5Y0.08%
Sales Q2Q%9.29%
3.2 Future
The Earnings Per Share is expected to grow by 9.73% on average over the next years. This is quite good.
Based on estimates for the next years, D will show a small growth in Revenue. The Revenue will grow by 5.43% on average per year.
EPS Next Y26.12%
EPS Next 2Y15.35%
EPS Next 3Y12.3%
EPS Next 5Y9.73%
Revenue Next Year5.81%
Revenue Next 2Y5.98%
Revenue Next 3Y5.62%
Revenue Next 5Y5.43%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
With a Price/Earnings ratio of 18.46, D is valued on the expensive side.
Based on the Price/Earnings ratio, D is valued a bit more expensive than 60.00% of the companies in the same industry.
When comparing the Price/Earnings ratio of D to the average of the S&P500 Index (27.41), we can say D is valued slightly cheaper.
With a Price/Forward Earnings ratio of 16.29, D is valued correctly.
D's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. D is more expensive than 60.00% of the companies in the same industry.
D's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.46 | ||
| Fwd PE | 16.29 |
4.2 Price Multiples
D's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. D is more expensive than 72.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 13.15 |
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.
D has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as D's earnings are expected to grow with 12.30% in the coming years.
PEG (NY)0.71
PEG (5Y)N/A
EPS Next 2Y15.35%
EPS Next 3Y12.3%
5. Dividend
5.1 Amount
D has a Yearly Dividend Yield of 4.47%, which is a nice return.
D's Dividend Yield is slightly below the industry average, which is at 4.63.
Compared to an average S&P500 Dividend Yield of 2.38, D pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.47% |
5.2 History
The dividend of D decreases each year by -7.57%.
D has paid a dividend for at least 10 years, which is 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 101.16% of its income as dividend. This is not a sustainable payout ratio.
DP101.16%
EPS Next 2Y15.35%
EPS Next 3Y12.3%
59.82
-0.03 (-0.05%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners82.79%
Inst Owner Change3.4%
Ins Owners0.11%
Ins Owner Change0.47%
Market Cap51.05B
Analysts66.96
Price Target62.64 (4.71%)
Short Float %4.39%
Short Ratio7.92
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.47% |
Yearly Dividend2.65
Dividend Growth(5Y)-7.57%
DP101.16%
Div Incr Years0
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)15.14%
Min EPS beat(2)8.57%
Max EPS beat(2)21.72%
EPS beat(4)4
Avg EPS beat(4)8.93%
Min EPS beat(4)1.78%
Max EPS beat(4)21.72%
EPS beat(8)5
Avg EPS beat(8)2.64%
EPS beat(12)7
Avg EPS beat(12)2.69%
EPS beat(16)8
Avg EPS beat(16)1.86%
Revenue beat(2)2
Avg Revenue beat(2)1.44%
Min Revenue beat(2)0.59%
Max Revenue beat(2)2.28%
Revenue beat(4)2
Avg Revenue beat(4)-5.02%
Min Revenue beat(4)-15.42%
Max Revenue beat(4)2.28%
Revenue beat(8)2
Avg Revenue beat(8)-9.94%
Revenue beat(12)3
Avg Revenue beat(12)-6.51%
Revenue beat(16)3
Avg Revenue beat(16)-13.7%
PT rev (1m)1.71%
PT rev (3m)2.37%
EPS NQ rev (1m)-16.43%
EPS NQ rev (3m)-14.97%
EPS NY rev (1m)-0.21%
EPS NY rev (3m)0.55%
Revenue NQ rev (1m)-3.79%
Revenue NQ rev (3m)-4.67%
Revenue NY rev (1m)1.94%
Revenue NY rev (3m)-2.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.46 | ||
| Fwd PE | 16.29 | ||
| P/S | 3.35 | ||
| P/FCF | N/A | ||
| P/OCF | 11.08 | ||
| P/B | 1.88 | ||
| P/tB | 2.21 | ||
| EV/EBITDA | 13.15 |
EPS(TTM)3.24
EY5.42%
EPS(NY)3.67
Fwd EY6.14%
FCF(TTM)-9.46
FCFYN/A
OCF(TTM)5.4
OCFY9.03%
SpS17.84
BVpS31.89
TBVpS27.03
PEG (NY)0.71
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.08% | ||
| ROE | 8.2% | ||
| ROCE | 4.67% | ||
| ROIC | 3.71% | ||
| ROICexc | 3.72% | ||
| ROICexgc | 3.88% | ||
| OM | 29.74% | ||
| PM (TTM) | 14.66% | ||
| GM | 99.55% | ||
| 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-Score5
Asset Turnover0.14
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.62 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 6.21 | ||
| Cap/Depr | 494.15% | ||
| Cap/Sales | 83.27% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 64.97% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.67 | ||
| Quick Ratio | 0.49 | ||
| Altman-Z | 0.65 |
F-Score5
WACC6.43%
ROIC/WACC0.58
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)43.36%
EPS 3Y-10.58%
EPS 5Y-8.18%
EPS Q2Q%15.38%
EPS Next Y26.12%
EPS Next 2Y15.35%
EPS Next 3Y12.3%
EPS Next 5Y9.73%
Revenue 1Y (TTM)5.29%
Revenue growth 3Y8.19%
Revenue growth 5Y0.08%
Sales Q2Q%9.29%
Revenue Next Year5.81%
Revenue Next 2Y5.98%
Revenue Next 3Y5.62%
Revenue Next 5Y5.43%
EBIT growth 1Y24.26%
EBIT growth 3Y13.87%
EBIT growth 5Y1.62%
EBIT Next Year74.33%
EBIT Next 3Y28.23%
EBIT Next 5Y20.46%
FCF growth 1Y-118.79%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-16.7%
OCF growth 3Y7.52%
OCF growth 5Y-0.73%