DOMINION ENERGY INC (D) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:D - US25746U1097 - Common Stock
61.13 USD
+0.89 (+1.48%)
61.01 USD
-0.12 (-0.2%)
We assign a fundamental rating of 4 out of 10 to D. D was compared to 26 industry peers in the Multi-Utilities industry. There are concerns on the financial health of D while its profitability can be described as average. 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.
- D had a positive operating cash flow in the past year.
- Of the past 5 years D 4 years were profitable.
- In the past 5 years D always reported a positive cash flow from operatings.
1.2 Ratios
- The Return On Assets of D (2.05%) is worse than 76.92% of its industry peers.
- D has a Return On Equity (8.26%) which is in line with its industry peers.
- Looking at the Return On Invested Capital, with a value of 3.68%, D is doing worse than 69.23% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for D is in line with the industry average of 3.94%.
- The 3 year average ROIC (3.19%) for D is below the current ROIC(3.68%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.05% | ||
| ROE | 8.26% | ||
| ROIC | 3.68% |
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 (14.47%) than 73.08% of its industry peers.
- In the last couple of years the Profit Margin of D has grown nicely.
- Looking at the Operating Margin, with a value of 29.45%, D belongs to the top of the industry, outperforming 96.15% of the companies in the same industry.
- In the last couple of years the Operating Margin of D has grown nicely.
- D has a better Gross Margin (99.49%) 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 | 29.45% | ||
| PM (TTM) | 14.47% | ||
| GM | 99.49% |
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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), D is destroying value.
- The number of shares outstanding for D has been increased compared to 1 year ago.
- The number of shares outstanding for D has been increased compared to 5 years ago.
- The debt/assets ratio for D is higher compared to a year ago.
2.2 Solvency
- D has an Altman-Z score of 0.66. 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 0.66. This is in the lower half of the industry: D underperforms 65.38% of its industry peers.
- D has a Debt/Equity ratio of 1.65. This is a high value indicating a heavy dependency on external financing.
- With a Debt to Equity ratio value of 1.65, D perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.65 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.66 |
ROIC/WACC0.57
WACC6.51%
2.3 Liquidity
- A Current Ratio of 0.84 indicates that D may have some problems paying its short term obligations.
- With a Current ratio value of 0.84, D is not doing good in the industry: 76.92% of the companies in the same industry are doing better.
- D has a Quick Ratio of 0.84. This is a bad value and indicates that D is not financially healthy enough and could expect problems in meeting its short term obligations.
- With a Quick ratio value of 0.65, D perfoms like the industry average, outperforming 46.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.65 |
3. Growth
3.1 Past
- D shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 34.41%, which is quite impressive.
- D shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -8.18% yearly.
- D shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.36%.
- D shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.08% yearly.
EPS 1Y (TTM)34.41%
EPS 3Y-10.58%
EPS 5Y-8.18%
EPS Q2Q%8.16%
Revenue 1Y (TTM)8.36%
Revenue growth 3Y8.19%
Revenue growth 5Y0.08%
Sales Q2Q%14.87%
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 9.86% on average per year.
- Based on estimates for the next years, D will show a small growth in Revenue. The Revenue will grow by 5.26% on average per year.
EPS Next Y26.41%
EPS Next 2Y15.37%
EPS Next 3Y12.4%
EPS Next 5Y9.86%
Revenue Next Year5.06%
Revenue Next 2Y5.97%
Revenue Next 3Y5.87%
Revenue Next 5Y5.26%
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
- Based on the Price/Earnings ratio of 18.41, the valuation of D can be described as rather expensive.
- D's Price/Earnings is on the same level as the industry average.
- D's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.87.
- Based on the Price/Forward Earnings ratio of 16.64, 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.
- D's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.96.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.41 | ||
| Fwd PE | 16.64 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of D indicates a slightly more expensive valuation: D is more expensive than 76.92% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 13.25 |
4.3 Compensation for Growth
- D's 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.
- A more expensive valuation may be justified as D's earnings are expected to grow with 12.40% in the coming years.
PEG (NY)0.7
PEG (5Y)N/A
EPS Next 2Y15.37%
EPS Next 3Y12.4%
5. Dividend
5.1 Amount
- D has a Yearly Dividend Yield of 4.46%, which is a nice return.
- D's Dividend Yield is rather good when compared to the industry average which is at 3.77. D pays more dividend than 84.62% of the companies in the same industry.
- D's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.46% |
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
- 99.17% of the earnings are spent on dividend by D. This is not a sustainable payout ratio.
DP99.17%
EPS Next 2Y15.37%
EPS Next 3Y12.4%
DOMINION ENERGY INC / D FAQ
What is the ChartMill fundamental rating of DOMINION ENERGY INC (D) stock?
ChartMill assigns a fundamental rating of 4 / 10 to D.
What is the valuation status for D stock?
ChartMill assigns a valuation rating of 4 / 10 to DOMINION ENERGY INC (D). This can be considered as Fairly Valued.
Can you provide the profitability details for DOMINION ENERGY INC?
DOMINION ENERGY INC (D) has a profitability rating of 6 / 10.
What is the earnings growth outlook for DOMINION ENERGY INC?
The Earnings per Share (EPS) of DOMINION ENERGY INC (D) is expected to grow by 26.41% in the next year.
Is the dividend of DOMINION ENERGY INC sustainable?
The dividend rating of DOMINION ENERGY INC (D) is 5 / 10 and the dividend payout ratio is 99.17%.