DOMINION ENERGY INC (D) Stock Fundamental Analysis
NYSE:D - New York Stock Exchange, Inc. - US25746U1097 - Common Stock - Currency: USD
Overall D gets a fundamental rating of 4 out of 10. We evaluated D against 25 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 has a decent growth rate and is not valued too expensively.
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.
Of the past 5 years D 4 years were profitable.
D had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
D has a Return On Assets of 1.94%. This is amonst the worse of the industry: D underperforms 84.00% of its industry peers.
Looking at the Return On Equity, with a value of 7.41%, D is doing worse than 80.00% of the companies in the same industry.
D has a worse Return On Invested Capital (3.59%) than 72.00% of its industry peers.
D had an Average Return On Invested Capital over the past 3 years of 3.19%. This is in line with the industry average of 3.92%.
The 3 year average ROIC (3.19%) for D is below the current ROIC(3.59%), indicating increased profibility in the last year.
| 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 has a Profit Margin of 13.60%. This is in the better half of the industry: D outperforms 68.00% of its industry peers.
D's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 28.54%, D belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
In the last couple of years the Operating Margin of D has grown nicely.
With an excellent Gross Margin value of 99.52%, D belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
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.
The number of shares outstanding for D has been increased compared to 1 year ago.
D has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, D has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.68, we must say that D is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of D (0.68) is worse than 60.00% of its industry peers.
A Debt/Equity ratio of 1.54 is on the high side and indicates that D has dependencies on debt financing.
The Debt to Equity ratio of D (1.54) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.54 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.68 |
ROIC/WACC0.55
WACC6.51%
2.3 Liquidity
A Current Ratio of 0.73 indicates that D may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.73, D is doing worse than 76.00% of the companies in the same industry.
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.
Looking at the Quick ratio, with a value of 0.53, D is doing worse than 80.00% of the companies in the same industry.
| 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 43.36% over the past year.
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 0.46% 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)0.46%
Revenue growth 3Y8.19%
Revenue growth 5Y0.08%
Sales Q2Q%9.29%
3.2 Future
D is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.45% yearly.
D is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.32% yearly.
EPS Next Y25.44%
EPS Next 2Y15.05%
EPS Next 3Y12.19%
EPS Next 5Y9.45%
Revenue Next Year6.59%
Revenue Next 2Y6.34%
Revenue Next 3Y5.85%
Revenue Next 5Y6.32%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 18.87, D is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of D is on the same level as its industry peers.
D is valuated rather cheaply when we compare the Price/Earnings ratio to 27.24, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 16.73, which indicates a correct valuation of D.
The rest of the industry has a similar Price/Forward Earnings ratio as D.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.42, D is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.87 | ||
| Fwd PE | 16.73 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, D is valued a bit more expensive than 72.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 13.67 |
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 12.19% in the coming years.
PEG (NY)0.74
PEG (5Y)N/A
EPS Next 2Y15.05%
EPS Next 3Y12.19%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.42%, D is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.57, D pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.40, D pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.42% |
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 2Y15.05%
EPS Next 3Y12.19%
61.13
+0.72 (+1.19%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners78.45%
Inst Owner Change-0.37%
Ins Owners0.11%
Ins Owner Change2.34%
Market Cap52.10B
Analysts66.67
Price Target60.26 (-1.42%)
Short Float %3.64%
Short Ratio5.49
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.42% |
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%
PT rev (3m)-0.83%
EPS NQ rev (1m)-6.2%
EPS NQ rev (3m)-10.53%
EPS NY rev (1m)0%
EPS NY rev (3m)0.11%
Revenue NQ rev (1m)-5.38%
Revenue NQ rev (3m)-4.63%
Revenue NY rev (1m)-1.51%
Revenue NY rev (3m)1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.87 | ||
| Fwd PE | 16.73 | ||
| P/S | 3.5 | ||
| P/FCF | N/A | ||
| P/OCF | 12.35 | ||
| P/B | 1.9 | ||
| P/tB | 2.24 | ||
| EV/EBITDA | 13.67 |
EPS(TTM)3.24
EY5.3%
EPS(NY)3.65
Fwd EY5.98%
FCF(TTM)-9.88
FCFYN/A
OCF(TTM)4.95
OCFY8.1%
SpS17.49
BVpS32.11
TBVpS27.25
PEG (NY)0.74
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 | 0.68 |
F-Score6
WACC6.51%
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)43.36%
EPS 3Y-10.58%
EPS 5Y-8.18%
EPS Q2Q%15.38%
EPS Next Y25.44%
EPS Next 2Y15.05%
EPS Next 3Y12.19%
EPS Next 5Y9.45%
Revenue 1Y (TTM)0.46%
Revenue growth 3Y8.19%
Revenue growth 5Y0.08%
Sales Q2Q%9.29%
Revenue Next Year6.59%
Revenue Next 2Y6.34%
Revenue Next 3Y5.85%
Revenue Next 5Y6.32%
EBIT growth 1Y26.31%
EBIT growth 3Y13.87%
EBIT growth 5Y1.62%
EBIT Next Year79.33%
EBIT Next 3Y29.13%
EBIT Next 5Y20.69%
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%