NYSE:D

Stock Analysis Report

Executive Summary

Dominion Energy, Inc. produces and transports energy.

Rewards

Trading at 7.2% below its fair value

Earnings are forecast to grow 52.18% per year

Pays a high and reliable dividend of 4.53%

Risk Analysis

Interest payments are not well covered by earnings

Dividend of 4.53% is not well covered by earnings

Large one-off items impacting financial results

Profit margins (6.4%) are lower than last year (23.6%)

+ 1 more risk


Snowflake Analysis

Established dividend payer with moderate growth potential.


Similar Companies

Share Price & News

How has Dominion Energy's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: D has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.5%

D

-0.6%

US Integrated Utilities

0.3%

US Market


1 Year Return

7.1%

D

9.6%

US Integrated Utilities

18.5%

US Market

Return vs Industry: D underperformed the US Integrated Utilities industry which returned 9.6% over the past year.

Return vs Market: D underperformed the US Market which returned 18.5% over the past year.


Shareholder returns

DIndustryMarket
7 Day-2.5%-0.6%0.3%
30 Day0.9%0.3%1.5%
90 Day5.6%-0.09%5.7%
1 Year12.3%7.1%13.3%9.6%21.1%18.5%
3 Year24.0%8.7%41.1%27.0%45.9%36.4%
5 Year37.0%11.4%64.5%32.4%71.4%52.5%

Price Volatility Vs. Market

How volatile is Dominion Energy's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Dominion Energy undervalued compared to its fair value and its price relative to the market?

7.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: D ($81) is trading below our estimate of fair value ($87.27)

Significantly Below Fair Value: D is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: D is poor value based on its PE Ratio (63.3x) compared to the Integrated Utilities industry average (20.9x).

PE vs Market: D is poor value based on its PE Ratio (63.3x) compared to the US market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: D is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

PB vs Industry: D is overvalued based on its PB Ratio (2.4x) compared to the US Integrated Utilities industry average (2.1x).


Next Steps

Future Growth

How is Dominion Energy forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

52.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: D's forecast earnings growth (52.2% per year) is above the savings rate (1.7%).

Earnings vs Market: D's earnings (52.2% per year) are forecast to grow faster than the US market (14.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: D's revenue (5.1% per year) is forecast to grow slower than the US market (7.4% per year).

High Growth Revenue: D's revenue (5.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: D's Return on Equity is forecast to be low in 3 years time (12.6%).


Next Steps

Past Performance

How has Dominion Energy performed over the past 5 years?

3.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: D has a large one-off loss of $1.6B impacting its September 30 2019 financial results.

Growing Profit Margin: D's current net profit margins (6.4%) are lower than last year (23.6%).


Past Earnings Growth Analysis

Earnings Trend: D's earnings have grown by 3.9% per year over the past 5 years.

Accelerating Growth: D's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: D had negative earnings growth (-68.5%) over the past year, making it difficult to compare to the Integrated Utilities industry average (-9.8%).


Return on Equity

High ROE: D's Return on Equity (3.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Dominion Energy's financial position?


Financial Position Analysis

Short Term Liabilities: D's short term assets ($6.3B) do not cover its short term liabilities ($12.2B).

Long Term Liabilities: D's short term assets ($6.3B) do not cover its long term liabilities ($60.2B).


Debt to Equity History and Analysis

Debt Level: D's debt to equity ratio (138.8%) is considered high.

Reducing Debt: D's debt to equity ratio has reduced from 217.1% to 138.8% over the past 5 years.

Debt Coverage: D's debt is not well covered by operating cash flow (11.5%).

Interest Coverage: D's interest payments on its debt are not well covered by EBIT (2.1x coverage).


Balance Sheet

Inventory Level: D has a high level of physical assets or inventory.

Debt Coverage by Assets: D's debt is not covered by short term assets (assets are 0.2x debt).


Next Steps

Dividend

What is Dominion Energy's current dividend yield, its reliability and sustainability?

4.53%

Current Dividend Yield


Dividend Yield vs Market

company4.5%marketbottom25%1.4%markettop25%3.7%industryaverage3.4%forecastin3Years4.7%

Current dividend yield vs market & industry

Notable Dividend: D's dividend (4.53%) is higher than the bottom 25% of dividend payers in the US market (1.42%).

High Dividend: D's dividend (4.53%) is in the top 25% of dividend payers in the US market (3.7%)


Stability and Growth of Payments

Stable Dividend: D's dividends per share have been stable in the past 10 years.

Growing Dividend: D's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (280.2%), D's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: D's dividends in 3 years are forecast to be covered by earnings (81.9% payout ratio).


Next Steps

Management

What is the CEO of Dominion Energy's salary, the management and board of directors tenure and is there insider trading?

5.8yrs

Average management tenure


CEO

Tom Farrell (65yo)

13.9yrs

Tenure

US$14,956,442

Compensation

Mr. Thomas F. Farrell II, also known as Tom, has been the Chairman of Dominion Energy since April 27, 2007 and its Chief Executive Officer and President since April 2007. Mr. Farrell has been Chairman at S ...


CEO Compensation Analysis

Compensation vs Market: Tom's total compensation ($USD14.96M) is above average for companies of similar size in the US market ($USD11.01M).

Compensation vs Earnings: Tom's compensation has been consistent with company performance over the past year.


Management Age and Tenure

5.8yrs

Average Tenure

51yo

Average Age

Experienced Management: D's management team is seasoned and experienced (5.8 years average tenure).


Board Age and Tenure

7.0yrs

Average Tenure

64yo

Average Age

Experienced Board: D's board of directors are considered experienced (7 years average tenure).


Insider Trading

Insider Buying: D insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$1,065,91507 Nov 19
Diane Leopold
EntityIndividual
Role
Co-Chief Operating Officer
Co-COO & Executive VP
Shares12,947.75
Max PriceUS$82.48
BuyUS$1,687,32217 Sep 19
Michael Szymanczyk
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares21,400
Max PriceUS$78.85
BuyUS$499,99813 Mar 19
James Bennett
EntityIndividual
Shares6,550.05
Max PriceUS$76.34
BuyUS$149,99813 Mar 19
D. Hagood
EntityIndividual
Shares1,965
Max PriceUS$76.34
SellUS$92,34712 Mar 19
Robert Spilman
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,215
Max PriceUS$76.01
SellUS$178,27505 Feb 19
Diane Leopold
EntityIndividual
Role
Co-Chief Operating Officer
Co-COO & Executive VP
Shares2,500
Max PriceUS$71.31
BuyUS$299,99820 Dec 18
James Chapman
EntityIndividual
Role
Chief Financial Officer
Executive VP
Shares4,052.93
Max PriceUS$74.02

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 18%.


Management Team

  • Tom Farrell (65yo)

    Chairman

    • Tenure: 13.9yrs
    • Compensation: US$14.96m
  • Paul Koonce (59yo)

    Executive VP & Strategic Advisor

    • Tenure: 13.7yrs
    • Compensation: US$3.65m
  • Robert Blue (51yo)

    Co-COO & Executive VP

    • Tenure: 0yrs
    • Compensation: US$2.93m
  • Bill Murray (51yo)

    Senior Vice President of Corporate Affairs & Communications

    • Tenure: 0.8yrs
  • Carter Reid (50yo)

    Executive VP

    • Tenure: 5.9yrs
  • Tom Hamlin

    Vice President of Investor Relations & Financial Planning

    • Tenure: 8.8yrs
  • Jim Chapman (49yo)

    Executive VP

    • Tenure: 1.1yrs
    • Compensation: US$3.27m
  • Diane Leopold (52yo)

    Co-COO & Executive VP

    • Tenure: 0yrs
    • Compensation: US$3.12m
  • Michele Cardiff (51yo)

    VP, Controller & Chief Accounting Officer

    • Tenure: 5.7yrs
  • Carlos Brown (44yo)

    Senior VP & General Counsel

    • Tenure: 2.9yrs

Board Members

  • Mark Kington (59yo)

    Independent Director

    • Tenure: 14.7yrs
    • Compensation: US$289.97k
  • Tom Farrell (65yo)

    Chairman

    • Tenure: 13.9yrs
    • Compensation: US$14.96m
  • Mike Szymanczyk (70yo)

    Independent Director

    • Tenure: 7.2yrs
    • Compensation: US$264.97k
  • Robert Spilman (63yo)

    Independent Director

    • Tenure: 10yrs
    • Compensation: US$289.97k
  • John Harris (71yo)

    Lead Director

    • Tenure: 5.9yrs
    • Compensation: US$443.25k
  • Joe Rigby (62yo)

    Independent Director

    • Tenure: 2.9yrs
    • Compensation: US$264.97k
  • Ron Jibson (66yo)

    Independent Director

    • Tenure: 3.3yrs
    • Compensation: US$264.97k
  • Jim Ellis (71yo)

    Independent Director

    • Tenure: 6.6yrs
    • Compensation: US$264.97k
  • Helen Dragas (58yo)

    Director

    • Tenure: 9yrs
    • Compensation: US$276.64k
  • Pamela Royal (56yo)

    Independent Director

    • Tenure: 6.8yrs
    • Compensation: US$269.97k

Company Information

Dominion Energy, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Dominion Energy, Inc.
  • Ticker: D
  • Exchange: NYSE
  • Founded: 1909
  • Industry: Multi-Utilities
  • Sector: Utilities
  • Market Cap: US$67.444b
  • Shares outstanding: 823.09m
  • Website: https://www.dominionenergy.com

Number of Employees


Location

  • Dominion Energy, Inc.
  • 120 Tredegar Street
  • Richmond
  • Virginia
  • 23219
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DNYSE (New York Stock Exchange)YesCommon StockUSUSDMay 1983
DODDB (Deutsche Boerse AG)YesCommon StockDEEURMay 1983
0IC9LSE (London Stock Exchange)YesCommon StockGBUSDMay 1983
DODETLX (Eurotlx)YesCommon StockITEURMay 1983
DOENWBAG (Wiener Boerse AG)YesCommon StockATEURMay 1983
DCUENYSE (New York Stock Exchange)CORP UNITSUSUSDJun 2019

Biography

Dominion Energy, Inc. produces and transports energy. The company’s Power Delivery segment engages in the regulated electric transmission and distribution operations that serve residential, commercial, ind ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/08 23:33
End of Day Share Price2019/12/06 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.