Dominion Energy (D) AI Stock Analysis

• Market Cap: $45.85B
• Dividend Yield: 4.93%
• Average Volume (3M): 5.67M
• Price to Earnings (P/E): 20.2
• Beta (1Y): 0.30
• Revenue Growth: 3.62%
• EPS Growth: 40.33%
• Country: US
• Employees: 14,700
• Sector: Utilities
• Sector Strength: 75
• Industry: Regulated Electric
• EPS (TTM): 0.93
• Shares Outstanding: 852,790,600
• 10 Day Avg. Volume: 5,589,430
• 30 Day Avg. Volume: 5,673,061
• PEG Ratio: -0.55
• Price to Book (P/B): 1.81
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -12.98
• Enterprise Value/Market Cap: 2.09
• Enterprise Value/Revenue: 1.64
• Enterprise Value/Gross Profit: 13.16
• Enterprise Value/Ebitda: 3.45
• 1Y Price Target: $58.71
• Price Target Upside: 8.36% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 9

• Rating: 67 Neutral
• Price Target: $58.00 ▲(7.05%Upside)

Dominion Energy's overall score is driven primarily by its solid financial performance and strong earnings call results, which highlight progress in key projects and robust financial performance. However, high leverage, negative free cash flow, and recent safety and tariff concerns weigh on the score. The technical analysis indicates a bearish trend, while the valuation suggests the stock may be slightly overvalued.

Positive Factors

Capital Investment

Dominion Energy raised its five-year capital plan by $7 billion, indicating a significant investment in growth.

Data Center Development

Dominion Energy provided a positive update on data center development in its service territory that is not included in current guidance.

Regulated Growth Strategy

The core fundamentals of the company’s streamlined, VEPCO-centric profile have improved significantly and placed it in a favorable position to execute its regulated growth strategy.

Negative Factors

Earnings Expectations

The expected earnings per share for Dominion Energy are modestly below the consensus expectations.

Macroeconomic Pressures

Potential exposure to tariffs and broader macroeconomic pressures could impact both the cost estimate and schedule for CVOW.

Uncertainty in Construction

Continued macro/political uncertainty through the CVOW construction cycle keeps analysts on the sidelines, maintaining a Market Perform rating.

Dominion Energy Business Overview & Revenue Model

Company Description

Dominion Energy, Inc. is a prominent American energy company headquartered in Richmond, Virginia. The company operates in the utilities sector, primarily focusing on the generation, transmission, and distribution of electricity and natural gas. Dominion Energy serves over seven million customers across the United States, providing reliable energy solutions and investing in infrastructure to support sustainable energy development. The company is committed to reducing carbon emissions and enhancing energy efficiency through its diverse energy portfolio, which includes natural gas, nuclear, coal, solar, and wind power sources.

How the Company Makes Money

Dominion Energy generates revenue through several key streams, primarily from the sale and distribution of electricity and natural gas to residential, commercial, and industrial customers. The company's regulated utility operations are a significant source of income, as they involve long-term agreements and regulated pricing structures that ensure stable cash flows. Additionally, Dominion Energy earns money from its non-regulated operations, which include energy trading and merchant power generation. The company has also invested in renewable energy projects, which contribute to its earnings through power purchase agreements and government incentives. Partnerships with other energy companies and investments in energy infrastructure further support Dominion Energy's revenue model, enabling the company to optimize its energy delivery capabilities and expand its market presence.

Dominion Energy Financial Statement Overview

Summary

Dominion Energy demonstrates strong operational efficiency and revenue growth, supported by stable margins. However, high leverage and negative free cash flow due to substantial capital expenditures pose potential risks. The company must focus on enhancing net profitability and managing debt levels to maintain financial stability.

Income Statement

Dominion Energy's income statement reflects stable revenue growth with a 3.08% increase in revenues for the TTM period. The gross profit margin stands at 48.95%, indicating efficient cost management. However, the net profit margin slightly declined to 14.06% from 14.70% in the prior year, suggesting some pressure on profitability. The EBIT margin improved to 24.40%, reflecting better operational efficiency. Overall, the company displays solid revenue growth and operational efficiency but faces challenges in maintaining high net profitability.

Balance Sheet

The balance sheet of Dominion Energy shows a moderate financial position. The debt-to-equity ratio is 1.61, indicating relatively high leverage, which could pose risks if not managed carefully. The return on equity (ROE) is 7.66%, reflecting a reasonable return on shareholders' investments, though it could be improved. The equity ratio of 26.17% suggests a balanced capital structure but highlights the importance of managing debt levels effectively. While the company maintains a stable asset base, high leverage remains a concern.

Cash Flow

Dominion Energy's cash flow statement reveals challenges in cash management. The operating cash flow to net income ratio is 2.01, indicating strong cash generation capability. However, the free cash flow is negative, highlighting significant capital expenditures that exceed operating cash inflows. Free cash flow to net income ratio is -4.02, pointing towards heavy investments that may burden cash reserves. While operational cash flows are robust, the negative free cash flow underscores the need for careful capital allocation.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
14.90B	14.46B	14.39B	13.94B	11.42B	14.17B
	Gross Profit
7.30B	6.92B	6.96B	6.38B	5.41B	7.30B
	EBIT
3.64B	3.25B	3.41B	1.43B	2.00B	2.06B
	EBITDA
7.26B	6.71B	6.82B	6.37B	5.39B	6.93B
	Net Income Common Stockholders
2.10B	2.12B	1.99B	1.32B	3.40B	-401.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
355.00M	310.00M	184.00M	153.00M	283.00M	172.00M
	Total Assets
104.56B	102.42B	109.03B	104.24B	99.59B	95.91B
	Total Debt
44.10B	41.75B	44.24B	45.68B	40.58B	37.01B
	Net Debt
43.75B	41.44B	44.06B	45.52B	40.30B	36.84B
	Total Liabilities
73.83B	72.22B	81.50B	76.36B	72.28B	69.44B
	Stockholders Equity
27.36B	27.25B	27.53B	27.88B	27.31B	26.12B
Cash Flow		Free Cash Flow
-8.42B	-7.18B	-3.66B	-3.89B	-1.92B	-793.00M
	Operating Cash Flow
4.22B	5.02B	6.57B	3.70B	4.04B	5.23B
	Investing Cash Flow
-7.81B	-3.18B	-7.21B	-6.75B	-6.25B	-2.92B
	Financing Cash Flow
3.73B	-1.77B	595.00M	2.98B	2.37B	-2.33B

Dominion Energy Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 54.18
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For D, the sentiment is Negative. The current price of 54.18 is below the 20-day moving average (MA) of 55.63, below the 50-day MA of 54.27, and below the 200-day MA of 54.60, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 42.64 is Neutral, neither overbought nor oversold. The STOCH value of 15.70 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for D.

Dominion Energy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NEE	79 Outperform	$147.93B	26.87	11.19%	3.17%	20.35%	-27.07%
AEP	74 Outperform	$54.44B	19.66	10.41%	3.67%	4.20%	-3.64%
EXC	74 Outperform	$42.79B	15.73	10.10%	3.78%	6.71%	16.09%
SO	74 Outperform	$97.18B	21.20	14.01%	3.35%	9.58%	8.02%
DUK	72 Outperform	$89.22B	19.15	9.48%	3.65%	5.02%	45.08%
D	67 Neutral	$45.85B	20.17	8.22%	4.93%	3.62%	40.33%
Sector *	64 Neutral	$8.53B	10.36	4.25%	5.86%	4.06%	-12.76%

Dominion Energy Corporate Events

Dominion Energy Secures $1 Billion in Senior Notes

On May 6, 2025, Dominion Energy, Inc. entered into an underwriting agreement with major financial institutions for the sale of $1 billion in Series C Senior Notes, which are due in 2028. This strategic financial move is expected to impact the company’s operations by potentially enhancing its capital structure and market positioning, although specific implications for stakeholders were not detailed in the release.

The most recent analyst rating on (D) stock is a Hold with a $55.00 price target. To see the full list of analyst forecasts on Dominion Energy stock, see the D Stock Forecast page.

Dominion Energy Elects Board and Approves Compensation Plan

During Dominion Energy‘s 2025 Annual Meeting held on May 7, 2025, all 11 director nominees were elected to the Board of Directors, with each nominee receiving a majority of votes. Shareholders also approved the executive compensation plan and ratified the appointment of Deloitte & Touche LLP as the independent public accounting firm for the fiscal year ending December 31, 2025. However, a shareholder proposal to eliminate non-carbon emitting generation goals in executive pay incentives was not approved.