Dominion Energy, Inc (D) stock analysis

P/E above its 5-year median

Dominion Energy's P/E of 22.6 is above its own 5-year median of 21.7.

P/E above the industry

Dominion Energy's P/E of 22.6 is above the Electric Services median of 20.9.

EV/EBITDA above its 5-year median

Dominion Energy's EV/EBITDA of 17.2 is above its 5-year median of 16.4.

P/B above the industry

Dominion Energy's price-to-book of 2.03 is above the Electric Services median of 2.02.

Trading above fair value

The share price of $68.06 is above our fair value estimate of $62.96.

Margin of safety under 20%

The price is 8.1% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew 5.8% a year over the last three fiscal years, short of the 10% we look for.

EPS growing 10%+ a year

Diluted EPS grew 37.4% a year over the last three fiscal years.

Earnings acceleration

Needs positive net income now, a year ago and five years ago.

Growing faster than the industry

Revenue grew 21.5% over the last twelve months; the Electric Services median is 7.8%.

Guidance issued

The latest outlook (2026 operating earnings, Oct 30, 2026) was issued for the first time, so it neither adds nor takes away points.

Gross margin trend

This company does not report gross profit.

Return on equity under 15%

Return on equity was 9.4% over the last twelve months and averaged 8.5% over five years; we look for 15% on both.

Return on capital under 10%

Return on invested capital was 4.7%, below the 10% that usually covers the cost of capital.

Return on equity above the industry

Dominion Energy's return on equity of 9.4% is above the Electric Services median of 8.3%.

Earnings over 5 years

Needs positive net income five years ago and in the latest year.

Net margin below its 5-year average

Net margin was 14.0% over the last twelve months, against a 5-year average of 16.8%.

Net margin above the industry

Dominion Energy's net margin of 14.0% is above the Electric Services median of 8.8%.

High debt

Debt is 185% of shareholders' equity, above the 40% we consider low.

Debt rising against equity

Debt to equity rose from 141% five years ago to 185%.

Debt not well covered by cash flow

Operating cash flow over the last twelve months equals 10.4% of total debt; we look for at least 20%.

Interest coverage

Interest expense is not reported separately.

Short-term assets don't cover short-term debts

Current assets are 0.88 times current liabilities.

Elevated bankruptcy risk

The Altman Z-score is 0.68; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Dominion Energy paid dividends worth 3.9% of the share price over the last twelve months.

Yield below Treasuries

The 3.9% yield is below the 4.4% on a 1-year Treasury.

Yield in the top quarter

The top quarter of US dividend payers yield 3.8% or more; Dominion Energy yields 3.9%.

Dividend was cut

The dividend per share fell by more than 10% at least once in the last 10 fiscal years.

Covered by earnings

Dividends take 86.7% of net income.

Cash-flow cover

Needs dividends paid and free cash flow.