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D Dominion Energy, Inc. - Fundamental Analysis

NEUTRAL
D Stock | Fundamental Analysis & Investment Insights
NYSE Utilities Utilities - Regulated Electric
Current Price
$60.56
Analyst Target
$64.13
+5.9% Upside
52W High
$62.52
52W Low
$48.07

AI Analysis

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Confidence Score
78%
Analysis Accuracy
Dominion Energy (D) trades near its 52-week high with solid near-term earnings momentum and a compelling 4.4% dividend yield, supported by consistent revenue growth of 14.9% YoY and strong quarterly earnings surprises averaging 14.8% over the last four quarters. Valuation is fair but not compelling, with a P/E of 19.79 in line with sector average (21.85) and slightly above peers like AEP (17.76) and DUK (19.35), while forward P/E of 17.92 suggests modest earnings expansion priced in. The company’s financial health is a concern given elevated debt/equity of 1.54 and weak liquidity (current ratio 0.84), though profitability metrics like 34.5% operating margin and 16.8% net margin are sector-competitive. Analysts are lukewarm with a 'hold' consensus and $64.13 target implying only 5.9% upside, while insider activity is neutral and recent price strength has stalled over the past month.

Key Strengths

Revenue growth of 14.9% YoY outpaces sector average of 8.5% and peers including DUK (4.8%) and AEP (10.9%)
Strong quarterly earnings execution with 3 beats in last 4 quarters and average surprise of 14.79%
High operating margin of 34.50% and gross margin of 49.03% reflect pricing power and cost discipline
Dividend yield of 4.41% is attractive in a low-growth utility sector and above peer average
ROE of 9.20% is in line with sector average (9.93%) despite high leverage, indicating capital efficiency

Key Risks

Debt/Equity ratio of 1.54 is elevated and above sector average (1.53), with limited liquidity (current ratio 0.84)
Payout ratio of 87.25% leaves little room for dividend growth or stress resilience
Forward P/E of 17.92 offers limited valuation cushion relative to growth outlook
Recent price performance shows cooling momentum: -1.8% over 1M and -1.7% over 1W despite strong 1Y gain of +12.9%
Missing Q4 2024 earnings (actual N/A for 2026-02-11) and negative surprise in Q1 2024 (-18.8%) raise execution concerns
AI Fair Value Estimate
Based on comprehensive analysis
$64.0
+5.7% above current price

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