Dominion Energy, Inc Common Stock
D
$0.00
+1.16%
Dominion Energy is an integrated energy company operating in the Regulated Electric utility sector. It is a major player with a vast generation and transmission network, currently expanding its portfolio with significant investments in offshore wind energy.
D
Dominion Energy, Inc Common Stock
$0.00
Related headlines
Investment Opinion: Should I buy D Today?
Based on a synthesis of the fundamental data, valuation, and analyst consensus, the objective assessment for Dominion Energy (D) is a Hold. The stock offers a compelling 4.32% dividend yield and trades at a modest discount to analyst targets, but these positives are counterbalanced by significant financial risks from high leverage and negative cash flow. The forward P/E of 16.2 is not excessively high for a utility, but the elevated EV/Sales ratio of 6.64 suggests the stock is not clearly undervalued. The 'Hold' rating aligns with the analyst consensus mean score of 2.8, indicating a neutral stance on near-term price appreciation potential relative to the underlying risks.
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D 12-Month Price Forecast
The investment case for D is balanced. The attractive yield and defensive characteristics are positive, but they are fully offset by the company's strained balance sheet and the high execution risk of its growth strategy, leading to a neutral outlook with medium conviction.
Wall Street consensus
Most Wall Street analysts maintain a constructive view on Dominion Energy, Inc Common Stock's 12-month outlook, with a consensus price target around $0.00 and implied upside of — versus the current price.
Average Target
$0.00
7 analysts
Implied Upside
—
vs. current price
Analyst Count
7
covering this stock
Price Range
$0 - $0
Analyst target range
Wall Street analyst consensus is a 'Hold' with a mean recommendation score of 2.8. Among 16 analysts, the average 12-month target price is $65.63, with a low target of $59.0 and a high target of $69.0. The current stock price of $61.82 is approximately 5.8% below the consensus target, suggesting modest upside potential according to analysts.
Bulls vs Bears: D Investment Factors
Dominion Energy presents a mixed picture. Bullish factors include strong revenue growth, a high dividend yield, and strategic investments in growth areas like data center power. However, significant bearish risks stem from its highly leveraged balance sheet, negative free cash flow, and volatile quarterly profitability, which temper the outlook.
Bullish
- Strong Revenue Growth: Q4 2025 revenue grew 20.4% YoY, indicating robust demand.
- Attractive Dividend Yield: 4.32% yield provides a solid income component for investors.
- Defensive Market Outperformance: Stock has shown relative strength vs. S&P 500 over 3 and 6 months.
- Analyst Price Target Upside: Current price is ~5.8% below the average analyst target of $65.63.
Bearish
- Heavy Leverage: High debt-to-equity ratio of 150.1 increases financial risk.
- Negative Free Cash Flow: Trailing FCF of -$7.28B due to massive capital expenditures.
- Volatile Profitability: Net income margin dropped from 22.2% in Q3 to 14.3% in Q4.
- Weak Liquidity Position: Current ratio of 0.77 suggests potential short-term liquidity strain.
D Technical Analysis
The stock's overall trend over the last six months has been moderately positive, with a 6-month price change of 1.20% from $61.09 on October 2, 2025, to $61.82 on March 31, 2026. It has shown relative strength against the broader market, with a 3-month relative strength of 10.14% versus the S&P 500's decline of 4.63%. Short-term performance has been mixed, with a 1-month decline of 2.09%, yet it still outperformed the S&P 500, which fell 5.25% over the same period. The 3-month performance was positive, with a gain of 5.51%. The current price of $61.82 sits approximately 8.6% below its 52-week high of $67.57 and about 28.6% above its 52-week low of $48.07, indicating it is positioned in the upper-mid range of its yearly trading band.
Beta
0.66
0.66x market volatility
Max Drawdown
-12.7%
Largest decline past year
52-Week Range
$48-$68
Price range past year
Annual Return
+11.6%
Cumulative gain past year
| Period | D Return | S&P 500 |
|---|---|---|
| 1m | +0.1% | -4.3% |
| 3m | +6.0% | -4.0% |
| 6m | +2.0% | -2.0% |
| 1y | +11.6% | +22.2% |
| ytd | +6.0% | -3.8% |
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D Fundamental Analysis
Revenue growth has been strong on a year-over-year basis, with Q4 2025 revenue of $4.093B representing a 20.4% increase from Q4 2024. However, profitability has been volatile; the net income margin for Q4 2025 was 14.3%, a significant recovery from a net loss in Q4 2024, but down from the 22.2% margin in Q3 2025. The company's financial health is characterized by high leverage, with a debt-to-equity ratio of 150.1, and a weak current ratio of 0.77. Cash flow is a concern, with a trailing twelve-month free cash flow of -$7.28B, driven by heavy capital expenditures. Operational efficiency metrics show a Return on Equity (ROE) of 9.74% and a Return on Assets (ROA) of 3.11%, indicating moderate but not exceptional returns on capital.
Quarterly Revenue
$4.1B
2025-12
Revenue YoY Growth
+0.20%
YoY Comparison
Gross Margin
+0.44%
Latest Quarter
Free Cash Flow
$-7.3B
Last 12 Months
Revenue & Net Income Trends (2 Years)
Revenue Breakdown
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Valuation Analysis: Is D Overvalued?
Given the company's positive net income, the primary valuation metric used is the Price-to-Earnings (P/E) ratio. Dominion Energy trades at a trailing P/E of 17.82 and a forward P/E of 16.19. The Price-to-Sales (P/S) ratio is 3.29, and the Enterprise Value-to-Sales (EV/Sales) is 6.64. Peer comparison data is not available in the provided inputs, so a relative valuation against industry averages cannot be performed. The dividend yield is 4.32%, which is a significant component of total return for this utility stock.
PE
16.7x
Latest Quarter
vs. Historical
High-End
5-Year PE Range -305x~60x
vs. Industry Avg
N/A
Industry PE ~N/A*
EV/EBITDA
12.3x
Enterprise Value Multiple
Investment Risk Disclosure
Dominion Energy faces substantial financial and operational risks. The company's financial health is a primary concern, characterized by a high debt-to-equity ratio of 150.1 and a weak current ratio of 0.77, indicating elevated leverage and potential liquidity constraints. Heavy capital investment, particularly in its offshore wind project, has resulted in deeply negative free cash flow (-$7.28B TTM), making the company reliant on external financing and increasing its vulnerability to rising interest rates.
Operational risks include volatile profitability, as seen in the sharp quarterly margin decline, and execution risks associated with its large-scale infrastructure expansion aimed at data center growth. As a regulated utility, the company is also exposed to regulatory and political risks that could impact rate approvals and project timelines. Furthermore, its beta of 0.67 suggests lower volatility than the market, but the stock's performance can still be impacted by broader economic conditions affecting the utility sector.
FAQ
The key risks are financial and execution-based. Financially, the company has high leverage (Debt/Equity 150.1), weak liquidity (Current Ratio 0.77), and negative free cash flow of -$7.28B due to heavy spending. Operationally, there is risk of cost overruns or delays in its major offshore wind and data center infrastructure projects. As a regulated utility, it also faces regulatory and interest rate risk.
The 12-month outlook is for modest upside with high uncertainty. The base case (60% probability) sees a target range of $63-$66, aligning with analyst expectations. The bull case (25%) could see the stock reach $69 if projects succeed, while the bear case (15%) risks a fall towards $48-$59 if financial pressures mount. The AI assessment is neutral, with the dividend providing a floor but leverage capping major gains.
D's valuation appears fair to slightly rich. Its forward P/E of 16.2 is reasonable for a utility, but its Enterprise Value-to-Sales ratio of 6.64 and Price-to-Sales of 3.29 suggest the market is pricing in future growth from its capital projects. The stock trades at a 5.8% discount to the average analyst target of $65.63, indicating modest upside potential but not clear undervaluation.
D is rated a 'Hold' based on a comprehensive analysis. It offers a high 4.32% dividend yield and trades below the average analyst target, but its investment appeal is tempered by a highly leveraged balance sheet (Debt/Equity of 150.1) and deeply negative free cash flow. It may be suitable for income-seeking investors comfortable with its financial risk profile, but not for those seeking low-risk growth.
D is primarily suitable for long-term, income-oriented investors. The high dividend yield is a key component of total return, but realizing the value of its large-scale growth investments will take years. The stock's short-term price movement may be muted due to its financial constraints and utility sector dynamics. Therefore, it is better suited for a long-term portfolio where the dividend can compound, rather than for short-term trading.