Dominion Energy
D
$70.80
+1.03%
Dominion Energy is an integrated energy company headquartered in Richmond, Virginia, operating over 31 GW of electric generation capacity and more than 91,000 miles of transmission and distribution lines, primarily serving regulated electric utility customers. As a major player in the U.S. regulated electric industry, Dominion is distinct for its massive offshore wind project—a 5.2 GW rate-regulated farm off Virginia Beach—and its pending $67 billion acquisition by NextEra Energy, which would create the world's largest electric utility. The current investor narrative centers on the transformative merger with NextEra, AI-driven electricity demand growth, and the company's high dividend yield, though the stock's future is now tied to the deal's completion and integration risks.…
D
Dominion Energy
$70.80
Related headlines
D 12-Month Price Forecast
Wall Street consensus
Most Wall Street analysts maintain a constructive view on Dominion Energy's 12-month outlook, with a consensus price target around $92.04 and implied upside of +30.0% versus the current price.
Average Target
$92.04
6 analysts
Implied Upside
+30.0%
vs. current price
Analyst Count
6
covering this stock
Price Range
$57 - $92
Analyst target range
Dominion Energy is covered by 6 analysts, with a consensus recommendation leaning bullish, as recent ratings include Overweight from Barclays and Wells Fargo, and Neutral from Mizuho and Scotiabank. The average EPS estimate is $4.65, with a low of $4.38 and high of $5.03. Based on the current price of $70.08 and the average EPS estimate, the implied forward P/E is 15.1x, suggesting potential upside if the stock re-rates. However, explicit price targets are not provided, so the implied upside/downside cannot be calculated precisely. The analyst sentiment is mixed but generally positive, with no recent downgrades and several Overweight ratings. The range of EPS estimates ($4.38 to $5.03) indicates moderate uncertainty, with the high estimate implying strong earnings growth from the merger and AI demand, while the low estimate factors in integration risks and regulatory hurdles. The limited coverage (6 analysts) is typical for a large-cap utility, but the spread in estimates suggests that the merger outcome is a key variable driving divergent views.
D Technical Analysis
Dominion Energy is in a sustained uptrend, with the stock up 20.5% over the past year and currently trading at $70.08, just 0.7% below its 52-week high of $70.59. The price sits at 99.3% of its 52-week range, indicating strong momentum and positioning near the top of the range, which suggests bullish sentiment but also potential overextension. The 52-week low of $55.85 provides a clear support level, while the high represents immediate resistance. Short-term momentum is accelerating: the 1-month price change is +5.0% and the 3-month change is +9.1%, both outpacing the 1-year change of 20.5%, indicating strengthening near-term demand. This divergence from the longer-term trend suggests the stock is gaining momentum, possibly driven by the merger announcement and AI-related demand optimism. The RSI is not directly provided, but the consistent price appreciation without major pullbacks hints at strong buying pressure. The 52-week high of $70.59 acts as a key resistance level; a breakout above this level would signal a continuation of the uptrend and could open the door to further gains. Conversely, a breakdown below the 52-week low of $55.85 would indicate a bearish reversal. With a beta of 0.636, Dominion is significantly less volatile than the broader market, meaning it tends to move less than the S&P 500, which is typical for regulated utilities and makes it a lower-risk holding for income-focused portfolios.
Beta
0.64
0.64x market volatility
Max Drawdown
-10.7%
Largest decline past year
52-Week Range
$56-$71
Price range past year
Annual Return
+23.4%
Cumulative gain past year
| Period | D Return | S&P 500 |
|---|---|---|
| 1m | +4.3% | +1.0% |
| 3m | +11.1% | +7.9% |
| 6m | +17.5% | +8.5% |
| 1y | +23.4% | +20.1% |
| ytd | +19.5% | +9.9% |
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D Fundamental Analysis
Dominion's revenue trajectory is growing, with Q4 2025 revenue of $4.093 billion, up 20.4% year-over-year from $3.4 billion in Q4 2024. The multi-quarter trend shows acceleration: revenue grew from $3.632 billion in Q1 2024 to $4.093 billion in Q4 2025, with the strongest YoY growth in the most recent quarter. Revenue segments are dominated by Dominion Energy Virginia ($5.818 billion), followed by Dominion Energy South Carolina ($1.797 billion) and Contracted Energy ($637 million), indicating that regulated utility operations are the primary growth driver. The company is profitable, with Q4 2025 net income of $586 million and a gross margin of 44.9%. Net income has been positive for the last four quarters, though Q4 2024 showed a net loss of $76 million. The net margin improved to 14.3% in Q4 2025 from -2.2% in Q4 2024, and the operating margin expanded to 18.5% from 11.5% over the same period, indicating strong margin recovery and operational efficiency gains. Dominion's balance sheet shows a debt-to-equity ratio of 1.68, which is elevated but typical for capital-intensive utilities. Free cash flow is negative at -$7.28 billion TTM, reflecting heavy capital expenditures for the offshore wind project and grid investments. The current ratio of 0.77 suggests liquidity pressure, but the company generates positive operating cash flow ($987 million in Q4 2025) and has access to capital markets. ROE stands at 10.3%, indicating decent profitability relative to equity, though the high debt load increases financial risk.
Quarterly Revenue
$4.1B
2025-12
Revenue YoY Growth
+20.4%
YoY Comparison
Gross Margin
44.9%
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?
Since net income is positive, the primary valuation metric is the P/E ratio. The trailing P/E is 16.93x, while the forward P/E is 18.37x, implying the market expects earnings to decline slightly over the next year. The gap between trailing and forward P/E suggests modest growth expectations, which is typical for a regulated utility. Compared to the industry average (not provided in data, but typically around 20-22x for regulated electric utilities), Dominion's trailing P/E of 16.93x appears to trade at a discount, potentially reflecting the uncertainty around the NextEra merger or the company's heavy capital spending. The P/B ratio of 1.72x is below the industry average of around 2.0x, further supporting a discount valuation. Historically, Dominion's trailing P/E has ranged from roughly 12x to 60x over the past five years, with the current 16.93x near the lower end of that range. This suggests the stock is relatively cheap compared to its own history, which could indicate a value opportunity if the merger and growth prospects materialize, but also reflects the market's cautious stance on the company's high capital expenditure and leverage.
PE
16.9x
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

