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RISK CONCERN
Investment Strategy, Risk Analysis, and Insights by Chartered Professionals
Dominion Energy, Inc. (XNYS:D) In-Depth Stock/Fundamental/Options Analysis Today
Primary Facts
D
Name:
Dominion Energy, Inc. (XNYS:D)
Sector:
- 497000.00K
Industry:
Utilities�Regulated Electric
CEO:
Mr. Thomas Farrell
Total Employees:
17,100
Our Technological Advancement Rating
Our Rating:
B
Technological advancement compared to industry is 15.94% higher
ANALYSIS OF ALL CRITICAL FACTORS & RISKS RELATED TO THE STOCK & FUNDAMENTAL/LONG-TERM ANALYSIS OF DOMINION ENERGY, INC.(D) AS PER DATA ANALYSIS OF LAST 3 YEARS AND COMPARISON WITH COMPETITORS/PEERS, AND UTILITIES�REGULATED ELECTRIC INDUSTRY. DATE: 07/09/2022
Primary Targets/Price Insights
Previous Close ($) :
81.83
One Month Price Target:
$82.02
Six Month Price Target :
$82.98
Likely Price in One Year's Time:
Ticker:
$84.13
Likely Trading Range Today Under (Normal Volatility)
$81.58
Price Upper limit ($) :
$82.12
Price Lower limit ($) :
Crash Risk Prep/Key Price Levels (High Volatility/Risk)
Price, as per data analysis, isn't likely to fall below:
Today:
$78.57
This week:
$74.54
This month :
$67.25
Other Primary facts
Market Cap:
67.85B
Market Cap Classification:
Large Cap
Number of Shares
IPO Date:
832.50M
Best/Worst Daily Performance (Last 3+ Years)
Highest Daily Appreciation:
17.23%
-12.31%
Worst Daily Decline:
Our Options Trading Entry Points
Iron Condor entry points for options expiring in 1 week's time
Low risk (<2%) entry points
Buy Call:
Sell Call:
Buy Put:
Sell Put:
$96.96
$90.05
$66.70
$73.61
Medium risk (<10%) entry points
Buy Call
Sell Call
$87.80
Buy Put:
Sell Put:
$86.32
$75.85
$77.34
These entry points can be used for other strategies, such as butterflies, straddles, etc.
Risk-Adjusted returns (Sharpe Ratio) of
D
Sharpe Ratio:
0.61%
Comparison:
D, is amongst the top 60% stocks with highest risk-adjusted returns
Sharpe ratio is -48.23% lower than the industry
& is -73.39% lower than the market/S&P 500 average
Average Returns/Yield of
D
Daily returns:
0.02%
Weekly returns:
0.10%
Monthly returns:
0.41%
Yearly returns:
7.85%
Comparison of returns:
Average annual returns/yield (last 3 years) is -36.76% below industry average
Classification:
D, is amongst the top 60% highest yielding stocks in terms of daily returns
Results of T-Test of Returns:
0.95
Statistical test of Returns:
D has yielded returns statistically similar to the market
Volatility (measured by Standard Deviation)
Daily Volatility:
1.95%
Weekly Volatility:
4.36%
Monthly Volatility:
8.72%
Yearly Volatility:
30.21%
Volitlilty of last five days (Measured by Standard Deviation)
Average Volatility of this Week:
0.91%
Volatility in last five trading days has been -53.36% below long-term volatility
Value at Risk Analysis (VaR)
Daily VaR:
-3.98%
Weekly VaR:
-8.91%
Monthly VaR:
-17.82%
How Much Can the price of
D
Decline in a Recession?
Likely price decline in a recession:
Base case (decline):
-16%
Worst case (decline):
-61.73%
This translates to price declining to:
$69.13
This translates to price declining to:
$31.32
Severe Crash Probability
Risk of crash in next 6/12 months: Medium (<50%)
What is Value at Risk (VaR)?
Risk Fundamentals
D is a 25.77% riskier investment compared to the market/S&P 500 & is 7.75% riskier than Nasdaq (IXIC)
Risk (measured by volatility) is -3.89% below industry average
Overall, it is amongst the top 50% most risky stocks
Beta Examination of
D
Beta in relation to market/S&P 500--0.42
Expected beta in 1 year's time:
0.491
Expected beta in 3 year's time:
0.694
Unlevered (debt free) Beta:
0.209
Beta in relation to Nasdaq (XNAS):
0.467
Beta in relation to all global stocks::
0.722
Beta Comparison & Analysis
Beta of competitors/peers::
0.477
Beta is -12.42% lower than peers
Average Industry Beta:
0.5
Beta is -16.31% below industry average
Sustainable Growth Rate Analysis
Sustainable growth rate for this stock/firm:
2.21%
Sustainable growth rate is -36.61% below industry average
Alpha provided | Alpha Analysis
Alpha provided:
-0.011
Alpha is -182.44% below industry average alpha yield
Alpha is -67% below the market average
Analysis of Cost of Capital of
D
Equity cost of capital:
0.060
Equity cost of capital is -8.50% below industry mean WACC
Unlevered (without debt) cost of capital:
3.01%
Before-tax cost of debt:
6.03%
After-tax cost of debt:
4.76%
Overall debt rating:
Lower BB medium grade (Fifth highest grade)
Weighted average cost of capital (WACC):
4.76%
WACC is 5.79% above industry mean WACC
Key Per-Share Metrics & Analysis
Revenue per share:
$17.26
Revenue growth rate per share of (3Y):
2.34
Annual revenue growth rate is 908.30% above the industry average
EPS:
$3.57
Expected Annual growth rate of EPS (3Y):
22.67%
Expected future EPS growth rate is -466.64% lower than the Utilities�Regulated Electric industry
Free cash flow (FCF) per share:
-
Balance sheet equity growth per share: -21.66%
Equity growth rate per share is -469.10% lower than the industry
Debt per share
$41.35
EBITDA per share
$10.24
Valuation Analysis Today of
D
P/E Ratio:
42.87
P/E Ratio of Competitors/Peers:
22.86
P/E ratio is 87.56% higher than main peers & is 54.83% higher than the industry
Stock price/value with industry average P/E ratio: $98.85
D is -17.22% undervalued if valued using industry average P/E ratio
Share value as per dividend discount (DDM) model: $48.65
Present value of the expected future dividends only: $29.92
P/S (Price to Sales ratio):
4.74
Price to sales ratio is 63.27% above the industry mean
P/B (Price to book value ratio):
2.34
-
-
Net income growth rate (3Y):
12.97%
Net income growth rate is -540.30% lower than the industry average net income growth rate
Dividend Analysis
Dividend payout rate: 18.09%
Dividend yeild: 3.17%
Previous Dividend: $0.67
Previous adjusted dividend: $0.67
Previous Dividend: $2.60
Expected next dividend best case: $0.79
Expected next dividend worst case: $0.54
Average dividend payment (long-term): $0.75
Average dividend increase/decrease (growth rate) % per period: -2.45%
Expected next dividend payment date: 19/09/2022
Expected next dividend record date: 09/01/2022
-
Previous dividend payment date: 20/06/2022
Previous dividend record date: 06/03/2022
-
Dividend History:
2022-06-02--$0.67
2021-12-02--$0.63
2021-06-03--$0.63
2022-03-03--$0.67
2021-09-02--$0.63
2021-03-04--$0.63
Dividend growth rate is 145.01% higher than the average industry
In-depth Debt & Leverage Analysis
Debt to equity ratio:
118.19%
Net debt to equity ratio:
125.41%
Debt to assets ratio:
34.14%
Net debt to assets ratio:
36.22%
Debt-to-asset ratio is -45.68% below industry average
Ability to repay debt:
Interest coverage ratio:
3.82
Interest coverage ratio is 48.54% more than industry average
Looking forward:
Debt growth rate:
9.64%
Annual debt growth is -79% lower than industry average debt growth rate
Debt repayment rate in last quarter: 0.11%
Analysis of Key Statistics
Correlation of price movement with the market:
0.591
Statistical significance of correlation:
D has a statistically significant correlation with the market
Average Correlation of the industry with the market:
0.597
Stock price is -0.91% less correlated with the market compared to the industry average correlation
R Squared (percentage of price movement explained by movement of the market):
0.597
Correlation of price movement with Nasdaq (^IXIC):
0.033
Covariance of price movement with the market:
0.037
Kurtosis
18.597
Returns have severe fat-tails (leptokurtic), i.e., returns considerably higher or lower than the mean returns are considerably more likely, compared to assets with normally distributed returns
Skewness of returns:
0.184
Returns are, approximately, symmetrical
Fundamental Analysis & Dupont Analysis of
D
Gross Profit Margin Ratio:
213%
Operating Profit Margin Ratio:
21.69%
Operating profit margin is 86.40% higher than the industry
Net Profit Margin Ratio:
213%
Effective Tax Rate:
15.74%
Effective tax rate is -21.84% lower than the industry
Dupont Method
Net Profit Margin
Return on Equity Ratio (ROE):
×
ROA
=
×
10.27%
Return on equity (ROE) is 12.95% higher than the industry
Financial Leverage
Asset Turnover Ratio (ROA):
2.97%
Return on assets (ROA) is 28.26% higher than the industry
Financial Leverage:
1.5x
Current Ratio:
0.79
Current ratio is -66.90% below industry average
Cash Conversion Cycle (days):
50.5
Cash conversion cycle is -46.52% below industry average
The remaining useful life of property plant & equipment is: 16.9 years
Stock based compensation to net income ratio:
-
In-depth Efficiency Analysis
Revenue generated per employee:
840.5K
Each employee generates -69% less revenue than industry average revenue per employee
EBITDA generated per employee:
498.5K
Each employee generates -57% less EBITDA than industry average revenue per employee
Profit generated per employee:
174.9K
Each employee generates -57% less net income/profit than industry average revenue per employee
Free cash flow (FCF) generated per employee:
- 29.1K
Each employee generates -12% less free cash flow than industry average revenue per employee
Assets/Capital per employee
5.4M
Each employee generates -12% less free cash flow than industry average revenue per employee
Research & Development (R&D) Analysis
-
-
Competitors/Peer firms of
D
DUK-PA
DOMINION ENERGY SRS A UNT (XNYS:DCUE)
THE SOUTHERN COMPANY (XNYS:SO)
DUKE ENERGY CORPORATION (XNYS:DUK)
AMERICAN ELECTRIC POWER COMPANY, INC. (XNAS:AEP)
SEMPRA ENERGY (XNYS:SRE)
PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED (XNYS:PEG)
AMERICAN WATER WORKS COMPANY, INC. (XNYS:AWK)
Eversource Energy (XNYS:ES)
Current Analyst Ratings
Strong buy�8%
Buy�8%
Hold�58%
Sell�0%
Strong sell�0%
Overall analyst sentiment is: Hold
Income Statement
Period:
TTM
Date:
3/31/22
Revenue:
14.37B
Cost of Revenue:
Gross Profit:
R&D Expense
General & Admin Expenses:
Selling, General & Admin Expenses
Sales and Marketing Expenses
Other Expenses :
Operating Expenses :
Cost & Expenses :
Interest Income:
Interest Expenses:
Depreciation & Amortization:
EBITDA:
Operating Income:
Other Income Expenses:
Income Before Tax:
Income Tax Expense:
Net Income:
Balance Sheet
Date:
Calendar Year:
Period:
Cash & Cash Equivalents:
Short Term Investments:
Cash & Short Term Investments:
Net Receivables:
Inventory:
Other Current Assets:
Total Current Assets:
PP&E:
Goodwill:
Intangible Assets:
Long Term Investments:
Tax Assets:
Other Non-Current Assets:
Total Non-Current Assets:
Other Assets:
Total Assets:
Accounts Payable:
Short Term Debt:
Tax Payables:
Deferred Revenue:
Other Current Liabilities:
Total Current Liabilities:
Long Term Debt:
Other Non-Current Liabilities:
Total Non Current Liabilities:
Other Liabilities:
Total Liabilities:
Common Stock:
Retained Earnings:
Accumulated Other Comprehensive Loss:
Other Total Stockholders' Equity:
Total Stockholders' Equity:
Total Liabilities and Stockholders' Equity:
Total Investments:
Total Debt:
Net Debt:
6.60B
7.77B
-
-
-
-
5.83B
5.83B
-
2.23B
2.86B
8.53B
3.12B
2.99B
2.85B
449.00M
2.99B
Statement of Cash Flow
Date:
Period:
773.00M
Differed Income Tax :
-
Stock Based Compensation :
-
Change in Working Capital :
- 359000.00K
Accounts Receivables:
28.00M
Other Working Capital:
-
Other Non-Cash Items:
-
Net Cash Provided by Operating Activities:
1.13B
Investments in PP&E:
- 1622000.00K
Net Acquisitions:
-
Purchases of Investments:
- 824000.00K
Sales/Maturities of Investments:
Other Investing Activities:
Net Cash Used for Investing Activities:
Debt Repayment:
Common Stock Issued:
Common Stock Repurchased:
Dividend Paid:
Other Financing Activities:
Net Cash Used Provided by Financing Activities:
Effect of FOREX on Changes in Cash:
Net Changes in Cash:
Cash at End of Period:
Cash at Beginning of Period:
Operating Cash Flow:
Capital Expenditure:
Free Cash Flow (FCF):
3/31/22
2022
Q1
444.00M
-
444.00M
2.16B
1.51B
4.26B
8.38B
60.12B
7.30B
-
10.94B
-
14.11B
92.47B
-
100.85B
1.09B
2.55B
-
-
6.94B
10.58B
34.43B
19.83B
61.14B
-
71.72B
21.66B
5.52B
- 1436000.0K
3.39B
March 31, 2022 at 6:00:00 AM
12.42B
29.13B
100.85B
10.94B
36.98B
36.5B
960.00M
- 88000.00K
- 1574000.00K
- 39000.00K
45.00M
-
- 541000.00K
1.17B
635.00M
-
186.00M
594.00M
408.00M
1.13B
- 1622000.00K
- 497000.00K
Our Proprietary Portfolio Rating
Our Rating:
B
Price Forecast/Expected Price in Next 5 Years of
D
2023
2024
2025
2026
2027
$84.55
$128.04
$131.64
$135.34
$139.14