Dominion Energy D
Dominion Energy is a regulated utility company that generates and distributes electricity and natural gas across several U.S. states, with a business model based on regulated assets that generate stable cash flows. Dominion Energy shows fragile financial health with a net debt/EBITDA of 6.43 and negative free cash flow conversion (-110.07), which, combined with the pause in dividend growth, limits its appeal despite an operating margin of 29.22%.
Detailed metrics
Market and fundamental data as of the analysis date.
Full AI report
Generated automatically from the metrics, the macro context and the company's news.
Dominion Energy is a regulated utility company that generates and distributes electricity and natural gas across several U.S. states, with a business model based on regulated assets that generate stable cash flows. Dominion Energy shows fragile financial health with a net debt/EBITDA of 6.43 and negative free cash flow conversion (-110.07), which, combined with the pause in dividend growth, limits its appeal despite an operating margin of 29.22%.
Score by category
| Category | Score |
|---|---|
| Financial health | 5.3 |
| Quality / Moat | 3.6 |
| Valuation | 4.1 |
| Growth | 4.5 |
| Dividend | 5.7 |
| Momentum | 6.1 |
| Risk & Context | 7.5 |
OVERALL SCORE: 5.3/10
Context and risks
The rise in 10-year Treasury yields (5.17%) is a direct drag on Dominion due to its high duration (P/E 21) and high leverage (net debt/EBITDA 6.43), making its financing more expensive and reducing the present value of its regulated cash flows.
News considered in the analysis
- Why Dominion Energy Halted Dividend Growth Despite Strong Operating Performance — La pausa en el crecimiento del dividendo, con un payout ya del 92.39%, es un hecho material que limita el atractivo de la acción para inversores de renta.
- Dominion Energy (D) Dips More Than Broader Market: What You Should Know — El rendimiento inferior al mercado refleja la presión sobre el sector de utilities por el alza de tipos, aunque es un movimiento de mercado ya conocido.
- 2 Green Flags and 2 Red Flags for Nuclear Stocks After This Year's Sell-Off — Artículo genérico sobre el sector nuclear sin información específica y material para Dominion Energy.
- NextEra Stock Has Fallen 22% From Its High. Is the Selloff a Buying Opportunity? — Noticia sobre un competidor directo, pero sin implicación directa en los fundamentales de Dominion Energy.
- Dominion Energy (D) Registers a Bigger Fall Than the Market: Important Facts to Note — Confirma la debilidad relativa de la acción, consistente con la presión del entorno de tipos sobre el sector.
Verdict: Hold, given the high debt and sensitivity to interest rates, but with an still attractive dividend (4.40%) that could be at risk if the interest rate environment does not improve.
Main risk: The high leverage (net debt/EBITDA of 6.43) and exposure to a rising interest rate environment, which makes refinancing its debt more expensive and pressures its long-duration valuation.
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