DOMINION ENERGY INC (D)
OvervaluedFundamental
50
Price
$60.48
Market Cap
$53.12B
Part 1 · What the company is worth
Overview
Dominion Energy is a regulated electric and gas utility. It generates, transmits and distributes electricity to millions of customers in Virginia, North Carolina and South Carolina, and distributes natural gas across parts of the same region. Almost all of its earnings come from state-regulated rates set to give it a fixed return on the capital it invests in power plants, transmission lines and pipelines, rather than from competing for customers in an open market.
How it makes money
Dominion earns revenue by selling electricity and gas at rates approved by state utility commissions, calculated to recover its costs plus an allowed profit margin on the capital it has invested — so building more infrastructure can mean earning more, provided regulators approve the spending. Because rates are set by regulators rather than by market competition, revenue growth tracks new construction and customer or usage growth more than pricing power. A smaller share comes from non-regulated generation assets selling power under long-term contracts.
Competitive moat
Scale · NarrowBuilding a second, competing power grid and gas network across the same territory is uneconomical, which is why regulators grant utilities like Dominion an exclusive franchise in their service area — a natural monopoly rooted in infrastructure economics of scale. The trade-off is that the same regulators cap how much profit Dominion can earn on that infrastructure, limiting how far the advantage can be monetized.
What drives demand
DefensiveElectricity and gas are necessities that most existing customers keep using through recessions, which makes underlying demand fairly stable. The exception is a growth twist: a surge of new data centers in Northern Virginia, the world's largest data-center hub, is adding demand well beyond the pace of ordinary population and economic growth, though those commitments are not all firm.
Key risks
- Regulatory rate risk — Dominion's earnings depend on state regulators approving the rates and capital recovery it requests; a less favorable decision on a rate case directly cuts profitability.
- Preliminary data-center demand — A large part of the projected future demand from data centers rests on early-stage agreements without firm take-or-pay commitments, so customers can delay, downsize or cancel projects with little consequence.
- Political pushback on rate increases — Public and regulatory scrutiny over residential customers subsidizing data-center power needs could force Dominion into pricing structures that shift costs or reduce its allowed returns.
- Heavy capital spending needs — Dominion must keep investing large sums in generation and grid infrastructure, relying on external capital markets; higher interest rates raise financing costs and can strain relations with regulators over who bears them.
The case for
Buyers argue that Virginia's position as the world's largest data-center hub gives Dominion a multi-decade runway of demand growth on which it can earn a regulated return, and that the essential, non-discretionary nature of electricity delivery makes its earnings more predictable than most businesses.
The case against
Sellers worry that much of the promised data-center demand rests on preliminary agreements customers can cancel with little penalty, that regulators may resist letting Dominion pass rising infrastructure costs onto residential ratepayers, and that heavy ongoing capital spending keeps debt and financing costs elevated.
Written by the editors, published on August 18, 2026
Direct competitors
Who this company fights with for the same customers
Generated on September 18, 2026 with claude-haiku-4-5 — shared with all users
Duke is the other large regulated electric utility of the Carolinas and Virginia border region, so the two compete before the same North Carolina and South Carolina regulators and for the same industrial and data-center load looking to site in the Southeast.
Through its Appalachian Power subsidiary AEP serves western Virginia under the same Virginia State Corporation Commission, and its Ohio and Texas utilities chase the same hyperscaler data-center connections Dominion is winning in Northern Virginia.
Southern runs the comparable regulated electric franchises of Georgia and Alabama and competes with Dominion to attract the same large energy-intensive customers to the Southeast, and for the same investor capital in regulated generation build-out.
Exelon's Pepco, BGE and Delmarva utilities cover the rest of the mid-Atlantic PJM grid next door to Dominion's Northern Virginia data-center corridor, competing for the same interconnection queue and the same large-load customers.
Entergy is a similarly sized regulated electric utility that markets cheap firm power and ready industrial sites in the Gulf South to the same hyperscalers and manufacturers Dominion is courting in Virginia and South Carolina.
Balance Sheet & Liquidity
Revenue
$17.41B
Trailing 12 months (through 3/31/2026)
Net Income
$2.95B
Trailing 12 months (through 3/31/2026)
Free Cash Flow
-
Total Equity
$29.08B
Total Liabilities
$82.44B
Current Ratio
0.78
Interest Coverage
-
Debt/EBITDA
7.61
Earnings Per Share
Revenue & Net Income
Free Cash Flow
Income Breakdown
Historical statement
Margins over time
Debt over time
How heavy the debt is
Growth grid
Growth — Revenue
Fair Value Estimation
Fair Value
$47.06
Current Price
$60.48
Margin of Safety
-28.5%
Fair Value Range
$30.59 - $63.53
Spread across the valuation methods used, not a statistically calibrated confidence interval.
Estimation Methods
Valuation Metrics
P/E Ratio
17.91
ROE
10.3%
P/B Ratio
1.83
P/FCF
-
Gross Margin
-
ROIC
3.4%
Profitability Radar
Value Creation (Economic Moat)
ROIC
3.4%
WACC
4.1%
ROIC − WACC
-0.7 pp
ROIC is roughly in line with the cost of capital — the company is barely covering its capital cost.
Fundamental Analysis Criteria
Passed (12)
- P/B Ratio 1.83
- Debt/Equity ratio
- Operating Margin 26.3%
- Current Ratio
- Return on Tangible Assets
- Low reliance on intangibles
- ROE 8.8%
- Earnings Surprise avg 6.6%
- Earnings Quality (OCF/NI) 1.71
- Share Dilution -0.5%
- Net Margin Trend 17.0% vs 15.6%
- Piotroski F-Score 7/9
Failed (9)
- EPS shows upward trend
- EPS CAGR -0.65%
- Price CAGR -2.22%
- ROIC 3.4%
- Debt/EBITDA
- Price below Graham Number
- DCF valuation (Overvalued)
- Revenue Growth 5Y 3.8%
- Analyst Consensus 36% Buy
Unavailable (7)
- Gross Margin NaN%
- P/FCF NaN
- Dividend Payout NaN%
- Positive Free Cash Flow
- CapEx intensity
- Interest Coverage
- PEG Ratio (need PE > 0 and growth > 0)
Piotroski F-Score
Strong financial health
Earnings Quality
High quality: earnings backed by cash
Share Dilution
Buying back shares. Shareholder friendly
Institutional Holdings
Governance
Executive Team
| Name | Title | Age |
|---|---|---|
| Mr. Robert M. Blue | President, CEO & Chairman of the Board | 57 |
| Mr. Steven D. Ridge | Executive VP & CFO | 44 |
| Mr. Carlos M. Brown | EVP, Chief Admin & Projects Officer, Corporate Secretary and President of Dominion Energy Services | 50 |
| Mr. Edward H. Baine | Executive VP of Utility Operations & President of Dominion Energy Virginia | 51 |
| Mr. Eric S. Carr | Chief Nuclear Officer and President-Nuclear Operations & Contracted Energy | 50 |
| Mr. Gary G. Ratliff Jr. | VP, Controller & Chief Accounting Officer | 46 |
| Mr. David M. McFarland | Senior Vice President of Investor Relations & Treasurer | - |
| Ms. Regina J. Elbert | SVP, Chief Legal & Human Resources Officer | - |
| Mr. William L. Murray | Senior Vice President of Corporate Affairs & Communications | 57 |
| Ms. Corynne S. Arnett | Executive VP and Chief Regulatory & Customer Officer | - |
Audit Risk
10
Board Risk
7
Compensation Risk
3
Shareholder Rights Risk
6
Part 2 · The price and when to enter
This part won't tell you whether the company is worth owning: it helps you choose when to buy it, once the fundamentals have convinced you. Inside: technical analysis, potential, historical drawdowns, gamma exposure.
Documents
- View document
Annual Report (10-K)
A yearly overview of the business, its financial results, and the risks it faces.
Filed on 2026-02-23
- View document
Quarterly Report (10-Q)
A snapshot of financial performance for the most recent three-month period.
Filed on 2026-07-31
- View document
Current Report (8-K)
An announcement of a major event, such as a leadership change or big news.
Filed on 2026-09-14
via SEC EDGAR
Income History
via SEC EDGAR
Latest News
Recent headlines for D, sourced from Markets Gazette.
- 5/18/2026POSITIVENextEra to Buy Dominion for $67 Billion to Form Utility Colossus
NextEra Energy Inc. has agreed to acquire Dominion Energy Inc. in a landmark $67 billion all-stock transaction, marking the largest-ever power industry acquisition. This strategic move will create a dominant utility entity with an expansive reach from Florida to Virginia's data center hubs. The deal is expected to enhance operational efficiencies and market presence for the combined company, potentially leading to significant cost synergies and a strengthened competitive position. Investors will be closely watching the integration process and the realization of projected benefits.
- 5/17/2026POSITIVENextEra Said to Discuss Deal Valuing Dominion at $66 Billion
NextEra Energy Inc. is reportedly in discussions for a significant acquisition of Dominion Energy Inc., with a potential deal valuing Dominion at approximately $76 per share, totaling around $66 billion. This proposed transaction would represent the largest deal ever recorded in the power sector. For Dominion shareholders, this news suggests a substantial premium over its current trading price, potentially offering a lucrative exit. The market will be closely watching the progression of these talks and the potential strategic implications for both energy giants.
- 5/16/2026POSITIVENextEra Energy Is Said to Be in Talks to Acquire Dominion
NextEra Energy Inc. is reportedly in talks to acquire its utility rival, Dominion Energy Inc., in a significant, predominantly stock-based transaction. This potential merger is driven by the escalating demand for electricity, particularly from the burgeoning data center industry. For investors, this news suggests a potential consolidation within the utility sector, with Dominion Energy being the target. The deal's structure, primarily stock, indicates NextEra's confidence in its own valuation and its strategic vision to meet future power needs, potentially leading to synergies and expanded market reach for the combined entity.
- 2/28/2026POSITIVE2 Tariff-Proof Energy Stocks to Buy Now
Markets Gazette highlights two energy stocks demonstrating resilience amidst global uncertainties: Dominion Energy and Williams Companies. Their strong focus on the domestic energy sector provides these companies with significant immunity to international tariff fluctuations. This characteristic makes them particularly appealing in a volatile economic climate, offering investors potential protection against risks associated with foreign trade policies. Analysis suggests that their internally oriented business model positions them favorably for stable growth, making them strategic buying opportunities for those seeking long-term stability and returns, shielded from geopolitical and commercial tensions.
- 2/23/2026NEUTRALDominion Energy (D) Q4 2025 Earnings Transcript
Dominion Energy has released its earnings transcript for the fourth quarter of 2025, a key document for investors. Although the specific content details are not available, the publication itself is a significant market event. Analysts and investors will be scrutinizing the text for in-depth insights into the company's financial performance, including revenues, profit margins, and earnings per share. Management's commentary on future strategy, operational forecasts, and guidance for the upcoming fiscal year will also be critical. The market's reaction and the future direction of Dominion Energy's stock (D) will depend entirely on the analysis of this data, which has not yet been disclosed. The event is therefore purely informational, pending the emergence and digestion of the details by the market.
via Markets Gazette