Dominion Energy, Inc. (D) | Investment Case

1. Company Snapshot

1.a. Company Description

Dominion Energy, Inc.produces and distributes energy in the United States.The company operates through four segments: Dominion Energy Virginia, Gas Distribution, Dominion Energy South Carolina, and Contracted Assets.

The Dominion Energy Virginia segment generates, transmits, and distributes regulated electricity to approximately 2.7 million residential, commercial, industrial, and governmental customers in Virginia and North Carolina.The Gas Distribution segment is involved in the regulated natural gas sales, transportation, gathering, storage, and distribution operations in Ohio, West Virginia, North Carolina, Utah, southwestern Wyoming, and southeastern Idaho that serve approximately 3.1 million residential, commercial and industrial customers.It also has nonregulated renewable natural gas facilities in operation.

The Dominion Energy South Carolina segment generates, transmits, and distributes electricity to approximately 772,000 customers in the central, southern, and southwestern portions of South Carolina; and distributes natural gas to approximately 419,000 residential, commercial, and industrial customers in South Carolina.The Contracted Assets segment is involved in the nonregulated long-term contracted renewable electric generation and solar generation facility development operations; and gas transportation, LNG import, and storage operations, as well as in the liquefaction facility.As of December 31, 2021, the company's portfolio of assets included approximately 30.2 gigawatt of electric generating capacity; 10,700 miles of electric transmission lines; 78,000 miles of electric distribution lines; and 95,700 miles of gas distribution mains and related service facilities.

The company was formerly known as Dominion Resources, Inc.Dominion Energy, Inc.was incorporated in 1983 and is headquartered in Richmond, Virginia.

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1.b. Last Insights on D

Dominion Energy's recent momentum is fueled by its robust $50B capital plan, 4.3% dividend yield, and 6% long-term EPS growth target. The company's Coastal Virginia Wind project, 66% complete, and surging data center demand underpin its growth prospects. According to Marketbeat.com, analysts have assigned a "Hold" rating, with two assigning a "Buy" rating, citing the company's strong portfolio. Atlantic Union Bankshares Corp recently boosted its stake in Dominion Energy by 27.2% during the third quarter.

1.c. Company Highlights

Last Price	62.91
Change Percentage	-0.52%
Open	63.12
Previous Close	63.24
Market Cap ( Millions)	55284
Volume	3381791
Year High	67.57
Year Low	48.07
M A 50	61.44
M A 200	59.71

FCF Yield	-13.17%
Dividend Yield	4.24%
ROE	10.77%
Debt / Equity	168.28%
Net Debt / EBIDTA	626.73%
Price To Book	1.85
Price Earnings Ratio	17.92
Price To FCF	-7.59
Price To sales	3.35
EV / EBITDA	13.38

2. Dominion Energy's Strong Q4 2025 Earnings and Growth Outlook

Dominion Energy, Inc. reported fourth-quarter 2025 operating earnings of $3.42 per share and $3.33 per share excluding RNG 45Z credits, both above the midpoint of their guidance. The company's full-year 2025 GAAP earnings were $3.45 per share. The actual EPS for the quarter came out at $0.68, slightly higher than the estimated $0.667. The company's credit results were strong, with an estimated Moody's full-year CFO pre-working-capital to debt of nearly 100 basis points above their downgrade threshold.

Publication Date: Feb -24

                                    📋 Highlights
                                    2025 Operating Earnings Exceed Guidance:
                                                Q4 2025 operating earnings of $3.42/share (excluding RNG credits) beat midpoint guidance and full-year GAAP earnings were $3.45/share.
2026 Earnings Guidance Raised:
                                                2026 EPS guidance of $3.40–$3.60/share (midpoint $3.50) reflects 6.1% growth from 2025’s midpoint and a 30% increase in 5-year capital spending to $65B.
Coastal Virginia Offshore Wind Progress:
                                                Project at 70% completion, on track for March 2026 first power delivery, with a total budget of $11.5B.
Capital Plan Allocation:
                                                7% of $65B 5-year capital plan allocated to nuclear (fuel/relicensing), while 90% of 2026 capex growth is concentrated in Virginia.
Customer Affordability and Data Center Momentum:
                                                Residential rates 9% below U.S. average, with data center pipeline at 48 GW (+3% YoY) and demand through 2045 fully covered by contracts.

                                

Guidance and Growth Prospects

For 2026, Dominion Energy expects operating earnings per share, excluding RNG 45Z credit income, to be between $3.40 and $3.60 per share, with a midpoint of $3.50, representing a 6.1% increase from the 2025 guidance midpoint. The company's five-year total capital estimate increased by 30% to approximately $65 billion, with over 90% of the increase at Dominion Energy Virginia. Analysts estimate next year's revenue growth at 5.7%.

Valuation and Dividend Yield

Dominion Energy's current valuation metrics include a P/E Ratio of 18.3, P/B Ratio of 1.89, and Dividend Yield of 4.16%. The company's ROE stands at 10.77%, indicating a relatively healthy return on equity. The Net Debt / EBITDA ratio is 6.27, suggesting a manageable debt burden. The dividend yield is attractive compared to the industry average, but the company's payout ratio is subject to change as peers have been reducing their payout targets.

Operational Updates and Project Progress

The company's Coastal Virginia Offshore Wind project is over 70% complete and on track for first power delivery to the grid by March, with a budget of $11.5 billion. The data center pipeline has grown by 3% to over 48 gigawatts in various stages of contracting as of December 2025. The company's forecasted data center demand through 2045 is more than covered by existing signed ESAs and CLOAs, making the data center market less risky and highly realistic.

Regulatory Approvals and Future Plans

The Virginia State Corporation Commission approved the large load provisions and the Chesterfield Energy Reliability Center project, an approximately one-gigawatt gas-fired electric generating facility expected to cost $1.5 billion and be placed in service in 2029. The company was also awarded a portfolio of PJM transmission projects totaling over $5 billion with various in-service dates through 2032.

3. NewsRoom

111 Capital Takes $918,000 Position in Dominion Energy Inc. $D

Mar -03

Source: defenseworld.net

2 Tariff-Proof Energy Stocks to Buy Now

Feb -28

Source: fool.com

Dominion Energy Inc. (NYSE:D) Receives Average Rating of “Hold” from Analysts

Feb -27

Source: defenseworld.net

Dominion Energy (D) Reports Q4 Earnings: What Key Metrics Have to Say

Feb -23

Source: zacks.com

Dominion Energy Inc (D) Q4 2025 Earnings Call Highlights: Strong Earnings and Ambitious Investment Plans

Feb -23

Source: gurufocus.com

Dominion Energy, Inc. (D) Q4 2025 Earnings Call Transcript

Feb -23

Source: seekingalpha.com

Dow Tumbles Over 700 Points; Dominion Energy Posts Upbeat Earnings

Feb -23

Source: benzinga.com

Dominion Energy Q4 Earnings and Revenues Surpass Estimates

Feb -23

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (6.20%)

6. Segments

Dominion Energy Virginia

Expected Growth: 6.5%

The segment is likely to experience steady growth due to increasing demand for electricity, driven by population growth and economic development in Virginia. The regulated nature of the business provides a stable revenue stream, allowing for predictable growth.

Dominion Energy South Carolina

Expected Growth: 6.0%

The segment is expected to experience moderate growth, driven by steady demand for electricity in the region. The regulated nature of the business provides a stable revenue stream, although the growth rate may be slightly lower than Dominion Energy Virginia due to differences in regional economic conditions.

Contracted Energy

Expected Growth: 7.0%

The segment is expected to experience higher growth due to its non-regulated nature, allowing it to capitalize on market opportunities and expand its generation capacity. However, the growth is accompanied by higher risks due to market volatility and competition.

Corporate and Other

Expected Growth: 6.2%

The segment is expected to grow in line with the company's overall growth rate, driven by various corporate activities and investments. The growth rate is assumed to be in line with the global growth hypothesis, as it is not directly related to specific operational segments.

Adjustments & Eliminations

Expected Growth: 6.2%

The segment is expected to grow in line with the company's overall growth rate, as the eliminations and adjustments are directly related to the company's overall financial performance. The growth rate is assumed to be in line with the global growth hypothesis.

7. Detailed Products

Electricity Generation and Distribution

Dominion Energy generates electricity from various sources including nuclear, fossil fuels, and renewable energy sources. The company operates a fleet of power plants and transmits electricity through its transmission lines to utilities, industrial customers, and other energy companies.

Natural Gas Storage and Transportation

Dominion Energy operates a network of natural gas storage facilities and transportation pipelines, providing storage and transportation services to utilities, industrial customers, and other energy companies.

Liquefied Natural Gas (LNG) Export

Dominion Energy operates an LNG export facility, Cove Point LNG, which exports LNG to countries around the world.

Renewable Energy

Dominion Energy develops, constructs, and operates renewable energy projects, including solar and wind farms.

Energy Marketing and Trading

Dominion Energy markets and trades electricity, natural gas, and other energy commodities to utilities, industrial customers, and other energy companies.

8. Dominion Energy, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Dominion Energy, Inc. operates in the energy industry, specifically in the power generation and distribution sector. While there are alternative energy sources such as solar and wind power, the threat of substitutes is moderate due to the existing infrastructure and customer loyalty.

Bargaining Power Of Customers

The customers of Dominion Energy, Inc. are primarily residential and commercial users who have limited bargaining power due to the essential nature of electricity and the lack of alternative suppliers in the region.

Bargaining Power Of Suppliers

Dominion Energy, Inc. relies on various suppliers for fuel, equipment, and services. While there are multiple suppliers available, the company may face some bargaining power from suppliers due to market conditions and the availability of substitutes.

Threat Of New Entrants

The energy industry is heavily regulated, and new entrants face significant barriers to entry, including high capital requirements and regulatory hurdles. This limits the threat of new entrants.

Intensity Of Rivalry

The energy industry is highly competitive, with multiple players operating in the same region. Dominion Energy, Inc. faces significant competition from other energy companies, which drives the intensity of rivalry.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	60.50%
Debt Cost	5.26%
Equity Weight	39.50%
Equity Cost	7.26%
WACC	6.05%
Leverage	153.19%

11. Quality Control: Dominion Energy, Inc. passed 3 out of 9 key points

Strong Liquidity

Low Deb

Strong Interest Coverage

Healthy Cash Flow

Operating Inefficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Exelon

A-Score: 6.7/10

Value: 6.7

Growth: 3.8

Quality: 4.4

Yield: 7.0

Momentum: 8.5

Volatility: 10.0

1-Year Total Return ->

WEC Energy

A-Score: 6.7/10

Value: 5.3

Growth: 4.8

Quality: 4.9

Yield: 7.0

Momentum: 8.0

Volatility: 10.0

1-Year Total Return ->

Dominion Energy

A-Score: 6.5/10

Value: 5.8

Growth: 3.6

Quality: 5.0

Yield: 8.0

Momentum: 7.0

Volatility: 9.7

1-Year Total Return ->

DTE Energy

A-Score: 6.2/10

Value: 4.8

Growth: 3.7

Quality: 4.1

Yield: 7.0

Momentum: 7.5

Volatility: 10.0

1-Year Total Return ->

NextEra Energy

A-Score: 6.1/10

Value: 2.5

Growth: 5.9

Quality: 5.5

Yield: 6.0

Momentum: 8.0

Volatility: 8.7

1-Year Total Return ->

Xcel Energy

A-Score: 6.0/10

Value: 4.3

Growth: 4.6

Quality: 3.2

Yield: 6.0

Momentum: 8.0

Volatility: 10.0

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

18.47%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

6.05%

Dominion Energy, Inc. - US25746U1097

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on D

1.c. Company Highlights

Lower Growth

Average Yield

Fairly Valued

Revenues Miss

Earnings Miss

Average Quality

Earnings Beats

Average Growth

Medium Volatility

Stable Momentum

Strong Momentum

Revenues Beats

2. Dominion Energy's Strong Q4 2025 Earnings and Growth Outlook

Guidance and Growth Prospects

Valuation and Dividend Yield

Operational Updates and Project Progress

Regulatory Approvals and Future Plans

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (6.20%)

6. Segments

Dominion Energy Virginia

Expected Growth: 6.5%

Dominion Energy South Carolina

Expected Growth: 6.0%

Contracted Energy

Expected Growth: 7.0%

Corporate and Other

Expected Growth: 6.2%

Adjustments & Eliminations

Expected Growth: 6.2%

7. Detailed Products

Electricity Generation and Distribution

Natural Gas Storage and Transportation

Liquefied Natural Gas (LNG) Export

Renewable Energy

Energy Marketing and Trading

8. Dominion Energy, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Dominion Energy, Inc. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

62.91$

Current Price

62.91$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA