Investment Thesis
Dominion Energy demonstrates solid operational profitability with a 26.7% operating margin and strong free cash flow generation of $3.9B, supporting its utility business model. However, elevated leverage (1.59x debt-to-equity) and weak liquidity metrics (0.77x current ratio) present financial stress, requiring careful capital management despite modest revenue growth constraints typical of regulated utilities.
D Strengths
- Exceptional free cash flow of $3.9B with 23.6% FCF margin, providing substantial capacity for dividends and debt service
- Solid operating margins at 26.7% and net margins at 18.2% reflecting efficient cost management in regulated utility operations
- Operating cash flow of $5.4B significantly exceeds capital expenditures, indicating sustainable cash generation model
- Substantial asset base of $115.9B supporting essential infrastructure and regulated revenue streams
D Risks
- High financial leverage with debt-to-equity ratio of 1.59x and long-term debt of $46.3B limits financial flexibility
- Weak liquidity position with current ratio of 0.77x and quick ratio of 0.59x suggests potential cash flow pressure in stressed scenarios
- Stagnant revenue growth of -0.1% YoY indicates limited top-line expansion despite capital investments
- Capital intensity requiring $1.5B annual capex while managing significant debt obligations constrains financial options
Key Metrics to Watch
- Operating cash flow sustainability and free cash flow generation relative to debt service obligations
- Debt-to-equity trajectory and refinancing ability in rising interest rate environment
- Revenue growth acceleration from regulated rate base expansion and infrastructure investments
- Interest coverage ratio and debt maturity schedule to assess refinancing risk
D Financial Metrics
D Profitability Ratios
D Balance Sheet & Liquidity
D 5-Year Financial Trend
5-Year Trend Summary: DOMINION ENERGY, INC's revenue has grown significantly by 17% over the 5-year period, indicating strong business expansion. The most recent EPS of $2.25 reflects profitable operations.
D Growth Metrics (YoY)
D Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $3.8B | $934.0M | $1.09 |
| Q2 2025 | $3.5B | $563.0M | $0.64 |
| Q1 2025 | $3.5B | $441.0M | $0.50 |
| Q3 2024 | $3.8B | $157.0M | $0.16 |
| Q2 2024 | $3.1B | $572.0M | $0.65 |
| Q1 2024 | $3.5B | $674.0M | $0.78 |
| Q3 2023 | $3.8B | $163.0M | $0.17 |
| Q2 2023 | $3.7B | $258.0M | $0.25 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
D Capital Allocation
D SEC Filings
Access official SEC EDGAR filings for DOMINION ENERGY, INC (CIK: 0000715957)