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 performance was driven by robust electricity demand from data centers, which is expected to drive 5-7% annual operating EPS growth through 2029. The company's disciplined capital spending and 60% recoverable costs through regulatory mechanisms provide stability and growth. Additionally, Dominion Energy's investments in infrastructure and renewable energy sources are expected to contribute to its growth. The company's impressive earnings surprise history and ability to beat estimates in its latest quarterly report also support its positive performance.

1.c. Company Highlights

Last Price	59.1
Change Percentage	-1.24%
Open	58.99
Previous Close	59.84
Market Cap ( Millions)	50466
Volume	2339403
Year High	62.87
Year Low	48.07
M A 50	60.75
M A 200	57.72

FCF Yield	-3.03%
Dividend Yield	4.52%
ROE	8.25%
Debt / Equity	67.10%
Net Debt / EBIDTA	259.08%
Price To Book	1.61
Price Earnings Ratio	21.56
Price To FCF	-32.96
Price To sales	3.19
EV / EBITDA	8.8

2. Dominion Energy's Q3 Earnings: A Strong Beat on the Back of Regulated Investment Growth

Dominion Energy reported operating earnings of $1.06 per share for the third quarter of 2025, beating analyst estimates of $0.955 per share. The company's earnings growth was driven by $0.06 from regulated investment growth, $0.08 from increased sales, $0.05 from the DESC rate case settlement, and $0.03 from higher margins at Contracted Energy. Notably, the company narrowed its full-year guidance range to $3.33-$3.48 per share, with a midpoint of $3.40. With a P/E Ratio of 21.34, the market is pricing in a certain level of growth, which is supported by the company's recent performance.

Publication Date: Nov -04

                                    📋 Highlights
                                    Q3 2025 Operating Earnings:
                                                $1.06/share, driven by $0.06 from regulated investment growth and $0.08 from increased sales.
CVOW Project Status:
                                                2/3 complete at $11.2B cost, with updated LCOE of $84 and $0.63/month residential bill credit over its lifetime.
Charybdis Wind Turbine Vessel:
                                                472-foot, 27,000-ton vessel with 2,200-ton crane, 120/200 punch list items resolved ahead of Nov. 2025 operational readiness.
Data Center Demand:
                                                47 GW in contracting stages as of Sept. 2025, 17% increase from Dec. 2024, with 25 GW of firm delivery points through 2031.
Capital Plan Update:
                                                Anticipated Q4 2025 revisions show upward trajectory for distribution, transmission, and generation, supported by 15% FFO-to-debt ratio.

                                

CVOW Project Update

The Coastal Virginia Offshore Wind (CVOW) project is making significant progress, with the company reporting that it is 2/3 complete and on track to deliver electricity to customers in late first-quarter 2026. The project costs stand at $11.2 billion, with an unused contingency of $206 million. As Robert Blue stated, "We're advantaged due to our size and long supplier relationships, built from extensive transmission work." This progress is a positive sign for the company's renewable energy goals.

Data Center Demand and Growth

Data center demand continues to be robust, with approximately 47 gigawatts in various stages of contracting as of September 2025, representing a 17% increase since December 2024. The company has seen significant growth in this area, with 370 delivery point requests since 2020, representing over 58 gigawatts of capacity. This growth is expected to continue, with the company's Integrated Resource Plan (IRP) outlining new generation timelines that match its supply chain expectations.

Nuclear Development and Future Plans

The company is taking a cautious approach to nuclear development due to concerns about cost overrun risk and first-of-a-kind costs. However, it is exploring potential solutions, such as an MOU with Amazon to help finance an SMR at North Anna 3. The company will need backstops on catastrophic risk and cost overrun risk to pull forward the timeline for new nuclear development. With a strong balance sheet, including a 15% FFO to debt ratio, the company is well-positioned to invest in its future plans.

Valuation and Outlook

With the company's strong financial performance and growth prospects, the market is pricing in a certain level of growth, as reflected in its valuation metrics. The P/S Ratio of 3.16 and EV/EBITDA of 8.74 suggest that the market is expecting continued growth from the company. Analysts estimate next year's revenue growth at 6.2%, which is in line with the company's plans to invest in its data center and renewable energy businesses. Overall, Dominion Energy's strong Q3 earnings and growth prospects make it an attractive investment opportunity.

3. NewsRoom

5 Energy Stocks That Could Benefit From the Genesis Mission

Dec -04

Source: fool.com

Must-Buy Non-Tech Stocks for 2026 Amid AI-Driven Data Center Boom

Dec -02

Source: zacks.com

How Oklo and Dominion Stack Up in the Nuclear Power Race

Nov -27

Source: zacks.com

Dominion Energy Is a Utility Play With AI Upside. It's a Buy.

Nov -26

Source: barrons.com

Nuclear Energy Stocks Gain Traction as Clean Power Demand Surges

Nov -25

Source: zacks.com

NEE vs. D: Which Utility Giant Now Has More Growth Potential?

Nov -24

Source: zacks.com

Reasons to Give Dominion Energy a Spot in Your Portfolio Right Now

Nov -24

Source: zacks.com

AGP Franklin LLC Has $3.18 Million Stock Holdings in Dominion Energy Inc. $D

Nov -22

Source: defenseworld.net

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

WEC Energy

A-Score: 6.9/10

Value: 6.1

Growth: 4.9

Quality: 6.7

Yield: 6.0

Momentum: 8.0

Volatility: 10.0

1-Year Total Return ->

DTE Energy

A-Score: 6.5/10

Value: 4.7

Growth: 3.7

Quality: 6.9

Yield: 6.0

Momentum: 7.5

Volatility: 10.0

1-Year Total Return ->

Exelon

A-Score: 6.4/10

Value: 5.9

Growth: 3.8

Quality: 4.4

Yield: 7.0

Momentum: 7.5

Volatility: 10.0

1-Year Total Return ->

Xcel Energy

A-Score: 6.4/10

Value: 5.0

Growth: 4.6

Quality: 3.9

Yield: 6.0

Momentum: 9.0

Volatility: 10.0

1-Year Total Return ->

Dominion Energy

A-Score: 6.3/10

Value: 5.5

Growth: 3.6

Quality: 4.6

Yield: 8.0

Momentum: 6.5

Volatility: 9.7

1-Year Total Return ->

NextEra Energy

A-Score: 5.3/10

Value: 2.4

Growth: 6.0

Quality: 5.4

Yield: 6.0

Momentum: 4.0

Volatility: 8.0

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

17.81%

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 Q3 Earnings: A Strong Beat on the Back of Regulated Investment Growth

CVOW Project Update

Data Center Demand and Growth

Nuclear Development and Future Plans

Valuation and Outlook

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

59.1$

Current Price

59.1$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA