D AI Stock Analysis – Buy, Hold, or Avoid?
Dominion Energy, Inc. (D)
Dominion Energy is fundamentally improving with robust revenue and earnings growth, but its valuation is fair and technicals are neutral, suggesting a balanced risk/reward profile. While long-term prospects are attractive for income-focused investors, short-term and medium-term signals are mixed due to consolidation, sector risks, and high leverage. Investors should monitor for a technical breakout or regulatory catalysts before increasing exposure.
Fundamentals
Dominion Energy is exhibiting fundamental improvement with consecutive revenue and earnings beats, enhanced profitability, and stable dividend potential. The regulated utilities environment provides predictability in cash flows and risk mitigation, suggesting the company is currently navigating its restructuring effectively.
Financial Highlights
- Revenue
- Net Income
- Net Margin (%)
Revenue
26.20% YoY
Q1 2026
Net Income
-3.87% YoY
Q1 2026
Net Margin
Q1 2026
Growth Metrics
Revenue Growth YoY
Latest Quarter: Q1 2026
Net Income Growth YoY
Latest Quarter: Q1 2026
Revenue Per Share Growth YoY
Latest Quarter: Q1 2026
EPS Growth YoY
Latest Quarter: Q1 2026
Book Value Per Share Growth YoY
Latest Quarter: Q1 2026
| Q1 2026 | Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | |
|---|---|---|---|---|---|---|---|---|
| Revenue | 5.1B | 4.1B | 4.5B | 3.8B | 4.1B | 3.4B | 3.9B | 3.5B |
| Revenue Growth YoY | +26.20% | +20.38% | +14.87% | +9.29% | +12.22% | -3.79% | +3.44% | +10.11% |
| Net Income | 621.0M | 586.0M | 1.0B | 760.0M | 646.0M | -76.0M | 934.0M | 563.0M |
| Net Income Growth YoY | -3.87% | +871.05% | +7.71% | +34.99% | +46.49% | -132.34% | +494.90% | -3.43% |
| EPS | $0.69 | $0.65 | $1.18 | $0.88 | $0.75 | $0.14 | $1.12 | $0.65 |
| EPS Growth YoY | -8.00% | +364.29% | +5.36% | +35.38% | +50.00% | -46.15% | +558.82% | -5.80% |
Profitability Metrics
Gross Margin
TTM
Operating Margin
TTM
Net Margin
TTM
Return on Equity
TTM
Return on Assets
TTM
| Q1 2026 | Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 51.57% | 44.91% | 50.21% | 50.39% | 50.54% | 44.18% | 52.60% | 47.71% |
| Operating Margin | 27.99% | 18.47% | 29.58% | 28.77% | 30.00% | 22.74% | 30.91% | 23.09% |
| Net Margin | 12.07% | 14.32% | 22.22% | 19.95% | 15.85% | -2.24% | 23.70% | 16.15% |
| Return on Equity (ROE) | 2.13% | 2.01% | 3.63% | 2.79% | 2.36% | -0.28% | 3.39% | 2.08% |
| Return on Assets (ROA) | 0.54% | 0.53% | 0.95% | 0.74% | 0.64% | -0.08% | 0.98% | 0.58% |
Technical Analysis
Dominion Energy (D) is currently in a neutral to slightly bullish technical phase with price trading near the 50-day SMA but above both the 150 and 200-day SMAs. The stock is in a Stage 2 advancing phase, signaling institutional accumulation and a constructive uptrend environment, though momentum remains subdued as reflected by a moderate RSI and weak ADX trend strength.
No extreme reading
Price in uptrend
Range-bound market
50 above 200 - bullish
Key Technical Values
Price with Moving Averages
50-day, 150-day and 200-day simple moving averages
Relative Strength Index
Momentum oscillator measuring speed and magnitude of price changes
RSI (14)
Earnings
Dominion Energy is exhibiting fundamental improvement with consecutive revenue and earnings beats, enhanced profitability, and stable dividend potential. The regulated utilities environment provides predictability in cash flows and risk mitigation, suggesting the company is currently navigating its restructuring effectively.
Latest Earnings
Q1 2026 Earnings (Mar 31, 2026)
Earnings Per Share (EPS)
Actual
$0.95
Estimated
$0.90
Surprise
+$0.05
Surprise %
+5.32%
Revenue
Actual
$5.02B
Estimated
$4.43B
Surprise
+$588.83M
Surprise %
+13.29%
Historical Earnings
| Q1 2026 | Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | |
|---|---|---|---|---|---|---|---|---|
| Earnings Per Share | ||||||||
| EPS (Actual) | $0.95 | $0.68 | $1.06 | $0.75 | $0.93 | $0.58 | $0.98 | $0.65 |
| EPS (Estimated) | $0.90 | $0.67 | $0.95 | $0.68 | $0.75 | $0.56 | $0.93 | $0.56 |
| EPS Surprise | +$0.05 | +$0.01 | +$0.11 | +$0.07 | +$0.18 | +$0.02 | +$0.05 | +$0.09 |
| % Diff | +5.3% | +1.9% | +11.0% | +10.8% | +23.5% | +3.6% | +5.4% | +16.1% |
| Revenue | ||||||||
| Revenue (Actual) | $5.02B | $4.09B | $4.53B | $3.81B | $4.08B | $3.4B | $3.94B | $3.49B |
| Revenue (Estimated) | $4.43B | $3.65B | $4.26B | $3.65B | $3.96B | $3.94B | $4.18B | $3.73B |
| Revenue Surprise | +$588.83M | +$443.03M | +$265.66M | +$157.71M | +$116.1M | -$540.96M | -$237.47M | -$243.27M |
| % Diff | +13.3% | +12.1% | +6.2% | +4.3% | +2.9% | -13.7% | -5.7% | -6.5% |
Valuation
Dominion Energy presents a valuation that aligns closely with its utility sector peers, supported by steady revenue growth and improving margins. Despite a moderate premium in some quarterly metrics, the overall assessment reflects a company with stable profitability and ongoing infrastructure investment, warranting a cautious but constructive outlook.
Valuation Metrics
Price to Earnings
TTM
Price to Sales
TTM
Price to Book
TTM
Enterprise Value to EBITDA
TTM
Enterprise Value to Revenue
TTM
| Q1 2026 | Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | |
|---|---|---|---|---|---|---|---|---|
| Price to Earnings | 21.87 | 21.35 | 12.95 | 15.84 | 18.49 | -150.95 | 12.98 | 17.87 |
| Price to Sales | 10.56 | 12.23 | 11.52 | 12.64 | 11.72 | 13.50 | 12.30 | 11.55 |
| Price to Book | 1.86 | 1.72 | 1.88 | 1.77 | 1.75 | 1.68 | 1.76 | 1.49 |
| Enterprise Value to EBITDA | 51.00 | 66.22 | 46.22 | 42.93 | 47.45 | 53.87 | 45.67 | 46.87 |
| Enterprise Value to Revenue | 20.53 | 24.12 | 22.00 | 24.72 | 22.46 | 25.68 | 22.77 | 23.43 |
Sentiment & Analyst Ratings
Dominion Energy (D) exhibits a predominantly cautious but steady market sentiment with modest appreciation year-to-date. Analysts mostly rate the stock as a "Hold," reflecting a balanced outlook amid favorable earnings and dividend updates but tempered by sector risks related to interest rates and capital expenditures.
Analyst Recommendations
Risk Assessment
Dominion Energy exhibits considerable financial leverage and below-industry-average liquidity levels, reflecting its capital-intensive utility business model and significant ongoing project investments. The company faces moderate near-term regulatory and project execution risks, particularly related to the costly Coastal Virginia Offshore Wind project and upcoming rate case proceedings, which may influence cash flow stability. From an investor perspective, Dominion's stable regulated utility cash flows and sizable infrastructure investments present a moderate risk profile that warrants close monitoring of debt sustainability and regulatory outcomes.
Liquidity & Solvency
Current Ratio
Latest Quarter: Q1 2026
Quick Ratio
Latest Quarter: Q1 2026
Debt-to-Equity
Latest Quarter: Q1 2026
Debt-to-Assets
Latest Quarter: Q1 2026
| Q1 2026 | Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | |
|---|---|---|---|---|---|---|---|---|
| Liquidity Metrics | ||||||||
| Current Ratio | 0.78 | 0.77 | 0.84 | 0.67 | 0.73 | 0.71 | 0.74 | 0.93 |
| Quick Ratio | 0.61 | 0.59 | 0.65 | 0.49 | 0.53 | 0.52 | 0.58 | 0.78 |
| Solvency Metrics | ||||||||
| Debt-to-Equity | 1.78 | 1.68 | 1.75 | 1.70 | 1.61 | 1.53 | 1.56 | 1.54 |
| Debt-to-Assets | 0.44 | 0.42 | 0.44 | 0.43 | 0.42 | 0.41 | 0.43 | 0.41 |
Liquidity Assessment
Current Ratio: 0.78(Weak)
Quick Ratio: 0.61(Weak)
The company has relatively weak liquidity and may face challenges meeting short-term obligations.
Solvency Assessment
Debt-to-Equity: 1.78(High)
Debt-to-Assets: 0.44(Moderate)
The company has relatively high debt levels, which may increase financial risk in economic downturns.
Frequently Asked Questions about D
AI Answers: Common Questions About D
Get AI-powered answers to the questions investors ask most about Dominion Energy, Inc.
Dominion Energy is a reasonable buy for long-term investors at $61.88, with a P/E of 18.26 in line with sector peers and improving fundamentals. However, technicals are neutral and the stock is consolidating, so short-term traders may want to wait for a breakout above $62.40. The dividend yield and regulated cash flows add to its appeal for income-focused portfolios.
There is no strong reason to sell now unless you expect near-term regulatory setbacks or need to rebalance due to sector exposure. Fundamentals are improving, and technicals do not indicate a breakdown, but short-term upside is limited until a clear trend emerges.
Dominion's biggest risks are high leverage (debt/equity ~1.78, interest coverage 2.6x), cost overruns on large projects like the Coastal Virginia Offshore Wind, and regulatory uncertainties that could impact allowed returns. Liquidity ratios are below ideal (current ratio <1.5), so monitoring cash flow and project execution is important.
Analyst price targets average around $66 (range $59-$70), with technical resistance at $62.40 and a longer-term target at the 52-week high of $67.57. Support is near $61.00 and $60.00, so a breakout above $62.40 could target the $66-$67.50 zone.
Dominion is fairly valued with a P/E of 18.26, price-to-sales and EV/EBITDA multiples in line with utilities peers, and no signs of overvaluation. The stock trades at a modest premium for its growth and infrastructure investments, but not excessively so.
Fundamentals are strong: revenue grew 14% YoY in FY25 and 26% in Q1 2026, gross margin is over 51%, and net margin is 12%. Earnings quality is high, driven by recurring regulated revenues and disciplined cost management, though leverage remains elevated.
Technical analysis is neutral: price is consolidating between $61 and $62.40, RSI is 46 (neither overbought nor oversold), and a golden cross is present but trend strength is weak (ADX <20). Wait for a breakout above $62.40 for bullish confirmation.
Key catalysts include upcoming regulatory rate case decisions, execution milestones on major projects like the Coastal Virginia Offshore Wind, and continued earnings/dividend growth. Macro factors such as interest rate changes and sector policy shifts could also impact the stock.
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