Dominion Energy Profitability Analysis

D Stock  USD 61.74  0.45  0.73%   
For Dominion Energy profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Dominion Energy to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Dominion Energy utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Dominion Energy's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Dominion Energy over time as well as its relative position and ranking within its peers. Continue to Investing Opportunities.
  
The current year Sales per Share is expected to grow to 22.59, whereas Price to Sales Ratio is forecasted to decline to 4.89. Dominion Energy Net Income is projected to increase significantly based on the last few years of reporting. The past year's Net Income was at 2.96 Billion. The current year Net Income Common Stock is expected to grow to about 4.1 B, whereas Net Loss Income from Discontinued Operations is forecasted to decline to about 82.3 M.

Dominion Energy Revenues

12.31 Billion

Is Dominion Energy's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Dominion Energy. If investors know Dominion will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Dominion Energy listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.149
Market Capitalization
50.2 B
Quarterly Revenue Growth
0.381
Return On Assets
0.0261
Return On Equity
6.8136
The market value of Dominion Energy is measured differently than its book value, which is the value of Dominion that is recorded on the company's balance sheet. Investors also form their own opinion of Dominion Energy's value that differs from its market value or its book value, called intrinsic value, which is Dominion Energy's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Dominion Energy's market value can be influenced by many factors that don't directly affect Dominion Energy's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Dominion Energy's value and its price as these two are different measures arrived at by different means. Investors typically determine Dominion Energy value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Dominion Energy's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Dominion Energy Debt to Equity vs. Return On Equity Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Dominion Energy's current stock value. Our valuation model uses many indicators to compare Dominion Energy value to that of its competitors to determine the firm's financial worth.
Dominion Energy is one of the top stocks in return on equity category among related companies. It is one of the top stocks in debt to equity category among related companies fabricating about  0.23  of Debt to Equity per Return On Equity. The ratio of Return On Equity to Debt to Equity for Dominion Energy is roughly  4.38 . Dominion Energy Debt to Equity Ratio is projected to slightly decrease based on the last few years of reporting. The past year's Debt to Equity Ratio was at 1.58. Comparative valuation analysis is a catch-all model that can be used if you cannot value Dominion Energy by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Dominion Energy's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Dominion Energy's earnings, one of the primary drivers of an investment's value.

Dominion Debt to Equity vs. Return On Equity

Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
Dominion Energy 
Return on Equity 
 = 
Net Income 
Total Equity 
X
100 
6.81 %
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Debt to Equity is calculated by dividing the Total Debt of a company by its Equity. If the debt exceeds equity of a company, then the creditors have more stakes in a firm than the stockholders. In other words, Debt to Equity ratio provides analysts with insights about composition of both equity and debt, and its influence on the valuation of the company.
Dominion Energy 
D/E 
 = 
Total Debt 
Total Equity 
1.56 %
High Debt to Equity ratio typically indicates that a firm has been borrowing aggressively to finance its growth and as a result may experience a burden of additional interest expense. This may reduce earnings or future growth. On the other hand a small D/E ratio may indicate that a company is not taking enough advantage from financial leverage. Debt to Equity ratio measures how the company is leveraging borrowing against the capital invested by the owners.

Dominion Debt to Equity Comparison

Dominion Energy is currently under evaluation in debt to equity category among related companies.

Dominion Energy Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Dominion Energy, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Dominion Energy will eventually generate negative long term returns. The profitability progress is the general direction of Dominion Energy's change in net profit over the period of time. It can combine multiple indicators of Dominion Energy, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.

Dominion Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Dominion Energy. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Dominion Energy position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Dominion Energy's important profitability drivers and their relationship over time.

Dominion Energy Profitability Trends

Dominion Energy profitability trend refers to the progression of profit or loss within a business. An upward trend means that Dominion Energy's profit has generally increased over time, and a downward profitability trend means profits are declining. Recognizing problems early in profitability trends allows investors to address revenue and cost issues in advance. Investors and analysts usually monitor three types of profitability trends: gross, operating, and net. Gross profit is the difference between revenue and costs of goods sold. Operating profit is Dominion Energy's gross profit minus its overhead. After you account for other unusual revenue, expenses, and costs, you get net profit. Gross profit trends are often a good indicator of future profitability. If you have high gross profit margins, you have a better chance to cover overhead and make money.

Dominion Energy Profitability Drivers Correlations

One of the toughest challenges investors face today is learning how to quickly synthesize and read into endless financial statements and information provided by the company, SEC reporting, and various external parties. Understanding the correlation between Dominion Energy different financial indicators related to revenue and profit generation helps investors identify and prioritize their investing strategies towards Dominion Energy in a much-optimized way. Analyzing correlations between profit drivers that are directly associated with dollar figures is the most effective way to break down Dominion Energy's future profitability.

Use Dominion Energy in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Dominion Energy position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Dominion Energy will appreciate offsetting losses from the drop in the long position's value.

Dominion Energy Pair Trading

Dominion Energy Pair Trading Analysis

The ability to find closely correlated positions to Dominion Energy could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Dominion Energy when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Dominion Energy - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Dominion Energy to buy it.
The correlation of Dominion Energy is a statistical measure of how it moves in relation to other equities. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Dominion Energy moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Dominion Energy moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Dominion Energy can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Dominion Energy position

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Apparel Theme
Companies manufacturing textile accessories and apparel products. The Apparel theme has 8 constituents at this time.
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Continue to Investing Opportunities. Note that the Dominion Energy information on this page should be used as a complementary analysis to other Dominion Energy's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.

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To fully project Dominion Energy's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Dominion Energy at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Dominion Energy's income statement, its balance sheet, and the statement of cash flows.
Potential Dominion Energy investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Dominion Energy investors may work on each financial statement separately, they are all related. The changes in Dominion Energy's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Dominion Energy's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.