Seaport Upgrades Dominion Energy to Buy as Stock Becomes Excessively Discounted Compared to Peers
June 7, 2023
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Seaport Global just upgraded Dominion Energy ($NYSE:D) to Buy, noting that its stock has become excessively discounted compared to peers. Dominion Energy is an energy and power company based in Richmond, Virginia. The company operates two business segments, Dominion Energy and Dominion Energy Midstream. The Dominion Energy Midstream segment builds, owns and operates infrastructure assets for natural gas storage, transmission and processing. Seaport Global sees the stock’s discount relative to peers as excessive and upgraded it to Buy, suggesting it could be a good buy for investors.
In addition, the company is expected to benefit from its cost reduction initiatives and higher rate base growth. Furthermore, its investments in renewable energy projects and infrastructure could also lead to higher earnings.
Share Price
Monday saw a positive day for Dominion Energy, as the stock opened at $50.4 and closed at $50.5, up 1.3% from last closing price of 49.9. The analyst cited that the stock was excessively discounted compared to peers and that they believed the stock offered a compelling entry point for investors. This purchase will further solidify Dominion’s presence in the Utility sector of the energy industry and is expected to both deliver immediate and long-term value to shareholders. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Dominion Energy. More…
| Total Revenues | Net Income | Net Margin |
| 18.15k | 1.19k | 21.0% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Dominion Energy. More…
| Operations | Investing | Financing |
| 4.96k | -7.14k | 2.09k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Dominion Energy. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 105.33k | 76.97k | 33.92 |
Key Ratios Snapshot
Some of the financial key ratios for Dominion Energy are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 1.8% | -1.7% | 25.8% |
| FCF Margin | ROE | ROA |
| -16.7% | 10.4% | 2.8% |
Analysis
At GoodWhale, we recently conducted an analysis of DOMINION ENERGY‘s financial and business wellbeing. The results of the analysis show that DOMINION ENERGY has been rated as a medium risk investment. GoodWhale has detected two risk warnings in their income sheet and balance sheet. To view more details about these warnings, become a registered user on our platform. With our platform, users can gain an in-depth insight into DOMINION ENERGY’s financial and business wellbeing. Our platform also provides regular updates on changes in the company’s rating and risk warnings. Through our platform, investors can make more informed decisions and better understand the risks associated with investing in DOMINION ENERGY. More…
Peers
In the energy sector, Dominion Energy Inc is up against some stiff competition. WEC Energy Group Inc, OGE Energy Corp, and Central Puerto SA are all companies that it must compete with in order to stay afloat and continue to grow. Each company has its own strengths and weaknesses, so it is important for Dominion Energy Inc to keep an eye on the competition in order to stay ahead of the game.
– WEC Energy Group Inc ($NYSE:WEC)
WEC Energy Group Inc is a holding company that, through its subsidiaries, generates and distributes electric power and provides utility services in the Midwest and Mid-Atlantic United States. The Company serves approximately four million customers in Wisconsin, Illinois, Michigan, and Minnesota.
WEC Energy Group Inc has a market cap of 27.02B as of 2022. It has a ROE of 11.61%. The company is involved in the generation and distribution of electric power and provision of utility services in the Midwest and Mid-Atlantic United States. It serves around four million customers in Wisconsin, Illinois, Michigan, and Minnesota.
– OGE Energy Corp ($NYSE:OGE)
Duke Energy Corporation is an American electric power holding company headquartered in Charlotte, North Carolina. The company is the largest utility in the United States with 7.3 million customers in six states. Duke Energy operates a diverse mix of generation assets, including nuclear, coal-fired, oil- and natural gas-fired, and hydroelectric power plants. The company also owns a majority stake in gas pipeline operator Spectra Energy.
– Central Puerto SA ($NYSE:CEPU)
Central Puerto SA is an Argentinean electricity generation company. The company has a market cap of 1.34 billion as of 2022 and a return on equity of 7.42%. Central Puerto SA is a leading electricity generation company in Argentina and the Southern Cone of South America. The company operates a diversified portfolio of power plants that use different energy sources, including natural gas, diesel, and renewable energy. Central Puerto SA also has a significant presence in the Argentinean electricity market.
Summary
Seaport Global recently upgraded Dominion Energy‘s stock to a “Buy” rating, citing its attractive valuation. The firm noted that, despite the company’s strong operational performance, its stock was trading at a discount relative to its peers. Seaport Global believes this discount is now excessive, making Dominion Energy a highly attractive investment opportunity. The firm believes the company’s asset portfolio and its long-term growth prospects make it a compelling choice, and that the current valuation presents an opportunity for investors to benefit from both near-term returns and long-term growth.
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