Dominion Energy's Earnings Surge Raises Concerns on Valuation and Dividend Sustainability

Dominion Energy's net income surged 49.7% YoY and net profit margin improved to 16.7% from 11.8% last year. Earnings are forecast to grow at 7.85% annually, but valuation concerns and risks tied to dividend sustainability remain. Revenue and profit momentum are positives, but investors should note that the stock price sits above estimated fair value.