BLACK HILLS CORP (BKH)
US0921131092 - Common Stock
Overall BKH gets a fundamental rating of 4 out of 10. We evaluated BKH against 26 industry peers in the Multi-Utilities industry. BKH has a medium profitability rating, but doesn't score so well on its financial health evaluation. BKH has a valuation in line with the averages, but it does not seem to be growing. BKH also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year BKH was profitable.
BKH had a positive operating cash flow in the past year.
In the past 5 years BKH has always been profitable.
BKH had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
With a Return On Assets value of 2.73%, BKH perfoms like the industry average, outperforming 57.69% of the companies in the same industry.
With a Return On Equity value of 8.16%, BKH is not doing good in the industry: 69.23% of the companies in the same industry are doing better.
With an excellent Return On Invested Capital value of 5.13%, BKH belongs to the best of the industry, outperforming 96.15% of the companies in the same industry.
BKH had an Average Return On Invested Capital over the past 3 years of 4.79%. This is in line with the industry average of 3.73%.
The 3 year average ROIC (4.79%) for BKH is below the current ROIC(5.13%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.73% | ||
| ROE | 8.16% | ||
| ROIC | 5.13% |
ROA(3y)2.67%
ROA(5y)2.69%
ROE(3y)8.43%
ROE(5y)8.52%
ROIC(3y)4.79%
ROIC(5y)4.95%
1.3 Margins
BKH has a Profit Margin of 11.25%. This is comparable to the rest of the industry: BKH outperforms 46.15% of its industry peers.
In the last couple of years the Profit Margin of BKH has declined.
With a decent Operating Margin value of 20.28%, BKH is doing good in the industry, outperforming 61.54% of the companies in the same industry.
In the last couple of years the Operating Margin of BKH has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.28% | ||
| PM (TTM) | 11.25% | ||
| GM | N/A |
OM growth 3Y-7.04%
OM growth 5Y-2.17%
PM growth 3Y-5.7%
PM growth 5Y-5.25%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), BKH is destroying value.
BKH has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, BKH has more shares outstanding
BKH has a better debt/assets ratio than last year.
2.2 Solvency
BKH has an Altman-Z score of 0.87. This is a bad value and indicates that BKH is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of BKH (0.87) is better than 73.08% of its industry peers.
BKH has a debt to FCF ratio of 11.32. This is a negative value and a sign of low solvency as BKH would need 11.32 years to pay back of all of its debts.
BKH's Debt to FCF ratio of 11.32 is amongst the best of the industry. BKH outperforms 100.00% of its industry peers.
A Debt/Equity ratio of 1.18 is on the high side and indicates that BKH has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.18, BKH belongs to the top of the industry, outperforming 84.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.18 | ||
| Debt/FCF | 11.32 | ||
| Altman-Z | 0.87 |
ROIC/WACC0.87
WACC5.92%
2.3 Liquidity
BKH has a Current Ratio of 0.70. This is a bad value and indicates that BKH is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.70, BKH is in line with its industry, outperforming 57.69% of the companies in the same industry.
A Quick Ratio of 0.56 indicates that BKH may have some problems paying its short term obligations.
With a Quick ratio value of 0.56, BKH perfoms like the industry average, outperforming 53.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.7 | ||
| Quick Ratio | 0.56 |
3. Growth
3.1 Past
The earnings per share for BKH have decreased by -1.75% in the last year.
BKH shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.00% yearly.
Looking at the last year, BKH shows a decrease in Revenue. The Revenue has decreased by -8.64% in the last year.
Measured over the past years, BKH shows a small growth in Revenue. The Revenue has been growing by 5.85% on average per year.
EPS 1Y (TTM)-1.75%
EPS 3Y2.69%
EPS 5Y2%
EPS growth Q2Q5.41%
Revenue 1Y (TTM)-8.64%
Revenue growth 3Y11.17%
Revenue growth 5Y5.85%
Revenue growth Q2Q-25.23%
3.2 Future
Based on estimates for the next years, BKH will show a small growth in Earnings Per Share. The EPS will grow by 4.42% on average per year.
Based on estimates for the next years, BKH will show a small growth in Revenue. The Revenue will grow by 4.74% on average per year.
EPS Next Y0.23%
EPS Next 2Y2.91%
EPS Next 3Y3.73%
EPS Next 5Y4.42%
Revenue Next Year-3.08%
Revenue Next 2Y-0.04%
Revenue Next 3Y0%
Revenue Next 5Y4.74%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 14.03, which indicates a correct valuation of BKH.
69.23% of the companies in the same industry are more expensive than BKH, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 24.84, BKH is valued a bit cheaper.
A Price/Forward Earnings ratio of 13.99 indicates a correct valuation of BKH.
69.23% of the companies in the same industry are more expensive than BKH, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of BKH to the average of the S&P500 Index (21.35), we can say BKH is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.03 | ||
| Fwd PE | 13.99 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as BKH.
Based on the Price/Free Cash Flow ratio, BKH is valued cheaply inside the industry as 96.15% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.66 | ||
| EV/EBITDA | 10.96 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)61.78
PEG (5Y)7
EPS Next 2Y2.91%
EPS Next 3Y3.73%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.80%, BKH is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.31, BKH pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.41, BKH pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.8% |
5.2 History
The dividend of BKH has a limited annual growth rate of 5.91%.
BKH has paid a dividend for at least 10 years, which is a reliable track record.
BKH has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)5.91%
Div Incr Years19
Div Non Decr Years19
5.3 Sustainability
64.09% of the earnings are spent on dividend by BKH. This is not a sustainable payout ratio.
BKH's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP64.09%
EPS Next 2Y2.91%
EPS Next 3Y3.73%
BLACK HILLS CORP
NYSE:BKH (4/29/2024, 3:19:34 PM)
After market: 54.98 0 (0%)54.98
+1.12 (+2.08%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap3.75B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.8% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.03 | ||
| Fwd PE | 13.99 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)61.78
PEG (5Y)7
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.73% | ||
| ROE | 8.16% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 20.28% | ||
| PM (TTM) | 11.25% | ||
| GM | N/A | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.24
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.18 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.7 | ||
| Quick Ratio | 0.56 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-1.75%
EPS 3Y2.69%
EPS 5Y
EPS growth Q2Q
EPS Next Y0.23%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-8.64%
Revenue growth 3Y11.17%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y