BLACK HILLS CORP (BKH) Stock Fundamental Analysis
NYSE:BKH - New York Stock Exchange, Inc. - US0921131092 - Common Stock - Currency: USD
Overall BKH gets a fundamental rating of 4 out of 10. We evaluated BKH against 25 industry peers in the Multi-Utilities industry. There are concerns on the financial health of BKH while its profitability can be described as average. BKH is valued expensive and 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.
In the past year BKH had a positive cash flow from operations.
BKH had positive earnings in each of the past 5 years.
BKH had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
The Return On Assets of BKH (2.78%) is comparable to the rest of the industry.
With a Return On Equity value of 7.69%, BKH is not doing good in the industry: 72.00% of the companies in the same industry are doing better.
BKH has a better Return On Invested Capital (5.04%) than 100.00% of its industry peers.
BKH had an Average Return On Invested Capital over the past 3 years of 4.90%. This is in line with the industry average of 3.92%.
The last Return On Invested Capital (5.04%) for BKH is above the 3 year average (4.90%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.78% | ||
| ROE | 7.69% | ||
| ROIC | 5.04% |
ROA(3y)2.71%
ROA(5y)2.71%
ROE(3y)8.19%
ROE(5y)8.39%
ROIC(3y)4.9%
ROIC(5y)4.81%
1.3 Margins
BKH has a Profit Margin (12.67%) which is in line with its industry peers.
In the last couple of years the Profit Margin of BKH has grown nicely.
With a decent Operating Margin value of 23.33%, BKH is doing good in the industry, outperforming 80.00% of the companies in the same industry.
BKH's Operating Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.33% | ||
| PM (TTM) | 12.67% | ||
| GM | N/A |
OM growth 3Y4.03%
OM growth 5Y0.21%
PM growth 3Y1.86%
PM growth 5Y2.24%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
BKH has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for BKH has been increased compared to 1 year ago.
Compared to 5 years ago, BKH has more shares outstanding
Compared to 1 year ago, BKH has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.95, we must say that BKH is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of BKH (0.95) is better than 76.00% of its industry peers.
BKH has a Debt/Equity ratio of 1.10. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of BKH (1.10) is better than 92.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.1 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.95 |
ROIC/WACC0.81
WACC6.19%
2.3 Liquidity
BKH has a Current Ratio of 0.76. This is a bad value and indicates that BKH is not financially healthy enough and could expect problems in meeting its short term obligations.
BKH's Current ratio of 0.76 is on the low side compared to the rest of the industry. BKH is outperformed by 72.00% of its industry peers.
A Quick Ratio of 0.62 indicates that BKH may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.62, BKH is in line with its industry, outperforming 52.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.76 | ||
| Quick Ratio | 0.62 |
3. Growth
3.1 Past
The earnings per share for BKH have decreased by -1.73% in the last year.
Measured over the past 5 years, BKH shows a small growth in Earnings Per Share. The EPS has been growing by 3.57% on average per year.
BKH shows a decrease in Revenue. In the last year, the revenue decreased by -8.73%.
The Revenue has been growing slightly by 4.17% on average over the past years.
EPS 1Y (TTM)-1.73%
EPS 3Y1.49%
EPS 5Y3.57%
EPS Q2Q%15.15%
Revenue 1Y (TTM)-8.73%
Revenue growth 3Y2.97%
Revenue growth 5Y4.17%
Sales Q2Q%9.04%
3.2 Future
The Earnings Per Share is expected to grow by 5.72% on average over the next years.
BKH is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.59% yearly.
EPS Next Y5.55%
EPS Next 2Y5.42%
EPS Next 3Y5.49%
EPS Next 5Y5.72%
Revenue Next Year-3.24%
Revenue Next 2Y-0.09%
Revenue Next 3Y-0.31%
Revenue Next 5Y3.59%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 14.83 indicates a correct valuation of BKH.
BKH's Price/Earnings ratio is a bit cheaper when compared to the industry. BKH is cheaper than 72.00% of the companies in the same industry.
BKH is valuated rather cheaply when we compare the Price/Earnings ratio to 27.24, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 13.52, BKH is valued correctly.
72.00% of the companies in the same industry are more expensive than BKH, based on the Price/Forward Earnings ratio.
BKH is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.42, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.83 | ||
| Fwd PE | 13.52 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as BKH.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 10.8 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates BKH does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)2.67
PEG (5Y)4.16
EPS Next 2Y5.42%
EPS Next 3Y5.49%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.68%, BKH is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.57, BKH pays a better dividend. On top of this BKH pays more dividend than 88.00% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, BKH pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.68% |
5.2 History
The dividend of BKH has a limited annual growth rate of 4.92%.
BKH has been paying a dividend for at least 10 years, so it has 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)4.92%
Div Incr Years26
Div Non Decr Years26
5.3 Sustainability
66.70% of the earnings are spent on dividend by BKH. This is not a sustainable payout ratio.
BKH's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP66.7%
EPS Next 2Y5.42%
EPS Next 3Y5.49%
58.88
+1.06 (+1.83%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners86.87%
Inst Owner Change0.74%
Ins Owners0.26%
Ins Owner Change9.5%
Market Cap4.27B
Analysts72
Price Target66.81 (13.47%)
Short Float %2.17%
Short Ratio2.82
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.68% |
Yearly Dividend2.61
Dividend Growth(5Y)4.92%
DP66.7%
Div Incr Years26
Div Non Decr Years26
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.73%
Min EPS beat(2)-4.69%
Max EPS beat(2)1.23%
EPS beat(4)2
Avg EPS beat(4)-4.55%
Min EPS beat(4)-27.43%
Max EPS beat(4)12.67%
EPS beat(8)5
Avg EPS beat(8)1.93%
EPS beat(12)7
Avg EPS beat(12)2.83%
EPS beat(16)10
Avg EPS beat(16)2.48%
Revenue beat(2)1
Avg Revenue beat(2)-10.01%
Min Revenue beat(2)-32.92%
Max Revenue beat(2)12.91%
Revenue beat(4)1
Avg Revenue beat(4)-12.69%
Min Revenue beat(4)-32.92%
Max Revenue beat(4)12.91%
Revenue beat(8)2
Avg Revenue beat(8)-15.95%
Revenue beat(12)6
Avg Revenue beat(12)0.35%
Revenue beat(16)9
Avg Revenue beat(16)2.91%
PT rev (1m)0%
PT rev (3m)0.77%
EPS NQ rev (1m)-6.49%
EPS NQ rev (3m)-10%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.13%
Revenue NQ rev (1m)7.25%
Revenue NQ rev (3m)6.35%
Revenue NY rev (1m)1.66%
Revenue NY rev (3m)-0.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.83 | ||
| Fwd PE | 13.52 | ||
| P/S | 1.93 | ||
| P/FCF | N/A | ||
| P/OCF | 5.98 | ||
| P/B | 1.17 | ||
| P/tB | 1.83 | ||
| EV/EBITDA | 10.8 |
EPS(TTM)3.97
EY6.74%
EPS(NY)4.36
Fwd EY7.4%
FCF(TTM)-0.1
FCFYN/A
OCF(TTM)9.84
OCFY16.72%
SpS30.43
BVpS50.13
TBVpS32.11
PEG (NY)2.67
PEG (5Y)4.16
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.78% | ||
| ROE | 7.69% | ||
| ROCE | 5.64% | ||
| ROIC | 5.04% | ||
| ROICexc | 5.05% | ||
| ROICexgc | 5.88% | ||
| OM | 23.33% | ||
| PM (TTM) | 12.67% | ||
| GM | N/A | ||
| FCFM | N/A |
ROA(3y)2.71%
ROA(5y)2.71%
ROE(3y)8.19%
ROE(5y)8.39%
ROIC(3y)4.9%
ROIC(5y)4.81%
ROICexc(3y)4.93%
ROICexc(5y)4.82%
ROICexgc(3y)5.8%
ROICexgc(5y)5.71%
ROCE(3y)5.59%
ROCE(5y)5.51%
ROICexcg growth 3Y3.74%
ROICexcg growth 5Y-2.38%
ROICexc growth 3Y4.23%
ROICexc growth 5Y-1.3%
OM growth 3Y4.03%
OM growth 5Y0.21%
PM growth 3Y1.86%
PM growth 5Y2.24%
GM growth 3YN/A
GM growth 5YN/A
F-Score5
Asset Turnover0.22
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.1 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.09 | ||
| Cap/Depr | 263.68% | ||
| Cap/Sales | 32.67% | ||
| Interest Coverage | 2.71 | ||
| Cash Conversion | 90.56% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.76 | ||
| Quick Ratio | 0.62 | ||
| Altman-Z | 0.95 |
F-Score5
WACC6.19%
ROIC/WACC0.81
Cap/Depr(3y)244.26%
Cap/Depr(5y)272.34%
Cap/Sales(3y)27.5%
Cap/Sales(5y)32.5%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-1.73%
EPS 3Y1.49%
EPS 5Y3.57%
EPS Q2Q%15.15%
EPS Next Y5.55%
EPS Next 2Y5.42%
EPS Next 3Y5.49%
EPS Next 5Y5.72%
Revenue 1Y (TTM)-8.73%
Revenue growth 3Y2.97%
Revenue growth 5Y4.17%
Sales Q2Q%9.04%
Revenue Next Year-3.24%
Revenue Next 2Y-0.09%
Revenue Next 3Y-0.31%
Revenue Next 5Y3.59%
EBIT growth 1Y4.8%
EBIT growth 3Y7.11%
EBIT growth 5Y4.38%
EBIT Next Year70.47%
EBIT Next 3Y23.25%
EBIT Next 5Y18.77%
FCF growth 1Y-111.48%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y9.9%
OCF growth 3YN/A
OCF growth 5Y7.31%