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 valied quite expensively at the moment, while it does show a decent growth rate. BKH also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
BKH had positive earnings in the past year.
In the past year BKH had a positive cash flow from operations.
Each year in the past 5 years BKH has been profitable.
BKH had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
BKH has a Return On Assets (2.78%) which is in line with its industry peers.
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 Return On Invested Capital of 5.04%. This is amongst the best in the industry. BKH outperforms 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
With a Profit Margin value of 12.67%, BKH perfoms like the industry average, outperforming 48.00% of the companies in the same industry.
BKH's Profit Margin has improved in the last couple of years.
The Operating Margin of BKH (23.33%) is better than 80.00% of its industry peers.
In the last couple of years the Operating Margin of BKH has remained more or less at the same level.
| 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
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.
The number of shares outstanding for BKH has been increased compared to 5 years ago.
The debt/assets ratio for BKH has been reduced compared to a year ago.
2.2 Solvency
BKH has an Altman-Z score of 0.94. This is a bad value and indicates that BKH is not financially healthy and even has some risk of bankruptcy.
BKH has a Altman-Z score of 0.94. This is in the better half of the industry: BKH outperforms 76.00% of its industry peers.
A Debt/Equity ratio of 1.10 is on the high side and indicates that BKH has dependencies on debt financing.
BKH has a better Debt to Equity ratio (1.10) than 92.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.1 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.94 |
ROIC/WACC0.8
WACC6.3%
2.3 Liquidity
A Current Ratio of 0.76 indicates that BKH may have some problems paying its short term obligations.
The Current ratio of BKH (0.76) is worse than 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 48.00% 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 -3.45% in the last year.
BKH shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.57% yearly.
Looking at the last year, BKH shows a small growth in Revenue. The Revenue has grown by 3.27% in the last year.
BKH shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.17% yearly.
EPS 1Y (TTM)-3.45%
EPS 3Y1.49%
EPS 5Y3.57%
EPS Q2Q%0%
Revenue 1Y (TTM)3.27%
Revenue growth 3Y2.97%
Revenue growth 5Y4.17%
Sales Q2Q%10.85%
3.2 Future
The Earnings Per Share is expected to grow by 5.53% on average over the next years.
Based on estimates for the next years, BKH will show a small growth in Revenue. The Revenue will grow by 3.59% on average per year.
EPS Next Y5.51%
EPS Next 2Y5.29%
EPS Next 3Y5.34%
EPS Next 5Y5.53%
Revenue Next Year-2.9%
Revenue Next 2Y0.15%
Revenue Next 3Y-1.19%
Revenue Next 5Y3.59%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
With a Price/Earnings ratio of 14.93, BKH is valued correctly.
Based on the Price/Earnings ratio, BKH is valued a bit cheaper than the industry average as 72.00% of the companies are valued more expensively.
BKH's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.91.
With a Price/Forward Earnings ratio of 13.47, BKH is valued correctly.
Based on the Price/Forward Earnings ratio, BKH is valued a bit cheaper than the industry average as 72.00% of the companies are valued more expensively.
BKH is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.77, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.93 | ||
| Fwd PE | 13.47 |
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 | 10.73 |
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)2.71
PEG (5Y)4.19
EPS Next 2Y5.29%
EPS Next 3Y5.34%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.64%, BKH is a good candidate for dividend investing.
BKH's Dividend Yield is a higher than the industry average which is at 3.66.
BKH's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.64% |
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
BKH pays out 66.70% of its income as dividend. This is not a sustainable payout ratio.
The dividend of BKH is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP66.7%
EPS Next 2Y5.29%
EPS Next 3Y5.34%
NYSE:BKH (5/27/2025, 12:37:39 PM)
58.525
+0.46 (+0.8%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners86.86%
Inst Owner Change3.15%
Ins Owners0.35%
Ins Owner Change9.5%
Market Cap4.24B
Analysts51.67
Price Target66.3 (13.28%)
Short Float %2.7%
Short Ratio4.01
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.64% |
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%
EPS NQ rev (1m)-6.67%
EPS NQ rev (3m)-5.49%
EPS NY rev (1m)-0.17%
EPS NY rev (3m)-0.2%
Revenue NQ rev (1m)-0.84%
Revenue NQ rev (3m)-0.84%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)-7.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.93 | ||
| Fwd PE | 13.47 | ||
| P/S | 1.92 | ||
| P/FCF | N/A | ||
| P/OCF | 5.95 | ||
| P/B | 1.17 | ||
| P/tB | 1.82 | ||
| EV/EBITDA | 10.73 |
EPS(TTM)3.92
EY6.7%
EPS(NY)4.35
Fwd EY7.43%
FCF(TTM)-0.1
FCFYN/A
OCF(TTM)9.84
OCFY16.82%
SpS30.43
BVpS50.13
TBVpS32.11
PEG (NY)2.71
PEG (5Y)4.19
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 | 0.94 |
F-Score5
WACC6.3%
ROIC/WACC0.8
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)-3.45%
EPS 3Y1.49%
EPS 5Y3.57%
EPS Q2Q%0%
EPS Next Y5.51%
EPS Next 2Y5.29%
EPS Next 3Y5.34%
EPS Next 5Y5.53%
Revenue 1Y (TTM)3.27%
Revenue growth 3Y2.97%
Revenue growth 5Y4.17%
Sales Q2Q%10.85%
Revenue Next Year-2.9%
Revenue Next 2Y0.15%
Revenue Next 3Y-1.19%
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%