BLACK HILLS CORP (BKH) Stock Fundamental Analysis
USA - NYSE:BKH - US0921131092 - Common Stock
65.45 USD
+0.2 (+0.31%)
65.45 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to BKH. BKH was compared to 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 correctly, but it does not seem to be growing. Finally BKH also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
BKH had positive earnings in the past year.
BKH had a positive operating cash flow in the past year.
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
BKH has a better Return On Assets (2.78%) than 76.00% of its industry peers.
With a Return On Equity value of 7.69%, BKH is not doing good in the industry: 76.00% of the companies in the same industry are doing better.
The Return On Invested Capital of BKH (5.04%) is better than 100.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for BKH is in line with the industry average of 3.82%.
The 3 year average ROIC (4.90%) for BKH is below the current ROIC(5.04%), indicating increased profibility in the last year.
| 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
Looking at the Profit Margin, with a value of 12.67%, BKH is in the better half of the industry, outperforming 64.00% of the companies in the same industry.
BKH's Profit Margin has improved in the last couple of years.
BKH has a better Operating Margin (23.33%) than 76.00% 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
BKH has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
BKH has more shares outstanding than it did 1 year ago.
BKH has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, BKH has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.99, we must say that BKH is in the distress zone and has some risk of bankruptcy.
BKH has a Altman-Z score of 0.99. 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.
Looking at the Debt to Equity ratio, with a value of 1.10, BKH belongs to the top of the industry, outperforming 96.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.1 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.99 |
ROIC/WACC0.81
WACC6.2%
2.3 Liquidity
A Current Ratio of 0.76 indicates that BKH may have some problems paying 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 68.00% of its industry peers.
BKH has a Quick 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 has a Quick ratio of 0.62. This is comparable to the rest of the industry: BKH outperforms 56.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.76 | ||
| Quick Ratio | 0.62 |
3. Growth
3.1 Past
BKH shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -1.73%.
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 decrease in Revenue. The Revenue has decreased by -8.73% in the last year.
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 5.90% 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 Y5.9%
EPS Next 2Y5.81%
EPS Next 3Y5.8%
EPS Next 5Y5.9%
Revenue Next Year0.21%
Revenue Next 2Y1.75%
Revenue Next 3Y-1.08%
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.
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
Based on the Price/Earnings ratio of 16.49, the valuation of BKH can be described as correct.
BKH's Price/Earnings ratio is a bit cheaper when compared to the industry. BKH is cheaper than 68.00% of the companies in the same industry.
BKH is valuated rather cheaply when we compare the Price/Earnings ratio to 27.67, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 14.91, BKH is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BKH indicates a somewhat cheap valuation: BKH is cheaper than 64.00% of the companies listed in the same industry.
BKH is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.33, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.49 | ||
| Fwd PE | 14.91 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BKH is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 11.42 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
BKH has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.8
PEG (5Y)4.62
EPS Next 2Y5.81%
EPS Next 3Y5.8%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.33%, BKH is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.74, BKH pays a bit more dividend than its industry peers.
BKH's Dividend Yield is rather good when compared to the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.33% |
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 their dividend for at least 10 years, which is a reliable track record.
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.
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 2Y5.81%
EPS Next 3Y5.8%
65.45
+0.2 (+0.31%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners85.85%
Inst Owner Change0.31%
Ins Owners0.27%
Ins Owner Change2.19%
Market Cap4.77B
Revenue(TTM)2.13B
Net Income(TTM)279.60M
Analysts77.5
Price Target69.87 (6.75%)
Short Float %3.19%
Short Ratio3.58
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.33% |
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)4.58%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-6.49%
EPS NY rev (1m)0.43%
EPS NY rev (3m)0.33%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)7.25%
Revenue NY rev (1m)0%
Revenue NY rev (3m)5.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.49 | ||
| Fwd PE | 14.91 | ||
| P/S | 2.16 | ||
| P/FCF | N/A | ||
| P/OCF | 6.68 | ||
| P/B | 1.31 | ||
| P/tB | 2.05 | ||
| EV/EBITDA | 11.42 |
EPS(TTM)3.97
EY6.07%
EPS(NY)4.39
Fwd EY6.71%
FCF(TTM)-0.1
FCFYN/A
OCF(TTM)9.8
OCFY14.97%
SpS30.28
BVpS49.89
TBVpS31.96
PEG (NY)2.8
PEG (5Y)4.62
Graham Number66.76
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%
ROICexgc growth 3Y3.74%
ROICexgc 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 | 0.99 |
F-Score5
WACC6.2%
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 Y5.9%
EPS Next 2Y5.81%
EPS Next 3Y5.8%
EPS Next 5Y5.9%
Revenue 1Y (TTM)-8.73%
Revenue growth 3Y2.97%
Revenue growth 5Y4.17%
Sales Q2Q%9.04%
Revenue Next Year0.21%
Revenue Next 2Y1.75%
Revenue Next 3Y-1.08%
Revenue Next 5Y3.59%
EBIT growth 1Y4.8%
EBIT growth 3Y7.11%
EBIT growth 5Y4.38%
EBIT Next Year74.74%
EBIT Next 3Y23.15%
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%