BLACK HILLS CORP (BKH) Stock Fundamental Analysis
USA - NYSE:BKH - US0921131092 - Common Stock
69.94 USD
-0.36 (-0.51%)
69.94 USD
0 (0%)
BKH gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 26 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 quite expensive at the moment. It does show a decent growth rate.
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.
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
BKH's Return On Assets of 2.76% is fine compared to the rest of the industry. BKH outperforms 76.92% of its industry peers.
With a Return On Equity value of 7.56%, BKH is not doing good in the industry: 73.08% of the companies in the same industry are doing better.
BKH's Return On Invested Capital of 4.91% is amongst the best of the industry. BKH outperforms 96.15% 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 3.96%.
The 3 year average ROIC (4.90%) for BKH is below the current ROIC(4.91%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.76% | ||
| ROE | 7.56% | ||
| ROIC | 4.91% |
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 better Profit Margin (12.54%) than 65.38% of its industry peers.
In the last couple of years the Profit Margin of BKH has grown nicely.
The Operating Margin of BKH (23.31%) is better than 76.92% of its industry peers.
BKH's Operating Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.31% | ||
| PM (TTM) | 12.54% | ||
| 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.
The number of shares outstanding for BKH has been increased compared to 5 years ago.
BKH has a better debt/assets ratio than last year.
2.2 Solvency
BKH has an Altman-Z score of 1.02. This is a bad value and indicates that BKH is not financially healthy and even has some risk of bankruptcy.
BKH has a better Altman-Z score (1.02) than 76.92% of its industry peers.
A Debt/Equity ratio of 1.16 is on the high side and indicates that BKH has dependencies on debt financing.
BKH has a better Debt to Equity ratio (1.16) than 80.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.16 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.02 |
ROIC/WACC0.77
WACC6.37%
2.3 Liquidity
A Current Ratio of 0.91 indicates that BKH may have some problems paying its short term obligations.
BKH has a Current ratio (0.91) which is comparable to the rest of the industry.
BKH has a Quick Ratio of 0.91. This is a bad value and indicates that BKH is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.67, BKH perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.67 |
3. Growth
3.1 Past
BKH shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.45%.
BKH shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.57% yearly.
BKH shows a small growth in Revenue. In the last year, the Revenue has grown by 7.03%.
The Revenue has been growing slightly by 4.17% on average over the past years.
EPS 1Y (TTM)6.45%
EPS 3Y1.49%
EPS 5Y3.57%
EPS Q2Q%-2.86%
Revenue 1Y (TTM)7.03%
Revenue growth 3Y2.97%
Revenue growth 5Y4.17%
Sales Q2Q%7.12%
3.2 Future
BKH is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.90% yearly.
BKH is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.59% yearly.
EPS Next Y5.81%
EPS Next 2Y5.66%
EPS Next 3Y5.75%
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
A Price/Earnings ratio of 17.66 indicates a rather expensive valuation of BKH.
The rest of the industry has a similar Price/Earnings ratio as BKH.
The average S&P500 Price/Earnings ratio is at 25.89. BKH is valued slightly cheaper when compared to this.
BKH is valuated correctly with a Price/Forward Earnings ratio of 15.98.
BKH's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of BKH to the average of the S&P500 Index (34.59), we can say BKH is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.66 | ||
| Fwd PE | 15.98 |
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 | 11.57 |
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.
BKH has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)3.04
PEG (5Y)4.95
EPS Next 2Y5.66%
EPS Next 3Y5.75%
5. Dividend
5.1 Amount
BKH has a Yearly Dividend Yield of 3.85%. Purely for dividend investing, there may be better candidates out there.
BKH's Dividend Yield is a higher than the industry average which is at 3.49.
BKH's Dividend Yield is rather good when compared to the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.85% |
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 67.87% 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.
DP67.87%
EPS Next 2Y5.66%
EPS Next 3Y5.75%
69.94
-0.36 (-0.51%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners85.85%
Inst Owner Change-1.92%
Ins Owners0.27%
Ins Owner Change0%
Market Cap5.10B
Revenue(TTM)2.27B
Net Income(TTM)284.80M
Analysts77.5
Price Target69.87 (-0.1%)
Short Float %3.95%
Short Ratio4.49
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.85% |
Yearly Dividend2.61
Dividend Growth(5Y)4.92%
DP67.87%
Div Incr Years26
Div Non Decr Years26
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-5.13%
Min EPS beat(2)-14.78%
Max EPS beat(2)4.51%
EPS beat(4)2
Avg EPS beat(4)-3.43%
Min EPS beat(4)-14.78%
Max EPS beat(4)4.51%
EPS beat(8)5
Avg EPS beat(8)-1.47%
EPS beat(12)7
Avg EPS beat(12)0.25%
EPS beat(16)9
Avg EPS beat(16)1.17%
Revenue beat(2)0
Avg Revenue beat(2)-3.09%
Min Revenue beat(2)-4.39%
Max Revenue beat(2)-1.79%
Revenue beat(4)1
Avg Revenue beat(4)-6.55%
Min Revenue beat(4)-32.92%
Max Revenue beat(4)12.91%
Revenue beat(8)2
Avg Revenue beat(8)-10.48%
Revenue beat(12)4
Avg Revenue beat(12)-2.38%
Revenue beat(16)8
Avg Revenue beat(16)2.5%
PT rev (1m)0%
PT rev (3m)5.12%
EPS NQ rev (1m)-14.13%
EPS NQ rev (3m)-11.73%
EPS NY rev (1m)-0.08%
EPS NY rev (3m)0.24%
Revenue NQ rev (1m)-1.11%
Revenue NQ rev (3m)1.25%
Revenue NY rev (1m)0%
Revenue NY rev (3m)3.57%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.66 | ||
| Fwd PE | 15.98 | ||
| P/S | 2.24 | ||
| P/FCF | N/A | ||
| P/OCF | 7.74 | ||
| P/B | 1.35 | ||
| P/tB | 2.07 | ||
| EV/EBITDA | 11.57 |
EPS(TTM)3.96
EY5.66%
EPS(NY)4.38
Fwd EY6.26%
FCF(TTM)-1.45
FCFYN/A
OCF(TTM)9.04
OCFY12.92%
SpS31.18
BVpS51.72
TBVpS33.79
PEG (NY)3.04
PEG (5Y)4.95
Graham Number67.88
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.76% | ||
| ROE | 7.56% | ||
| ROCE | 5.52% | ||
| ROIC | 4.91% | ||
| ROICexc | 4.92% | ||
| ROICexgc | 5.68% | ||
| OM | 23.31% | ||
| PM (TTM) | 12.54% | ||
| 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-Score7
Asset Turnover0.22
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.16 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.42 | ||
| Cap/Depr | 274% | ||
| Cap/Sales | 33.63% | ||
| Interest Coverage | 2.68 | ||
| Cash Conversion | 81.47% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.67 | ||
| Altman-Z | 1.02 |
F-Score7
WACC6.37%
ROIC/WACC0.77
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)6.45%
EPS 3Y1.49%
EPS 5Y3.57%
EPS Q2Q%-2.86%
EPS Next Y5.81%
EPS Next 2Y5.66%
EPS Next 3Y5.75%
EPS Next 5Y5.9%
Revenue 1Y (TTM)7.03%
Revenue growth 3Y2.97%
Revenue growth 5Y4.17%
Sales Q2Q%7.12%
Revenue Next Year0.21%
Revenue Next 2Y1.75%
Revenue Next 3Y-1.08%
Revenue Next 5Y3.59%
EBIT growth 1Y11.19%
EBIT growth 3Y7.11%
EBIT growth 5Y4.38%
EBIT Next Year74.74%
EBIT Next 3Y23.15%
EBIT Next 5Y18.77%
FCF growth 1Y-136.76%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-22.22%
OCF growth 3YN/A
OCF growth 5Y7.31%
BLACK HILLS CORP / BKH FAQ
What is the fundamental rating for BKH stock?
ChartMill assigns a fundamental rating of 4 / 10 to BKH.
What is the valuation status for BKH stock?
ChartMill assigns a valuation rating of 3 / 10 to BLACK HILLS CORP (BKH). This can be considered as Overvalued.
What is the profitability of BKH stock?
BLACK HILLS CORP (BKH) has a profitability rating of 6 / 10.
What are the PE and PB ratios of BLACK HILLS CORP (BKH) stock?
The Price/Earnings (PE) ratio for BLACK HILLS CORP (BKH) is 17.66 and the Price/Book (PB) ratio is 1.35.
Is the dividend of BLACK HILLS CORP sustainable?
The dividend rating of BLACK HILLS CORP (BKH) is 6 / 10 and the dividend payout ratio is 67.87%.