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. BKH has a medium profitability rating, but doesn't score so well on its financial health evaluation. BKH is valied quite expensively at the moment, while it does show a decent growth rate. Finally 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.
Of the past 5 years BKH 4 years had a positive operating cash flow.
1.2 Ratios
BKH has a Return On Assets (2.73%) which is comparable to the rest of the industry.
The Return On Equity of BKH (7.80%) is worse than 72.00% of its industry peers.
BKH's Return On Invested Capital of 4.82% is amongst the best of the industry. BKH outperforms 100.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for BKH is in line with the industry average of 3.79%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.73% | ||
| ROE | 7.8% | ||
| ROIC | 4.82% |
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 (12.84%) which is comparable to the rest of the industry.
BKH's Profit Margin has improved in the last couple of years.
BKH's Operating Margin of 23.64% is amongst the best of the industry. BKH outperforms 84.00% of its industry peers.
BKH's Operating Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.64% | ||
| PM (TTM) | 12.84% | ||
| 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.
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
BKH has a better debt/assets ratio than last year.
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.
BKH has a Altman-Z score of 0.95. This is in the better half of the industry: BKH outperforms 72.00% of its industry peers.
BKH has a Debt/Equity ratio of 1.25. This is a high value indicating a heavy dependency on external financing.
BKH has a Debt to Equity ratio of 1.25. This is in the better half of the industry: BKH outperforms 76.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.25 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.95 |
ROIC/WACC0.78
WACC6.2%
2.3 Liquidity
BKH has a Current Ratio of 0.97. 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 Current ratio of 0.97. This is in the better half of the industry: BKH outperforms 76.00% of its industry peers.
A Quick Ratio of 0.77 indicates that BKH may have some problems paying its short term obligations.
With a decent Quick ratio value of 0.77, BKH is doing good in the industry, outperforming 68.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.97 | ||
| Quick Ratio | 0.77 |
3. Growth
3.1 Past
BKH shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.00%.
The Earnings Per Share has been growing slightly by 3.57% on average over the past years.
Looking at the last year, BKH shows a decrease in Revenue. The Revenue has decreased by -8.73% 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)0%
EPS 3Y1.49%
EPS 5Y3.57%
EPS Q2Q%17.09%
Revenue 1Y (TTM)-8.73%
Revenue growth 3Y2.97%
Revenue growth 5Y4.17%
Sales Q2Q%0.91%
3.2 Future
The Earnings Per Share is expected to grow by 5.53% on average over the next years.
The Revenue is expected to grow by 3.59% on average over the next years.
EPS Next Y5.69%
EPS Next 2Y5.31%
EPS Next 3Y5.38%
EPS Next 5Y5.53%
Revenue Next Year-2.86%
Revenue Next 2Y0.38%
Revenue Next 3Y0.73%
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
With a Price/Earnings ratio of 15.51, BKH is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of BKH indicates a somewhat cheap valuation: BKH is cheaper than 64.00% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.75. BKH is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 14.68, 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.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.49, BKH is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.51 | ||
| Fwd PE | 14.68 |
4.2 Price Multiples
BKH's Enterprise Value to EBITDA ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 11.14 |
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)2.73
PEG (5Y)4.35
EPS Next 2Y5.31%
EPS Next 3Y5.38%
5. Dividend
5.1 Amount
BKH has a Yearly Dividend Yield of 4.47%, which is a nice return.
Compared to an average industry Dividend Yield of 3.66, BKH pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.44, BKH pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.47% |
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 66.73% 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.
DP66.73%
EPS Next 2Y5.31%
EPS Next 3Y5.38%
NYSE:BKH (5/2/2025, 1:14:26 PM)
60.807
+0.06 (+0.09%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners86.86%
Inst Owner Change0.35%
Ins Owners0.35%
Ins Owner Change7.47%
Market Cap4.38B
Analysts51.67
Price Target66.3 (9.03%)
Short Float %2.86%
Short Ratio4.11
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.47% |
Yearly Dividend2.61
Dividend Growth(5Y)4.92%
DP66.73%
Div Incr Years26
Div Non Decr Years26
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-13.1%
Min EPS beat(2)-27.43%
Max EPS beat(2)1.23%
EPS beat(4)3
Avg EPS beat(4)-1.1%
Min EPS beat(4)-27.43%
Max EPS beat(4)12.67%
EPS beat(8)6
Avg EPS beat(8)2.89%
EPS beat(12)8
Avg EPS beat(12)3.97%
EPS beat(16)10
Avg EPS beat(16)2.25%
Revenue beat(2)0
Avg Revenue beat(2)-21.9%
Min Revenue beat(2)-32.92%
Max Revenue beat(2)-10.88%
Revenue beat(4)1
Avg Revenue beat(4)-14.6%
Min Revenue beat(4)-32.92%
Max Revenue beat(4)5.3%
Revenue beat(8)2
Avg Revenue beat(8)-14.83%
Revenue beat(12)6
Avg Revenue beat(12)1.59%
Revenue beat(16)9
Avg Revenue beat(16)2.31%
PT rev (1m)0%
PT rev (3m)-1.02%
EPS NQ rev (1m)1.89%
EPS NQ rev (3m)5%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.24%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)4.89%
Revenue NY rev (1m)-7.02%
Revenue NY rev (3m)-6.79%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.51 | ||
| Fwd PE | 14.68 | ||
| P/S | 2.06 | ||
| P/FCF | N/A | ||
| P/OCF | 6.09 | ||
| P/B | 1.25 | ||
| P/tB | 2 | ||
| EV/EBITDA | 11.14 |
EPS(TTM)3.92
EY6.45%
EPS(NY)4.14
Fwd EY6.81%
FCF(TTM)-0.35
FCFYN/A
OCF(TTM)9.98
OCFY16.41%
SpS29.51
BVpS48.57
TBVpS30.44
PEG (NY)2.73
PEG (5Y)4.35
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.73% | ||
| ROE | 7.8% | ||
| ROCE | 5.43% | ||
| ROIC | 4.82% | ||
| ROICexc | 4.83% | ||
| ROICexgc | 5.62% | ||
| OM | 23.64% | ||
| PM (TTM) | 12.84% | ||
| 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 Turnover0.21
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.25 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.67 | ||
| Cap/Depr | 275.53% | ||
| Cap/Sales | 34.98% | ||
| Interest Coverage | 2.88 | ||
| Cash Conversion | 93.04% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.97 | ||
| Quick Ratio | 0.77 | ||
| Altman-Z | 0.95 |
F-Score5
WACC6.2%
ROIC/WACC0.78
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)0%
EPS 3Y1.49%
EPS 5Y3.57%
EPS Q2Q%17.09%
EPS Next Y5.69%
EPS Next 2Y5.31%
EPS Next 3Y5.38%
EPS Next 5Y5.53%
Revenue 1Y (TTM)-8.73%
Revenue growth 3Y2.97%
Revenue growth 5Y4.17%
Sales Q2Q%0.91%
Revenue Next Year-2.86%
Revenue Next 2Y0.38%
Revenue Next 3Y0.73%
Revenue Next 5Y3.59%
EBIT growth 1Y6.4%
EBIT growth 3Y7.11%
EBIT growth 5Y4.38%
EBIT Next Year81.84%
EBIT Next 3Y26.14%
EBIT Next 5Y18.77%
FCF growth 1Y-106.4%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-23.84%
OCF growth 3YN/A
OCF growth 5Y7.31%