BLACK HILLS CORP (BKH) Stock Fundamental Analysis
NYSE:BKH - New York Stock Exchange, Inc. - US0921131092 - Common Stock - Currency: USD
Taking everything into account, BKH scores 4 out of 10 in our fundamental rating. BKH was compared to 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. While showing a medium growth rate, BKH is valued expensive at the moment. 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.
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 of 2.78%. This is comparable to the rest of the industry: BKH outperforms 48.00% of its industry peers.
BKH has a worse Return On Equity (7.69%) than 72.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 5.04%, BKH belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
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 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
BKH has a Profit Margin (12.67%) which is in line with its industry peers.
BKH's Profit Margin has improved in the last couple of years.
BKH's Operating Margin of 23.33% is fine compared to the rest of the industry. BKH outperforms 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
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.
The debt/assets ratio for BKH has been reduced compared to a year ago.
2.2 Solvency
BKH has an Altman-Z score of 0.93. This is a bad value and indicates that BKH is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of BKH (0.93) 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.
Looking at the Debt to Equity ratio, with a value of 1.10, BKH belongs to the top of the industry, outperforming 92.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.1 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.93 |
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.
Looking at the Current ratio, with a value of 0.76, BKH is doing worse than 72.00% of the companies in the same industry.
A Quick Ratio of 0.62 indicates that BKH may have some problems paying its short term obligations.
BKH has a Quick ratio (0.62) which is comparable to the rest of the 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.
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.
The Revenue has been growing slightly by 3.27% in the past 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
Based on estimates for the next years, BKH will show a small growth in Earnings Per Share. The EPS will grow by 5.72% on average per year.
BKH is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.59% yearly.
EPS Next Y5.51%
EPS Next 2Y5.29%
EPS Next 3Y5.34%
EPS Next 5Y5.72%
Revenue Next Year-4.82%
Revenue Next 2Y-0.86%
Revenue Next 3Y-0.31%
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
The Price/Earnings ratio is 14.28, which indicates a correct valuation of BKH.
Compared to the rest of the industry, the Price/Earnings ratio of BKH indicates a somewhat cheap valuation: BKH is cheaper than 72.00% of the companies listed in the same industry.
BKH is valuated rather cheaply when we compare the Price/Earnings ratio to 26.34, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 12.88, which indicates a correct valuation of BKH.
Based on the Price/Forward Earnings ratio, BKH is valued a bit cheaper than 72.00% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.19, BKH is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.28 | ||
| Fwd PE | 12.88 |
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 | 10.55 |
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)2.59
PEG (5Y)4
EPS Next 2Y5.29%
EPS Next 3Y5.34%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.71%, BKH is a good candidate for dividend investing.
BKH's Dividend Yield is a higher than the industry average which is at 4.23.
Compared to an average S&P500 Dividend Yield of 2.40, BKH pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.71% |
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.
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%
55.97
-0.12 (-0.21%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners86.87%
Inst Owner Change3.17%
Ins Owners0.26%
Ins Owner Change9.5%
Market Cap4.06B
Analysts72
Price Target66.81 (19.37%)
Short Float %2.08%
Short Ratio3.35
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.71% |
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)0.77%
PT rev (3m)0.77%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.53%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.2%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.84%
Revenue NY rev (1m)-1.98%
Revenue NY rev (3m)-8.9%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.28 | ||
| Fwd PE | 12.88 | ||
| P/S | 1.84 | ||
| P/FCF | N/A | ||
| P/OCF | 5.69 | ||
| P/B | 1.12 | ||
| P/tB | 1.74 | ||
| EV/EBITDA | 10.55 |
EPS(TTM)3.92
EY7%
EPS(NY)4.35
Fwd EY7.76%
FCF(TTM)-0.1
FCFYN/A
OCF(TTM)9.84
OCFY17.59%
SpS30.43
BVpS50.13
TBVpS32.11
PEG (NY)2.59
PEG (5Y)4
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 | 0.93 |
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)-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 5Y5.72%
Revenue 1Y (TTM)3.27%
Revenue growth 3Y2.97%
Revenue growth 5Y4.17%
Sales Q2Q%10.85%
Revenue Next Year-4.82%
Revenue Next 2Y-0.86%
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%