BLACK HILLS CORP (BKH) Stock Fundamental Analysis
NYSE:BKH - US0921131092 - Common Stock
60.32 USD
+0.56 (+0.94%)
60.32 USD
0 (0%)
BKH gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals 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 valued correctly, but it does not seem to be growing. 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.
Of the past 5 years BKH 4 years had a positive operating cash flow.
1.2 Ratios
BKH's Return On Assets of 2.78% is fine compared to the rest of the industry. BKH outperforms 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.
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 3.82%.
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 Operating Margin of 23.33%. This is in the better half of the industry: BKH outperforms 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
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.
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 0.95. 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 (0.95) 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.
BKH's Debt to Equity ratio of 1.10 is amongst the best of the industry. BKH outperforms 96.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.1 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.95 |
ROIC/WACC0.81
WACC6.24%
2.3 Liquidity
BKH has a Current 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.
With a Current ratio value of 0.76, BKH is not doing good in the industry: 68.00% of the companies in the same industry are doing better.
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 -1.73% 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.
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)-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
Based on estimates for the next years, BKH will show a small growth in Earnings Per Share. The EPS will grow by 5.90% on average per year.
The Revenue is expected to grow by 3.59% on average over the next years.
EPS Next Y5.44%
EPS Next 2Y5.29%
EPS Next 3Y5.34%
EPS Next 5Y5.9%
Revenue Next Year-3.37%
Revenue Next 2Y-0.3%
Revenue Next 3Y-1.74%
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 15.19 indicates a correct valuation of BKH.
Based on the Price/Earnings ratio, BKH is valued a bit cheaper than the industry average as 68.00% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.14. BKH is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 13.88 indicates a correct valuation of BKH.
BKH's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. BKH is cheaper than 64.00% of the companies in the same industry.
BKH is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.80, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.19 | ||
| Fwd PE | 13.88 |
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 | 10.91 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of BKH may justify a higher PE ratio.
PEG (NY)2.79
PEG (5Y)4.26
EPS Next 2Y5.29%
EPS Next 3Y5.34%
5. Dividend
5.1 Amount
BKH has a Yearly Dividend Yield of 4.53%, which is a nice return.
Compared to an average industry Dividend Yield of 3.64, BKH pays a better dividend. On top of this BKH pays more dividend than 88.00% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, BKH pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.53% |
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 2Y5.29%
EPS Next 3Y5.34%
60.32
+0.56 (+0.94%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners87.12%
Inst Owner Change0.19%
Ins Owners0.26%
Ins Owner Change2.19%
Market Cap4.39B
Analysts72
Price Target67.93 (12.62%)
Short Float %2.35%
Short Ratio2.58
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.53% |
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)1.68%
PT rev (3m)2.46%
EPS NQ rev (1m)0.56%
EPS NQ rev (3m)-3.57%
EPS NY rev (1m)-0.1%
EPS NY rev (3m)-0.06%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)7.25%
Revenue NY rev (1m)1.52%
Revenue NY rev (3m)-0.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.19 | ||
| Fwd PE | 13.88 | ||
| P/S | 1.99 | ||
| P/FCF | N/A | ||
| P/OCF | 6.16 | ||
| P/B | 1.21 | ||
| P/tB | 1.89 | ||
| EV/EBITDA | 10.91 |
EPS(TTM)3.97
EY6.58%
EPS(NY)4.35
Fwd EY7.2%
FCF(TTM)-0.1
FCFYN/A
OCF(TTM)9.8
OCFY16.24%
SpS30.29
BVpS49.9
TBVpS31.96
PEG (NY)2.79
PEG (5Y)4.26
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 | 0.95 |
F-Score5
WACC6.24%
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 Y5.44%
EPS Next 2Y5.29%
EPS Next 3Y5.34%
EPS Next 5Y5.9%
Revenue 1Y (TTM)-8.73%
Revenue growth 3Y2.97%
Revenue growth 5Y4.17%
Sales Q2Q%9.04%
Revenue Next Year-3.37%
Revenue Next 2Y-0.3%
Revenue Next 3Y-1.74%
Revenue Next 5Y3.59%
EBIT growth 1Y4.8%
EBIT growth 3Y7.11%
EBIT growth 5Y4.38%
EBIT Next Year70.27%
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%