BLACK HILLS CORP (BKH) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BKH - US0921131092 - Common Stock
71.21 USD
+0.69 (+0.98%)
71.21 USD
0 (0%)
Taking everything into account, BKH scores 4 out of 10 in our fundamental rating. BKH was compared to 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. While showing a medium growth rate, BKH is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year BKH was profitable.
In the past year BKH had a positive cash flow from operations.
BKH had positive earnings in each of the past 5 years.
Of the past 5 years BKH 4 years had a positive operating cash flow.
1.2 Ratios
The Return On Assets of BKH (2.76%) is better than 76.92% of its industry peers.
BKH's Return On Equity of 7.56% is on the low side compared to the rest of the industry. BKH is outperformed by 73.08% of its industry peers.
BKH's Return On Invested Capital of 4.91% is amongst the best of the industry. BKH outperforms 96.15% 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 3.94%.
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 Profit Margin of 12.54%. This is in the better half of the industry: BKH outperforms 65.38% of its industry peers.
BKH's Profit Margin has improved in the last couple of years.
BKH has a better Operating Margin (23.31%) 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so BKH is destroying value.
Compared to 1 year ago, BKH has more shares outstanding
The number of shares outstanding for BKH has been increased compared to 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 1.04. This is a bad value and indicates that BKH is not financially healthy and even has some risk of bankruptcy.
BKH's Altman-Z score of 1.04 is amongst the best of the industry. BKH outperforms 80.77% 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.
Looking at the Debt to Equity ratio, with a value of 1.16, BKH belongs to the top of the industry, outperforming 80.77% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.16 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.04 |
ROIC/WACC0.76
WACC6.46%
2.3 Liquidity
A Current Ratio of 0.91 indicates that BKH may have some problems paying its short term obligations.
BKH's Current ratio of 0.91 is in line compared to the rest of the industry. BKH outperforms 46.15% of its industry peers.
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
The Earnings Per Share has been growing slightly by 6.45% over the past year.
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 small growth in Revenue. The Revenue has grown by 7.03% in the last year.
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.
The Revenue is expected to grow by 3.59% on average over the next years.
EPS Next Y5.98%
EPS Next 2Y5.81%
EPS Next 3Y5.8%
EPS Next 5Y5.9%
Revenue Next Year0.13%
Revenue Next 2Y1.59%
Revenue Next 3Y-1.33%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
BKH is valuated rather expensively with a Price/Earnings ratio of 17.98.
BKH's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 26.29, BKH is valued a bit cheaper.
With a Price/Forward Earnings ratio of 16.23, BKH is valued correctly.
BKH's Price/Forward Earnings is on the same level as the industry average.
BKH is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.51, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.98 | ||
| Fwd PE | 16.23 |
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 | 11.82 |
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)3.01
PEG (5Y)5.04
EPS Next 2Y5.81%
EPS Next 3Y5.8%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.86%, BKH has a reasonable but not impressive dividend return.
BKH's Dividend Yield is a higher than the industry average which is at 3.54.
Compared to an average S&P500 Dividend Yield of 2.31, BKH pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.86% |
5.2 History
The dividend of BKH has a limited annual growth rate of 4.92%.
BKH has paid a dividend for at least 10 years, which is 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
67.87% of the earnings are spent on dividend by BKH. 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.
DP67.87%
EPS Next 2Y5.81%
EPS Next 3Y5.8%
71.21
+0.69 (+0.98%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners89.05%
Inst Owner Change5.86%
Ins Owners0.24%
Ins Owner Change-1.09%
Market Cap5.37B
Revenue(TTM)2.27B
Net Income(TTM)284.80M
Analysts80
Price Target76.5 (7.43%)
Short Float %5.42%
Short Ratio4.26
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.86% |
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)9.49%
PT rev (3m)9.49%
EPS NQ rev (1m)2.11%
EPS NQ rev (3m)4.32%
EPS NY rev (1m)0.16%
EPS NY rev (3m)0.51%
Revenue NQ rev (1m)0.85%
Revenue NQ rev (3m)-20.39%
Revenue NY rev (1m)-0.09%
Revenue NY rev (3m)3.62%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.98 | ||
| Fwd PE | 16.23 | ||
| P/S | 2.37 | ||
| P/FCF | N/A | ||
| P/OCF | 8.16 | ||
| P/B | 1.43 | ||
| P/tB | 2.18 | ||
| EV/EBITDA | 11.82 |
EPS(TTM)3.96
EY5.56%
EPS(NY)4.39
Fwd EY6.16%
FCF(TTM)-1.4
FCFYN/A
OCF(TTM)8.73
OCFY12.25%
SpS30.1
BVpS49.93
TBVpS32.62
PEG (NY)3.01
PEG (5Y)5.04
Graham Number66.7
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 | 1.04 |
F-Score7
WACC6.46%
ROIC/WACC0.76
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 Y5.98%
EPS Next 2Y5.81%
EPS Next 3Y5.8%
EPS Next 5Y5.9%
Revenue 1Y (TTM)7.03%
Revenue growth 3Y2.97%
Revenue growth 5Y4.17%
Sales Q2Q%7.12%
Revenue Next Year0.13%
Revenue Next 2Y1.59%
Revenue Next 3Y-1.33%
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 17.98 and the Price/Book (PB) ratio is 1.43.
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%.