| Snowflake Score | |
|---|---|
| Valuation | 3/6 |
| Future Growth | 1/6 |
| Past Performance | 3/6 |
| Financial Health | 1/6 |
| Dividends | 6/6 |
BKH Stock Overview
Black Hills Corporation, through its subsidiaries, operates as an electric and natural gas utility company in the United States.
Black Hills Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$68.49 |
| 52 Week High | US$72.78 |
| 52 Week Low | US$58.22 |
| Beta | 0.47 |
| 1 Month Change | 0.75% |
| 3 Month Change | 6.09% |
| 1 Year Change | 10.52% |
| 3 Year Change | 4.33% |
| 5 Year Change | 10.99% |
| Change since IPO | 433.69% |
Recent News & Updates
Black Hills' Coal Generation Becomes Welcome Asset
Black Hills Corporation is a moderate-beta (0.45) Northern Plains, Rockies, and Arkansas gas and electric utility holding company with a 3.6% dividend yield. This $4.2 billion market cap company serves dispersed markets. Because much of its revenue comes from gas sales to residential/commercial customers, Black Hills is more weather-dependent than some utilities. An under-the-radar company, Black Hills faces challenges from inflation but is advantaged by its coal resource stability, electricity growth prospects, and proximity to natural gas supply.
Does Black Hills (NYSE:BKH) Have A Healthy Balance Sheet?
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Here's What To Make Of Black Hills' (NYSE:BKH) Decelerating Rates Of Return
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Shareholder Returns
| BKH | US Integrated Utilities | US Market | |
|---|---|---|---|
| 7D | -1.3% | -0.5% | -0.3% |
| 1Y | 10.5% | 11.6% | 13.7% |
Return vs Industry: BKH underperformed the US Integrated Utilities industry which returned 11.6% over the past year.
Return vs Market: BKH underperformed the US Market which returned 13.7% over the past year.
Price Volatility
| BKH volatility | |
|---|---|
| BKH Average Weekly Movement | 3.0% |
| Integrated Utilities Industry Average Movement | 2.5% |
| Market Average Movement | 6.6% |
| 10% most volatile stocks in US Market | 15.9% |
| 10% least volatile stocks in US Market | 2.4% |
Stable Share Price: BKH is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: BKH's weekly volatility (3%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1941 | 3,011 | Linn Evans | https://www.blackhillscorp.com |
Black Hills Corporation, through its subsidiaries, operates as an electric and natural gas utility company in the United States. It operates through four segments: Electric Utilities, Gas Utilities, Power Generation, and Mining. The Electric Utilities segment generates, transmits, and distributes electricity to approximately 216,000 electric customers in Colorado, South Dakota, and Wyoming, as well as provides electrical system construction services to large industrial customers.
Black Hills Fundamentals Summary
| BKH fundamental statistics | |
|---|---|
| Market Cap | US$4.37b |
| Earnings (TTM) | US$242.77m |
| Revenue (TTM) | US$1.87b |
18.0x
P/E Ratio2.3x
P/S RatioIs BKH overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| BKH income statement (TTM) | |
|---|---|
| Revenue | US$1.87b |
| Cost of Revenue | US$1.16b |
| Gross Profit | US$716.80m |
| Expenses | US$474.03m |
| Earnings | US$242.77m |
Last Reported Earnings
Sep 30, 2021
Next Earnings Date
Feb 09, 2022
| Earnings per share (EPS) | 3.80 |
| Gross Margin | 38.27% |
| Net Profit Margin | 12.96% |
| Debt/Equity Ratio | 159.2% |
How did BKH perform over the long term?
See historical performance and comparisonDividends
3.5%
Current Dividend Yield59%
Payout RatioValuation
Is Black Hills undervalued compared to its fair value and its price relative to the market?
4.2%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: BKH ($68.49) is trading below our estimate of fair value ($71.5)
Significantly Below Fair Value: BKH is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: BKH is good value based on its PE Ratio (18x) compared to the US Integrated Utilities industry average (22.9x).
PE vs Market: BKH is poor value based on its PE Ratio (18x) compared to the US market (17.4x).
Price to Earnings Growth Ratio
PEG Ratio: BKH is poor value based on its PEG Ratio (2.5x)
Price to Book Ratio
PB vs Industry: BKH is good value based on its PB Ratio (1.6x) compared to the US Integrated Utilities industry average (2.2x).
Future Growth
How is Black Hills forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?
7.2%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: BKH's forecast earnings growth (7.2% per year) is above the savings rate (2%).
Earnings vs Market: BKH's earnings (7.2% per year) are forecast to grow slower than the US market (13% per year).
High Growth Earnings: BKH's earnings are forecast to grow, but not significantly.
Revenue vs Market: BKH's revenue (2.2% per year) is forecast to grow slower than the US market (9.3% per year).
High Growth Revenue: BKH's revenue (2.2% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: BKH's Return on Equity is forecast to be low in 3 years time (8.8%).
Past Performance
How has Black Hills performed over the past 5 years?
7.7%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: BKH has high quality earnings.
Growing Profit Margin: BKH's current net profit margins (13%) are lower than last year (13%).
Past Earnings Growth Analysis
Earnings Trend: BKH's earnings have grown by 7.7% per year over the past 5 years.
Accelerating Growth: BKH's earnings growth over the past year (10.6%) exceeds its 5-year average (7.7% per year).
Earnings vs Industry: BKH earnings growth over the past year (10.6%) underperformed the Integrated Utilities industry 11.5%.
Return on Equity
High ROE: BKH's Return on Equity (9.2%) is considered low.
Financial Health
How is Black Hills's financial position?
Financial Position Analysis
Short Term Liabilities: BKH's short term assets ($627.7M) do not cover its short term liabilities ($758.1M).
Long Term Liabilities: BKH's short term assets ($627.7M) do not cover its long term liabilities ($5.4B).
Debt to Equity History and Analysis
Debt Level: BKH's net debt to equity ratio (158.9%) is considered high.
Reducing Debt: BKH's debt to equity ratio has reduced from 190.8% to 159.2% over the past 5 years.
Debt Coverage: BKH's operating cash flow is negative, therefore debt is not well covered.
Interest Coverage: BKH's interest payments on its debt are not well covered by EBIT (2.8x coverage).
Balance Sheet
Dividend
What is Black Hills's current dividend yield, its reliability and sustainability?
3.47%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: BKH's dividend (3.47%) is higher than the bottom 25% of dividend payers in the US market (1.32%).
High Dividend: BKH's dividend (3.47%) is in the top 25% of dividend payers in the US market (3.44%)
Stability and Growth of Payments
Stable Dividend: BKH's dividends per share have been stable in the past 10 years.
Growing Dividend: BKH's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (59.3%), BKH's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: BKH's dividends in 3 years are forecast to be covered by earnings (58.6% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
6.0yrs
Average management tenure
CEO
Linn Evans (58 yo)
6yrs
Tenure
US$4,221,114
Compensation
Mr. Linden R. Evans, also known as Linn, has been the Chief Executive Officer and Chairman at Black Hills Power Inc. since January 1, 2019. Mr. Evans served as Chief Operating Officer at Black Hills Power...
CEO Compensation Analysis
Compensation vs Market: Linn's total compensation ($USD4.22M) is about average for companies of similar size in the US market ($USD5.13M).
Compensation vs Earnings: Linn's compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: BKH's management team is seasoned and experienced (6 years average tenure).
Board Members
Experienced Board: BKH's board of directors are considered experienced (5 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Black Hills Corporation's employee growth, exchange listings and data sources
Key Information
- Name: Black Hills Corporation
- Ticker: BKH
- Exchange: NYSE
- Founded: 1941
- Industry: Multi-Utilities
- Sector: Utilities
- Implied Market Cap: US$4.371b
- Shares outstanding: 63.82m
- Website: https://www.blackhillscorp.com
Number of Employees
Location
- Black Hills Corporation
- 7001 Mount Rushmore Road
- Rapid City
- South Dakota
- 57702
- United States
Listings
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/01/17 23:17 |
| End of Day Share Price | 2022/01/14 00:00 |
| Earnings | 2021/09/30 |
| Annual Earnings | 2020/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.