Black Hills
Market Cap
US$5.0b
Last Updated
2020/01/23 23:32 UTC
Data Sources
Company Financials +
Executive Summary
Black Hills Corporation, through its subsidiaries, operates as an electric and natural gas utility company in the United States.
Rewards
Risk Analysis
Snowflake Analysis
Established dividend payer with questionable track record.
Similar Companies
Share Price & News
How has Black Hills's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: BKH has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
1.8%
BKH
2.1%
US Integrated Utilities
-0.09%
US Market
1 Year Return
27.0%
BKH
22.0%
US Integrated Utilities
23.9%
US Market
Return vs Industry: BKH exceeded the US Integrated Utilities industry which returned 19.5% over the past year.
Return vs Market: BKH exceeded the US Market which returned 24.6% over the past year.
Shareholder returns
| BKH | Industry | Market | |
|---|---|---|---|
| 7 Day | 1.8% | 2.1% | -0.09% |
| 30 Day | 6.8% | 5.0% | 3.1% |
| 90 Day | 6.1% | 3.3% | 10.4% |
| 1 Year | 30.6%27.0% | 26.3%22.0% | 26.6%23.9% |
| 3 Year | 44.8%32.4% | 48.4%33.5% | 50.9%41.2% |
| 5 Year | 85.8%59.3% | 62.0%30.0% | 78.1%58.5% |
Price Volatility Vs. Market
How volatile is Black Hills's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall St
Is Black Hills (NYSE:BKH) A Risky Investment?2 weeks ago | Simply Wall St
Have Insiders Been Selling Black Hills Corporation (NYSE:BKH) Shares?1 month ago | Simply Wall St
Are Black Hills Corporation’s (NYSE:BKH) High Returns Really That Great?Valuation
Is Black Hills undervalued compared to its fair value and its price relative to the market?
22.64x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: BKH ($78.69) is trading above our estimate of fair value ($51.18)
Significantly Below Fair Value: BKH is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: BKH is poor value based on its PE Ratio (21.6x) compared to the Integrated Utilities industry average (21x).
PE vs Market: BKH is poor value based on its PE Ratio (21.6x) compared to the US market (18.9x).
Price to Earnings Growth Ratio
PEG Ratio: BKH is poor value based on its PEG Ratio (3.3x)
Price to Book Ratio
PB vs Industry: BKH is good value based on its PB Ratio (2.1x) compared to the US Integrated Utilities industry average (2.1x).
Next Steps
Future Growth
How is Black Hills forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?
6.1%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: BKH's forecast earnings growth (6.4% per year) is above the savings rate (1.7%).
Earnings vs Market: BKH's earnings (6.4% per year) are forecast to grow slower than the US market (14.3% per year).
High Growth Earnings: BKH's earnings are forecast to grow, but not significantly.
Revenue vs Market: BKH's revenue (3.8% per year) is forecast to grow slower than the US market (7.5% per year).
High Growth Revenue: BKH's revenue (3.8% 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 (9.3%).
Next Steps
Past Performance
How has Black Hills performed over the past 5 years?
27.5%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: BKH has high quality earnings.
Growing Profit Margin: BKH's current net profit margins (12.4%) are lower than last year (14.2%).
Past Earnings Growth Analysis
Earnings Trend: BKH's earnings have grown significantly by 27.5% per year over the past 5 years.
Accelerating Growth: BKH's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: BKH had negative earnings growth (-9.8%) over the past year, making it difficult to compare to the Integrated Utilities industry average (-9.8%).
Return on Equity
High ROE: BKH's Return on Equity (9.5%) is considered low.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Black Hills's financial position?
Financial Position Analysis
Short Term Liabilities: BKH's short term assets ($377.4M) do not cover its short term liabilities ($691.1M).
Long Term Liabilities: BKH's short term assets ($377.4M) do not cover its long term liabilities ($4.2B).
Debt to Equity History and Analysis
Debt Level: BKH's debt to equity ratio (137.7%) is considered high.
Reducing Debt: BKH's debt to equity ratio has increased from 115.9% to 137.7% over the past 5 years.
Debt Coverage: BKH's debt is not well covered by operating cash flow (14.8%).
Interest Coverage: BKH's interest payments on its debt are not well covered by EBIT (2.8x coverage).
Balance Sheet
Inventory Level: BKH has a high level of physical assets or inventory.
Debt Coverage by Assets: BKH's debt is not covered by short term assets (assets are 0.1x debt).
Next Steps
Dividend
What is Black Hills's current dividend yield, its reliability and sustainability?
2.59%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: BKH's dividend (2.72%) is higher than the bottom 25% of dividend payers in the US market (1.4%).
High Dividend: BKH's dividend (2.72%) is low compared to the top 25% of dividend payers in the US market (3.66%).
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 (55.4%), 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 (56% payout ratio).
Next Steps
Management
What is the CEO of Black Hills's salary, the management and board of directors tenure and is there insider trading?
5.0yrs
Average management tenure
CEO
Linn Evans (56yo)
1yrs
Tenure
US$2,187,831
Compensation
Mr. Linden R. Evans, also known as Linn, has been a Chief Executive Officer at Black Hills Power Inc. since January 1, 2019. Mr. Evans serves as a Chairman at Black Hills Power Inc. Mr. Evans served as Chi ...
CEO Compensation Analysis
Compensation vs Market: Linn's total compensation ($USD2.19M) is below average for companies of similar size in the US market ($USD6.46M).
Compensation vs Earnings: Linn's compensation has been consistent with company performance over the past year.
Management Age and Tenure
5.0yrs
Average Tenure
56yo
Average Age
Experienced Management: BKH's management team is seasoned and experienced (5 years average tenure).
Board Age and Tenure
6.0yrs
Average Tenure
63yo
Average Age
Experienced Board: BKH's board of directors are considered experienced (6 years average tenure).
Insider Trading
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
| Entity | Individual |
| Role | Chief Financial Officer Senior VP & CFO |
| Shares | 5,416 |
| Max Price | US$77.89 |
| Entity | Individual |
| Role | Chief Legal Officer Senior VP |
| Shares | 6,469 |
| Max Price | US$77.89 |
| Entity | Individual |
| Role | Chairman of the Board Executive Chairman |
| Shares | 2,142.52 |
| Max Price | US$70.14 |
Ownership Breakdown
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 12.1%.
Management Team
David Emery (56yo)
Executive Chairman
- Tenure: 14.8yrs
- Compensation: US$4.62m
Garner Anderson (57yo)
Chief Risk Officer & VP
- Tenure: 16.5yrs
Linn Evans (56yo)
President
- Tenure: 1yrs
- Compensation: US$2.19m
Scott Buchholz (57yo)
Senior VP & Chief Information Officer
- Tenure: 11.5yrs
- Compensation: US$927.80k
Rich Kinzley (53yo)
Senior VP & CFO
- Tenure: 5yrs
- Compensation: US$1.37m
Brian Iverson (56yo)
Senior VP
- Tenure: 3.8yrs
- Compensation: US$1.11m
Jerome Nichols
Director
Esther Newbrough
VP & Corporate Controller
- Tenure: 5yrs
Kimberly Nooney
VP & Treasurer
- Tenure: 5yrs
Jennifer Landis (44yo)
Senior VP & Chief HR Officer
- Tenure: 2.9yrs
Board Members
Steve Mills (63yo)
Independent Director
- Tenure: 8.3yrs
- Compensation: US$185.00k
David Emery (56yo)
Executive Chairman
- Tenure: 14.8yrs
- Compensation: US$4.62m
Mark Schober (63yo)
Independent Director
- Tenure: 4.3yrs
- Compensation: US$172.50k
Tom Zeller (71yo)
Independent Director
- Tenure: 23yrs
- Compensation: US$177.50k
John Vering (69yo)
Lead Independent Director
- Tenure: 3.8yrs
- Compensation: US$205.00k
Mike Madison (70yo)
Independent Director
- Tenure: 7.7yrs
- Compensation: US$187.50k
Linn Evans (56yo)
President
- Tenure: 1yrs
- Compensation: US$2.19m
Teresa Taylor (55yo)
Independent Director
- Tenure: 3.3yrs
- Compensation: US$170.00k
Becky Roberts (66yo)
Independent Director
- Tenure: 8.7yrs
- Compensation: US$185.00k
Bob Otto (59yo)
Independent Director
- Tenure: 3yrs
- Compensation: US$172.50k
Company Information
Black Hills Corporation's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Black Hills Corporation
- Ticker: BKH
- Exchange: NYSE
- Founded: 1941
- Industry: Multi-Utilities
- Sector: Utilities
- Market Cap: US$5.043b
- Shares outstanding: 61.45m
- Website: https://www.blackhillscorp.com
Number of Employees
Location
- Black Hills Corporation
- 7001 Mount Rushmore Road
- Rapid City
- South Dakota
- 57702
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| BKH | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Jan 1969 |
| BHI | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Jan 1969 |
Biography
Black Hills Corporation, through its subsidiaries, operates as an electric and natural gas utility company in the United States. It operates through Electric Utilities, Gas Utilities, Power Generation, and Mining segments. The Electric Utilities segment generates, transmits, and distributes electricity to approximately 212,000 electric customers in Colorado, Montana, South Dakota, and Wyoming, as well as provides electrical system construction services to large industrial customers. This segment owns 939 megawatts of generation capacity and 8,858 miles of electric transmission and distribution lines. The Gas Utilities segment distributes natural gas to approximately 1,054,000 natural gas utility customers in Arkansas, Colorado, Iowa, Kansas, Nebraska, and Wyoming. It also provides appliance repair services to residential customers through company technicians and third-party service providers; and constructs and maintains gas infrastructure facilities for gas transportation customers. This segment owns and operates approximately 4,700 miles of intrastate gas transmission pipelines; 41,158 miles of gas distribution mains and service lines; 7 natural gas storage sites; and approximately 45,000 horsepower of compression and 600 miles of gathering lines. The Power Generation segment produces electric power through wind, natural gas, and coal generating plants; and sells the electric capacity and energy primarily to utilities under long-term contracts. The Mining segment produces coal at its coal mine located near Gillette, Wyoming; and sells the coal to electric generation facilities. Black Hills Corporation was founded in 1941 and is headquartered in Rapid City, South Dakota.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/01/23 23:32 |
| End of Day Share Price | 2020/01/23 00:00 |
| Earnings | 2019/09/30 |
| Annual Earnings | 2018/12/31 |
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.