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BKH

Black HillsNYSE:BKH Stock Report

Last Price

US$67.44

Market Cap

US$4.3b

7D

-0.4%

1Y

12.3%

Updated

26 Jan, 2022

Data

Company Financials +
BKH fundamental analysis
Snowflake Score
Valuation3/6
Future Growth1/6
Past Performance3/6
Financial Health1/6
Dividends5/6

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

Dominion Energy

NYSE:D

US$63.2b

Sempra

NYSE:SRE

US$42.8b

Public Service Enterprise Group

NYSE:PEG

US$32.7b

WEC Energy Group

NYSE:WEC

US$29.9b

Price History & Performance

Summary of all time highs, changes and price drops for Black Hills
Historical stock prices
Current Share PriceUS$67.44
52 Week HighUS$72.78
52 Week LowUS$58.22
Beta0.47
1 Month Change-1.82%
3 Month Change1.98%
1 Year Change12.31%
3 Year Change2.93%
5 Year Change7.82%
Change since IPO425.51%

Recent News & Updates

Dec 05

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.

Nov 25
Does Black Hills (NYSE:BKH) Have A Healthy Balance Sheet?

Does Black Hills (NYSE:BKH) Have A Healthy Balance Sheet?

The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says...

Nov 11
Here's What To Make Of Black Hills' (NYSE:BKH) Decelerating Rates Of Return

Here's What To Make Of Black Hills' (NYSE:BKH) Decelerating Rates Of Return

Finding a business that has the potential to grow substantially is not easy, but it is possible if we look at a few key...

Shareholder Returns

BKHUS Integrated UtilitiesUS Market
7D-0.4%-0.9%-5.1%
1Y12.3%9.2%3.3%

Return vs Industry: BKH exceeded the US Integrated Utilities industry which returned 8.8% over the past year.

Return vs Market: BKH exceeded the US Market which returned 4.2% over the past year.

Price Volatility

Is BKH's price volatile compared to industry and market?
BKH volatility
BKH Average Weekly Movement3.0%
Integrated Utilities Industry Average Movement2.5%
Market Average Movement6.7%
10% most volatile stocks in US Market15.4%
10% least volatile stocks in US Market2.4%

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

FoundedEmployeesCEOWebsite
19413,011Linn Evanshttps://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

How do Black Hills's earnings and revenue compare to its market cap?
BKH fundamental statistics
Market CapUS$4.30b
Earnings (TTM)US$242.77m
Revenue (TTM)US$1.87b

17.7x

P/E Ratio

2.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
BKH income statement (TTM)
RevenueUS$1.87b
Cost of RevenueUS$1.16b
Gross ProfitUS$716.80m
ExpensesUS$474.03m
EarningsUS$242.77m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

Feb 09, 2022

Earnings per share (EPS)3.80
Gross Margin38.27%
Net Profit Margin12.96%
Debt/Equity Ratio159.2%

How did BKH perform over the long term?

See historical performance and comparison

Dividends

3.5%

Current Dividend Yield

59%

Payout Ratio

Valuation

Is Black Hills undervalued compared to its fair value and its price relative to the market?

6.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BKH ($67.44) is trading below our estimate of fair value ($72.25)

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 (17.7x) compared to the US Integrated Utilities industry average (22.5x).

PE vs Market: BKH is poor value based on its PE Ratio (17.7x) compared to the US market (16.5x).


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 (3% per year) is forecast to grow slower than the US market (9.1% per year).

High Growth Revenue: BKH's revenue (3% 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?

3.53%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: BKH's dividend (3.53%) is higher than the bottom 25% of dividend payers in the US market (1.36%).

High Dividend: BKH's dividend (3.53%) is low compared to the top 25% of dividend payers in the US market (3.57%).


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 (58.7% 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 ($USD4.22M) is about average for companies of similar size in the US market ($USD5.29M).

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$4.304b
  • 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/26 00:53
End of Day Share Price2022/01/25 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


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.