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Black Hills

NYSE:BKH
Snowflake Description

Established dividend payer with acceptable track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
BKH
NYSE
$5B
Market Cap
  1. Home
  2. US
  3. Utilities
Company description

Black Hills Corporation, through its subsidiaries, operates as an electric and natural gas utility company in the United States. The last earnings update was 72 days ago. More info.


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BKH Share Price and Events
7 Day Returns
0.7%
NYSE:BKH
0%
US Integrated Utilities
0.6%
US Market
1 Year Returns
30.4%
NYSE:BKH
15.8%
US Integrated Utilities
4.7%
US Market
BKH Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Black Hills (BKH) 0.7% 2.4% 10% 30.4% 27.3% 39.5%
US Integrated Utilities 0% 1.3% 4.5% 15.8% 18.3% 37%
US Market 0.6% 4.2% 2.7% 4.7% 38% 43.5%
1 Year Return vs Industry and Market
  • BKH outperformed the Integrated Utilities industry which returned 15.8% over the past year.
  • BKH outperformed the Market in United States of America which returned 4.7% over the past year.
Price Volatility
BKH
Industry
5yr Volatility vs Market

Value

 Is Black Hills undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Black Hills to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Black Hills.

NYSE:BKH Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 5 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.5%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:BKH
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Integrated Utilities Unlevered Beta Simply Wall St/ S&P Global 0.28
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.282 (1 + (1- 21%) (64.77%))
0.616
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.8 * 5.96%)
7.5%

Discounted Cash Flow Calculation for NYSE:BKH using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Black Hills is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:BKH DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 7.5%)
2020 -73.00 Analyst x2 -67.91
2021 107.00 Analyst x1 92.59
2022 138.35 Est @ 29.3% 111.37
2023 167.86 Est @ 21.33% 125.70
2024 194.29 Est @ 15.75% 135.35
2025 217.31 Est @ 11.84% 140.82
2026 237.10 Est @ 9.11% 142.93
2027 254.16 Est @ 7.2% 142.53
2028 269.04 Est @ 5.86% 140.35
2029 282.28 Est @ 4.92% 136.98
Present value of next 10 years cash flows $1,100.73
NYSE:BKH DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $282.28 × (1 + 2.73%) ÷ (7.5% – 2.73%)
$6,081.85
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $6,081.85 ÷ (1 + 7.5%)10
$2,951.43
NYSE:BKH Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $1,100.73 + $2,951.43
$4,052.16
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $4,052.16 / 60.37
$67.12
NYSE:BKH Discount to Share Price
Calculation Result
Value per share (USD) From above. $67.12
Current discount Discount to share price of $79.97
= -1 x ($79.97 - $67.12) / $67.12
-19.1%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Black Hills is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Black Hills's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Black Hills's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:BKH PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $4.17
NYSE:BKH Share Price ** NYSE (2019-07-12) in USD $79.97
United States of America Integrated Utilities Industry PE Ratio Median Figure of 15 Publicly-Listed Integrated Utilities Companies 20.44x
United States of America Market PE Ratio Median Figure of 3,084 Publicly-Listed Companies 18.01x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Black Hills.

NYSE:BKH PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:BKH Share Price ÷ EPS (both in USD)

= 79.97 ÷ 4.17

19.18x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Black Hills is good value based on earnings compared to the US Integrated Utilities industry average.
  • Black Hills is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Black Hills's expected growth come at a high price?
Raw Data
NYSE:BKH PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 19.18x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts
4.7%per year
United States of America Integrated Utilities Industry PEG Ratio Median Figure of 14 Publicly-Listed Integrated Utilities Companies 3.05x
United States of America Market PEG Ratio Median Figure of 2,125 Publicly-Listed Companies 1.59x

*Line of best fit is calculated by linear regression .

NYSE:BKH PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 19.18x ÷ 4.7%

4.07x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Black Hills is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Black Hills's assets?
Raw Data
NYSE:BKH PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $37.76
NYSE:BKH Share Price * NYSE (2019-07-12) in USD $79.97
United States of America Integrated Utilities Industry PB Ratio Median Figure of 17 Publicly-Listed Integrated Utilities Companies 2.24x
United States of America Market PB Ratio Median Figure of 5,239 Publicly-Listed Companies 1.81x
NYSE:BKH PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:BKH Share Price ÷ Book Value per Share (both in USD)

= 79.97 ÷ 37.76

2.12x

* Primary Listing of Black Hills.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Black Hills is good value based on assets compared to the US Integrated Utilities industry average.
X
Value checks
We assess Black Hills's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Integrated Utilities industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Integrated Utilities industry average (and greater than 0)? (1 check)
  5. Black Hills has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Black Hills expected to perform in the next 1 to 3 years based on estimates from 5 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
4.7%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Black Hills expected to grow at an attractive rate?
  • Black Hills's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Black Hills's earnings growth is positive but not above the United States of America market average.
  • Black Hills's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:BKH Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:BKH Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts 4.7%
NYSE:BKH Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 5 Analysts 2%
United States of America Integrated Utilities Industry Earnings Growth Rate Market Cap Weighted Average 11.8%
United States of America Integrated Utilities Industry Revenue Growth Rate Market Cap Weighted Average 3.7%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.1%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.5%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:BKH Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:BKH Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 2,019 546 264 1
2022-12-31 1,976 547 254 1
2021-12-31 2,023 501 242 3
2020-12-31 1,998 470 228 5
2019-12-31 1,913 443 212 5
NYSE:BKH Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 1,777 495 234
2018-12-31 1,754 489 265
2018-09-30 1,708 488 242
2018-06-30 1,722 476 253
2018-03-31 1,708 451 251
2017-12-31 1,680 428 194
2017-09-30 1,655 431 212
2017-06-30 1,653 400 197
2017-03-31 1,636 334 175
2016-12-31 1,539 320 137
2016-09-30 1,427 268 41
2016-06-30 1,366 353 17

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Black Hills's earnings are expected to grow by 4.7% yearly, however this is not considered high growth (20% yearly).
  • Black Hills's revenue is expected to grow by 2% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:BKH Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below

All data from Black Hills Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:BKH Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31 4.12 4.12 4.12 1.00
2022-12-31 4.00 4.00 4.00 1.00
2021-12-31 3.89 3.93 3.84 4.00
2020-12-31 3.70 3.75 3.65 6.00
2019-12-31 3.50 3.54 3.45 6.00
NYSE:BKH Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 4.17
2018-12-31 4.88
2018-09-30 4.53
2018-06-30 4.75
2018-03-31 4.72
2017-12-31 3.65
2017-09-30 3.99
2017-06-30 3.73
2017-03-31 3.34
2016-12-31 2.64
2016-09-30 0.80
2016-06-30 0.34

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Black Hills is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Black Hills's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Black Hills has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Black Hills performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Black Hills's growth in the last year to its industry (Integrated Utilities).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Black Hills has delivered over 20% year on year earnings growth in the past 5 years.
  • Black Hills's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Black Hills's 1-year earnings growth is negative, it can't be compared to the US Integrated Utilities industry average.
Earnings and Revenue History
Black Hills's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Black Hills Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:BKH Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 1,776.69 233.79 3.49
2018-12-31 1,754.27 265.33 3.18
2018-09-30 1,708.37 241.77 1.63
2018-06-30 1,722.00 252.92
2018-03-31 1,708.13 251.39
2017-12-31 1,680.27 194.13
2017-09-30 1,654.70 212.20
2017-06-30 1,652.87 197.36
2017-03-31 1,636.49 175.22
2016-12-31 1,538.92 137.13
2016-09-30 1,427.45 40.63
2016-06-30 1,365.76 16.55
2016-03-31 1,312.58 -25.96
2015-12-31 1,261.32 141.55
2015-09-30 1,364.42 16.60
2015-06-30 1,364.41 53.91
2015-03-31 1,375.39 116.09
2014-12-31 1,393.57 130.89
2014-09-30 1,370.94 117.82
2014-06-30 1,358.76 113.58
2014-03-31 1,355.35 123.76
2013-12-31 1,275.85 118.31
2013-09-30 1,239.27 127.77
2013-06-30 1,226.17 139.27
2013-03-31 1,188.70 96.43
2012-12-31 1,173.88 109.42
2012-09-30 1,216.20 76.33

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Black Hills has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Black Hills used its assets more efficiently than the US Integrated Utilities industry average last year based on Return on Assets.
  • Black Hills has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Black Hills's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Integrated Utilities industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Black Hills has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Black Hills's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Black Hills's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Black Hills's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Black Hills's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Black Hills's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.2x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Black Hills Company Filings, last reported 3 months ago.

NYSE:BKH Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 2,383.70 3,120.69 12.23
2018-12-31 2,287.42 3,142.20 20.78
2018-09-30 1,921.18 3,319.23 10.00
2018-06-30 1,926.53 3,235.61 8.63
2018-03-31 1,927.98 3,278.73 30.95
2017-12-31 1,820.21 3,326.44 15.42
2017-09-30 1,795.98 3,340.78 13.51
2017-06-30 1,790.03 3,274.02 11.59
2017-03-31 1,788.98 3,267.42 11.35
2016-12-31 1,734.43 3,313.62 13.52
2016-09-30 1,726.23 3,293.17 62.96
2016-06-30 1,684.12 3,255.65 116.81
2016-03-31 1,484.82 3,391.42 46.97
2015-12-31 1,465.87 1,933.47 440.86
2015-09-30 1,287.21 1,689.73 38.84
2015-06-30 1,310.89 1,678.21 87.21
2015-03-31 1,371.58 1,650.74 63.39
2014-12-31 1,353.88 1,623.61 21.22
2014-09-30 1,357.39 1,573.19 11.94
2014-06-30 1,341.33 1,537.38 14.70
2014-03-31 1,337.42 1,505.25 17.64
2013-12-31 1,283.50 1,488.54 7.84
2013-09-30 1,290.95 1,427.16 13.64
2013-06-30 1,282.69 1,395.31 30.63
2013-03-31 1,260.89 1,389.03 12.40
2012-12-31 1,232.51 1,431.98 15.46
2012-09-30 1,214.32 1,617.53 247.19
  • Black Hills's level of debt (130.9%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (112.6% vs 130.9% today).
  • Debt is not well covered by operating cash flow (15.9%, less than 20% of total debt).
  • Interest payments on debt are not well covered by earnings (EBIT is 2.8x annual interest expense, ideally 3x coverage).
X
Financial health checks
We assess Black Hills's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Black Hills has a total score of 0/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Black Hills's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.53%
Current annual income from Black Hills dividends. Estimated to be 2.74% next year.
If you bought $2,000 of Black Hills shares you are expected to receive $51 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Black Hills's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.41%).
  • Black Hills's dividend is below the markets top 25% of dividend payers in United States of America (3.71%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:BKH Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
United States of America Integrated Utilities Industry Average Dividend Yield Market Cap Weighted Average of 17 Stocks 3.3%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2018 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:BKH Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31 2.53 1.00
2022-12-31 2.41 2.00
2021-12-31 2.30 4.00
2020-12-31 2.17 7.00
2019-12-31 2.05 7.00
NYSE:BKH Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-04-29 2.020 2.622
2019-01-30 2.020 2.829
2018-10-30 2.020 3.158
2018-07-25 1.900 3.174
2018-04-23 1.900 3.246
2018-02-02 1.900 3.604
2017-11-03 1.900 3.299
2017-11-02 1.900 3.042
2017-04-24 1.780 2.584
2017-02-27 1.780 2.689
2017-02-01 1.780 2.862
2016-10-25 1.680 2.776
2016-07-29 1.680 2.817
2016-04-25 1.680 2.737
2016-02-02 1.680 2.955
2015-10-27 1.620 3.615
2015-07-28 1.620 3.940
2015-04-27 1.620 3.545
2015-02-25 1.620 3.211
2015-02-02 1.620 3.239
2014-10-29 1.560 2.941
2014-07-30 1.560 3.049
2014-04-28 1.560 2.696
2014-01-30 1.560 2.759
2013-10-29 1.520 2.929
2013-07-25 1.520 3.038
2013-04-23 1.520 3.114
2013-01-31 1.520 3.556
2012-07-26 1.480 4.215
2012-04-26 1.480 4.594
2012-01-26 1.480 4.411
2011-10-27 1.460 4.429
2011-07-28 1.460 4.796
2011-04-28 1.460 4.734
2011-01-27 1.460 4.573
2010-10-29 1.440 4.690
2010-07-29 1.440 4.584
2010-04-30 1.440 4.824
2010-01-28 1.440 4.930
2009-10-29 1.420 5.588
2009-07-29 1.420 5.566
2009-04-28 1.420 6.428
2009-01-30 1.420 7.661
2008-10-30 1.400 5.463
2008-08-04 1.400 4.623

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Black Hills's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.1x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.7x coverage).
X
Income/ dividend checks
We assess Black Hills's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Black Hills afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Black Hills has a total score of 5/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Black Hills's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Linn Evans
COMPENSATION $2,187,831
AGE 56
TENURE AS CEO 0.5 years
CEO Bio

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 Chief Operating Officer at Black Hills Power Inc. Mr. Evans has been the President of Black Hills Corporation since January 1, 2016. Mr. Evans serves as Director at Black Hills Corporation since November 01, 2018. Mr. Evans serves as Chief Executive Officer at Black Hills Corporation since January 01, 2019. Mr. Evans served as Chief Operating Officer of Black Hills Corporation since January 1, 2016 until 2018. He served as the President of Utilities and Chief Operating Officer of Utilities at Black Hills Corporation since October 07, 2004. Mr. Evans serves as President and Chief Operating Officer at Cheyenne Light, Fuel & Power Company and Black Hills Colorado Electric, Inc. He serves as Director of Black Hills Colorado Electric, Inc. Mr. Evans served as the Chief Operating Officer of Retail Operations of Black Hills Corp. since October 7, 2004 and served as its President. Mr. Evans served as a Vice President and General Manager of Black Hills FiberCom, Black Hills Corp.’s broadband telecommunications subsidiary since December 2003 and served as its Associate Counsel from May 2001 to December 2003. He joined Black Hills Corp., as a Corporate Attorney in 2001. Mr. Evans served as an Attorney at the Rapid City, South Dakota law firm of Truhe, Beardsley, Jensen, Helmers and VonWald from February 1997 to May 2001, its Associate Member from April 1995 to February 1997 and an Associate with the law firm of Jackson and Kelly, Charleston, West Virginia from December 1992 to April 1995. He also employed as a Mining Engineer with several gold mining companies. He serves as a Director of Black Hills Power Inc. He holds a J.D. degree from the Northwestern School of Law, Lewis & Clark College, Portland, Oregon and a B.S. Degree in Mining Engineering from the University of Missouri.

CEO Compensation
  • Linn's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Linn's remuneration is lower than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Black Hills management team in years:

4.5
Average Tenure
56
Average Age
  • The tenure for the Black Hills management team is about average.
Management Team

David Emery

TITLE
Executive Chairman
COMPENSATION
$5M
AGE
56
TENURE
0.5 yrs

Linn Evans

TITLE
President
COMPENSATION
$2M
AGE
56
TENURE
0.5 yrs

Rich Kinzley

TITLE
Senior VP & CFO
COMPENSATION
$1M
AGE
53
TENURE
4.5 yrs

Scott Buchholz

TITLE
Senior VP & Chief Information Officer
COMPENSATION
$928K
AGE
57
TENURE
11 yrs

Brian Iverson

TITLE
Senior VP
COMPENSATION
$1M
AGE
56
TENURE
3.3 yrs

Jerome Nichols

TITLE
Director of Investor Relations & Corporate Communications
TENURE
8.2 yrs

Jennifer Landis

TITLE
Senior VP & Chief HR Officer
AGE
44
TENURE
2.4 yrs

Garner Anderson

TITLE
Chief Risk Officer & VP
AGE
57
TENURE
16 yrs

Esther Newbrough

TITLE
VP & Corporate Controller
TENURE
4.5 yrs

Kimberly Nooney

TITLE
VP & Treasurer
TENURE
4.5 yrs
Board of Directors Tenure

Average tenure and age of the Black Hills board of directors in years:

5.5
Average Tenure
63
Average Age
  • The tenure for the Black Hills board of directors is about average.
Board of Directors

Linn Evans

TITLE
President
COMPENSATION
$2M
AGE
56
TENURE
0.7 yrs

Becky Roberts

TITLE
Independent Director
COMPENSATION
$185K
AGE
66
TENURE
8.2 yrs

David Emery

TITLE
Executive Chairman
COMPENSATION
$5M
AGE
56
TENURE
14.3 yrs

Steve Mills

TITLE
Independent Director
COMPENSATION
$185K
AGE
63
TENURE
7.8 yrs

Mike Madison

TITLE
Independent Director
COMPENSATION
$188K
AGE
70
TENURE
7.2 yrs

John Vering

TITLE
Lead Independent Director
COMPENSATION
$205K
AGE
69
TENURE
3.3 yrs

Tom Zeller

TITLE
Independent Director
COMPENSATION
$178K
AGE
71
TENURE
22.5 yrs

Mark Schober

TITLE
Independent Director
COMPENSATION
$173K
AGE
63
TENURE
3.8 yrs

Teresa Taylor

TITLE
Independent Director
COMPENSATION
$170K
AGE
55
TENURE
2.8 yrs

Bob Otto

TITLE
Independent Director
COMPENSATION
$173K
AGE
59
TENURE
2.5 yrs
Who owns this company?
Recent Insider Trading
  • Black Hills individual insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
07. Jun 19 Sell Brian Iverson Individual 06. Jun 19 06. Jun 19 -6,469 $77.89 $-503,839
15. Feb 19 Sell David Emery Individual 13. Feb 19 13. Feb 19 -2,143 $70.14 $-150,283
X
Management checks
We assess Black Hills's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Black Hills has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Black Hills (NYSE:BKH) Has A Somewhat Strained Balance Sheet

NYSE:BKH Historical Debt, July 1st 2019 How Strong Is Black Hills's Balance Sheet? … Since Black Hills does have net debt, we think it is worthwhile for shareholders to keep an eye on the balance sheet, over time. … Our View On the face of it, Black Hills's conversion of EBIT to free cash flow left us tentative about the stock, and its net debt to EBITDA was no more enticing than the one empty restaurant on the busiest night of the year.

Simply Wall St -

Here's How P/E Ratios Can Help Us Understand Black Hills Corporation (NYSE:BKH)

The formula for P/E is: Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS) Or for Black Hills: P/E of 19.1 = $79.63 ÷ $4.17 (Based on the year to March 2019.) Is A High Price-to-Earnings Ratio Good? … A higher P/E ratio means that investors are paying a higher price for each $1 of company earnings. … Black Hills saw earnings per share decrease by 12% last year.

Simply Wall St -

Does Black Hills Corporation (NYSE:BKH) Create Value For Shareholders?

Our data shows Black Hills has a return on equity of 10% for the last year. … The formula for ROE is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Black Hills: 10% = US$234m ÷ US$2.4b (Based on the trailing twelve months to March 2019.) It's easy to understand the 'net profit' part of that equation, but 'shareholders' equity' requires further explanation. … A company that can achieve a high return on equity without debt could be considered a high quality business.

Simply Wall St -

Would Black Hills Corporation (NYSE:BKH) Be Valuable To Income Investors?

While Black Hills's 2.6% dividend yield is not the highest, we think its lengthy payment history is quite interesting. … Click the interactive chart for our full dividend analysis NYSE:BKH Historical Dividend Yield, May 29th 2019 Payout ratios Companies (usually) pay dividends out of their earnings. If a company is paying more than it earns, the dividend might have to be cut. As a result, we should always investigate whether a company can afford its dividend, measured as a percentage of a company's net income after tax. In the last year, Black Hills paid out 47% of its profit as dividends. A medium payout ratio strikes a good balance between paying dividends, and keeping enough back to invest in the business. Besides, if reinvestment opportunities dry up, the company has room to increase the dividend. Another important check we do is to see if the free cash flow generated is sufficient to pay the dividend. Last year, Black Hills paid a dividend while reporting negative free cash flow. While there may be an explanation, we think this behaviour is generally not sustainable. It's encouraging to see that the dividend is covered by both profit and cash flow. This generally suggests the dividend is sustainable, as long as earnings don't drop precipitously. Is Black Hills's Balance Sheet Risky? As Black Hills has a meaningful amount of debt, we need to check its balance sheet to see if the company might have debt risks. A rough way to check this is with these two simple ratios: a) net debt divided by EBITDA (earnings before interest, tax, depreciation and amortisation), and b) net interest cover. … For the purpose of this article, we only scrutinise the last decade of Black Hills's dividend payments.

Simply Wall St -

Black Hills Corporation (NYSE:BKH): Are Analysts’ Forecast Signalling Trouble Ahead?

Looking at Black Hills Corporation's (NYSE:BKH) recent earnings update on 31 March 2019, analyst forecasts seem bearish, with earnings expected to decline by 8.7% in the upcoming year against the past 5-year average growth rate of 26%. … To reduce the year-on-year volatility of analyst earnings forecast, I've inserted a line of best fit through the expected earnings figures to determine the annual growth rate from the slope of the line. … NYSE:BKH Past and Future Earnings, May 10th 2019 From the current net income level of US$265m and the final forecast of US$276m by 2022, the annual rate of growth for BKH’s earnings is 4.9%.

Simply Wall St -

If You Like EPS Growth Then Check Out Black Hills (NYSE:BKH) Before It's Too Late

In the age of tech-stock blue-sky investing, my choice may seem old fashioned; I still prefer profitable companies like Black Hills (NYSE:BKH). … How Quickly Is Black Hills Increasing Earnings Per Share. … One way to double-check a company's growth is to look at how its revenue, and earnings before interest and tax (EBIT) margins are changing.

Simply Wall St -

What You Must Know About Black Hills Corporation's (NYSE:BKH) Financial Strength

Small-caps and large-caps are wildly popular among investors, however, mid-cap stocks, such as Black Hills Corporation (NYSE:BKH), with a market capitalization of US$4.3b, rarely draw their attention from the investing community. … While they are less talked about as an investment category, mid-cap risk-adjusted returns have generally been better than more commonly focused stocks that fall into the small- or large-cap categories. … This article will examine BKH’s financial liquidity and debt levels to get an idea of whether the company can deal with cyclical downturns and maintain funds to accommodate strategic spending for future growth.

Simply Wall St -

Did Black Hills's (NYSE:BKH) Share Price Deserve to Gain 37%?

To wit, the Black Hills Corporation (NYSE:BKH) share price is 37% higher than it was a year ago, much better than the market return of around 7.6% (not including dividends) in the same period. … One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement. … During the last year Black Hills grew its earnings per share (EPS) by 34%.

Simply Wall St -

Should Investors Be Happy About Black Hills Corporation’s (NYSE:BKH) Cash Levels?

I will take you through Black Hills’s cash flow health and the risk-return concept based on the stock’s cash flow yield, using the most recent financial data. … Black Hills’s free cash flow (FCF) is the level of cash flow the business generates from its operational activities, after it reinvests in the company as capital expenditure. … There are two methods I will use to evaluate the quality of Black Hills’s FCF: firstly, I will measure its FCF yield relative to the market index yield; secondly, I will examine whether its operating cash flow will continue to grow into the future, which will give us a sense of sustainability

Simply Wall St -

What Are Analysts Expecting From Black Hills Corporation (NYSE:BKH) Over The Next Few Years?

Black Hills Corporation's (NYSE:BKH) latest earnings announcement in December 2018a … revealed

Simply Wall St -

Company Info

Description

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.

Details
Name: Black Hills Corporation
BKH
Exchange: NYSE
Founded: 1941
$4,827,626,720
60,367,972
Website: http://www.blackhillscorp.com
Address: Black Hills Corporation
7001 Mount Rushmore Road,
Rapid City,
South Dakota, 57702,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE BKH Common Stock New York Stock Exchange US USD 02. Jan 1969
DB BHI Common Stock Deutsche Boerse AG DE EUR 02. Jan 1969
Number of employees
Current staff
Staff numbers
2,863
Black Hills employees.
Industry
Multi-Utilities
Utilities
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/14 23:33
End of day share price update: 2019/07/12 00:00
Last estimates confirmation: 2019/06/20
Last earnings filing: 2019/05/03
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.