NYSE:BKH

Stock Analysis Report

Executive Summary

Black Hills Corporation, through its subsidiaries, operates as an electric and natural gas utility company in the United States.

Snowflake

Fundamentals

Established dividend payer with acceptable 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


Market Performance


7 Day Return

2.0%

NYSE:BKH

1.8%

US Integrated Utilities

0.8%

US Market


1 Year Return

27.4%

NYSE:BKH

16.0%

US Integrated Utilities

1.9%

US Market

BKH outperformed the Integrated Utilities industry which returned 14.8% over the past year.

BKH outperformed the Market in United States of America which returned 2.1% over the past year.


Share holder returns

BKHIndustryMarket
7 Day2.0%1.8%0.8%
30 Day-1.3%2.9%3.4%
90 Day-4.4%3.0%2.1%
1 Year31.1%27.4%20.1%16.0%4.2%1.9%
3 Year38.2%26.4%39.8%25.8%46.7%37.2%
5 Year78.8%53.3%78.4%43.3%62.3%44.5%

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

Valuation

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

19.66x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Black Hills's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Black Hills's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

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

Black Hills is poor value based on expected growth next year.


Price Based on Value of Assets

Black Hills is good value based on assets compared to the US Integrated Utilities industry average.


Next Steps

Future Growth

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

5.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Black Hills's revenue is expected to grow by 2.6% yearly, however this is not considered high growth (20% yearly).

Black Hills's earnings are expected to grow by 5.3% yearly, however this is not considered high growth (20% yearly).

Black Hills's revenue growth is positive but not above the United States of America market average.

Black Hills's earnings growth is positive but not above the United States of America market average.

Black Hills's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Black Hills is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Black Hills performed over the past 5 years?

27.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

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.


Return on Equity

Black Hills has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Black Hills used its assets more efficiently than the US Integrated Utilities industry average last year based on Return on Assets.


Return on Capital Employed

Black Hills has improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Black Hills's financial position?


Financial Position Analysis

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.


Debt to Equity History and Analysis

Black Hills's level of debt (130.5%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (114.6% vs 130.5% today).

Debt is not well covered by operating cash flow (14.8%, less than 20% of total debt).

Interest payments on debt are not well covered by earnings (EBIT is 2.7x annual interest expense, ideally 3x coverage).


Balance Sheet

High level of physical assets or inventory.

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?

2.89%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Black Hills's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.43%).

Black Hills's dividend is below the markets top 25% of dividend payers in United States of America (3.67%).

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

Dividends paid are covered by earnings (1.9x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (1.7x coverage).


Next Steps

Management

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

4.7yrs

Average management tenure


CEO

Linn Evans (56yo)

0.7yrs

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

Linn's remuneration is lower than average for companies of similar size in United States of America.

Linn's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

4.7yrs

Average Tenure

56yo

Average Age

The tenure for the Black Hills management team is about average.


Board Age and Tenure

5.7yrs

Average Tenure

63yo

Average Age

The tenure for the Black Hills board of directors is about average.


Insider Trading

Black Hills individual insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$421,85008 Aug 19
Richard Kinzley
EntityIndividual
Role
Chief Financial Officer
Senior VP & CFO
Shares5,416
Max PriceUS$77.89
SellUS$503,83907 Jun 19
Brian Iverson
EntityIndividual
Role
Chief Legal Officer
Senior VP
Shares6,469
Max PriceUS$77.89
SellUS$150,28315 Feb 19
David Emery
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares2,142.52
Max PriceUS$70.14

Ownership Breakdown


Management Team

  • David Emery (56yo)

    Executive Chairman

    • Tenure: 14.4yrs
    • Compensation: US$4.62m
  • Garner Anderson (57yo)

    Chief Risk Officer & VP

    • Tenure: 16.2yrs
  • Linn Evans (56yo)

    President

    • Tenure: 0.7yrs
    • Compensation: US$2.19m
  • Scott Buchholz (57yo)

    Senior VP & Chief Information Officer

    • Tenure: 11.2yrs
    • Compensation: US$927.80k
  • Rich Kinzley (53yo)

    Senior VP & CFO

    • Tenure: 4.7yrs
    • Compensation: US$1.37m
  • Brian Iverson (56yo)

    Senior VP

    • Tenure: 3.4yrs
    • Compensation: US$1.11m
  • Jerome Nichols

    Director

    • Tenure: 0yrs
  • Esther Newbrough

    VP & Corporate Controller

    • Tenure: 4.7yrs
  • Kimberly Nooney

    VP & Treasurer

    • Tenure: 4.7yrs
  • Jennifer Landis (44yo)

    Senior VP & Chief HR Officer

    • Tenure: 2.6yrs

Board Members

  • Steve Mills (63yo)

    Independent Director

    • Tenure: 7.9yrs
    • Compensation: US$185.00k
  • David Emery (56yo)

    Executive Chairman

    • Tenure: 14.4yrs
    • Compensation: US$4.62m
  • Mark Schober (63yo)

    Independent Director

    • Tenure: 4yrs
    • Compensation: US$172.50k
  • Tom Zeller (71yo)

    Independent Director

    • Tenure: 22.7yrs
    • Compensation: US$177.50k
  • John Vering (69yo)

    Lead Independent Director

    • Tenure: 3.5yrs
    • Compensation: US$205.00k
  • Mike Madison (70yo)

    Independent Director

    • Tenure: 7.3yrs
    • Compensation: US$187.50k
  • Linn Evans (56yo)

    President

    • Tenure: 0.7yrs
    • Compensation: US$2.19m
  • Teresa Taylor (55yo)

    Independent Director

    • Tenure: 3yrs
    • Compensation: US$170.00k
  • Becky Roberts (66yo)

    Independent Director

    • Tenure: 8.3yrs
    • Compensation: US$185.00k
  • Bob Otto (59yo)

    Independent Director

    • Tenure: 2.7yrs
    • 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$4.649b
  • Shares outstanding: 61.06m
  • Website: https://www.blackhillscorp.com

Number of Employees


Location

  • Black Hills Corporation
  • 7001 Mount Rushmore Road
  • Rapid City
  • South Dakota
  • 57702
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BKHNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1969
BHIDB (Deutsche Boerse AG)YesCommon StockDEEURJan 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 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/17 23:38
End of Day Share Price2019/09/17 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.