NYSE:BKH

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Executive Summary

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


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

5.1%

BKH

2.5%

US Integrated Utilities

1.2%

US Market


1 Year Return

-21.4%

BKH

-2.4%

US Integrated Utilities

16.8%

US Market

Return vs Industry: BKH underperformed the US Integrated Utilities industry which returned -3.1% over the past year.

Return vs Market: BKH underperformed the US Market which returned 16.4% over the past year.


Shareholder returns

BKHIndustryMarket
7 Day5.1%2.5%1.2%
30 Day-0.07%8.6%4.9%
90 Day3.2%10.5%20.0%
1 Year-19.0%-21.4%1.0%-2.4%19.3%16.8%
3 Year-6.7%-14.8%21.1%9.1%43.7%34.4%
5 Year62.9%41.1%53.9%28.9%75.5%56.6%

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 compared to its fair value and its price relative to the market?

18.93x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: BKH ($59.88) is trading above our estimate of fair value ($47.92)

Significantly Below Fair Value: BKH is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: BKH's PE Ratio (18.9x) is in line with the US Integrated Utilities industry average.

PE vs Market: BKH's PE Ratio (18.9x) is in line with the US market.


Price to Earnings Growth Ratio

PEG Ratio: BKH is poor value based on its PEG Ratio (2.3x)


Price to Book Ratio

PB vs Industry: BKH is good value based on its PB Ratio (1.5x) compared to the US Integrated Utilities industry average (1.9x).


Next Steps

Future Growth

How is Black Hills forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

8.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BKH's forecast earnings growth (8.3% per year) is above the savings rate (2.2%).

Earnings vs Market: BKH's earnings (8.3% per year) are forecast to grow slower than the US market (23.7% per year).

High Growth Earnings: BKH's earnings are forecast to grow, but not significantly.

Revenue vs Market: BKH's revenue (6.1% per year) is forecast to grow slower than the US market (9.4% per year).

High Growth Revenue: BKH's revenue (6.1% 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%).


Next Steps

Past Performance

How has Black Hills performed over the past 5 years?

25.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BKH has high quality earnings.

Growing Profit Margin: BKH's current net profit margins (11.7%) are lower than last year (12.8%).


Past Earnings Growth Analysis

Earnings Trend: BKH's earnings have grown significantly by 25.7% 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 (-12.9%) over the past year, making it difficult to compare to the Integrated Utilities industry average (6.5%).


Return on Equity

High ROE: BKH's Return on Equity (8%) is considered low.


Next Steps

Financial Health

How is Black Hills's financial position?


Financial Position Analysis

Short Term Liabilities: BKH's short term assets ($414.1M) exceed its short term liabilities ($385.0M).

Long Term Liabilities: BKH's short term assets ($414.1M) do not cover its long term liabilities ($4.7B).


Debt to Equity History and Analysis

Debt Level: BKH's debt to equity ratio (135.1%) is considered high.

Reducing Debt: BKH's debt to equity ratio has increased from 128.1% to 135.1% over the past 5 years.

Debt Coverage: BKH's debt is not well covered by operating cash flow (14.9%).

Interest Coverage: BKH's interest payments on its debt are not well covered by EBIT (2.8x coverage).


Balance Sheet


Next Steps

Dividend

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

3.57%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: BKH's dividend (3.57%) is higher than the bottom 25% of dividend payers in the US market (1.62%).

High Dividend: BKH's dividend (3.57%) is low compared to the top 25% of dividend payers in the US market (4.35%).


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 (66.7%), 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 (59.6% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.0yrs

Average management tenure


CEO

Linn Evans (57 yo)

1.58yrs

Tenure

US$3,639,302

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 ($USD3.64M) is below average for companies of similar size in the US market ($USD5.74M).

Compensation vs Earnings: Linn's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Linden Evans
President1.58yrsUS$3.64m0.19%
$ 7.2m
Richard Kinzley
Senior VP & CFO5.58yrsUS$1.55m0.071%
$ 2.7m
Scott Buchholz
Senior VP & Chief Information Officer12.08yrsUS$1.66m0.064%
$ 2.4m
Brian Iverson
Senior VP4.33yrsUS$1.20m0.046%
$ 1.7m
Jerome Nichols
Director of Investor Relationsno datano datano data
Jennifer Landis
Senior VP & Chief HR Officer3.5yrsno data0.020%
$ 764.2k
Garner Anderson
Chief Risk Officer & VP17.08yrsno datano data
Stuart Wevik
Senior Vice President of Utility Operations1yrno data0.037%
$ 1.4m
Karen Beachy
Senior Vice President of Growth & Strategy1yrno data0.010%
$ 391.9k
Esther Newbrough
VP & Corporate Controller5.58yrsno datano data
Kimberly Nooney
VP & Treasurer5.58yrsno datano data
Amy Koenig
VP of Governanceno datano datano data

5.0yrs

Average Tenure

57yo

Average Age

Experienced Management: BKH's management team is considered experienced (5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Linden Evans
President1.58yrsUS$3.64m0.19%
$ 7.2m
Steven Mills
Lead Independent Director1.25yrsUS$221.67k0.021%
$ 786.0k
Mark Schober
Independent Director4.92yrsUS$205.00k0.0060%
$ 224.3k
John Vering
Independent Director15.58yrsUS$210.83k0.018%
$ 660.9k
Tony Jensen
Independent Director0.75yrUS$30.83k0.010%
$ 378.0k
Michael Madison
Independent Director8.25yrsUS$210.00k0.025%
$ 938.9k
Teresa Taylor
Independent Director3.92yrsUS$192.50k0.0036%
$ 133.8k
Rebecca Roberts
Independent Director9.25yrsUS$207.50k0.0075%
$ 282.5k
Kathleen McAllister
Independent Director0.75yrUS$30.83k0.00089%
$ 33.4k
Robert Otto
Independent Director3.58yrsUS$195.00k0.0040%
$ 151.0k

3.8yrs

Average Tenure

62yo

Average Age

Experienced Board: BKH's board of directors are considered experienced (3.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: BKH insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.8%.


Top Shareholders

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$3.757b
  • Shares outstanding: 62.75m
  • 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 Analysis2020/08/10 23:54
End of Day Share Price2020/08/10 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.