BLACK HILLS CORP (BKH) Stock Fundamental Analysis
NYSE:BKH - New York Stock Exchange, Inc. - US0921131092 - Common Stock - Currency: USD
Taking everything into account, BKH scores 4 out of 10 in our fundamental rating. BKH was compared to 25 industry peers in the Multi-Utilities industry. BKH has a medium profitability rating, but doesn't score so well on its financial health evaluation. BKH is quite expensive at the moment. It does show a decent growth rate. BKH also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year BKH was profitable.
In the past year BKH had a positive cash flow from operations.
Each year in the past 5 years BKH has been profitable.
Of the past 5 years BKH 4 years had a positive operating cash flow.
1.2 Ratios
BKH has a Return On Assets of 2.73%. This is comparable to the rest of the industry: BKH outperforms 48.00% of its industry peers.
With a Return On Equity value of 7.80%, BKH is not doing good in the industry: 76.00% of the companies in the same industry are doing better.
Looking at the Return On Invested Capital, with a value of 4.82%, BKH belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for BKH is in line with the industry average of 3.68%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.73% | ||
| ROE | 7.8% | ||
| ROIC | 4.82% |
ROA(3y)2.71%
ROA(5y)2.71%
ROE(3y)8.19%
ROE(5y)8.39%
ROIC(3y)4.9%
ROIC(5y)4.81%
1.3 Margins
With a Profit Margin value of 12.84%, BKH perfoms like the industry average, outperforming 52.00% of the companies in the same industry.
In the last couple of years the Profit Margin of BKH has grown nicely.
Looking at the Operating Margin, with a value of 23.64%, BKH is in the better half of the industry, outperforming 76.00% of the companies in the same industry.
In the last couple of years the Operating Margin of BKH has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.64% | ||
| PM (TTM) | 12.84% | ||
| GM | N/A |
OM growth 3Y4.03%
OM growth 5Y0.21%
PM growth 3Y1.86%
PM growth 5Y2.24%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
BKH has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for BKH has been increased compared to 1 year ago.
The number of shares outstanding for BKH has been increased compared to 5 years ago.
The debt/assets ratio for BKH has been reduced compared to a year ago.
2.2 Solvency
BKH has an Altman-Z score of 0.94. This is a bad value and indicates that BKH is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of BKH (0.94) is better than 72.00% of its industry peers.
A Debt/Equity ratio of 1.25 is on the high side and indicates that BKH has dependencies on debt financing.
BKH's Debt to Equity ratio of 1.25 is fine compared to the rest of the industry. BKH outperforms 72.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.25 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.94 |
ROIC/WACC0.77
WACC6.28%
2.3 Liquidity
A Current Ratio of 0.97 indicates that BKH may have some problems paying its short term obligations.
The Current ratio of BKH (0.97) is better than 88.00% of its industry peers.
BKH has a Quick Ratio of 0.97. This is a bad value and indicates that BKH is not financially healthy enough and could expect problems in meeting its short term obligations.
BKH has a Quick ratio of 0.77. This is amongst the best in the industry. BKH outperforms 88.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.97 | ||
| Quick Ratio | 0.77 |
3. Growth
3.1 Past
BKH shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.00%.
Measured over the past 5 years, BKH shows a small growth in Earnings Per Share. The EPS has been growing by 3.57% on average per year.
Looking at the last year, BKH shows a decrease in Revenue. The Revenue has decreased by -8.73% in the last year.
The Revenue has been growing slightly by 4.17% on average over the past years.
EPS 1Y (TTM)0%
EPS 3Y1.49%
EPS 5Y3.57%
EPS Q2Q%17.09%
Revenue 1Y (TTM)-8.73%
Revenue growth 3Y2.97%
Revenue growth 5Y4.17%
Sales Q2Q%0.91%
3.2 Future
BKH is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.24% yearly.
Based on estimates for the next years, BKH will show a small growth in Revenue. The Revenue will grow by 5.84% on average per year.
EPS Next Y5.72%
EPS Next 2Y5.54%
EPS Next 3Y5.67%
EPS Next 5Y5.24%
Revenue Next Year4.48%
Revenue Next 2Y3.97%
Revenue Next 3Y4.07%
Revenue Next 5Y5.84%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 15.22, which indicates a correct valuation of BKH.
BKH's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 29.62, BKH is valued a bit cheaper.
A Price/Forward Earnings ratio of 14.39 indicates a correct valuation of BKH.
Based on the Price/Forward Earnings ratio, BKH is valued a bit cheaper than the industry average as 68.00% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of BKH to the average of the S&P500 Index (22.70), we can say BKH is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.22 | ||
| Fwd PE | 14.39 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BKH is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 11 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates BKH does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)2.66
PEG (5Y)4.27
EPS Next 2Y5.54%
EPS Next 3Y5.67%
5. Dividend
5.1 Amount
BKH has a Yearly Dividend Yield of 4.60%, which is a nice return.
BKH's Dividend Yield is a higher than the industry average which is at 3.75.
Compared to an average S&P500 Dividend Yield of 2.27, BKH pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.6% |
5.2 History
The dividend of BKH has a limited annual growth rate of 4.92%.
BKH has been paying a dividend for at least 10 years, so it has a reliable track record.
BKH has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)4.92%
Div Incr Years26
Div Non Decr Years26
5.3 Sustainability
BKH pays out 66.73% of its income as dividend. This is not a sustainable payout ratio.
The dividend of BKH is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP66.73%
EPS Next 2Y5.54%
EPS Next 3Y5.67%
59.65
+0.83 (+1.41%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners86.86%
Inst Owner Change-92.27%
Ins Owners0.35%
Ins Owner Change7.47%
Market Cap4.27B
Analysts51.67
Price Target66.3 (11.15%)
Short Float %2.56%
Short Ratio3.89
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.6% |
Yearly Dividend2.61
Dividend Growth(5Y)4.92%
DP66.73%
Div Incr Years26
Div Non Decr Years26
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-13.1%
Min EPS beat(2)-27.43%
Max EPS beat(2)1.23%
EPS beat(4)3
Avg EPS beat(4)-1.1%
Min EPS beat(4)-27.43%
Max EPS beat(4)12.67%
EPS beat(8)6
Avg EPS beat(8)2.89%
EPS beat(12)8
Avg EPS beat(12)3.97%
EPS beat(16)10
Avg EPS beat(16)2.25%
Revenue beat(2)0
Avg Revenue beat(2)-21.9%
Min Revenue beat(2)-32.92%
Max Revenue beat(2)-10.88%
Revenue beat(4)1
Avg Revenue beat(4)-14.6%
Min Revenue beat(4)-32.92%
Max Revenue beat(4)5.3%
Revenue beat(8)2
Avg Revenue beat(8)-14.83%
Revenue beat(12)6
Avg Revenue beat(12)1.59%
Revenue beat(16)9
Avg Revenue beat(16)2.31%
PT rev (1m)-1.02%
PT rev (3m)0.78%
EPS NQ rev (1m)3.06%
EPS NQ rev (3m)9.76%
EPS NY rev (1m)-0.21%
EPS NY rev (3m)-0.44%
Revenue NQ rev (1m)4.89%
Revenue NQ rev (3m)4.89%
Revenue NY rev (1m)0.25%
Revenue NY rev (3m)0.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.22 | ||
| Fwd PE | 14.39 | ||
| P/S | 2.01 | ||
| P/FCF | N/A | ||
| P/OCF | 5.94 | ||
| P/B | 1.22 | ||
| P/tB | 1.95 | ||
| EV/EBITDA | 11 |
EPS(TTM)3.92
EY6.57%
EPS(NY)4.14
Fwd EY6.95%
FCF(TTM)-0.35
FCFYN/A
OCF(TTM)10.05
OCFY16.85%
SpS29.73
BVpS48.92
TBVpS30.66
PEG (NY)2.66
PEG (5Y)4.27
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.73% | ||
| ROE | 7.8% | ||
| ROCE | 5.43% | ||
| ROIC | 4.82% | ||
| ROICexc | 4.83% | ||
| ROICexgc | 5.62% | ||
| OM | 23.64% | ||
| PM (TTM) | 12.84% | ||
| GM | N/A | ||
| FCFM | N/A |
ROA(3y)2.71%
ROA(5y)2.71%
ROE(3y)8.19%
ROE(5y)8.39%
ROIC(3y)4.9%
ROIC(5y)4.81%
ROICexc(3y)4.93%
ROICexc(5y)4.82%
ROICexgc(3y)5.8%
ROICexgc(5y)5.71%
ROCE(3y)5.59%
ROCE(5y)5.51%
ROICexcg growth 3Y3.74%
ROICexcg growth 5Y-2.38%
ROICexc growth 3Y4.23%
ROICexc growth 5Y-1.3%
OM growth 3Y4.03%
OM growth 5Y0.21%
PM growth 3Y1.86%
PM growth 5Y2.24%
GM growth 3YN/A
GM growth 5YN/A
F-Score5
Asset Turnover0.21
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.25 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.67 | ||
| Cap/Depr | 275.53% | ||
| Cap/Sales | 34.98% | ||
| Interest Coverage | 2.88 | ||
| Cash Conversion | 93.04% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.97 | ||
| Quick Ratio | 0.77 | ||
| Altman-Z | 0.94 |
F-Score5
WACC6.28%
ROIC/WACC0.77
Cap/Depr(3y)244.26%
Cap/Depr(5y)272.34%
Cap/Sales(3y)27.5%
Cap/Sales(5y)32.5%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)0%
EPS 3Y1.49%
EPS 5Y3.57%
EPS Q2Q%17.09%
EPS Next Y5.72%
EPS Next 2Y5.54%
EPS Next 3Y5.67%
EPS Next 5Y5.24%
Revenue 1Y (TTM)-8.73%
Revenue growth 3Y2.97%
Revenue growth 5Y4.17%
Sales Q2Q%0.91%
Revenue Next Year4.48%
Revenue Next 2Y3.97%
Revenue Next 3Y4.07%
Revenue Next 5Y5.84%
EBIT growth 1Y6.4%
EBIT growth 3Y7.11%
EBIT growth 5Y4.38%
EBIT Next Year67.97%
EBIT Next 3Y26.91%
EBIT Next 5Y21.12%
FCF growth 1Y-106.4%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-23.84%
OCF growth 3YN/A
OCF growth 5Y7.31%