Black Hills Corporation
Black Hills Corporation Fundamental Analysis
Black Hills Corporation (BKH) shows weak financial fundamentals with a PE ratio of 18.97, profit margin of 12.62%, and ROE of 7.85%. The company generates $2.3B in annual revenue with weak year-over-year growth of -8.73%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 20.1/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze BKH's fundamental strength across five key dimensions:
Efficiency Score
WeakBKH struggles to generate sufficient returns from assets.
Valuation Score
ModerateBKH shows balanced valuation metrics.
Growth Score
WeakBKH faces weak or negative growth trends.
Financial Health Score
ModerateBKH shows balanced financial health with some risks.
Profitability Score
WeakBKH struggles to sustain strong margins.
Key Financial Metrics
Is BKH Expensive or Cheap?
P/E Ratio
BKH trades at 18.97 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, BKH's PEG of 25.04 indicates potential overvaluation.
Price to Book
The market values Black Hills Corporation at 1.45 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 1.25 times EBITDA. This is generally considered low.
How Well Does BKH Make Money?
Net Profit Margin
For every $100 in sales, Black Hills Corporation keeps $12.62 as profit after all expenses.
Operating Margin
Core operations generate 23.27 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $7.85 in profit for every $100 of shareholder equity.
ROA
Black Hills Corporation generates $2.68 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Black Hills Corporation generates strong operating cash flow of $675.86M, reflecting robust business health.
Free Cash Flow
Black Hills Corporation generates weak or negative free cash flow of $-146.93M, restricting financial flexibility.
FCF Per Share
Each share generates $-1.95 in free cash annually.
FCF Yield
BKH converts -2.64% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
18.97
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
25.04
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.45
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.40
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.23
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.35
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.08
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.05
vs 25 benchmark
How BKH Stacks Against Its Sector Peers
| Metric | BKH Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 18.97 | 19.75 | Neutral |
| ROE | 7.85% | 920.00% | Weak |
| Net Margin | 12.62% | 8803.00% | Weak |
| Debt/Equity | 1.23 | 1.80 | Strong (Low Leverage) |
| Current Ratio | 1.35 | 1.53 | Neutral |
| ROA | 2.68% | -6162.00% (disorted) | Weak |
BKH outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Black Hills Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
6.59%
Industry Style: Defensive, Dividend, Income
GrowingEPS CAGR
19.08%
Industry Style: Defensive, Dividend, Income
High GrowthFCF CAGR
23.66%
Industry Style: Defensive, Dividend, Income
High Growth