Black Hills Corp

BKH

Electric Services

Mkt Cap

$3.738B

PE

13.54

Debt

$4.403B

Cash

$129.7M

EV

$8.011B

FCF

$236.4M

Market Cap

$3.738B

P/E Ratio

13.54

Debt

$4.403B

Cash

$129.7M

EV

$8.011B

FCF

$236.4M

Charts data: {"Earnings":[{"time":"2014-12-30","value":128781000},{"time":"2015-12-30","value":-32111000},{"time":"2016-12-30","value":72970000},{"time":"2017-12-30","value":177034000},{"time":"2018-12-30","value":258442000},{"time":"2019-12-30","value":199310000},{"time":"2020-12-30","value":227608000},{"time":"2021-12-30","value":236744000},{"time":"2022-12-30","value":258387000},{"time":"2023-12-30","value":262200000}],"Sales":[{"time":"2014-12-30","value":1393570000},{"time":"2015-12-30","value":1304605000},{"time":"2016-12-30","value":1538916000},{"time":"2017-12-30","value":1680266000},{"time":"2018-12-30","value":1754268000},{"time":"2019-12-30","value":1734900000},{"time":"2020-12-30","value":1696941000},{"time":"2021-12-30","value":1949102000},{"time":"2022-12-30","value":2551816000},{"time":"2023-12-30","value":2331300000}],"Net Margins":[{"time":"2014-12-30","value":0.0924108584427047},{"time":"2015-12-30","value":-0.02461358035573986},{"time":"2016-12-30","value":0.0474164931679182},{"time":"2017-12-30","value":0.10536069884173101},{"time":"2018-12-30","value":0.14732184592091974},{"time":"2019-12-30","value":0.11488270217303591},{"time":"2020-12-30","value":0.13412841106437998},{"time":"2021-12-30","value":0.12146311480876834},{"time":"2022-12-30","value":0.10125612504976848},{"time":"2023-12-30","value":0.11246943765281174}],"Assets":[{"time":"2014-12-30","value":4279806000},{"time":"2015-12-30","value":4655501000},{"time":"2016-12-30","value":6515444000},{"time":"2017-12-30","value":6658902000},{"time":"2018-12-30","value":6963327000},{"time":"2019-12-30","value":7558457000},{"time":"2020-12-30","value":8088786000},{"time":"2021-12-30","value":9131896000},{"time":"2022-12-30","value":9618230000},{"time":"2023-12-30","value":9620400000}],"Stockholders Equity":[{"time":"2014-12-30","value":1376024000},{"time":"2015-12-30","value":1465867000},{"time":"2016-12-30","value":1730134000},{"time":"2017-12-30","value":1820206000},{"time":"2018-12-30","value":2287423000},{"time":"2019-12-30","value":2464069000},{"time":"2020-12-30","value":2662647000},{"time":"2021-12-30","value":2887123000},{"time":"2022-12-30","value":3089895000},{"time":"2023-12-30","value":3305800000}],"ROE":[{"time":"2014-12-30","value":0.09358921065330256},{"time":"2015-12-30","value":-0.021905807279923757},{"time":"2016-12-30","value":0.042175923945775295},{"time":"2017-12-30","value":0.09726041997444246},{"time":"2018-12-30","value":0.11298391246393867},{"time":"2019-12-30","value":0.08088653361573885},{"time":"2020-12-30","value":0.08548185320848013},{"time":"2021-12-30","value":0.08199997021256109},{"time":"2022-12-30","value":0.08362322991557966},{"time":"2023-12-30","value":0.07931514308185614}],"ROA":[{"time":"2014-12-30","value":0.06195070524224696},{"time":"2015-12-30","value":0.007345503738480563},{"time":"2016-12-30","value":0.03507328126832185},{"time":"2017-12-30","value":0.06305243717357606},{"time":"2018-12-30","value":0.057084494236734826},{"time":"2019-12-30","value":0.05372022358531642},{"time":"2020-12-30","value":0.05295022021846047},{"time":"2021-12-30","value":0.04483504849376296},{"time":"2022-12-30","value":0.047331369701078055},{"time":"2023-12-30","value":0.04913517109475697}]}

Black Hills Corporation, through its subsidiaries, operates as an electric and natural gas utility company in the United States. It operates in two segments, Electric Utilities and Gas Utilities. The Electric Utilities segment generates, transmits, and distributes electricity to approximately 220,000 electric utility customers in Colorado, Montana, South Dakota, and Wyoming; and owns and operates 1,482 megawatts of generation capacity and 9,024 miles of electric transmission and distribution lines. The Gas Utilities segment distributes natural gas to approximately 1,107,000 natural gas utility customers in Arkansas, Colorado, Iowa, Kansas, Nebraska, and Wyoming; owns and operates 4,713 miles of intrastate gas transmission pipelines; 42,222 miles of gas distribution mains and service lines; seven natural gas storage sites; and approximately 50,000 horsepower of compression and 515 miles of gathering lines. The company also constructs and maintains gas infrastructure facilities for gas transportation customers; and provides appliance repair services to residential utility customers, as well as electrical system construction services to large industrial customers. In addition, it produces electric power through wind, natural gas, and coal-fired generating plants; and coal at its coal mine located near Gillette, Wyoming. The company was incorporated in 1941 and is headquartered in Rapid City, South Dakota.

Sector

10-Q
9/30/23
10-Q
6/30/23
10-Q
3/31/23
10-K
12/31/22
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9/30/22
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3/31/22
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12/31/21
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12/31/20
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3/31/20
10-K
12/31/19
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9/30/19
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6/30/19
10-Q
3/31/19
10-K
12/31/18
10-Q
9/30/18
10-Q
6/30/18
10-Q
3/31/18
10-K
12/31/17

DCF

Discounted Cash Flow Valuation of Black Hills Corp

Calculate

Growth Years

Growth

Start

End

Discount

Start

End

Multiple

g\r	+10%	+11%	+12%	+13%	+14%
0%	10	9	8	8	7
+1%	11	10	9	8	8
+2%	13	11	10	9	8
+3%	14	13	11	10	9
+4%	17	14	12	11	10

Years	0	1	2	3	4	5	6	7	8	9	10	TV
FCF	$236.4M	$285.9M	$340.8M	$400.1M	$462.7M	$526.9M	$590.6M	$651.6M	$707.2M	$755.2M	$792.9M	$7.929B
DCF		$248.6M	$257.7M	$263.1M	$264.6M	$261.9M	$255.3M	$244.9M	$231.2M	$214.7M	$196M	$1.96B
Value	$4.398B

Chart P/E ratio

In the chart Earnings are multiplied by this value.

Earnings Growth 24%

Earnings Stability 54%

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

The Net Margin is high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Over time the ROA has been decreasing indicating a lower marginal ROA with respect to the calculated one, this could impede growth.

Years	12-2015	12-2016	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	12-2023	TTM
Net Margin	-2.5%	4.7%	11%	15%	11%	13%	12%	10%	11%	13%
ROA	0.73%	3.5%	6.3%	5.7%	5.4%	5.3%	4.5%	4.7%	4.9%	5.1%
ROE	-2.2%	4.2%	9.7%	11%	8.1%	8.5%	8.2%	8.4%	7.9%	8.1%

What is the average Net Margin?

The average Net Margin over the past 5 years is +12.19%.

What is the trend of Net Margin?

The trend of Net Margin over the past 5 years is -0.65%.

What is the average Return on Assets (ROA)?

The average ROA over the past 5 years is +5.08%.

What is the trend of Return on Assets (ROA)?

The trend of ROA over the past 5 years is -0.19%.

What is the average Return on Equity (ROE)?

The average ROE over the past 5 years is +8.74%.

What is the trend of Return on Equity (ROE)?

The trend of ROE over the past 5 years is -0.47%.

Safety & Stabiliy

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

The company has high debt with respect to the cashflow it generates.

The Graham’s stability indicate reliability of earnings, and consideration about the future are more dependable.

Years	12-2015	12-2016	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	12-2023	TTM
Debt FCF	-70.74	-21.43	32.48	85.22	-11.15	-16.68	-6.13	-211.76	11.32	18.63
Debt Equity	1.33	1.91	1.82	1.37	1.42	1.41	1.57	1.34	1.33	1.29
MIN
Graham Stability	-	-	100%	100%	100%	100%	100%	100%	100%	100%

What is the Debt/FCF?

The Debt/FCF trailing twelve month is 18.63.

What is the trend of Debt/FCF?

The trend of Debt/FCF over the past 5 years is -27.45.

What is the Graham’s Stability?

Graham’s Stability measure stands at 1.00.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Earnings growth has not been increasing in the past years.

Years	12-2016	12-2018	12-2020	12-2022	Trend
Revenue	6.1%	5.9%	11%	-8.6%	0.58%
Net Income	20%	0.29%	4.8%	1.5%	-17%
Stockholders Equity	9.7%	7.6%	7.5%	7%	-0.71%
FCF	-	60%	-	-	-

What is the 5 year Revenue CAGR?

The Revenue CAGR over the past 5 years is +5.85%.

What is the trend of Revenue growth?

The trend of Revenue growth rate over the past 5 years is +0.58%.

What is the 5 year Earnings CAGR?

The Earnings CAGR over the past 5 years is +0.29%.

What is the trend of Earnings growth?

The trend of Earnings growth rate over the past 5 years is -16.79%.

What is the 5 year Equity CAGR?

The Equity CAGR over the past 5 years is +7.64%.

What is the trend of Equity growth?

The trend of Equity growth rate over the past 5 years is -0.71%.

What is the 5 year FCF CAGR?

The FCF CAGR over the past 5 years is +60.24%.

What is the trend of FCF growth?

The trend of FCF growth rate over the past 5 years is -.