Black Hills Corp

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BKH : NYSE : Utilities
$63.26 up 0.73 | 1.17%
Today's Range: 62.29 - 63.43
Avg. Daily Volume: 360,200
07/28/16 - 4:02 PM ET

Financial Analysis


BLACK HILLS CORP's gross profit margin for the first quarter of its fiscal year 2016 has increased when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago. BLACK HILLS CORP has very weak liquidity. Currently, the Quick Ratio is 0.25 which clearly shows a lack of ability to cover short-term cash needs. The liquidity decreased from the same period a year ago, despite already having weak liquidity to begin with. This would indicate deteriorating cash flow.

During the same period, stockholders' equity ("net worth") has increased by 5.17% from the same quarter last year. The key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the near future.

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Income Statement Q1 FY16 Q1 FY15
Net Sales ($mil)449.96441.99
EBITDA ($mil)157.49131.54
EBIT ($mil)113.0992.54
Net Income ($mil)40.033.85


Balance Sheet Q1 FY16 Q1 FY15
Cash & Equiv. ($mil)48.8165.58
Total Assets ($mil)6324.654319.83
Total Debt ($mil)3374.661645.26
Equity ($mil)1480.681407.77


Profitability Q1 FY16 Q1 FY15
Gross Profit Margin35.029.76
EBITDA Margin35.029.76
Operating Margin25.1320.94
Sales Turnover0.210.32
Return on Assets-0.412.68
Return on Equity-1.758.24
Debt Q1 FY16 Q1 FY15
Current Ratio0.641.16
Debt/Capital0.70.54
Interest Expense32.0719.91
Interest Coverage3.534.65


Share Data Q1 FY16 Q1 FY15
Shares outstanding (mil)51.4544.82
Div / share0.420.41
EPS0.770.76
Book value / share28.7831.41
Institutional Own % n/a n/a
Avg Daily Volume390843.0655134.0

Valuation


BUY. This stock’s P/E ratio is negative, making its value useless in the assessment of premium or discount valuation, only displaying that the company has negative earnings per share. For additional comparison, its price-to-book ratio of 2.15 indicates a discount versus the S&P 500 average of 2.81 and a discount versus the industry average of 2.51. The current price-to-sales ratio is well above the S&P 500 average, but below the industry average. After reviewing these and other key valuation criteria, BLACK HILLS CORP proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
BKH NM Peers 21.87   BKH 8.07 Peers 8.69

Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings.

BKH's P/E is negative making this valuation measure meaningless.

 

Average. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

BKH is trading at a valuation on par to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
BKH 17.61 Peers 20.09   BKH NA Peers 2.12

Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.

BKH is trading at a valuation on par with its peers.

 

Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

Ratio not available.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
BKH 2.15 Peers 2.51   BKH -126.64 Peers -4.94

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

BKH is trading at a discount to its peers.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, BKH is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
BKH 2.43 Peers 2.60   BKH -4.57 Peers -3.55

Average. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

BKH is trading at a valuation on par with its industry on this measurement.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

BKH significantly trails its peers on the basis of sales growth

 

 

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