Black Hills Corp

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BKH : NYSE : Utilities
$59.20 -0.50 | -0.84%
Today's Range: 58.92 - 59.61
Avg. Daily Volume: 388,800
10/21/16 - 3:15 PM ET

Financial Analysis

BLACK HILLS CORP's gross profit margin for the second quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Sales and net income have grown, and although the growth in revenues has outpaced the average competitor within the industry, the net income growth has not. BLACK HILLS CORP has very weak liquidity. Currently, the Quick Ratio is 0.14 which clearly shows a lack of ability to cover short-term cash needs. The company's liquidity decreased from the same period a year ago, despite already having very weak liquidity to begin with. This would indicate deteriorating cash flow.

During the same period, stockholders' equity ("net worth") has increased by 19.18% 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 Q2 FY16 Q2 FY15
Net Sales ($mil)325.44272.25
EBITDA ($mil)114.495.68
EBIT ($mil)67.155.63
Net Income ($mil)0.67-41.84

Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)118.7889.53
Total Assets ($mil)6394.864220.27
Total Debt ($mil)3227.091673.49
Equity ($mil)1562.431310.89

Profitability Q2 FY16 Q2 FY15
Gross Profit Margin35.1535.14
EBITDA Margin35.1535.14
Operating Margin20.6220.43
Sales Turnover0.210.32
Return on Assets0.251.27
Return on Equity1.054.11
Debt Q2 FY16 Q2 FY15
Current Ratio0.31.22
Interest Expense34.6119.55
Interest Coverage1.942.85

Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)52.2844.84
Div / share0.420.41
Book value / share29.8929.24
Institutional Own % n/a n/a
Avg Daily Volume381169.0407034.0


HOLD. BLACK HILLS CORP's P/E ratio indicates a significant premium compared to an average of 23.42 for the Multi-Utilities industry and a significant premium compared to the S&P 500 average of 24.54. For additional comparison, its price-to-book ratio of 1.97 indicates a discount versus the S&P 500 average of 2.72 and a discount versus the industry average of 2.20. The current price-to-sales ratio is above the S&P 500 average, but below the industry average.

1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
BKH 225.92 Peers 23.42   BKH 8.45 Peers 7.79

Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.

BKH is trading at a significant premium to its peers.


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.

1 2 3 4 5
premium   discount
  Price to
1 2 3 4 5
premium   discount
BKH 16.41 Peers 17.24   BKH NM Peers 1.34

Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.

BKH is trading at a premium to 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.

BKH's negative PEG ratio makes this valuation measure meaningless.

1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
BKH 1.97 Peers 2.20   BKH -78.34 Peers -3.51

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.

1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
BKH 2.25 Peers 2.41   BKH 0.09 Peers -3.76

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.


Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

BKH has a sales growth rate that significantly exceeds its peers.



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