Black Hills Corp

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BKH : NYSE : Utilities
$70.68 | %
Today's Range: 70.38 - 70.79
Avg. Daily Volume: 343500.0
06/23/17 - 4:07 PM ET

Financial Analysis


BLACK HILLS CORP's gross profit margin for the first quarter of its fiscal year 2017 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 0.40 which clearly shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.

During the same period, stockholders' equity ("net worth") has increased by 13.07% 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 FY17 Q1 FY16
Net Sales ($mil)554.0449.96
EBITDA ($mil)197.56157.29
EBIT ($mil)148.91112.89
Net Income ($mil)76.5240.0


Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)13.7648.81
Total Assets ($mil)6475.856324.65
Total Debt ($mil)3267.423374.66
Equity ($mil)1674.321480.68


Profitability Q1 FY17 Q1 FY16
Gross Profit Margin35.6634.96
EBITDA Margin35.6634.95
Operating Margin26.8825.09
Sales Turnover0.260.21
Return on Assets1.69-0.41
Return on Equity6.53-1.75
Debt Q1 FY17 Q1 FY16
Current Ratio1.030.64
Debt/Capital0.660.7
Interest Expense35.132.07
Interest Coverage4.243.52


Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)53.4651.45
Div / share0.450.42
EPS1.390.77
Book value / share31.3228.78
Institutional Own % n/a n/a
Avg Daily Volume354678.0342482.0

Valuation


BUY. The current P/E ratio indicates a significant premium compared to an average of 21.16 for the Multi-Utilities industry and a premium compared to the S&P 500 average of 25.73. Conducting a second comparison, its price-to-book ratio of 2.27 indicates a discount versus the S&P 500 average of 3.08 and a premium versus the industry average of 2.24. The current price-to-sales ratio is 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 premium 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 35.69 Peers 21.16   BKH 11.72 Peers 8.55

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.

 

Premium. 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 significant premium 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 18.64 Peers 18.69   BKH 0.22 Peers 3.06

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.

 

Discount. 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 trades at a significant discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
BKH 2.27 Peers 2.24   BKH 388.40 Peers 23.21

Average. 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 valuation on par with its peers.

 

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

BKH is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
BKH 2.26 Peers 2.49   BKH 27.76 Peers 5.07

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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