Fundamental analysis: Black Hills Corporation (BKH)

Awarener score: 6.1

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (Average), the business stability (Good) and growth (Poor), and the company's inclination to return cash to the stockholders (Superb).

Note: All scores range from 1 (worst) to 10 (best). Conclusions are updated daily with closing stock prices and new reported quarterly financial statements.

Revenue score: 5.0

Business has been shrinking. It's been substantially worse when measured against peer companies.
Black Hills Corporation business trend stability is good. The higher the stability, the lower the risk. It looks slightly worse than rivals.

Margins score: 7.7

BKH profit margins -on goods and services sold- are usually hardly sufficient. They stand worse than most rival companies.
Business profit on sales tends to be excellent. It's great when measured against competitors.
Profits on sales made -available to repay debt and purchase properties- are usually very good. They remain lacking compared to peers.
Earnings -before income taxes and interests on loans taken- tend to be very good in relation to total revenues. They're still somewhat better than similar companies.
Profits -before income taxes- are usually very good considering total sales, and remain more than average in relation to rivals.
Total net profit tends to be very good when confronted to sales. Company stands almost average when measured against comparable firms.

Growth score: 2.7

Black Hills Corporation profit -on goods and services sold- has been shrinking. It's been in a very weak position compared to competitors.
In recent years, earnings -on operations- have been shrinking, which has been worse than most comparable firms.
Profits -available to repay debt and purchase properties- have been growing at a normal pace, which compares more than average in relation to peer enterprises.
Earnings -before income taxes and interests on loans taken- tended to shrink. It turns to be in a very weak position compared to similar stocks.
In past years, growth on profits -before income taxes- was almost stagnant. It was slightly worse than rivals.
In the previous years, growth on total net profit has been negative, and substantially worse when measured against peer companies.
Earnings per share have been shrinking in the past years. It's been in a very weak position compared to industry peers.

Miscellaneous score: 7.0

BKH had hardly to pay income taxes in relation to profits made in the past years. It's been slightly better than peers.
The company does not report R&D expenses. It's meaningless to measure in relation to competitors.
We have insufficient data to estimate how effective is research and development effort. It stands unknown against rival companies.

Profitability score: 8.0

Black Hills Corporation usually gets huge returns on the resources it controls. It proves great when measured against peer firms.
The company normally gets sufficient proceeds -on the resources directly invested in the business-. They remain a disappointment compared to similar companies.
Profitability -in relation to owned resources- is usually quite good. It ranks below average when measured against competitors.
In the past, got excellent returns -on the tangible resources it controls-. This metric is usually related to the industry in which operates and combines profitability versus reinvestment needs. It's great when measured against comparable enterprises.

Usage of Funds score: 5.4

BKH usually uses almost all genuine funds generated to buy or replace property, plant, or equipment. The need for reinvestments is huge. It stands great when measured against rival firms.
The company is usually largely investing in new property, plant, and equipment, to expand its operating capabilities, which is more than average in relation to industry peers.
In the past twelve months it paid good dividends, considering the current stock price. It came somewhat better than competitors.
Has somewhat increased dividend payments in the past years. Business prospects may have improved. The company has behaved excellent in relation to similar firms.
The company generates very few genuine funds. Dividend payments are usually on borrowed money, which isn't sustainable in the long run. Unless business prospects improve greatly, future payments could be at risk. Sustainability looks bottom tier against comparable companies.
The company usually reduces the pool of investors, resulting in fewer mouths feeding on the pie of profits. It remains a slight improvement compared to peer enterprises.
Repurchase effectiveness metric is very complex. Run again in analytical mode if you're interested in a technical explanation. It stands lacking compared to rivals.
We do not have sufficient data to comment on buybacks and their sustainability. It still looks dubious against competitors.

Balance Sheet score: 5.4

Black Hills Corporation has no intangible assets (like brands and goodwill) according to accounting books, which is safest. It happens to be top tier when measured against peer companies.
The company has lower short-term resources than short-term obligations. Unless it's part of the business model, there might be liquidity concerns. It turns to be a disappointment compared to similar firms.
Most resources controlled were provided for with financial debt. Creditors have more claims on the company than shareholders. Unless the company is a financial institution that takes deposits, the situation might be very risky. It remains bottom tier against rival firms.
Most controlled resources take time to be turned into cash and equivalents, which is somewhat risky. It looks last-in-rank when measured against rivals.
For every dollar of short-term obligations, the company has few cents of cash and short-term receivables. It's a disappointment compared to peer firms.
For every dollar of short-term obligations, the company has extremely few cents of cash and equivalents, which is bottom tier against similar enterprises.
Usually, sales are mostly on cash. It still ranks great when measured against peers.
Normally has no inventories. It comes up as impressive in relation to competitors.
On average, it takes less than one month from the purchase to charging customers. It happens to be better than most peers.
On average pays suppliers after a month and a half from the purchase. It ranks below average when measured against industry peers.
The company charges its customers before it must pay its suppliers, so the more it sales, the more free funds it gets. It's impressive in relation to similar companies.
Net interest expenses consume a portion of usual business earnings, but are bearable. It stands somewhat worse than rival firms.
Business earnings have usually been very low when measured against loans taken. Even significantly cutting back reinvesting in the business, it could take more than ten years to repay the obligations with current profitability. It ranks substantially worse when measured against comparable enterprises.
Fixed assets turnover remains undisclosed. It looks we cannot relate it to similar firms.
Resource exploitation is huge considering yearly sales, which is great. This metric is normally tied to the industry where the firm belongs. It's still better than most peer companies.

Valuation score: 5.2

Black Hills Corporation looks heavily expensive in relation to profits and financial position. It happens to be substantially worse when measured against competitors.
Price-to-Tangible-Book-Value is a fairly complex metric. Run again in analytical mode if you're interested in a technical explanation. It remains impressive in relation to peers.
In the past twelve months, the company consumed funds. Either it reinvested in the business or genuine fund generation might be challenging, which stands bottom tier against similar companies.
In the past years the company hardly generated enough genuine funds to cover up for its business needs. Business prospects should improve enough to be in a better position to reward investors. It's still last-in-rank when measured against industry firms.
In the past twelve months, the company has significantly rewarded investors, considering both dividends and share on the pie of earnings. It came up in good shape compared to peer ventures.
The company is largely indebted. It should focus on loan repayment before rewarding stockholders. It looks bottom tier against similar enterprises.
Considering the past twelve months, traditional Price-to-Earnings relation is high. Substantial improvement expectations are already in the stock price, which is somewhat risky. It ranks substantially worse when measured against peer companies.
Comparing the current stock price with the past twelve-months revenues gives a three or four to one relationship. This is an important metric to check its evolution through time, and to compare to industry peers. It looks rather normal in relation to rival firms.
The relation between the stock price and accounting book value might be reasonable. It's important both to check this metric through time and to compare it with rival companies. The company remains somewhat better than peer firms.
In the past twelve months, the operating business lost a little money. It happens to be last-in-rank when measured against industry peers.
In an alternate metric of bang for the buck, the company has usually shown a good earnings power ability when measured against the current stock price and financial position. It's still in a weak position compared to peer companies.

Total score: 5.8

Company at a glance: Black Hills Corporation (BKH)

Sector, industry: Utilities, Utilities—Diversified

Market Cap: 4.15 billions

Revenues TTM: 1.99 billions

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 218,000 electric utility customers in Colorado, Montana, South Dakota, and Wyoming; and owns and operates 1,481.5 megawatts of generation capacity and 8,892 miles of electric transmission and distribution lines. The Gas Utilities segment distributes natural gas to approximately 1,094,000 natural gas utility customers in Arkansas, Colorado, Iowa, Kansas, Nebraska, and Wyoming; owns and operates 4,732 miles of intrastate gas transmission pipelines; 41,644 miles of gas distribution mains and service lines; six 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.