Black Hills (BKH) AI Stock Analysis

• Market Cap: $4.69B
• Dividend Yield: 4.2%
• Average Volume (3M): 680.80K
• Price to Earnings (P/E): 16.3
• Beta (1Y): 0.25
• Revenue Growth: 7.03%
• EPS Growth: 6.64%
• Country: US
• Employees: 2,841
• Sector: Utilities
• Sector Strength: 65
• Industry: Diversified Utilities
• EPS (TTM): 0.45
• Shares Outstanding: 72,581,795
• 10 Day Avg. Volume: 807,062
• 30 Day Avg. Volume: 680,796
• PEG Ratio: 0.00
• Price to Book (P/B): 1.17
• Price to Sales (P/S): 1.92
• P/FCF Ratio: -164.04
• Enterprise Value/Market Cap: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: $72.67
• Price Target Upside: 7.26% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 76 Outperform
• Price Target: $73.00 ▲(7.75% Upside)

Black Hills Corp. shows strong technical momentum and a positive earnings outlook, supported by strategic growth initiatives. While financial performance is solid, addressing revenue consistency and cash flow volatility could further enhance stability. The stock is fairly valued, offering a balanced investment opportunity.

Positive Factors

Earnings Guidance Reaffirmation

Reaffirming earnings guidance indicates confidence in strategic initiatives and stability in revenue streams, supporting long-term growth.

Capital Projects Progress

Timely completion of capital projects enhances infrastructure and service reliability, supporting future revenue growth and operational efficiency.

Data Center Demand Growth

Increasing demand from data centers signifies robust growth potential and strengthens market position in the energy sector.

Negative Factors

Revenue Consistency Challenges

Inconsistent revenue growth can lead to unpredictability in financial performance, potentially impacting long-term strategic planning.

Free Cash Flow Volatility

Volatile free cash flow may hinder the company's ability to fund operations and investments, affecting financial flexibility and growth.

Increased O&M Costs

Rising O&M costs can pressure profit margins, reducing the company's ability to invest in growth and maintain competitive advantages.

Black Hills Business Overview & Revenue Model

Company Description

Black Hills Corporation (BKH) is a diversified energy company based in the United States, primarily engaged in providing electric and natural gas services to residential, commercial, and industrial customers. With operations spanning multiple states, the company operates through two main segments: utility operations, which include electric and gas distribution, and non-regulated operations, which encompass power generation and other energy-related services. BKH is committed to delivering reliable energy solutions while also focusing on renewable energy initiatives.

How the Company Makes Money

Black Hills Corporation generates revenue primarily through its utility operations by charging customers for the electricity and natural gas they consume. The company earns a return on investment through regulated rates set by state utility commissions, which allows them to recover costs and earn a profit margin. Additionally, BKH's non-regulated operations contribute to its revenue through the sale of electricity generated from renewable sources and other energy services. Significant partnerships with local governments and energy organizations further enhance its ability to expand its service offerings and optimize operations, thus contributing to its overall earnings.

Black Hills Financial Statement Overview

Summary

Black Hills demonstrates solid financial performance with strong profitability and stable cash flows. However, challenges with revenue consistency and free cash flow volatility need addressing to enhance financial stability and growth prospects.

Income Statement

Black Hills shows a stable revenue growth with a slight increase in the TTM period. Gross profit and net profit margins are healthy, indicating efficient cost management. However, the revenue growth rate has been inconsistent over the years, which could pose a risk if not addressed.

Balance Sheet

The company maintains a moderate debt-to-equity ratio, which is typical for the utilities industry. Return on equity is stable, reflecting consistent profitability. However, the equity ratio suggests a reliance on debt financing, which could impact financial stability if interest rates rise.

Cash Flow

Operating cash flow remains strong, but free cash flow has been volatile, with significant negative growth in recent periods. The operating cash flow to net income ratio is healthy, but the free cash flow to net income ratio indicates potential cash flow management issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.27B	2.13B	2.33B	2.55B	1.95B	1.70B
Gross Profit	786.70M	840.40M	796.40M	772.80M	705.50M	709.13M
EBITDA	811.50M	785.30M	738.40M	709.50M	648.50M	645.07M
Net Income	284.80M	273.10M	262.20M	258.40M	236.70M	227.61M
Balance Sheet
Total Assets	0.00	10.02B	9.62B	9.62B	9.13B	8.09B
Cash, Cash Equivalents and Short-Term Investments	0.00	16.10M	86.60M	21.43M	8.92M	6.36M
Total Debt	126.00M	4.38B	4.40B	4.67B	4.55B	3.77B
Total Liabilities	6.48B	6.44B	6.31B	6.53B	6.24B	5.43B
Stockholders Equity	3.77B	3.50B	3.22B	2.99B	2.79B	2.56B
Cash Flow
Free Cash Flow	-105.40M	-24.90M	388.80M	-19.56M	-742.06M	-225.54M
Operating Cash Flow	658.50M	719.30M	944.40M	584.80M	-64.56M	541.86M
Investing Cash Flow	-770.40M	-746.00M	-536.70M	-603.88M	-664.23M	-761.66M
Financing Cash Flow	121.40M	-42.90M	-341.70M	32.25M	731.87M	216.88M

Black Hills Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 67.75
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BKH, the sentiment is Positive. The current price of 67.75 is above the 20-day moving average (MA) of 63.92, above the 50-day MA of 61.43, and above the 200-day MA of 58.75, indicating a bullish trend. The MACD of 1.19 indicates Negative momentum. The RSI at 72.77 is Negative, neither overbought nor oversold. The STOCH value of 69.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BKH.

Black Hills Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BKH	76 Outperform	$4.69B	16.29	―	4.20%	7.03%	6.64%
NWE	75 Outperform	$3.74B	17.23	7.62%	4.38%	4.90%	-4.42%
OTTR	72 Outperform	$3.44B	12.37	16.10%	2.49%	-3.18%	-8.62%
ALE	68 Neutral	$3.91B	23.59	5.83%	4.30%	-4.30%	-8.49%
AVA	68 Neutral	$3.14B	17.35	7.31%	4.81%	2.14%	-6.51%
MGEE	67 Neutral	$3.04B	23.14	10.80%	2.16%	8.26%	12.47%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%

Black Hills Corporate Events

Black Hills Corp. Reports Q3 Earnings and Strategic Updates

Black Hills Corp., a utility company serving over 1.35 million customers across eight states, focuses on providing reliable natural gas and electric services. The company recently released its third-quarter earnings report for 2025, highlighting a reaffirmation of its adjusted earnings guidance and several strategic developments. Black Hills Corp. reported a slight decrease in GAAP earnings per share compared to the previous year, but an increase in adjusted earnings per share, driven by new rates and rider recovery. The company completed its planned equity and debt financing activities for the year, maintaining strong credit quality and liquidity. Key projects include the completion of the Ready Wyoming transmission expansion and the commencement of the Lange II generation facility in South Dakota. Black Hills also announced a merger with NorthWestern Energy, which is expected to enhance its utility presence in the Midwest. Looking ahead, Black Hills Corp. remains focused on executing its five-year capital plan, which includes significant investments in infrastructure and data center demand, aiming for continued growth and improved service reliability.

Black Hills Completes $450M Debt Offering

On October 2, 2025, Black Hills Corporation completed a debt offering by issuing $450 million in 4.550% Notes due 2031. The proceeds from this issuance are intended to retire $300 million of existing notes due in January 2026, with any remaining funds allocated for general corporate purposes such as capital expenditures and debt refinancing. This strategic financial move is designed to optimize the company’s debt structure and potentially enhance its operational flexibility.

The most recent analyst rating on (BKH) stock is a Buy with a $68.00 price target. To see the full list of analyst forecasts on Black Hills stock, see the BKH Stock Forecast page.

Black Hills Announces $450M Notes Issuance Agreement

On September 25, 2025, Black Hills Corporation entered into an Underwriting Agreement to issue and sell $450 million of 4.550% Notes due 2031, with the underwriters agreeing to purchase the Notes for approximately $447.0 million. The issuance and settlement of the Notes are scheduled for October 2, 2025, and the agreement includes customary terms and indemnification clauses, highlighting ongoing investment banking relationships between the company and the underwriters.

The most recent analyst rating on (BKH) stock is a Buy with a $68.00 price target. To see the full list of analyst forecasts on Black Hills stock, see the BKH Stock Forecast page.

Black Hills Announces Merger with NorthWestern Energy

Black Hills Corporation announced a pending merger with NorthWestern Energy Group, approved on August 18, 2025, involving an all-stock business combination. The merger is subject to regulatory and shareholder approvals, with potential impacts on the companies’ operations and market positioning, though it also faces uncertainties and risks related to regulatory conditions and potential disruptions.

The most recent analyst rating on (BKH) stock is a Buy with a $68.00 price target. To see the full list of analyst forecasts on Black Hills stock, see the BKH Stock Forecast page.

Black Hills Announces Merger with NorthWestern Energy Group

On August 18, 2025, Black Hills Corporation entered into a merger agreement with NorthWestern Energy Group, creating a premier regional regulated utility company with a pro forma market capitalization of approximately $7.8 billion. The merger, unanimously approved by both companies’ boards, is expected to enhance operational scale, financial strength, and investment opportunities, supporting a long-term EPS growth rate of 5% to 7%. The combined entity will maintain a strong investment-grade credit profile, continue existing dividend policies, and focus on delivering value to customers and communities through improved operational efficiencies and a commitment to clean energy initiatives.

The most recent analyst rating on (BKH) stock is a Buy with a $69.00 price target. To see the full list of analyst forecasts on Black Hills stock, see the BKH Stock Forecast page.

Black Hills and NorthWestern Energy Announce Merger

On August 19, 2025, Black Hills Corporation and NorthWestern Energy Group announced a merger agreement to create a premier regional regulated utility company. The merger, structured as an all-stock transaction, is expected to enhance the companies’ financial strength and operational scale, providing opportunities for increased investment in energy infrastructure and improved customer service. The combined entity will serve approximately 2.1 million customers across eight states, with a focus on sustainable growth and community support. The merger is anticipated to be accretive to earnings per share in the first year and aims to support a long-term EPS growth rate of 5% to 7%, benefiting shareholders and stakeholders alike.

The most recent analyst rating on (BKH) stock is a Buy with a $69.00 price target. To see the full list of analyst forecasts on Black Hills stock, see the BKH Stock Forecast page.