Black Hills (BKH) AI Stock Analysis

• Market Cap: $5.33B
• Dividend Yield: 3.83%
• Average Volume (3M): 1.25M
• Price to Earnings (P/E): 17.8
• Beta (1Y): 0.16
• 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: 75,473,390
• 10 Day Avg. Volume: 991,798
• 30 Day Avg. Volume: 1,254,347
• 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: 1.67
• Enterprise Value/Revenue: 3.93
• Enterprise Value/Gross Profit: 10.19
• Enterprise Value/Ebitda: 11.02
• 1Y Price Target: $77.00
• Price Target Upside: 9.08% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 4.11
• Revenue Forecast (FY): $2.32B

• Rating: 74 Outperform
• Price Target: $78.00 ▲(10.50% Upside)

Black Hills Corp. shows a strong overall performance, driven by positive earnings guidance and strategic initiatives. While financial performance is solid, addressing revenue consistency and cash flow volatility could further enhance stability. The technical indicators and valuation suggest a balanced outlook, with the recent debt offering providing additional financial flexibility.

Positive Factors

Renewable Energy Expansion

The expansion into renewable energy positions Black Hills to benefit from the growing demand for sustainable energy solutions, enhancing long-term growth prospects.

Merger with NorthWestern Energy

The merger could enhance market positioning and operational synergies, providing a stronger competitive edge in the utilities sector.

Capital Projects Progress

Successful completion of key capital projects like the transmission expansion can improve infrastructure reliability and support future growth.

Negative Factors

Revenue Consistency Challenges

Inconsistent revenue growth poses a risk to financial stability, potentially affecting long-term planning and investment strategies.

Free Cash Flow Volatility

Volatile free cash flow can hinder the company's ability to invest in growth opportunities and manage debt, impacting financial flexibility.

Increased O&M Costs

Rising operational and maintenance costs can pressure profit margins, reducing the company's ability to invest in strategic initiatives.

Black Hills Business Overview & Revenue Model

Company Description

Black Hills Corporation (BKH) is a diversified energy company based in the United States that operates in two main sectors: utility and non-utility. The company primarily provides electricity and natural gas to residential, commercial, and industrial customers through its regulated utility subsidiaries. Additionally, BKH engages in non-utility operations, including power generation, coal mining, and renewable energy projects, focusing on sustainable energy solutions and infrastructure development.

How the Company Makes Money

Black Hills Corporation generates revenue primarily through its utility operations, which include the sale of electricity and natural gas to consumers. The regulated utility subsidiaries earn income by providing reliable energy services, with rates set by state regulatory commissions. In addition to utility revenues, BKH has significant income from its non-utility operations, which include the generation of electricity from various sources, including coal, natural gas, and renewable energy. The company also engages in the sale of coal and the development of energy projects, which contribute to its revenue. Key partnerships with local governments and regulatory bodies facilitate infrastructure investments and energy projects, enhancing its revenue streams. Additionally, BKH's focus on expanding its renewable energy portfolio positions the company to benefit from growing demand for sustainable energy solutions.

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	875.40M	840.40M	796.40M	772.80M	705.50M	709.13M
EBITDA	809.80M	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	10.33B	10.02B	9.62B	9.62B	9.13B	8.09B
Cash, Cash Equivalents and Short-Term Investments	29.10M	16.10M	86.60M	21.40M	8.92M	6.36M
Total Debt	4.38B	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	355.90M	-24.90M	388.80M	-19.60M	-742.06M	-225.54M
Operating Cash Flow	569.60M	719.30M	944.40M	584.80M	-64.56M	541.86M
Investing Cash Flow	-590.20M	-746.00M	-536.70M	-603.90M	-664.23M	-761.66M
Financing Cash Flow	16.80M	-42.90M	-341.70M	32.30M	731.87M	216.88M

Black Hills Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 70.59
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BKH, the sentiment is Neutral. The current price of 70.59 is below the 20-day moving average (MA) of 71.24, above the 50-day MA of 67.82, and above the 200-day MA of 60.60, indicating a neutral trend. The MACD of 0.87 indicates Positive momentum. The RSI at 52.14 is Neutral, neither overbought nor oversold. The STOCH value of 46.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for BKH.

Black Hills Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AVA	77 Outperform	$3.13B	16.35	7.31%	5.05%	2.14%	-6.51%
NWE	74 Outperform	$4.02B	18.53	7.62%	4.02%	4.90%	-4.42%
BKH	74 Outperform	$5.33B	17.84	7.90%	3.83%	7.03%	6.64%
OTTR	72 Outperform	$3.55B	12.78	16.10%	2.44%	-3.18%	-8.62%
ALE	68 Neutral	$3.94B	23.79	5.83%	4.26%	-4.30%	-8.49%
MGEE	67 Neutral	$2.93B	21.77	10.80%	2.28%	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 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.

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.

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.