Last Updated: 08 Nov 2024
Executive Summary
Black Hills Corporation (BKH) is a natural gas and electric utility company with a market capitalization of approximately $4.15 billion. The company has a strong financial position with an EBITDA of $737.22 million and a profit margin of 12%. BKH's stock is currently trading at $59.57, below its 52-week high of $62.20. Analysts have a mixed outlook on the stock, with a consensus rating of "Hold".
Company Overview
Black Hills Corporation is a natural gas and electric utility company that serves approximately 1.2 million customers in the United States. The company's operations are primarily located in the western United States, including South Dakota, Wyoming, Nebraska, and Colorado. BKH also has a presence in the eastern United States, with operations in Iowa and Kansas.
The company's business is divided into two segments: regulated utilities and non-regulated businesses. The regulated utilities segment includes the company's electric and natural gas distribution and transmission operations. The non-regulated businesses segment includes the company's wind generation, coal mining, and oil and gas exploration and production operations.
Fundamental Analysis
BKH's financial performance has been solid in recent years. The company's revenue has grown at a compound annual growth rate (CAGR) of 4.5% over the past five years. The company's earnings per share (EPS) has also grown at a CAGR of 6.5% over the same period.
BKH's balance sheet is also strong. The company has a low level of debt and a high level of cash and equivalents. The company's debt-to-equity ratio is 0.45, which is below the industry average.
Technical Analysis
BKH's stock price has been trending lower in recent months. The stock price is currently below its 50-day and 200-day moving averages. The stock's relative strength index (RSI) is also below 50, which indicates that the stock is oversold.
Short Term Outlook
The short-term outlook for BKH's stock is mixed. The stock's technical indicators are bearish, but the company's fundamentals are strong. The stock's price could continue to trend lower in the short term, but it is also possible that the stock could rebound if the company's fundamentals continue to improve.
Long Term Outlook
The long-term outlook for BKH's stock is positive. The company's strong financial position and its focus on renewable energy should drive growth in the long term. The stock's current valuation is also attractive, with a forward PE ratio of 14.39.
Analyst Recommendations
Analysts have a mixed outlook on BKH's stock. The consensus rating for the stock is "Hold". One analyst has a "Strong Buy" rating on the stock, four analysts have a "Hold" rating, and one analyst has a "Sell" rating. The average analyst target price for the stock is $64.50.
