📊 BKH Key Takeaways
Investment Thesis
Black Hills Corp demonstrates solid profitability with 33.2% gross margins and 23.3% operating margins typical of regulated utilities. However, negative free cash flow of -$146.4M and high leverage (1.23x debt/equity) raise concerns about capital intensity and dividend sustainability. The company requires careful monitoring of capital expenditure productivity and cash generation improvements.
BKH Strengths
- Strong gross margins of 33.2% indicating pricing power in regulated utility environment
- Consistent operating margins at 23.3% demonstrating operational efficiency and cost control
- Stable revenue base with 1.0% YoY growth in mature utility sector
- Adequate liquidity with current ratio of 1.35x covering near-term obligations
BKH Risks
- Negative free cash flow of -$146.4M with capex significantly exceeding operating cash flow sustainability
- High leverage ratio of 1.23x debt/equity with $4.7B long-term debt limiting financial flexibility
- Net income declining 2.7% YoY despite stable revenue, indicating margin compression pressures
- Weak interest coverage ratio of 2.7x providing limited cushion for debt service with rising rate environment
- Low return on equity of 7.6% and ROA of 2.7% suggesting inefficient asset deployment
Key Metrics to Watch
- Free cash flow trend and capex to operating cash flow ratio sustainability
- Debt/equity ratio trajectory and refinancing capacity in capital markets
- Operating margin trend and ability to recover costs through rate adjustments
- Return on equity improvement through earned rate base growth and efficiency gains
- Interest coverage ratio resilience under potential rate increase scenarios
BKH Financial Metrics
💡 AI Analyst Insight
BLACK HILLS CORP /SD/ presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
BKH Profitability Ratios
BKH vs Default Sector
How BLACK HILLS CORP /SD/ compares to Default sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
BKH Balance Sheet & Liquidity
BKH 5-Year Financial Trend
5-Year Trend Summary: BLACK HILLS CORP /SD/'s revenue has grown significantly by 19% over the 5-year period, indicating strong business expansion. The most recent EPS of $3.91 reflects profitable operations.
BKH Growth Metrics (YoY)
BKH Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $398.6M | $24.4M | $0.34 |
| Q2 2025 | $397.1M | $22.8M | $0.33 |
| Q1 2025 | $717.2M | $127.9M | $1.87 |
| Q3 2024 | $398.6M | $24.4M | $0.35 |
| Q2 2024 | $397.1M | $22.8M | $0.33 |
| Q1 2024 | $717.2M | $114.1M | $1.73 |
| Q3 2023 | $400.2M | $35.0M | $0.54 |
| Q2 2023 | $405.1M | $23.1M | $0.35 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
BKH Capital Allocation
BKH SEC Filings
Access official SEC EDGAR filings for BLACK HILLS CORP /SD/ (CIK: 0001130464)
📋 Recent SEC Filings
❓ Frequently Asked Questions about BKH
What is the AI rating for BKH?
BLACK HILLS CORP /SD/ (BKH) has an AI rating of HOLD with 72% confidence, based on fundamental analysis of SEC EDGAR filings.
What are BKH's key strengths?
Strong gross margins of 33.2% indicating pricing power in regulated utility environment. Consistent operating margins at 23.3% demonstrating operational efficiency and cost control.
What are the risks of investing in BKH?
Negative free cash flow of -$146.4M with capex significantly exceeding operating cash flow sustainability. High leverage ratio of 1.23x debt/equity with $4.7B long-term debt limiting financial flexibility.
What is BKH's revenue and growth?
BLACK HILLS CORP /SD/ reported revenue of $2.3B.
Does BKH pay dividends?
BLACK HILLS CORP /SD/ pays dividends, with $197.9M distributed to shareholders in the trailing twelve months.
Where can I find BKH SEC filings?
Official SEC filings for BLACK HILLS CORP /SD/ (CIK: 0001130464) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is BKH's EPS?
BLACK HILLS CORP /SD/ has a diluted EPS of $3.98.
How is the AI analysis conducted?
Our AI (Claude) analyzes publicly available SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports to evaluate financial health, profitability ratios, balance sheet strength, and growth metrics.