Black Hills BKH
United StatesUtilities · Utilities - Regulated GasUSD
82.00 USD (+8.1%)
6 analysts
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Black Hills Corporation is a regulated public utility in the United States that generates, transmits, and distributes electricity and natural gas to residential, commercial, and industrial customers across several states in the Midwest and Rocky Mountains.
Key points
from its scores- ✓Favourable backdrop7.3
- ✓Attractive dividend7.2
- ✓Good share-price trend7.1
- ✕Little competitive advantage3.3
- ✕Demanding valuation4.8
AI analysis
bottom line, main risk, context and newsThe combination of an attractive dividend and reasonable valuation offsets the high leverage and weak cash generation, but rising rates and regulatory risk limit the upside potential.
Black Hills presents acceptable financial health (6.31) with high leverage (Net Debt/EBITDA of 5.27) and negative free cash flow conversion (-9.26), which weighs on its quality (3.34). Its valuation is reasonable (P/E 19.10, P/B 1.47) and it offers an attractive dividend (3.71% net, 69.47% payout), with 31.6% earnings growth supporting the thesis. The main drag is its debt in a rising rate environment.
High leverage (Net Debt/EBITDA of 5.27) in a rising US interest rate environment, which makes debt refinancing more expensive and pressures its financial health and valuation.
Context and risks
Black Hills is a regulated gas and electric utility in the US, a sector under active regulatory review in several states. Its high leverage (Net Debt/EBITDA of 5.27) and rising US interest rates make refinancing more expensive, although as a regulated utility with cost recovery through tariffs, the impact is partially mitigated.
Is Black Hills stock cheap or expensive?
at the analysis dateOn P/E and EV / EBITDA, it trades in line with the Utilities median (within 15%).
| Multiple | Company | Sector | Difference |
|---|---|---|---|
| P/E | 19.1 | 19.1 | +0% |
| EV / EBITDA | 12.3 | 12.2 | +0% |
| Price / book | 1.5 | 1.9 | −24% |
| Price / sales | 2.5 | 2.6 | −3% |
Sector: median of the 92 Utilities companies analysed. In bold, the multiples used for the comparison.
Valuation score: 4.8 out of 10 (median for Utilities: 4.8).
Average analyst target: 82.00 USD, +8.1% versus the price.
Classic formulas with standard assumptions (10.0% growth, 8-9% discount rate). Indicative only: they change a lot with the assumptions and are not a recommendation.
Work out its fair value yourself →How much would you have made investing every month? →
Comparing it with its sector does not say whether it is a good buy: this is not investment advice.
Score by category
0 to 10 · hover overtap each one to see what it measuresKey metrics
at the analysis date · compared with the Utilities medianValuation
- P/E
- 19.1
- Forward P/E
- 16.4
- EV / EBITDA
- 12.3
- Price / book
- 1.5
- Price / sales
- 2.5
- PEG
- 2.51
- Market cap
- 5.8B USD
- Enterprise value
- 10.3B USD
Profitability
- ROE
- 8.0%
- ROA
- 3.2%
- ROIC (approx.)
- 5.8%
- Gross margin
- 39.7%
- Operating margin
- 21.4%
- Net margin
- 13.0%
- Free cash flow
- −77.8M USD
- FCF yield
- −1.3%
- Cash conversion
- −9%
Solvency
- Total debt
- 4.5B USD
- Net debt
- 4.4B USD
- Cash
- 71.5M USD
- EBITDA
- 839.2M USD
- Net debt / EBITDA
- 5.27
- Debt / equity
- 111.69
- Current ratio
- 0.52
- Quick ratio
- 0.27
Growth
- Revenue growth
- +3.1%
- Earnings growth
- +31.6%
- EPS (TTM)
- 3.97 USD
- EPS (forward)
- 4.63 USD
Dividend
- Dividend yield
- 3.7%
- Payout
- 69.5%
Risk and market
- Beta
- 0.66
- Analyst consensus
- Strong buy (6)
- Target price
- 82.00 USD
- 52-week range
- 59.91 – 78.69
Recent news
All BKH news →Compare it with its sector
All 92 in Utilities →Frequently asked questions about Black Hills
Is Black Hills stock cheap or expensive?
On P/E and EV / EBITDA, it trades in line with the Utilities median (within 15%). Valuation score: 4.8 out of 10 (median for Utilities: 4.8). Average analyst target: 82.00 USD, +8.1% versus the price. This is not investment advice.
What score does Black Hills get on MeridIAn Screener?
It scores 5.9 out of 10, rank 1,055 of 2,130 (better than 47% of the companies analysed). Its strongest category is Risk & Context (7.3) and its weakest, Quality / Moat (3.3). Analysis of 08/10/2026.
What is Black Hills's P/E ratio?
Its P/E is 19.1: the share price equals 19.1 times earnings per share over the last 12 months. The Utilities median is 19.1. Based on the earnings analysts expect, the forward P/E is 16.4.
How much is Black Hills worth on the stock market?
Its market capitalisation is 5.8B USD and its enterprise value, debt included, is 10.3B USD.
How much debt does Black Hills have?
Its net debt (debt minus cash) is 4.4B USD. That is 5.27 times its EBITDA; the Utilities median is 5.33.
Does Black Hills pay a dividend?
Yes: its dividend yield is 3.71% and it pays out 69% of its earnings.
How has Black Hills stock performed over the last year?
It has risen 30.4% over the last year, excluding dividends. Over the last 52 weeks it has traded between 59.91 and 78.69 USD. Past performance does not guarantee future results.
What do analysts think of Black Hills?
6 analysts cover it; their average recommendation is “Strong buy” and their average target is 82.00 USD (+8.1% versus the price). It is an estimate, not market data.