📊 BKH Key Takeaways
Is Black Hills Corp. /Sd/ (BKH) a Good Investment?
Black Hills Corp demonstrates strong operational profitability with 98.2% gross margins and 25.9% operating margins, but fundamental financial health is deteriorating with negative free cash flow of -$91.2M, liquidity ratios below 1.0x, and declining net income despite minimal revenue growth. The capital-intensive business model is burning cash as CapEx ($267.4M) far exceeds operating cash flow ($176.2M), creating unsustainable funding pressure.
Black Hills shows the steady earnings profile expected of a regulated utility, with solid operating and net margins, positive operating cash flow, and modest revenue and EPS growth. However, growth quality is constrained by negative free cash flow, heavy capital spending, and only moderate balance-sheet flexibility given leverage and thin interest coverage. The fundamentals support stability more than upside, making this a hold on operating quality but not a high-conviction accumulation.
Black Hills Corp. /Sd/ Key Strengths (BKH)
- Exceptional gross margin of 98.2% demonstrates strong pricing power in regulated utility sector
- Solid operating margin of 25.9% reflects operational efficiency despite asset-heavy business model
- Consistent profitability with $131.0M net income and adequate interest coverage of 3.9x
- Strong operating profitability with 23.3% operating margin and 12.6% net margin
- Stable earnings base supported by positive revenue growth and diluted EPS growth
- Adequate near-term liquidity with 1.35x current ratio and 1.11x quick ratio
BKH Stock Risks: Black Hills Corp. /Sd/ Investment Risks
- Severe negative free cash flow of -$91.2M indicates cash burn is unsustainable; CapEx of $267.4M significantly exceeds operating cash flow
- Liquidity crisis signals: current ratio of 0.65x and quick ratio of 0.53x are dangerously below 1.0x with only $23.6M cash against $10.8B assets
- Poor capital efficiency with ROE of 3.3% and ROA of 1.2% suggests deployed capital generates inadequate returns
- Stagnant growth with revenue up only 1.0% YoY and net income declining 2.7% YoY despite profitability
- High leverage with $4.0B long-term debt (1.01x debt-to-equity) combined with minimal cash reserves
- Negative free cash flow due to capital expenditures exceeding operating cash flow
- Elevated leverage with 1.23x debt-to-equity and $4.70B in long-term debt
- Limited interest coverage at 2.7x reduces cushion if borrowing costs or financing needs rise
Key Metrics to Watch
- Free cash flow trend and CapEx sustainability relative to operating cash generation
- Liquidity metrics and cash balance given upcoming debt service obligations
- Revenue growth acceleration and operating cash flow improvement
- Return on equity trajectory and capital allocation decisions
- Free cash flow trend relative to capital expenditures
- Interest coverage and debt-to-equity trajectory
Black Hills Corp. /Sd/ (BKH) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
BKH Profit Margin, ROE & Profitability Analysis
BKH vs Utilities Sector: How Black Hills Corp. /Sd/ Compares
How Black Hills Corp. /Sd/ compares to Utilities sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Black Hills Corp. /Sd/ Stock Overvalued? BKH Valuation Analysis 2026
Based on fundamental analysis, Black Hills Corp. /Sd/ has mixed fundamental signals relative to the Utilities sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Black Hills Corp. /Sd/ Balance Sheet: BKH Debt, Cash & Liquidity
BKH Revenue & Earnings Growth: 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 Revenue Growth, EPS Growth & YoY Performance
BKH Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $762.0M | $131.0M | $1.73 |
| 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 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Black Hills Corp. /Sd/ Dividends, Buybacks & Capital Allocation
BKH SEC Filings: Latest 10-K & 10-Q Analysis
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 a Combined AI Grade of C from Claude (C) and ChatGPT (B) with 78% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are BKH's key strengths?
Claude: Exceptional gross margin of 98.2% demonstrates strong pricing power in regulated utility sector. Solid operating margin of 25.9% reflects operational efficiency despite asset-heavy business model. ChatGPT: Strong operating profitability with 23.3% operating margin and 12.6% net margin. Stable earnings base supported by positive revenue growth and diluted EPS growth.
What are the risks of investing in BKH?
Claude: Severe negative free cash flow of -$91.2M indicates cash burn is unsustainable; CapEx of $267.4M significantly exceeds operating cash flow. Liquidity crisis signals: current ratio of 0.65x and quick ratio of 0.53x are dangerously below 1.0x with only $23.6M cash against $10.8B assets. ChatGPT: Negative free cash flow due to capital expenditures exceeding operating cash flow. Elevated leverage with 1.23x debt-to-equity and $4.70B in long-term debt.
What is BKH's revenue and growth?
Black Hills Corp. /Sd/ reported revenue of $780.7M.
Does BKH pay dividends?
Black Hills Corp. /Sd/ pays dividends, with $53.1M 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 $1.73.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is BKH's fundamental grade?
Based on our AI fundamental analysis in June 2026, Black Hills Corp. /Sd/ has a C grade with 78% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is BKH stock overvalued or undervalued?
Valuation metrics for BKH: ROE of 3.3% (sector avg: 10%), net margin of 16.8% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
What is BKH's AI grade for 2026?
Our dual AI analysis gives Black Hills Corp. /Sd/ a combined C grade for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is BKH's free cash flow?
Black Hills Corp. /Sd/'s operating cash flow is $176.2M, with capital expenditures of $267.4M. FCF margin is -11.7%.
How does BKH compare to other Utilities stocks?
Vs Utilities sector averages: Net margin 16.8% (avg: 12%), ROE 3.3% (avg: 10%), current ratio 0.65 (avg: 0.8).