Black Hills Corporation Common Stock (BKH)

FairStock Score: 51/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a value investor, I look for durable economics bought at a sensible price. Black Hills is a regulated gas and electric utility serving parts of Colorado, Montana, South Dakota, and Wyoming. That brings predictable demand and a regulated moat, though regulators influence returns. The filed numbers show modest scale: in fiscal 2025, the year ended 2025-12-31, revenue was $2.3B, net income $291.6M, and diluted EPS $3.98. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $440.6M, net income $38.2M, and diluted EPS $0.50, versus fiscal Q2 2025, the quarter ended 2025-06-30, revenue of $435.7M, net income $27.5M, and diluted EPS $0.38. So earnings improved on nearly flat revenue. FairStock classifies it as a SLOW GROWER, with profit growth of 5.1% a year and revenue growth of 6.3% over five years. Financial health is mixed: D/E is 1.12 and trailing FCF is -$305.2M, a -5.2% FCF yield, while ROE is 7.96% and ROCE is 3.22%. At the 2026-10-13 close of $77.24, FairStock calculations show P/E 19.46, P/B 1.49, dividend yield 3.99%, and a Graham Number of $67.96, so price is 13.66% above that defensive value. Piotroski 5/9 and Altman Z 0.68 suggest neither a fortress nor deep distress - utilities often carry leverage. PEG 0.50 looks undemanding if growth is real, but slow growth and negative free cash flow temper that. I see a fair-to-full price for a steady but capital-hungry utility.

In plain English: Black Hills sells electricity and natural gas to homes and businesses in several western states. The business looks steady, with recent profit growth and a dividend, but it uses a lot of debt and currently spends more cash than it brings in. At $77.24 a share, the price looks fair to slightly expensive compared with its profits and net assets.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer