Why is Black Hills Corp. ?
1
Poor long term growth as Operating profit has grown by an annual rate 5.01% of over the last 5 years
2
Flat results in Jun 25
- OPERATING CASH FLOW(Y) Lowest at USD 671.7 MM
- ROCE(HY) Lowest at 8.13%
3
With ROCE of 6.48%, it has a expensive valuation with a 1.06 Enterprise value to Capital Employed
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 18.02%, its profits have fallen by -1.1%
How much should you hold?
- Overall Portfolio exposure to Black Hills Corp. should be less than 10%
- Overall Portfolio exposure to Power should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Power)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Black Hills Corp. for you?
Low Risk, High Return
Absolute
Risk Adjusted
Volatility
Black Hills Corp.
15.79%
1.76
19.70%
S&P 500
13.68%
0.70
20.15%
Quality key factors
Factor
Value
Sales Growth (5y)
6.36%
EBIT Growth (5y)
4.69%
EBIT to Interest (avg)
2.78
Debt to EBITDA (avg)
6.14
Net Debt to Equity (avg)
1.18
Sales to Capital Employed (avg)
0.28
Tax Ratio
11.48%
Dividend Payout Ratio
67.88%
Pledged Shares
0
Institutional Holding
92.01%
ROCE (avg)
6.20%
ROE (avg)
8.81%
Valuation Key Factors 
Factor
Value
P/E Ratio
18
Industry P/E
Price to Book Value
1.42
EV to EBIT
18.42
EV to EBITDA
12.07
EV to Capital Employed
1.19
EV to Sales
4.30
PEG Ratio
18.06
Dividend Yield
3.38%
ROCE (Latest)
6.46%
ROE (Latest)
7.84%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
No Trend
Mildly Bullish
OBV
No Trend
Bullish
Technical Movement
5What is working for the Company
DEBT-EQUITY RATIO
(HY)
Lowest at 117.97 %
RAW MATERIAL COST(Y)
Fallen by 0.82% (YoY
DIVIDEND PER SHARE(HY)
Highest at USD 5.75
OPERATING PROFIT MARGIN(Q)
Highest at 38.79 %
-7What is not working for the Company
OPERATING CASH FLOW(Y)
Lowest at USD 673.4 MM
ROCE(HY)
Lowest at 7.96%
INTEREST(Q)
Highest at USD 53.9 MM
Here's what is working for Black Hills Corp.
Debt-Equity Ratio
Lowest at 117.97 % and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Operating Profit Margin
Highest at 38.79 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Dividend per share
Highest at USD 5.75
in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (USD)
Raw Material Cost
Fallen by 0.82% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Depreciation
Highest at USD 73.3 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (USD MM)
Here's what is not working for Black Hills Corp.
Operating Cash Flow
Lowest at USD 673.4 MM and Fallen
In each year in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (USD MM)
Interest
Highest at USD 53.9 MM
in the last five periods and Increased by 8.02% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)






