Black Hills Intrinsic Value Calculation – Black Hills Energy Encourages Wildfire Prevention During October Fire Prevention Month
October 27, 2023
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October is Fire Prevention Month, and this year Black Hills ($NYSE:BKH) Energy is encouraging communities across South Dakota to take steps to prevent wildfires. Black Hills Energy is a diversified energy company that provides electrical and natural gas services to customers in eight states. This year, Black Hills Energy is leveraging Fire Prevention Month to promote wildfire avoidance and mitigation plans. The company is helping to ensure that community members, homeowners, and businesses have the resources they need to protect themselves from potential wildfires. They are launching a public safety campaign to educate people on the risks of wildfires and how to take action. This includes providing information about fire prevention practices and wildfire preparedness.
Additionally, Black Hills Energy is offering grant money for municipalities to fund local fire departments and apply for Firewise Community grants, which help communities reduce their risk of wildfire damage. Black Hills Energy is also helping homeowners get access to forest fuel treatments, such as tree thinning and prescribed burning. These treatments can reduce the risk of wildfires and help manage the landscape’s health. Finally, the company is engaging in outreach activities with local schools and civic organizations to help spread the message about wildfire prevention and safety. In honor of Fire Prevention Month, Black Hills Energy is making a strong commitment to promote fire safety and help people reduce their risk of wildfire damage. The company is taking a proactive stance towards wildfire prevention by providing the resources and education needed to help protect communities from potential risks.
Market Price
The company is providing tips on how to create a fire-resistant environment around homes, such as removing combustible items in yards, thinning trees, and creating protective zones from combustible material.
Additionally, Black Hills Energy is offering its customers incentives and discounts on select products and services. On Thursday, BLACK HILLS stock opened at $48.6 and closed at $49.0, up by 1.3% from prior closing price of 48.4. This increase reflects the market’s confidence in Black Hills Energy’s efforts to help reduce the risk of wildfires. By continuing to prioritize wildfire prevention, Black Hills Energy is demonstrating its commitment to safety and responsible resource management. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Black Hills. More…
| Total Revenues | Net Income | Net Margin |
| 2.59k | 244.55 | 9.5% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Black Hills. More…
| Operations | Investing | Financing |
| 649.42 | -603.88 | 32.25 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Black Hills. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 9.46k | 6.27k | 46.28 |
Key Ratios Snapshot
Some of the financial key ratios for Black Hills are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 15.8% | 2.8% | 17.3% |
| FCF Margin | ROE | ROA |
| 2.4% | 9.0% | 3.0% |
Analysis – Black Hills Intrinsic Value Calculation
At GoodWhale, we have conducted a thorough financial analysis of BLACK HILLS. After thorough evaluation, we have determined that BLACK HILLS has an intrinsic value of around $77.0, as calculated by our proprietary Valuation Line. Currently, BLACK HILLS stock is traded at $49.0, which is an undervaluation of 36.4%. Therefore, we believe there is an excellent opportunity to invest in BLACK HILLS stock and realize significant returns. More…
Peers
The company operates through four segments: Electric Utilities, Gas Utilities, Coal Mining, and Power Generation. Black Hills Corp owns and operates six electric and natural gas utilities. The company’s electric utilities serve approximately 686,300 customers in Colorado, Montana, Nebraska, South Dakota, and Wyoming. Its gas utilities serve approximately 546,400 customers in Colorado, Nebraska, South Dakota, and Wyoming. Black Hills Corp’s coal mining operations are located in the Powder River Basin of Wyoming. The company’s power generation segment owns and operates seven power plants with a capacity of 1,445 megawatts. Black Hills Corp’s competitors include Chubu Electric Power Co Inc, NorthWestern Corp, and Otter Tail Corp.
– Chubu Electric Power Co Inc ($TSE:9502)
Chubu Electric Power Co Inc is a Japanese electric utility company that services the Chubu region on the island of Honshu. It has a market cap of 928.54B as of 2022 and a Return on Equity of -1.25%. The company is the third largest electric utility in Japan and one of the ten largest in the world. It serves over 19 million people and has over 46,000 employees.
– NorthWestern Corp ($NASDAQ:NWE)
Northwestern Corp is a holding company that, through its subsidiaries, engages in the generation, transmission, and distribution of electricity in the United States. The company has a market cap of 3.01B as of 2022 and a Return on Equity of 11.07%. The company’s subsidiaries include Northwestern Public Service Company, which provides electric utility service in South Dakota; Montana-Dakota Utilities Co, which provides electric and natural gas utility service in North Dakota, South Dakota, and Montana; and Nipsco Industries, Inc, which provides electric utility service in Indiana and Illinois.
– Otter Tail Corp ($NASDAQ:OTTR)
Otter Tail Corporation is a holding company that engages in the electric, manufacturing, and plastics businesses in the United States. It operates through the following segments: Electric, Manufacturing, and Plastics. The Electric segment generates, transmits, and distributes electricity in Minnesota, North Dakota, and South Dakota. The Manufacturing segment designs and manufactures metal fabricated products and components primarily for the medical device and other industries. The Plastics segment manufactures and sells plastic products. The company was founded by John N. Teigen in 1907 and is headquartered in Fergus Falls, MN.
Summary
Black Hills Energy is a major investor in wildfire prevention and mitigation programs. This October, the company is highlighting these initiatives as part of Fire Prevention Month. These programs involve investments in infrastructure and services to reduce the risk of fire in areas near Black Hills Energy’s service territory.
This includes vegetation management, prescribed burns, and community education. Through these efforts, Black Hills Energy has been able to reduce the risk of wildfires and protect the safety of its customers and the environment.
