Black Hills Intrinsic Value Calculation – BlackRock Decreases Investment in Black Hills Co.
December 9, 2023
🌥️Trending News
Black Hills ($NYSE:BKH) Co., a publicly-traded company that has been involved in a wide range of industries, has experienced a decrease in its stock position due to the recent actions of BlackRock Inc. BlackRock Inc., one of the largest asset management firms in the world, announced that it had significantly reduced its position in the company. Their portfolio includes a range of products and services, including oil and gas exploration, mining, construction materials, and environmental services. The company also provides financial services and operates several subsidiaries. The decrease in Black Hills Co.’s stock position highlights some of the risks associated with investing in the company.
Although BlackRock Inc. has not provided an explanation for their decision to reduce their stake in the company, investors should be aware that such occurrences can have a direct effect on the stock’s performance. Despite this setback, the company remains focused on providing quality products and services, and is still optimistic about its future outlook.
Stock Price
On Thursday, Black Hills Co. saw an increase in their stock value, opening at $53.9 and closing at $54.1, up by 0.4% from the previous closing price of 53.8. This came following news that BlackRock Inc., a leading asset management company, had made a decision to reduce its investment in Black Hills Co. Although the exact value of the reduced investment has not been released, analysts have suggested that the move could be an indication of waning investor interest in the company. Undoubtedly, the decision to decrease its investment in Black Hills Co. by BlackRock Inc. is a cause for concern for shareholders and other investors, but it remains to be seen how this will impact the company in the long term. 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 |
| 2.53k | 254.99 | 10.1% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Black Hills. More…
| Operations | Investing | Financing |
| 846.57 | -541.34 | 278.19 |
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 |
| 9.93k | 6.67k | 47.2 |
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 |
| 14.5% | 3.2% | 18.6% |
| FCF Margin | ROE | ROA |
| 11.3% | 9.4% | 3.0% |
Analysis – Black Hills Intrinsic Value Calculation
GoodWhale has conducted an analysis of BLACK HILLS‘s wellbeing, and we are pleased to report that the intrinsic value of BLACK HILLS shares is estimated to be around $72.4. This estimate was calculated using our proprietary Valuation Line, which takes into account several factors including earnings, risk and stock prices. Currently, BLACK HILLS shares are trading at $54.1, which represents a 25.3% discount from the intrinsic value. This indicates that BLACK HILLS is currently undervalued and may be a good investment opportunity. More…
Peers
The company operates through four segments: Electric Utilities, Gas Utilities, Coal Mining, and Power Generation. Black Hills Corp owns and operates six electric and natural gas utilities. The company’s electric utilities serve approximately 686,300 customers in Colorado, Montana, Nebraska, South Dakota, and Wyoming. Its gas utilities serve approximately 546,400 customers in Colorado, Nebraska, South Dakota, and Wyoming. Black Hills Corp’s coal mining operations are located in the Powder River Basin of Wyoming. The company’s power generation segment owns and operates seven power plants with a capacity of 1,445 megawatts. Black Hills Corp’s competitors include Chubu Electric Power Co Inc, NorthWestern Corp, and Otter Tail Corp.
– Chubu Electric Power Co Inc ($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
Investors have recently become aware of a significant stock position reduction by BlackRock Inc. in Black Hills Co. The reduction is seen as a bearish sign for the company, as it appears that the investment giant does not anticipate positive returns in the near future. Analysts are mixed on their outlook for Black Hills, with some expecting further stock declines in the near term while others are more optimistic. Some analysts believe that the stock may be oversold and that its current price may be an attractive entry point for long-term investors.
Others caution that Black Hills Co. may be facing headwinds and that additional downside could be possible. Investors should carefully consider their goals and needs prior to investing, as well as carefully analyze the company’s performance and outlook before making any decisions.
