Black Hills Intrinsic Value Calculator – Black Hills Corporation: A Promising Investment With Slower Growth Ahead

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Black Hills ($NYSE:BKH) Corporation is a promising investment for any investor looking to increase their portfolio. The stock is currently undervalued and the company has been steadily increasing its dividend over time, making it an attractive option.

However, the company’s growth rate is slowing, with analysts predicting a slower rise in earnings going forward. This is something that should be taken into consideration when deciding whether to invest in the company. The Black Hills Corporation provides a variety of energy-related services, including electricity, natural gas distribution, and power generation. The company has made significant investments in renewable energy, including solar and wind, and has recently announced plans to explore natural gas production in Wyoming. As an investor, Black Hills Corporation offers an attractive opportunity for long-term returns. With a slowly growing dividend and a relatively low stock price, it offers a great way to diversify and add value to any portfolio. Although growth may be slower than anticipated, the company is well-positioned for the future and can provide steady returns for those looking for a safe investment.

Dividends

The company has issued an annual dividend per share of 2.5, 2.41 and 2.29 USD over the past three years, and is projected to yield 3.84%, 3.45%, and 3.5% in 2021, 2022, and 2023 respectively with an average dividend yield of 3.6%. If you are keen on dividend stocks, Black Hills Corporation may be worth your consideration.

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Black Hills. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Black Hills. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Black Hills. More…

Key Ratios Snapshot

Some of the financial key ratios for Black Hills are shown below. More…

Market Price

On Tuesday, BLACK HILLS Corporation stock opened at $54.8 and closed at $55.2, up by 1.3% from prior closing price of 54.4. The company is showing promise as an investment, however, some analysts are expecting slower growth in the near future. BLACK HILLS has recently been making strategic investments and acquisitions which could help to solidify their position as a reliable energy provider in the future.

These investments are likely to contribute to slower growth in the short term but may pay-off in the long-term. Investors should look to both the current value of the stock and the potential growth it may achieve in the long-term as they weigh their options. Live Quote…

Analysis – Black Hills Intrinsic Value Calculator

We here at GoodWhale have conducted an analysis of the wellbeing of BLACK HILLS and have determined that its intrinsic value is around $72.2. This was calculated using our proprietary Valuation Line, which has been developed by our team of experts in the field of financial analysis. Based on the results of our analysis, we have determined that the current price of the BLACK HILLS stock at $55.2 is undervalued by 23.5%. As such, we recommend that investors take a closer look at the stock and consider investing in it while it is still significantly undervalued. 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 Corporation (BHC) is an undervalued stock with a rising dividend, but slower growth ahead. BHC is a multi-state energy company that provides a wide range of energy services, including electric and natural gas utility operations and non-regulated power generation. BHC has reported strong earnings growth over the last three years, but growth is expected to slow in the near future due to market forces. Investors should carefully consider BHC’s future growth prospects before investing.