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Verdict
Quantitative factor alignment verified for current market regime.
Quant Score
Rank
#2262
Positioning
Market Dominance
Transportation, Communications, Electric, Gas, And Sanitary Services
Utilities
$4.5B
Linden R. Evans
Black Hills Corporation operates in two segments, Electric Utilities and Gas Utilities. The Electric Utilities segment generates, transmits, and distributes electricity to approximately 218,000 electric utility customers in Colorado, Montana, South Dakota, and Wyoming. The Gas Utilities segment distributes natural gas to approximately 1,094,000 natural gas utility customers. The company also constructs and maintains gas infrastructure facilities for gas transportation customers.
Headcount
3.0K
HQ Base
Rapid City, South Dakota
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Dates updated upon official exchange announcement.
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| Stock | Rating | Score▼ | Quality | Value | Momentum | P/E | EV/EBITDA | ROE | ROA | Gross Mgn | Op Mgn | Net Mgn | Rev Growth | Div Yield | D/E | Mkt Cap | AUDIT |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
$UGP ULTRAPAR HOLDINGS INC | 79 | 90 | 95 | 87 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$TNK TEEKAY TANKERS LTD. | 78 | 94 | 97 | 82 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$DHT DHT Holdings, Inc. | 75 | 84 | 88 | 78 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$STNG Scorpio Tankers Inc. | 75 | 86 | 95 | 74 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$NAT NORDIC AMERICAN TANKERS Ltd | 75 | 82 | 88 | 87 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$AMX AMERICA MOVIL SAB DE CV/ | 74 | 86 | 81 | 68 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$PAC Pacific Airport Group | 73 | 94 | 80 | 78 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$GSL Global Ship Lease, Inc. | 73 | 82 | 94 | 81 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$TRMD TORM plc | 73 | 86 | 94 | 65 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$VIV TELEFONICA BRASIL S.A. | 73 | 82 | 90 | 78 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$BKH BLACK HILLS CORP /SD/ | 49 | 29 | 29 | 62 | 25.4x | 7.7x | 5.6% | 2.0% | 74.0% | 20.4% | 9.0% | 6.9% | 4.3% | 178.0x | $4.5B | ||
| SECTOR BENCH | - | - | - | - | - | 16.9x | 6.1x | 11.9% | 3.2% | 52.6% | 14.8% | 7.7% | 4.2% | 1.4% | 1.3x | - | REF |
BLACK HILLS CORP /SD/ (BKH) receives a "Reduce" rating with a composite score of 48.5/100. It ranks #2262 out of 7,333 stocks in our coverage universe and carries a 2-star rating. Ratings are driven by a 6-factor quantitative model measuring quality, value, momentum, investment, stability, and short interest.
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Outperforming peers — winners tend to keep winning over 3-12 months
Expensive relative to fundamentals — limited margin of safety
Weak fundamentals — higher risk of value trap
Low volatility — smoother ride and historically better risk-adjusted returns
Moderate investment profile
Mid-range overall rating
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Relative valuation derived from Transportation, Communications, Electric, Gas, And Sanitary Services sector benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Re-calculated daily.
Projection based on user-defined inputs. Re-calculated daily against current market data.
Reverse DCF Framework — Mauboussin Methodology
Institutional-grade Reverse DCF analysis. This model identifies the growth hurdles embedded in current market prices. When implied growth is significantly lower than historical or projected rates, a margin of safety may exist. Re-audited daily.
No analyst ratings for BKH.
View All Ratings| Factor | Global | Sector | Tilt |
|---|---|---|---|
| PROFITABILITY | 29 | 17 | +12ALPHA |
| MOMENTUM | 62 | 69 | -7DRAG |
| VALUATION | 29 | 20 | +9ALPHA |
| INVESTMENT | 38 | 58 | -20DRAG |
| STABILITY | 88 | 91 | -3NEUTRAL |
| SHORT INT | 37 | 30 | +7ALPHA |
Global = full universe. Sector = relative to industry peers. Positive tilt indicates idiosyncratic strength.
ROIC 10.7% vs WACC 7.2% (spread +3.5%)
GM 74% vs sector 53%, OM 20% vs sector 15%
Capital turnover 0.53x
Rev growth 7%, 10yr history
Interest coverage 2.7x, Net debt/EBITDA 5.3x
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation and elite competitive moats.
Profit generated per dollar of shareholder equity
Efficiency of asset utilization
Pricing power and cost efficiency
Core business profitability
Bottom-line profitability
The Quality factor evaluates the persistence and magnitude of realized cash flows. Companies with scores >70 exhibit superior pricing power and structural financial resilience through diverse economic regimes.
Our uncertainty rating tracks the predictability of future cash flows and potential for permanent capital loss. Moderate visibility with standard industry cyclicality.
We rate BLACK HILLS CORP /SD/ (BKH) as a Reduce with a composite score of 48.5/100 at a current price of $73.77. The quantitative profile shows weakness across multiple dimensions, suggesting limited upside potential.
BLACK HILLS CORP /SD/ holds a top-quartile position (#0 of 50) within the Transportation, Communications, Electric, Gas, And Sanitary Services sector, based on our composite quantitative scoring across quality, value, momentum, and stability factors. The composite score of 48.5/100 places it at rank #2262 in our full universe.
The near-term outlook is constructive, with revenue growing at 7% and momentum in the 62th percentile confirming positive market sentiment. The combination of strong top-line growth and favorable price dynamics suggests the company is executing well on its growth strategy.
No Moat
Medium
Poor
Fair Value
Gross margins of 74% signal strong pricing power.
Stable competitive position in a defensive sector.
Leverage of 178% D/E amplifies downside risk.
Below-average quality raises earnings sustainability concerns.
Vulnerability to macroeconomic shocks and interest rate volatility.
BLACK HILLS CORP /SD/ represents a reduce based on multi-factor quantitative performance.
BLACK HILLS CORP /SD/ receives a Reduce rating from our analysis, with a composite score of 48.5/100 and 2 out of 5 stars, ranking #2262 out of 7,333 stocks. BKH's factor profile shows weakness across multiple dimensions, suggesting the stock may underperform going forward. Existing holders may want to consider trimming positions or tightening stop-losses.
BKH's quality score of 29/100 is below average, suggesting challenges with profitability or capital efficiency. The company reports a return on equity of 5.6% (sector avg: 11.9%), gross margins of 74.0% (sector avg: 52.6%), net margins of 9.0% (sector avg: 7.7%). Investors should examine whether management is actively addressing these weaknesses or if they reflect structural industry headwinds.
BKH registers a value score of just 29/100, suggesting the stock trades at a significant premium to its fundamental metrics. Key valuation metrics include a P/E ratio of 25.45x, an EV/EBITDA of 7.67x, a P/B ratio of 1.42x. High-premium valuations like this require strong future execution to avoid multiple compression, and downside risk is elevated if growth disappoints.
BLACK HILLS CORP /SD/'s investment score of 38/100 suggests limited reinvestment activity. Key growth metrics include revenue growth of 6.9% vs. a sector average of 4.2% and a return on assets of 2.0% (sector: 3.2%). While this can be positive for mature, cash-generative businesses returning capital to shareholders, it may also signal a lack of growth opportunities or management conservatism.
BKH demonstrates moderate momentum with a score of 62/100, suggesting a neutral price trend without strong directional conviction. Revenue growth stands at 6.9% year-over-year, while a beta of 0.23 reflects its sensitivity to broader market moves. Moderate momentum may indicate the stock is consolidating or transitioning between trends, warranting close monitoring of upcoming catalysts.
BLACK HILLS CORP /SD/ earns an excellent stability score of 88/100, reflecting low price volatility and a conservatively managed balance sheet. Key stability metrics include a beta of 0.23 and a debt-to-equity ratio of 178.00x (sector avg: 1.3x). Stocks with this level of stability tend to act as portfolio anchors, providing downside protection during market corrections while still participating in broad market advances.
BLACK HILLS CORP /SD/'s short interest score of 37/100 reveals significant bearish positioning, suggesting institutional investors are actively betting against the stock. Specific risk factors include elevated leverage (D/E: 178.00x). At $4.5B (mid-cap), BKH carries meaningful risk and is best suited for investors with high risk tolerance who have thoroughly evaluated the bear thesis.
BLACK HILLS CORP /SD/ offers an attractive dividend yield of 4.3%, placing it among the higher-yielding stocks in its peer group. This compares to a sector average dividend yield of 1.4%. A yield this high can provide meaningful income, but investors should verify the payout is sustainable by examining the payout ratio, free cash flow coverage, and any history of dividend cuts.
BLACK HILLS CORP /SD/ is a mid-cap company in the Transportation, Communications, Electric, Gas, And Sanitary Services sector, ranked #0 of 50 in its sector (100th percentile) and #2262 of 7,333 overall (69th percentile). Key comparisons include ROE of 5.6% trailing the 11.9% sector median and operating margins of 20.4% above the 14.8% sector average. This top-quartile standing reflects exceptional competitive strength relative to Transportation, Communications, Electric, Gas, And Sanitary Services peers.
While BKH currently exhibits a REDUCE profile, superior opportunities exist within the TRANSPORTATION, COMMUNICATIONS, ELECTRIC, GAS, AND SANITARY SERVICES sector. Our model identifies several "Strong Buy" candidates with higher quality scores and more attractive valuations among direct industry competitors.
View Top Transportation, Communications, Electric, Gas, And Sanitary Services Alpha →Quant Factor Profile
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Improvement in Quality (29) would have the largest impact on the composite score.
EV/EBITDA 26% ABOVE SECTOR MEDIAN
ROE 53% BELOW SECTOR MEDIAN
Gross Margin 41% ABOVE SECTOR MEDIAN (FAVORABLE)
Above 50MA
37.18%
Net New Highs
+51081
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