# Black Hills (BKH.US)

Canonical: https://gigainvestors.com/s/BKH

Analysis as of: 2026-10-16T07:26:57.768Z. Financial observations: FY1996–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $75.87 per share; close as of 2026-10-15.

Estimated value: low $33.71 per share, central $38.31 per share, high $44.43 per share. Buy at or below the central value $38.31 per share. Valuation as of 2026-10-16T07:26:57.768Z; scenarios are not confidence intervals.

Expected annual return: 6.5% at the stated quote. About 6.5% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: pass

- 5 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 5

- Years with a net loss: 0

- Operating margin variation: 0.09×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.25×

- FY2018: 0.23×

- FY2019: 0.23×

- FY2020: 0.25×

- FY2021: 0.21×

- FY2022: 0.18×

- FY2023: 0.20×

- FY2024: 0.24×

- FY2025: 0.23×

- LTM to Jun 2026: 0.24×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 6.9%

- ROIC, second-lowest year: 6.6%

- Typical minus recent gross margin: -1.0 pp

- Typical gross margin (annual median): 38.5%

- Recent gross margin (lower of latest and 3-year median): 39.5%

- Years with nonpositive capital: 0

- Capital spending / revenue: 34.9%

- ROIC including acquisitions, ten-year median: 2.4%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 8.3%

- FY2018: 9.9%

- FY2019: 7.8%

- FY2020: 7.5%

- FY2021: 6.6%

- FY2022: 6.6%

- FY2023: 6.9%

- FY2024: 6.8%

- FY2025: 6.7%

- LTM to Jun 2026: 6.8%

### economics: fail

- owner earnings cash conversion below threshold

- incremental invested capital return below threshold

- Owner earnings / net income, 5-yr: 0.42×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $549M

- Net income, five-year total: $1.3B

- Return on incremental invested capital: 6.7%

- Working capital / revenue, annual change: 0.2 pp

- Working capital / revenue, change between three-year averages: 1.3 pp

- Working capital / revenue, final three-year average: 13.5%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.00×

- FY2022: 1.00×

- FY2023: -0.14×

- FY2024: -0.74×

- FY2025: 1.00×

### management: fail

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 8.3% vs 6.8%

- Per-share earnings: 1.37 to 3.91 (three-year endpoint medians)

- five-year and ten-year diluted share growth both above threshold

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 4.9%

- Ordinary dilution, 5-year annual growth: 3.2%

- Market cap gain: $2.0B

- Cumulative retained earnings: $885M

- Diluted shares, 10-year annual growth: 4.9%

- Diluted shares, 5-year annual growth: 3.2%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 14.0%

- Per-share value change: $2.54

- Per-share value, starting three-year median: $1.37

- Per-share value, ending three-year median: $3.91

- Buyback history: 0 years

- Debt-funded buybacks: No

- Acquisition spending: $951M

- Cumulative net income, 10 years: $2.3B

- ROIC, first three-year median: 8.3%

- ROIC, last three-year median: 6.8%

Chart: Earnings per share; fiscal year observations.

- FY2016: $1.37

- FY2017: $3.21

- FY2018: $4.66

- FY2019: $3.28

- FY2020: $3.65

- FY2021: $3.74

- FY2022: $3.53

- FY2023: $3.91

- FY2024: $3.91

- FY2025: $3.98

### accounting: pass

- Sloan accruals: -3.5%

- Receivables to sales index (DSRI): 1.02×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 1.8%

- Earnings backed by cash: Yes

- Operating cash / earnings: 2.31×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.34×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -3.8%

- FY2017: -3.8%

- FY2018: -3.3%

- FY2019: -4.1%

- FY2020: -3.9%

- FY2021: 3.3%

- FY2022: -3.4%

- FY2023: -7.1%

- FY2024: -4.5%

- FY2025: -3.5%

## Holders

- [Matthew McLennan](https://gigainvestors.com/FE): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Andrew Adams](https://gigainvestors.com/MPF): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Price needs cash profits to grow 9.5% a year for ten years · sales -0.5%

Story as of 2026-10-16T09:58:24.319Z; price observation 2026-10-15.

Price needs cash profits to grow 9.5% a year for ten years

- 2025-07-25: Black Hills gets approval for Kansas gas utility rate increase ([investing.com](https://www.investing.com/news/company-news/black-hills-gets-approval-for-kansas-gas-utility-rate-increase-93CH-4152307))

- 2025-08-20: Black Hills upgraded at BofA as Northwestern merger boosts strategic outlook ([seekingalpha.com](https://seekingalpha.com/news/4487606-black-hills-upgraded-at-bofa-as-northwestern-merger-boosts-strategic-outlook?utm_source=feed_news_all&utm_medium=referral&feed_item_type=news))

- 2026-02-05: Black Hills Corp (BKH) Q4 2025 Earnings Call Highlights: Strong Growth Amid Rising Costs ([finance.yahoo.com](https://finance.yahoo.com/news/black-hills-corp-bkh-q4-230128052.html))

### Sales · FY2025–2026

sales -0.5%; source https://www.sec.gov/Archives/edgar/data/1130464/000119312526046028/bkh-20251231.htm; observed 2026-02-11.

- FY2017: $1.7B 

- FY2018: $1.8B 

- FY2019: $1.7B 

- FY2020: $1.7B 

- FY2021: $1.9B 

- FY2022: $2.6B 

- FY2023: $2.3B 

- FY2024: $2.1B 

- FY2025: $2.3B 

- FY2026: $2.3B 

### Gross margin · FY2026

gross margin 42.9%; source https://www.sec.gov/Archives/edgar/data/1130464/000119312526046028/bkh-20251231.htm; observed 2026-02-11.

- FY2017: 39.4% 

- FY2018: 36.9% 

- FY2019: 38.5% 

- FY2020: 41.8% 

- FY2021: 36.2% 

- FY2022: 30.3% 

- FY2023: 34.2% 

- FY2024: 39.5% 

- FY2025: 38.5% 

- FY2026: 42.9% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in utilities regulated gas; annual sales are USD 2.3 billion.

- Source: https://www.sec.gov/Archives/edgar/data/1130464/000119312526046028/bkh-20251231.htm (filed 2026-02-11); FY2025: revenue 2310000000; grossProfit 888700000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); BKH.US: Black Hills Corporation, through its subsidiaries, operates as an electric and natural gas utility company in the United States. The company operates through the Electric Utilities and Gas Utilities segments. The Electric Utilities segment engages in the generation, transmission, and distribution of electricity to electric utility customers in Colorado, Montana, South Dakota, and Wyoming; ownership and operation of 1,386 megawatts of generation capacity, and 9,478 miles of electric transmission and distribution lines; sale of excess power to other utilities and marketing companies; and ownership and operation of non-regulated power generation and mining assets. Its Gas Utilities segment is involved in the distribution of natural gas to approximately 1,138,000 natural gas utility customers in Arkansas, Colorado, Iowa, Kansas, Nebraska, and Wyoming; ownership and operation of 4,581 miles of intrastate gas transmission pipelines; 44,840 miles of gas distribution mains and service lines; seven natural gas storage sites; and approximately 50,000 horsepower of compression and 494 miles of gathering lines. The company also provides non-regulated services to its retail customers, including Service Guard Comfort Plan, which provides home appliance repair services through on-going monthly service agreements to residential utility customers; Tech Services, which include construction and maintenance of customer-owned gas infrastructure facilities, as well as electrical system construction services; and HomeServe, which are additional home repair service plans for natural gas residential customers. In addition, the company produces electric power through wind, natural gas, and coal-fired generating plants, as well as coal at its coal mine located near Gillette, Wyoming. Black Hills Corporation was incorporated in 1941 and is headquartered in Rapid City, South Dakota.

### Why customers stay

Margins ranged from 34.2% to 39.5% during 2023–25; it earns 6.9% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-11); FY2023: grossProfit / revenue = 34.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-11); FY2024: grossProfit / revenue = 39.5%.

- Source: https://www.sec.gov/Archives/edgar/data/1130464/000119312526046028/bkh-20251231.htm (filed 2026-02-11); FY2025: grossProfit / revenue = 38.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-11); 10-year return on capital observations [[2017,0.08284164425807575],[2018,0.09917108690374257],[2019,0.0784030576968472],[2020,0.07503972689249165],[2021,0.06604784702559131],[2022,0.06566588664067338],[2023,0.06943004029868437],[2024,0.06788986038600284],[2025,0.06661356349173674],[2026,0.06773346730254871]]; median 0.0686599503423436. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Earns 6.7% on new investment; paid dividends in 10 of 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-11); FY2016: growth capex 299250000; upkeep 175533000; owner earnings 72970000. Growth capex / owner earnings = 4.101000411127861.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-11); FY2017: growth capex 137764000; upkeep 188246000; owner earnings 177034000. Growth capex / owner earnings = 0.7781782030570399.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-11); FY2018: growth capex 196588433.96487617; upkeep 260935566.03512383; owner earnings 193834433.96487617. Growth capex / owner earnings = 1.0142080018687445.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-11); FY2021: growth capex 441539000; upkeep 235953000; owner earnings 236700000. Growth capex / owner earnings = 1.8653950147866498.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-11); FY2022: growth capex 353465000; upkeep 250900000; owner earnings 258400000. Growth capex / owner earnings = 1.3678986068111456.

- Source: https://www.sec.gov/Archives/edgar/data/1130464/000119312526046028/bkh-20251231.htm (filed 2026-02-11); FY2025: growth capex 536000000; upkeep 283800000; owner earnings 291600000. Growth capex / owner earnings = 1.8381344307270233.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-11); Incremental return on capital 0.06708116022780383, from the economics test's unchanged annual inputs.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-11); Dividend observations: [[2016,87570000],[2017,96744000],[2018,106591000],[2019,124647000],[2020,135439000],[2021,145023000],[2022,156723000],[2023,168100000],[2024,182300000],[2025,197900000]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 0.5% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); BKH.US SharesStats.PercentInsiders = 0.482 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 9.5% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-11); Ten-year compound average after fade. Initial solved rate 0.12422943311519863. Price 75.87; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share -7.972509273979862 → FY2025 3.9836065573770494. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $61.85 per share

- 2016-11: $58.75 per share

- 2016-12: $61.34 per share

- 2017-01: $62.55 per share

- 2017-02: $64.88 per share

- 2017-03: $66.47 per share

- 2017-04: $68.02 per share

- 2017-05: $69.54 per share

- 2017-06: $67.47 per share

- 2017-07: $69.66 per share

- 2017-08: $70.38 per share

- 2017-09: $68.87 per share

- 2017-10: $65.26 per share

- 2017-11: $58.51 per share

- 2017-12: $60.11 per share

- 2018-01: $55.55 per share

- 2018-02: $50.79 per share

- 2018-03: $54.30 per share

- 2018-04: $56.68 per share

- 2018-05: $58.16 per share

- 2018-06: $61.21 per share

- 2018-07: $59.97 per share

- 2018-08: $58.85 per share

- 2018-09: $58.09 per share

- 2018-10: $59.50 per share

- 2018-11: $66.21 per share

- 2018-12: $62.78 per share

- 2019-01: $67.89 per share

- 2019-02: $70.98 per share

- 2019-03: $74.07 per share

- 2019-04: $72.76 per share

- 2019-05: $76.20 per share

- 2019-06: $78.17 per share

- 2019-07: $79.15 per share

- 2019-08: $76.71 per share

- 2019-09: $76.73 per share

- 2019-10: $78.83 per share

- 2019-11: $76.57 per share

- 2019-12: $78.54 per share

- 2020-01: $83.03 per share

- 2020-02: $72.20 per share

- 2020-03: $64.03 per share

- 2020-04: $61.94 per share

- 2020-05: $61.71 per share

- 2020-06: $56.66 per share

- 2020-07: $57.86 per share

- 2020-08: $56.08 per share

- 2020-09: $53.49 per share

- 2020-10: $56.66 per share

- 2020-11: $60.83 per share

- 2020-12: $61.45 per share

- 2021-01: $59.12 per share

- 2021-02: $59.16 per share

- 2021-03: $66.77 per share

- 2021-04: $68.98 per share

- 2021-05: $65.79 per share

- 2021-06: $65.63 per share

- 2021-07: $67.65 per share

- 2021-08: $70.33 per share

- 2021-09: $62.76 per share

- 2021-10: $66.38 per share

- 2021-11: $64.12 per share

- 2021-12: $70.57 per share

- 2022-01: $67.74 per share

- 2022-02: $69.99 per share

- 2022-03: $77.02 per share

- 2022-04: $73.24 per share

- 2022-05: $76.66 per share

- 2022-06: $72.77 per share

- 2022-07: $77.20 per share

- 2022-08: $75.48 per share

- 2022-09: $67.73 per share

- 2022-10: $65.37 per share

- 2022-11: $71.63 per share

- 2022-12: $70.34 per share

- 2023-01: $72.38 per share

- 2023-02: $61.41 per share

- 2023-03: $63.10 per share

- 2023-04: $65.29 per share

- 2023-05: $60.95 per share

- 2023-06: $60.26 per share

- 2023-07: $60.33 per share

- 2023-08: $55.00 per share

- 2023-09: $50.59 per share

- 2023-10: $48.35 per share

- 2023-11: $51.59 per share

- 2023-12: $53.95 per share

- 2024-01: $51.76 per share

- 2024-02: $52.03 per share

- 2024-03: $54.60 per share

- 2024-04: $54.90 per share

- 2024-05: $56.45 per share

- 2024-06: $54.38 per share

- 2024-07: $59.05 per share

- 2024-08: $59.12 per share

- 2024-09: $61.12 per share

- 2024-10: $59.19 per share

- 2024-11: $64.07 per share

- 2024-12: $58.52 per share

- 2025-01: $58.73 per share

- 2025-02: $61.18 per share

- 2025-03: $60.65 per share

- 2025-04: $60.90 per share

- 2025-05: $58.47 per share

- 2025-06: $56.10 per share

- 2025-07: $57.78 per share

- 2025-08: $59.81 per share

- 2025-09: $61.59 per share

- 2025-10: $63.43 per share

- 2025-11: $73.79 per share

- 2025-12: $69.42 per share

- 2026-01: $72.98 per share

- 2026-02: $73.66 per share

- 2026-03: $69.41 per share

- 2026-04: $75.29 per share

- 2026-05: $72.82 per share

- 2026-06: $74.40 per share

- 2026-07: $71.21 per share

- 2026-08: $71.68 per share

- 2026-09: $70.08 per share

- 2026-10: $75.87 per share

## Annual estimated value (USD per share)

- FY2016: low $17.08 per share, central $22.32 per share, high $26.11 per share

- FY2017: low $35.25 per share, central $46.76 per share, high $54.73 per share

- FY2018: low $33.73 per share, central $39.97 per share, high $46.52 per share

- FY2019: low $14.79 per share, central $16.83 per share, high $19.54 per share

- FY2020: low $14.09 per share, central $16.03 per share, high $18.61 per share

- FY2021: low $35.46 per share, central $40.35 per share, high $46.86 per share

- FY2022: low $41.07 per share, central $49.90 per share, high $58.16 per share

- FY2025: low $36.79 per share, central $41.61 per share, high $48.02 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/1130464/000119312526046028/bkh-20251231.htm); period 2025-12-31, filed 2026-02-11.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.

## Reported holder observations

- [Matthew McLennan](https://gigainvestors.com/FE): 177,990 BKH shares; USD 13,242,000 reported position value; 0.02% of portfolio; add; quarter 2026 Q2.
- [Andrew Adams](https://gigainvestors.com/MPF): 98,285 BKH shares; USD 7,312,000 reported position value; 0.07% of portfolio; hold; quarter 2026 Q2.

# BKH — Black Hills

Held by 2 investors · USD 20,554,000 total · 2026 Q2 · reported price USD 74.40 (split-adjusted).
Page: https://gigainvestors.com/s/BKH

## Holders (2026 Q2)

| Investor | Value | % of their portfolio | This quarter |
|---|---:|---:|---|
| Matthew McLennan (https://gigainvestors.com/FE) | USD 13,242,000 | <0.1% | add +38.22% |
| Andrew Adams (https://gigainvestors.com/MPF) | USD 7,312,000 | 0.1% | hold |

## Total held by quarter

- 2023 Q2: USD 6,108,556 · 1 holder · USD 60.26
- 2023 Q3: USD 8,053,422 · 1 holder · USD 50.59
- 2023 Q4: USD 10,989,076 · 1 holder · USD 53.95
- 2024 Q1: USD 22,837,542 · 2 holders · USD 54.60
- 2024 Q2: USD 24,527,012 · 2 holders · USD 54.38
- 2024 Q3: USD 28,316,223 · 2 holders · USD 61.12
- 2024 Q4: USD 21,755,453 · 2 holders · USD 58.52
- 2025 Q1: USD 17,416,618 · 2 holders · USD 60.65
- 2025 Q2: USD 14,130,715 · 2 holders · USD 56.11
- 2025 Q3: USD 13,631,037 · 2 holders · USD 61.59
- 2025 Q4: USD 15,328,491 · 2 holders · USD 69.42
- 2026 Q1: USD 15,759,888 · 2 holders · USD 69.41
- 2026 Q2: USD 20,554,000 · 2 holders · USD 74.40