Latest Ratios: P/E Ratio 20.6x · EV/EBITDA 12.7x · ROE 7.8%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $6.5B | $5.1B | $4.1B | $3.6B | $4.6B | $4.5B | $3.8B | $4.8B | $3.5B | $3.3B | $3.3B |
| Enterprise Value | $11.0B | $9.6B | $8.5B | $7.9B | $9.2B | $9.0B | $7.6B | $8.3B | $6.6B | $6.6B | $6.6B |
| P/E Ratio → | 20.58 | 17.44 | 14.97 | 13.80 | 17.72 | 18.87 | 16.84 | 23.95 | 13.47 | 18.00 | 44.77 |
| P/S Ratio | 2.77 | 2.20 | 1.92 | 1.55 | 1.79 | 2.29 | 2.26 | 2.75 | 1.99 | 1.97 | 2.12 |
| P/B Ratio | 1.59 | 1.30 | 1.14 | 1.10 | 1.48 | 1.55 | 1.44 | 1.94 | 1.52 | 1.82 | 1.89 |
| P/FCF | 14.65 | — | — | 9.31 | — | — | — | — | 111.37 | 32.39 | — |
| P/OCF | 9.59 | 7.55 | 5.69 | 3.83 | 7.82 | — | 7.08 | 9.45 | 7.13 | 7.73 | 10.20 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 4.16 | 3.98 | 3.40 | 3.61 | 4.62 | 4.48 | 4.76 | 3.77 | 3.94 | 4.27 |
| EV / EBITDA | 12.68 | 11.69 | 10.94 | 10.88 | 13.06 | 13.96 | 11.64 | 13.43 | 11.13 | 10.95 | 12.84 |
| EV / EBIT | 20.43 | 17.66 | 16.42 | 16.48 | 20.10 | 21.84 | 18.07 | 21.61 | 16.62 | 15.77 | 19.21 |
| EV / FCF | — | — | — | 20.41 | — | — | — | — | 211.13 | 64.77 | — |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 38.5% | 38.5% | 39.5% | 34.2% | 30.3% | 36.2% | 41.8% | 38.5% | 36.9% | 39.4% | 39.8% |
| Operating Margin | 23.3% | 23.3% | 23.6% | 20.3% | 17.8% | 21.0% | 25.2% | 23.4% | 22.6% | 24.8% | 21.8% |
| Net Profit Margin | 12.6% | 12.6% | 12.8% | 11.2% | 10.1% | 12.1% | 13.4% | 11.5% | 14.7% | 10.5% | 4.7% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 7.8% | 7.8% | 7.9% | 8.2% | 8.6% | 8.5% | 8.9% | 8.4% | 12.6% | 10.0% | 4.6% |
| ROA | 2.8% | 2.8% | 2.8% | 2.7% | 2.8% | 2.7% | 2.9% | 2.7% | 3.8% | 2.7% | 1.3% |
| ROIC | 4.9% | 4.9% | 4.8% | 4.6% | 4.5% | 4.4% | 5.2% | 5.4% | 5.7% | 6.2% | 6.3% |
| ROCE | 5.5% | 5.5% | 5.7% | 5.8% | 5.6% | 5.2% | 6.1% | 6.2% | 6.4% | 6.9% | 6.6% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 1.20 | 1.20 | 1.22 | 1.33 | 1.51 | 1.57 | 1.42 | 1.42 | 1.37 | 1.83 | 1.92 |
| Debt / EBITDA | 5.72 | 5.72 | 5.67 | 6.03 | 6.61 | 7.05 | 5.78 | 5.68 | 5.30 | 5.50 | 6.48 |
| Net Debt / Equity | — | 1.16 | 1.22 | 1.31 | 1.50 | 1.57 | 1.41 | 1.41 | 1.36 | 1.82 | 1.91 |
| Net Debt / EBITDA | 5.50 | 5.50 | 5.65 | 5.91 | 6.58 | 7.03 | 5.77 | 5.67 | 5.26 | 5.47 | 6.45 |
| Debt / FCF | — | — | — | 11.10 | — | — | — | — | 99.77 | 32.38 | — |
| Interest Coverage | 2.63 | 2.63 | 2.64 | 2.68 | 2.82 | 2.68 | 2.90 | 2.74 | 2.81 | 3.04 | 2.51 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.35 | 1.35 | 0.97 | 0.70 | 0.64 | 0.90 | 0.71 | 0.58 | 0.78 | 0.88 | 0.88 |
| Quick Ratio | 1.11 | 1.11 | 0.77 | 0.56 | 0.52 | 0.73 | 0.54 | 0.44 | 0.60 | 0.70 | 0.68 |
| Cash Ratio | 0.25 | 0.25 | 0.02 | 0.07 | 0.01 | 0.01 | 0.01 | 0.01 | 0.03 | 0.02 | 0.03 |
| Asset Turnover | — | 0.21 | 0.21 | 0.24 | 0.27 | 0.21 | 0.21 | 0.23 | 0.25 | 0.25 | 0.24 |
| Inventory Turnover | 8.24 | 8.24 | 8.36 | 9.54 | 8.58 | 8.24 | 8.41 | 9.10 | 9.44 | 8.99 | 8.63 |
| Days Sales Outstanding | — | — | — | — | — | — | — | — | — | — | — |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 3.2% | 3.9% | 4.5% | 4.6% | 3.4% | 3.2% | 3.5% | 2.6% | 3.1% | 2.9% | 2.7% |
| Payout Ratio | 67.9% | 67.9% | 66.8% | 64.1% | 60.6% | 61.3% | 59.5% | 62.5% | 41.2% | 54.6% | 120.0% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 4.9% | 5.7% | 6.7% | 7.2% | 5.6% | 5.3% | 5.9% | 4.2% | 7.4% | 5.6% | 2.2% |
| FCF Yield | 6.8% | — | — | 10.7% | — | — | — | — | 0.9% | 3.1% | — |
| Buyback Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| Total Shareholder Yield | 3.2% | 3.9% | 4.5% | 4.6% | 3.4% | 3.2% | 3.5% | 2.6% | 3.1% | 2.9% | 2.7% |
| Shares Outstanding | — | $73M | $70M | $67M | $65M | $63M | $62M | $61M | $56M | $55M | $53M |
Includes 30+ ratios · 30 years · Updated daily
Live VCP patterns, Cup & Handle overlays, support/resistance, and AI trade plans.
High-probability breakout stocks crossing their pivot across 5 pattern engines.
DCF models, multiple analysis, and analyst estimates.
10-year return with dividends reinvested.
Compare growth, multiples, and margins vs sector.
Quick answers to the most common questions about buying BKH stock.
Black Hills Corporation's current P/E ratio is 20.6x. The historical average is 18.1x. This places it at the 83th percentile of its historical range.
Black Hills Corporation's current EV/EBITDA is 12.7x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 10.0x.
Black Hills Corporation's return on equity (ROE) is 7.8%. The historical average is 9.9%.
Based on historical data, Black Hills Corporation is trading at a P/E of 20.6x. This is at the 83th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Black Hills Corporation's current dividend yield is 3.19% with a payout ratio of 67.9%.
Black Hills Corporation has 38.5% gross margin and 23.3% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
Black Hills Corporation's Debt/EBITDA ratio is 5.7x, indicating high leverage. A ratio above 4x may signal elevated financial risk.
Key Metrics
Top Statement Risk
Persistent EPS shortfall and leverage ambiguity
Metrics are mathematically derived from official filings.
Premium Multiple Against Thin Earned Returns
Based on the reported trailing P/E of 21.32 and price of $84.87, BKH trades at a premium to several regulated peers while its trailing ROE sits near 7.8%, suggesting the market is pricing dividend continuity and rate base growth more than current earnings power.
A P/E of 21.3 against a forward figure of 19.5 implies the market expects earnings to recover, but the recent quarters of reported EPS shortfall make that recovery an assumption rather than a demonstrated trend. The 3.2% dividend yield sits within the range of peers such as NWE and POR, so the valuation premium appears anchored to the dividend track record and regulated asset growth rather than to a yield advantage. Investors should monitor whether forward earnings guidance is revised, since the valuation depends heavily on that expectation holding.
Earned Return Lags Regulatory Expectations
As reported in the quarterly series, BKH's trailing ROE ranged from roughly 0.7% to 3.7% per quarter, a level that appears well below typical authorized utility returns and suggests a meaningful gap between earned and allowed ROE.
Quarterly ROE figures are seasonal and do not annualize cleanly, but the trailing 7.8% figure remains below the authorized levels typically granted to regulated gas and electric utilities. A persistent gap of this kind may point to regulatory lag, unrecovered costs, or interest burden absorbing returns that the rate base is designed to produce. The gap warrants monitoring in upcoming rate case outcomes, since constructive decisions would be needed to close it.
Margin Compression Between Peak and Trough Quarters
Based on reported figures, operating margin moved between roughly 17.5% and 27.3% across the ten quarters, with net margin following a similar seasonal pattern, suggesting cost recovery timing drives much of the quarterly variance.
The clustering of high margins in Q4 and Q1 and low margins in Q2 and Q3 suggests that weather-driven volumes and fixed O&M recovery are doing most of the work rather than structural cost improvement. Net margin of 8.8% in the latest quarter versus 16.8% in the prior Q1 reflects the same seasonal shape. Without normalized weather adjustments, the underlying trend in cost recovery is difficult to isolate from the provided data.
Reported Leverage Conflicts With Coverage Profile
As reported in the provided figures, debt-to-capital held near 0.53 to 0.58 across the period while interest coverage ranged from about 1.6x to 4.0x, a pattern that warrants verification of the reported debt-to-equity figure of 1.20.
A debt-to-capital ratio near 0.55 is broadly consistent with a typical utility capital structure, but the reported D/E figure should be reconciled against it before drawing firm balance sheet conclusions. Interest coverage tightening to roughly 1.6x in the low-earnings quarters suggests limited cushion against further earnings weakness. FFO-to-debt moving between about 1.9x and 5.3x indicates that credit metrics are sensitive to the timing of earnings.
Dividend Coverage Thins in Recent Quarters
Based on reported quarterly figures, the dividend payout ratio reached roughly 140% in Q2 2026 and 197% in Q3 2025, indicating that dividends have at times exceeded reported earnings even as operating cash flow continued to cover them.
Payout ratios above 100% are common in utility quarters with timing mismatches, but the sustained pattern of elevated payouts suggests the dividend is being supported by operating cash flow and external financing rather than by earned income. Operating cash flow covering dividends by roughly 1.6x in the latest quarter implies continuity is not immediately at risk. The critical question is whether this coverage can be maintained while CapEx continues to exceed operating cash generation.
Lagging Returns Despite Premium Multiple
Compared with peers in the supplied set, BKH's trailing ROE of 7.8% sits between AVA's 8.9% and POR's 6.5%, while its P/E of 21.3 is above most peers excluding NWE, suggesting the valuation premium is not supported by relative return on equity.
MGEE and OTTR deliver higher ROE, and OTTR does so at a much lower multiple, which underscores the gap between BKH's valuation and its earned return. BKH's dividend yield of 3.2% is in line with NWE and below AVA and POR, so yield does not explain the premium either. The justification for the multiple rests more on regulated asset growth and dividend history than on current profitability relative to peers.
Price-to-Earnings Misapplied to Regulated Utility
Applying a standard industrial P/E to BKH overlooks that utility multiples are anchored to interest rates and allowed returns, so a 21.3 trailing P/E may look elevated against growth peers yet be reasonable against the authorized return and Treasury yields.
Comparing BKH's P/E to growth-oriented sectors would obscure that regulated utilities are valued as bond proxies, where the allowed ROE and prevailing rates drive the appropriate multiple. Earnings in the latest quarters were depressed by timing effects, so trailing P/E may overstate the true multiple on normalized earnings. A better frame is price relative to rate base per share and the spread between earned ROE and the cost of equity, which would avoid distortion from quarterly volatility.