Black Hills Corp. /SD/ (BKH) intrinsic value & 10-year financials

Black Hills Corp. /SD/ (BKH) has a Graham intrinsic value of $115.58 per share. At $76.63 on Oct 17, 2026, the stock trades 34% below that value. Over the last 10 fiscal years revenue grew 4.5% a year to $2.3B, with an average return on invested capital of 6.1%.

Graham intrinsic value
$115.58
Share price (Oct 17, 2026)
$76.63
Price vs Graham value
34% below
Market cap
$5.6B
Revenue (FY2025)
$2.3B
Revenue growth (10-yr CAGR)
4.5%
ROIC (10-yr avg)
6.1%
Free cash flow (FY2025)
-$146.4M

BKH 10-year financial history

Fiscal year Revenue Net income EPS (diluted) Free cash flow Operating margin ROIC
FY2025 $2.3B $291.6M $3.98 -$146.4M 23.5% 5.8%
FY2024 $2.1B $273.1M $3.91 -$24.9M 24.0% 5.8%
FY2023 $2.3B $262.2M $3.91 $388.8M 20.5% 5.9%
FY2022 $2.5B $258.4M $3.97 -$19.6M 17.9% 5.9%
FY2021 $1.9B $236.7M $3.74 -$742.1M 21.2% 6.1%
FY2020 $1.7B $227.6M $3.65 -$225.5M 25.5% 6.5%
FY2019 $1.7B $199.3M $3.28 -$312.9M 23.5% 6.7%
FY2018 $1.7B $258.4M $4.66 $31.3M 22.7% 8.0%
FY2017 $1.7B $177.0M $3.21 $102.3M 24.8% 6.1%
FY2016 $1.5B $73.0M $1.37 -$154.3M 14.5% 4.0%

Source: annual 10-K filings on SEC EDGAR. Figures in USD.

Executive summary

BLACK HILLS CORP /SD/ has demonstrated mature, steady growth, with revenue compounding at 4.5% annually over the past decade.

BLACK HILLS CORP /SD/ has historically struggled to out-earn its cost of capital, averaging just 6.1% ROIC.

BLACK HILLS CORP /SD/ has not shown aggressive share repurchases (>10% retirement) or a major balance-sheet leverage increase (>50% net debt growth) over the 10-year window.

Benjamin Graham lens

Under Benjamin Graham's formula using SEC EDGAR fundamentals, BLACK HILLS CORP /SD/ is modeled at 12.6% normalized earnings growth with a 5.1% bond-yield adjustment. The resulting Graham intrinsic value estimate is $115.58 per share.

BKH stock: frequently asked questions

What is the intrinsic value of Black Hills Corp. /SD/ (BKH) stock?

Using Benjamin Graham's revised formula, V = EPS × (8.5 + 2g) × 4.4 / Y, with reported diluted earnings per share, a 12.6% normalized growth rate (capped at 15%) and a 5.1% AAA corporate bond yield, BKH's intrinsic value is about $115.58 per share.

Is BKH stock undervalued?

At $76.63 (close on Oct 17, 2026), BKH trades 34% below its Graham value of $115.58. On Graham's terms that leaves a margin of safety. A formula is a starting point for research, not a recommendation.

How fast has Black Hills Corp. /SD/ grown?

Revenue went from $1.5B in fiscal 2016 to $2.3B in fiscal 2025, a compound annual growth rate of 4.5%. Net income was $291.6M in fiscal 2025.

Does Black Hills Corp. /SD/ generate free cash flow?

Black Hills Corp. /SD/ generated -$146.4M of free cash flow (operating cash flow minus capital expenditures) in fiscal 2025. Free cash flow was positive in 3 of the last 10 reported years.

What is BKH's return on invested capital?

Average ROIC over the last 10 fiscal years was 6.1%, and average return on equity was 8.9%. Sustained ROIC above about 15% usually points to a durable competitive advantage.

Where does this BKH data come from?

From Black Hills Corp. /SD/'s annual 10-K filings on SEC EDGAR, most recently filed Aug 6, 2026. Prices are end-of-day snapshots; valuations are formula outputs, not investment advice.

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