Black Hills (BHI) AI Stock Analysis

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Black Hills

(Frankfurt:BHI)

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Positive Factors

Regulated Utility Business ModelBlack Hills operates predominantly through regulated electric and gas utilities, giving earnings a framework for recovering prudent costs and earning approved returns on infrastructure. This supports revenue visibility and makes long-term investment in generation, transmission, and distribution a central source of growth.

Negative Factors

Elevated LeverageMeaningful leverage reduces financial flexibility as Black Hills funds a substantial infrastructure program and manages higher financing costs. Debt levels can constrain the company’s ability to absorb operating or regulatory setbacks, while refinancing exposure may increase the cost of maintaining and expanding its asset base.

Black Hills (BHI) vs. iShares MSCI Germany ETF (EWG)

Market Cap: EUR 6.70B
Dividend Yield: 3.07%
Average Volume (3M): 363
Price to Earnings (P/E): 21.0
Beta (1Y): 0.12
Revenue Growth: -3.48%
EPS Growth: -3.06%
Country: Germany
Employees: 2,795
Sector: Utilities
Sector Strength: 66
Industry: Regulated Gas

Black Hills Business Overview & Revenue Model

Company Description

Black Hills Corporation operates as an American utility firm, delivering both electric power and natural gas through its subsidiaries. Its business is organized into two primary divisions: Electric Utilities and Gas Utilities. The Electric Utilities...

Black Hills Earnings Call Summary

Earnings Call Date:Nov 04, 2026(Q3-2026)|% Change Since:7.28%|Next Earnings Date:Feb 10, 2027

Earnings Call SentimentPositive

The call was strongly positive overall. Management reported higher adjusted EPS, reaffirmed 2026 guidance, maintained liquidity and credit objectives, advanced regulatory approvals, executed the Google data center agreements and described substantial large-load and transmission growth opportunities. The main challenges were the pending final approval for the NorthWestern Energy merger, merger-related costs, higher financing and depreciation costs, unfavorable year-to-date weather, an upcoming $400 million debt refinancing and the ongoing Colorado rate review.

Positive Updates

Strong Third-Quarter Earnings and Guidance Reaffirmed

GAAP EPS was $0.54 in Q3 2026, including $0.03 of merger-related transaction costs. Adjusted EPS was $0.57 versus $0.45 in Q3 2025. Year-to-date GAAP EPS was $2.76, or $2.89 adjusted for $0.13 of merger-related transaction costs, compared with $2.68 in the same period of 2025. The company reaffirmed its 2026 adjusted EPS guidance range of $4.25 to $4.45, representing 6% growth at the midpoint over 2025, and said it expects to deliver in the upper half of its 4% to 6% long-term EPS growth rate.

Negative Updates

Merger Still Awaiting Final Montana Approval

The planned NorthWestern Energy merger has not yet closed because the company is awaiting the final approval in Montana. The Montana Commission extended its decision period by 30 days, with a written decision due by November 12.

Company Guidance

Black Hills reaffirmed its earnings guidance range of $4.25 to $4.45 of adjusted EPS for 2026, representing 6% growth at the midpoint over 2025, and said it has confidence in delivering in the upper half of its 4% to 6% long-term EPS growth rate; the planned Google data center is expected to begin taking service in late 2027, target a full ramp in late 2030, generate approximately $150 million of net income in 2030, and deliver an estimated $2.4 billion of unlevered free cash flows through 2048 after netting out the $1.8 billion of generation investment, with approximately $700 million in transmission expansion by 2029, generation construction expected to start in mid-2027, assets placed in service between 2028 and 2029, and depreciation through 2048.

Black Hills Risk Analysis

Black Hills disclosed 20 risk factors in its most recent earnings report. Black Hills reported the most risks in the "Finance & Corporate" category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added

0 New Risks

Black Hills Peers Comparison

Overall Rating

UnderperformOutperform

Sector (66)

Financial Indicators

DE:BHI against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NJR	74Outperform	$5.56B	15.16	14.42%	3.50%	7.08%	-11.82%
CPK	69Neutral	$3.44B	22.09	9.20%	2.03%	13.91%	12.26%
SR	69Neutral	$5.22B	9.86	15.87%	3.74%	4.12%	93.82%
MDU	66Neutral	$4.15B	21.12	6.65%	2.89%	-0.72%	12.71%
OGS	66Neutral	$5.18B	17.59	8.35%	3.28%	-1.89%	9.38%
Sector *	66Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%

* Utilities Sector Average

Performance Comparison

DE:BHI and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
DE:BHI	Black Hills	78.10	20.38	35.32%
CPK	Chesapeake Utilities	140.17	8.60	6.53%
SR	Spire Inc	88.14	6.62	8.12%
MDU	Mdu Res	19.55	-0.33	-1.65%
NJR	New Jersey Resources Corporation	54.98	10.16	22.68%
OGS	ONE Gas Inc	82.59	4.14	5.28%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Black Hills AI Stock Analysis