Operating Margin

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Price: 71.46 USD -1.27% Market Closed

Market Cap: $5.4B

23.3%

Improving

by 2.2%

Operating Margin shows how much profit a company makes from its regular business activities after covering operating costs. It helps measure how efficiently the company turns sales into profit.

Operating Margin

23.3%

Operating Income

$529.5m

Revenue

$2.3B

Operating Margin shows how much profit a company makes from its regular business activities after covering operating costs. It helps measure how efficiently the company turns sales into profit.

Operating Margin

23.3%

Operating Income

$529.5m

Revenue

$2.3B

Peer Comparison

Country		Company	Market Cap	Operating Margin
US		Black Hills Corp NYSE:BKH	5.4B USD	Loading...
UK		National Grid PLC LSE:NG	59.1B GBP	Loading...
FR		Engie SA PAR:ENGI	58.5B EUR	Loading...
US		Sempra Energy NYSE:SRE	56.1B USD	Loading...
DE		E.ON SE XETRA:EOAN	44.1B EUR	Loading...
US	S	Sempra VSE:SREN	43.4B EUR	Loading...
US		Dominion Energy Inc NYSE:D	50.6B USD	Loading...
DE		RWE AG XETRA:RWE	37.4B EUR	Loading...
US		Public Service Enterprise Group Inc NYSE:PEG	39.3B USD	Loading...
US		Consolidated Edison Inc NYSE:ED	37.3B USD	Loading...
DE		E ON SE MIL:EOAN	31.3B EUR	Loading...

Market Distribution

Min	-4 087 900%
30th Percentile	-5.1%
Median	6%
70th Percentile	14.8%
Max	1 032 600%

Other Profitability Ratios

Black Hills Corp
Glance View

Economic Moat

None

Market Cap

5.4B USD

Industry

Utilities

In the heart of the American West, Black Hills Corp. stands as a beacon of energy generation and distribution, operating primarily within regulated energy markets in several states including South Dakota, Wyoming, and Colorado. With roots tracing back over a century, the company has evolved from its humble beginnings into a diversified energy provider. At its core, Black Hills Corp. generates electricity and distributes natural gas and electric services to over a million customers. The company’s electric utility business thrives on a mix of coal, natural gas, and renewable energy sources, showcasing a commitment to sustainable practices even as it meets the growing demands of its residential and commercial clients. This strategic approach not only secures a reliable energy supply chain but also ensures an alignment with evolving environmental standards. Financially, Black Hills Corp. thrives on its robust regulatory framework, which allows for predictable revenue streams and stable returns. The company adeptly navigates the intricate regulatory landscape to secure fair rates of return on its investments in infrastructure and technology. Its operational model relies heavily on a steady flow of capital into the expansion and maintenance of its utility assets, such as power plants and transmission networks. The symbiosis of stable income from their utility services and strategic investment in infrastructure provides Black Hills Corp. a resilient foothold in the energy sector, allowing it to continuously reinvest in innovation and grid modernization. Thus, even amidst a dynamic energy economy, Black Hills Corp. remains poised to harness new opportunities while delivering value to its stakeholders.

View BKH Analysis

BKH Intrinsic Value

Overvaluation 3%

Intrinsic Value

Price

What is Intrinsic Value?

Economic Moat is a concept popularized by Warren Buffett to describe a company's durable competitive advantage. It represents the 'moat' that protects a company from competitors and helps it sustain profitability over the long term. Our analysis of the past 10 years showed that companies with a wide economic moat significantly outperformed the market, delivering +645% returns compared to +189% for the S&P 500.

Our research into Economic Moat performance spans the past 10 years and focuses on companies with a wide economic moat. For this analysis, we calculated the average stock price returns of these companies, comparing them to the performance of the S&P 500 index over the same period.

The results were compelling: wide moat stocks achieved a remarkable +645% average return, compared to +188% for the broader market. This difference highlights the long-term benefits of investing in businesses that can maintain their market position and pricing power over time.

Note: This research does not account for survivorship bias. Past performance is not indicative of future results.

Determining whether a company has an economic moat requires both a deep dive into financial metrics and a qualitative assessment of its competitive position. Our analysts conduct a rigorous evaluation that focuses on identifying structural advantages that enable a company to sustain profitability and defend its market share over the long term.

The process begins with an analysis of a company’s historical financial performance. We assess how consistently the company has generated returns above its cost of capital and whether those returns have been stable or improving. However, financial performance alone doesn’t reveal the full picture. To understand the sources of these advantages, we evaluate five key drivers of economic moats:

Network Effect: We analyze whether the value of a company’s product or service grows as its user base expands. Platforms like payment systems or marketplaces benefit from this self-reinforcing.

Switching Costs: We assess whether customers face significant costs or disruptions when switching to a competitor’s product or service. High switching costs create customer stickiness and provide pricing power.

Intangible Assets: Strong brands, patents, and regulatory licenses can protect a company’s market position by creating barriers for competitors or enabling premium pricing. For example, a well-recognized consumer brand may command higher customer loyalty and margins.

Efficient scale: Occurs when a market is optimally served by one or a few players, making it unprofitable for new entrants to compete. This typically happens in industries with high fixed costs or geographic constraints, such as utilities or pipelines.

Cost Advantage: Companies with structural cost advantages can produce goods or services at a lower cost than their competitors, enabling them to offer competitive pricing or maintain higher margins. These advantages often arise from economies of scale, superior supply chain management, or proprietary technology. Firms like Walmart leverage their massive scale to negotiate better terms with suppliers, allowing them to undercut competitors on price.

By examining these factors in combination with a company’s financial performance and market positioning, we classify each company into one of three categories:

This rigorous evaluation ensures that our moat ratings are both comprehensive and reliable, giving investors the tools they need to make well-informed, long-term decisions.

The AI Assistant may sometimes provide inaccurate information.

Make your own investment decisions or consult a licensed financial advisor.

Black Hills Corp
NYSE:BKH

Peer Comparison

Market Distribution

Other Profitability Ratios

Black Hills Corp
Glance View

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Black Hills Corp NYSE:BKH