Black Hills Corporation: Company Profile and SWOT Analysis by ICDResearch

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									Black Hills Corporation

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Black Hills Corporation                                                     Financial Snapshot

                                                                            Operating Performance
Fast Facts
                                                                            The company reported revenues of US$1,307.25
Headquarters Address                  625 Ninth Street, Rapid City, 57701
                                                                            million during 2010, with a CAGR of 24.59% during
                                                                            2006–2010. Its revenue grew at an annual rate of
Telephone                             + 1 605 7211700
                                                                            2.97% over the previous fiscal year. In 2010, the
                                                                            company recorded an operating margin of 14.83%, as
Fax                                   + 1 605 3484748                       against 9.99% in 2009.

Website                               www.blackhillscorp.com
                                                                            Revenue and Margins
Ticker Symbol, Stock Exchange         BKH, New York Stock Exchange

Number of Employees                   2,124

Fiscal Year End                       December

Revenue (in US$ million)              1,307.25




SWOT Analysis

Strengths                             Weaknesses                            Return on Equity

Integrated business model             Decrease in bottom-line performance   The company recorded a return on equity (ROE) of
                                                                            6.24% for 2010, as compared to its peers, National
                                                                            Fuel Gas Company (Ticker: NFG), National Oilwell
Strong top-line performance           Increasing debt obligations           Varco, Inc. (Ticker: NOV) and Ameren Corporation
                                                                            (Ticker: AEE), which recorded ROEs of 12.94%,
Wide customer base                                                          10.59% and 1.80% respectively. The company
                                                                            reported an operating margin of 14.83% in 2010.
Opportunities                         Threats
                                                                            Return on Equity
Expansion plans                       Alternative energy sources

Increasing demand of natural gas in
                                      Environmental regulations
the US
                                      US energy policy and increasing tax
Rising demand for electricity
                                      burden




                                                                            Liquidity Position

                                                                            The company reported a current ratio of 0.85 in 2010,
                                                                            as compared to its peers, National Fuel Gas
                                                                            Company, National Oilwell Varco, Inc. and Ameren
                                                                            Corporation, which recorded current ratios of 1.48,
                                                                            2.32 and 1.53 respectively. As of December 2010, the
                                                                            company recorded cash and short-term investments
                                                                            of worth US$32.44 million, against US$5.18 million
                                                                            current debt. The company reported a debt to equity
                                                                            ratio of 1.31 in 2010 as compared to its peers,
                                                                            National Fuel Gas Company, National Oilwell Varco,
                                                                            Inc. and Ameren Corporation, which recorded debt to
                                                                            equity ratios of 0.72, 0.06 and 1.00 respectively.




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Black Hills Corporation - SWOT Profile                                                                             Page 1
Black Hills Corporation

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TABLE OF CONTENTS

1     Business Analysis ................................................................................................................................... 5
    1.1     Company Overview .................................................................................................................................................5
    1.2     Business Description ...............................................................................................................................................5
    1.3     Major Products and Services ...................................................................................................................................6
    1.4     Key Financial Performance Indicators .....................................................................................................................7
      1.4.1        Revenue and Operating Profit .........................................................................................................................7
      1.4.2        Asset, Liabilities and Capex ............................................................................................................................8
      1.4.3        Net Debt vs. Gearing Ratio ..............................................................................................................................9
      1.4.4        Solvency ........................................................................................................................................................10
      1.4.5        Valuation ........................................................................................................................................................11
    1.5     Competitive Benchmarking ....................................................................................................................................12
      1.5.1        Market Capitalization .....................................................................................................................................12
      1.5.2        Efficiency .......................................................................................................................................................13
      1.5.3        Capital Expenditure .......................................................................................................................................14
      1.5.4        Valuation ........................................................................................................................................................15
      1.5.5        Turnover – Inventory and Asset ....................................................................................................................16
      1.5.6        Liquidity ..........................................................................................................................................................17
2     Mergers & Acquisitions and Partnerships .................................................................................
								
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