Black HillsMEX:BKH 75 Interest Coverage is 3.80 as of Mar. 2026, which is 39% above its 10-year median of 2.73. GuruFocus rates MEX:BKH with a GF Score™ of 75/100 and a GF Value™ of MXN876.49. The stock has 10 warning signs investors should review. Among 448 Utilities - Regulated companies, Black Hills ranks worse than 64.96% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Black Hills's
Operating Income
for the
three
months ended in Mar. 2026 was MXN3,641 Mil. Black Hills's Interest Expense for the
three
months ended in Mar. 2026 was MXN-958 Mil.
Black Hills's interest coverage for the quarter that ended in Mar. 2026 was 3.80.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Black Hills's Interest Coverage or its related term are showing as below:
MEX:BKH'
s Interest Coverage Range Over the Past 10 Years
Min: 2.47 Med: 2.73 Max: 3.02
Current: 2.58
MEX:BKH's Interest Coverage is ranked worse than 64.96% of 448
companies
in the Utilities - Regulated industry
Industry Median: 3.8
vs MEX:BKH: 2.58
Black Hills (MEX:BKH) Interest Coverage Explanation
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Black Hills Interest Coverage Related Terms
Black Hills Interest Coverage Historical Data
* Premium members only.
The historical data trend for Black Hills's Interest Coverage can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
MEX:BKH vs NJR, OGS, SWX: Interest Coverage Comparison
For the Utilities - Regulated Gas subindustry, Black Hills's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Black Hills Interest Coverage vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, Black Hills's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Black Hills's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Black Hills (MEX:BKH) has a Interest Coverage of 3.80 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Black Hills and its competitors. This is 39% above median its historical median of 2.73. Over the past decade, Black Hills' Interest Coverage has ranged from 2.47 to 3.02. According to the industry distribution chart, Black Hills ranks #291 out of 448 companies in the Utilities - Regulated industry, placing it in the top 65%.
Is Black Hills' Interest Coverage too high?
Black Hills' current Interest Coverage of 3.80 is 39% above median its 10-year median of 2.73. Over the past 10 years, this metric has ranged from a low of 2.47 to a high of 3.02. The Utilities - Regulated industry median Interest Coverage is 3.80. Black Hills' value of 3.80 is 0% at this industry median. Based on the distribution chart, Black Hills ranks #291 out of 448 companies in the Utilities - Regulated industry, which is below the industry midpoint. Overall, Black Hills has a GF Score™ of 75/100, reflecting its overall financial health beyond just this single metric.
How does Black Hills' Interest Coverage compare to NJR and OGS?
According to the Utilities - Regulated industry distribution chart, Black Hills ranks #291 out of 448 companies for Interest Coverage. This places Black Hills in the lower half of its industry. The industry median Interest Coverage is 3.80. Black Hills' value of 3.80 is 0% at this benchmark. Historically, Black Hills' own Interest Coverage has ranged from 2.47 to 3.02 over the past decade. While the company's 10-year median is 2.73 vs. the industry median of 3.80, Black Hills has consistently been at the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for an Utilities - Regulated company?
The median Interest Coverage among Utilities - Regulated companies is 3.80, based on 448 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Black Hills's current Interest Coverage of 3.80 is 0% at the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Black Hills and its competitors. For the Utilities - Regulated industry, the median Interest Coverage is 3.80 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Black Hills's current Interest Coverage is 3.80, which is 39% above median its own 10-year median of 2.73. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Black Hills stock overvalued right now?
Black Hills (MEX:BKH) has a current Interest Coverage of 3.80. The stock's GF Value™ is MXN876.49, compared to a current price of MXN1,089.00 — trading 24.2% above its estimated fair value. The current Interest Coverage is 3.80, which is 39% above median its 10-year median of 2.73 and 0% at the Utilities - Regulated industry median of 3.80. Black Hills' overall GF Score™ is 75/100 with 10 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Black Hills (MEX:BKH), the current Interest Coverage is 3.80 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Black Hills (MEX:BKH) Overvalued in 2026?
Based on GuruFocus' analysis, Black Hills stock appears to be overvalued.
The current stock price of MXN1,089.00 is trading 24.2% above its estimated GF Value™ of MXN876.49.
Key valuation signals for MEX:BKH:
Interest Coverage: 3.80 (39% above median its 10-year median of 2.73)
GF Value™: MXN876.49 vs. price of MXN1,089.00 (24.2% above fair value)
Industry Position: 0% at the Utilities - Regulated median (#291 of 448)
No single metric tells the full story. See the MEX:BKH stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Black Hills Corp is a U.S.-based energy company that operates through its Electric Utilities and Gas Utilities segment. These segments operate in states in the Midwest and mountain regions in the U.S. The company's customers include residential, commercial, industrial, and municipal consumers. These customers are residential. Black Hills derives the majority of its revenue from its utility business group, specifically from gas utilities.
75GF Score
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