BAKER HUGHES CO (68V.DE) Stock Fundamental Analysis
FRA:68V - Deutsche Boerse Ag - US05722G1004 - Common Stock - Currency: EUR
We assign a fundamental rating of 5 out of 10 to 68V. 68V was compared to 35 industry peers in the Energy Equipment & Services industry. 68V has an average financial health and profitability rating. 68V is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year 68V was profitable.
68V had a positive operating cash flow in the past year.
In multiple years 68V reported negative net income over the last 5 years.
In the past 5 years 68V always reported a positive cash flow from operatings.
1.2 Ratios
68V's Return On Assets of 7.77% is fine compared to the rest of the industry. 68V outperforms 68.57% of its industry peers.
68V's Return On Equity of 17.63% is fine compared to the rest of the industry. 68V outperforms 65.71% of its industry peers.
With a decent Return On Invested Capital value of 11.32%, 68V is doing good in the industry, outperforming 68.57% of the companies in the same industry.
68V had an Average Return On Invested Capital over the past 3 years of 9.18%. This is significantly below the industry average of 14.59%.
The last Return On Invested Capital (11.32%) for 68V is above the 3 year average (9.18%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.77% | ||
| ROE | 17.63% | ||
| ROIC | 11.32% |
ROA(3y)3.76%
ROA(5y)-3.1%
ROE(3y)8.7%
ROE(5y)-6.02%
ROIC(3y)9.18%
ROIC(5y)6.97%
1.3 Margins
68V has a Profit Margin of 10.70%. This is in the better half of the industry: 68V outperforms 65.71% of its industry peers.
In the last couple of years the Profit Margin of 68V has grown nicely.
With a Operating Margin value of 12.42%, 68V perfoms like the industry average, outperforming 42.86% of the companies in the same industry.
In the last couple of years the Operating Margin of 68V has grown nicely.
68V has a Gross Margin of 21.25%. This is comparable to the rest of the industry: 68V outperforms 57.14% of its industry peers.
In the last couple of years the Gross Margin of 68V has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.42% | ||
| PM (TTM) | 10.7% | ||
| GM | 21.25% |
OM growth 3Y17.25%
OM growth 5Y13.35%
PM growth 3YN/A
PM growth 5Y81.94%
GM growth 3Y2.47%
GM growth 5Y2.69%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), 68V is creating some value.
The number of shares outstanding for 68V has been reduced compared to 1 year ago.
The number of shares outstanding for 68V has been increased compared to 5 years ago.
68V has a better debt/assets ratio than last year.
2.2 Solvency
68V has an Altman-Z score of 2.11. This is not the best score and indicates that 68V is in the grey zone with still only limited risk for bankruptcy at the moment.
The Altman-Z score of 68V (2.11) is better than 80.00% of its industry peers.
The Debt to FCF ratio of 68V is 2.93, which is a good value as it means it would take 68V, 2.93 years of fcf income to pay off all of its debts.
68V's Debt to FCF ratio of 2.93 is fine compared to the rest of the industry. 68V outperforms 77.14% of its industry peers.
A Debt/Equity ratio of 0.35 indicates that 68V is not too dependend on debt financing.
The Debt to Equity ratio of 68V (0.35) is better than 65.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 2.93 | ||
| Altman-Z | 2.11 |
ROIC/WACC1.3
WACC8.74%
2.3 Liquidity
68V has a Current Ratio of 1.32. This is a normal value and indicates that 68V is financially healthy and should not expect problems in meeting its short term obligations.
68V has a worse Current ratio (1.32) than 60.00% of its industry peers.
68V has a Quick Ratio of 1.32. This is a bad value and indicates that 68V is not financially healthy enough and could expect problems in meeting its short term obligations.
68V's Quick ratio of 0.94 is on the low side compared to the rest of the industry. 68V is outperformed by 74.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.32 | ||
| Quick Ratio | 0.94 |
3. Growth
3.1 Past
68V shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 48.13%, which is quite impressive.
68V shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 23.35% yearly.
The Revenue has grown by 9.10% in the past year. This is quite good.
The Revenue has been growing slightly by 3.14% on average over the past years.
EPS 1Y (TTM)48.13%
EPS 3Y55.53%
EPS 5Y23.35%
EPS Q2Q%37.25%
Revenue 1Y (TTM)9.1%
Revenue growth 3Y10.72%
Revenue growth 5Y3.14%
Sales Q2Q%7.74%
3.2 Future
Based on estimates for the next years, 68V will show a small growth in Earnings Per Share. The EPS will grow by 6.73% on average per year.
68V is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.72% yearly.
EPS Next Y11.06%
EPS Next 2Y13.31%
EPS Next 3Y13.02%
EPS Next 5Y6.73%
Revenue Next Year1.36%
Revenue Next 2Y2.65%
Revenue Next 3Y3.02%
Revenue Next 5Y1.72%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
68V is valuated rather expensively with a Price/Earnings ratio of 17.79.
68V's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 29.35. 68V is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 16.00, the valuation of 68V can be described as correct.
71.43% of the companies in the same industry are cheaper than 68V, based on the Price/Forward Earnings ratio.
68V's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.10.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.79 | ||
| Fwd PE | 16 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as 68V.
68.57% of the companies in the same industry are cheaper than 68V, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.3 | ||
| EV/EBITDA | 9.42 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of 68V may justify a higher PE ratio.
68V's earnings are expected to grow with 13.02% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.61
PEG (5Y)0.76
EPS Next 2Y13.31%
EPS Next 3Y13.02%
5. Dividend
5.1 Amount
68V has a Yearly Dividend Yield of 2.20%.
68V's Dividend Yield is comparable with the industry average which is at 7.05.
Compared to an average S&P500 Dividend Yield of 2.33, 68V has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.2% |
5.2 History
The dividend of 68V has a limited annual growth rate of 4.36%.
Dividend Growth(5Y)4.36%
Div Incr Years3
Div Non Decr Years4
5.3 Sustainability
68V pays out 28.06% of its income as dividend. This is a sustainable payout ratio.
68V's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP28.06%
EPS Next 2Y13.31%
EPS Next 3Y13.02%
FRA:68V (3/7/2025, 7:00:00 PM)
38.78
-0.09 (-0.24%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners97.98%
Inst Owner ChangeN/A
Ins Owners0.12%
Ins Owner ChangeN/A
Market Cap38.40B
Analysts80.65
Price Target50.18 (29.4%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.2% |
Yearly Dividend0.77
Dividend Growth(5Y)4.36%
DP28.06%
Div Incr Years3
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)9.91%
Min EPS beat(2)9.21%
Max EPS beat(2)10.6%
EPS beat(4)4
Avg EPS beat(4)10.59%
Min EPS beat(4)7.56%
Max EPS beat(4)14.99%
EPS beat(8)8
Avg EPS beat(8)9.34%
EPS beat(12)9
Avg EPS beat(12)0.06%
EPS beat(16)10
Avg EPS beat(16)-4.18%
Revenue beat(2)1
Avg Revenue beat(2)-1.11%
Min Revenue beat(2)-5.23%
Max Revenue beat(2)3.01%
Revenue beat(4)2
Avg Revenue beat(4)0.36%
Min Revenue beat(4)-5.23%
Max Revenue beat(4)3.87%
Revenue beat(8)4
Avg Revenue beat(8)0.32%
Revenue beat(12)4
Avg Revenue beat(12)-1.19%
Revenue beat(16)5
Avg Revenue beat(16)-1.2%
PT rev (1m)7.13%
PT rev (3m)15.89%
EPS NQ rev (1m)-1.32%
EPS NQ rev (3m)-9.28%
EPS NY rev (1m)2.74%
EPS NY rev (3m)1.54%
Revenue NQ rev (1m)-0.26%
Revenue NQ rev (3m)-2.18%
Revenue NY rev (1m)-0.11%
Revenue NY rev (3m)-1.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.79 | ||
| Fwd PE | 16 | ||
| P/S | 1.5 | ||
| P/FCF | 20.3 | ||
| P/OCF | 12.51 | ||
| P/B | 2.47 | ||
| P/tB | 6.07 | ||
| EV/EBITDA | 9.42 |
EPS(TTM)2.18
EY5.62%
EPS(NY)2.42
Fwd EY6.25%
FCF(TTM)1.91
FCFY4.93%
OCF(TTM)3.1
OCFY7.99%
SpS25.89
BVpS15.72
TBVpS6.39
PEG (NY)1.61
PEG (5Y)0.76
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.77% | ||
| ROE | 17.63% | ||
| ROCE | 13.62% | ||
| ROIC | 11.32% | ||
| ROICexc | 13.39% | ||
| ROICexgc | 25.13% | ||
| OM | 12.42% | ||
| PM (TTM) | 10.7% | ||
| GM | 21.25% | ||
| FCFM | 7.38% |
ROA(3y)3.76%
ROA(5y)-3.1%
ROE(3y)8.7%
ROE(5y)-6.02%
ROIC(3y)9.18%
ROIC(5y)6.97%
ROICexc(3y)10.7%
ROICexc(5y)8.19%
ROICexgc(3y)20.8%
ROICexgc(5y)15.76%
ROCE(3y)11.03%
ROCE(5y)8.4%
ROICexcg growth 3Y28.92%
ROICexcg growth 5Y22.28%
ROICexc growth 3Y29.47%
ROICexc growth 5Y32.66%
OM growth 3Y17.25%
OM growth 5Y13.35%
PM growth 3YN/A
PM growth 5Y81.94%
GM growth 3Y2.47%
GM growth 5Y2.69%
F-Score9
Asset Turnover0.73
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 2.93 | ||
| Debt/EBITDA | 1.3 | ||
| Cap/Depr | 112.5% | ||
| Cap/Sales | 4.59% | ||
| Interest Coverage | 11.59 | ||
| Cash Conversion | 72.58% | ||
| Profit Quality | 68.95% | ||
| Current Ratio | 1.32 | ||
| Quick Ratio | 0.94 | ||
| Altman-Z | 2.11 |
F-Score9
WACC8.74%
ROIC/WACC1.3
Cap/Depr(3y)106.11%
Cap/Depr(5y)93.95%
Cap/Sales(3y)4.69%
Cap/Sales(5y)4.59%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)48.13%
EPS 3Y55.53%
EPS 5Y23.35%
EPS Q2Q%37.25%
EPS Next Y11.06%
EPS Next 2Y13.31%
EPS Next 3Y13.02%
EPS Next 5Y6.73%
Revenue 1Y (TTM)9.1%
Revenue growth 3Y10.72%
Revenue growth 5Y3.14%
Sales Q2Q%7.74%
Revenue Next Year1.36%
Revenue Next 2Y2.65%
Revenue Next 3Y3.02%
Revenue Next 5Y1.72%
EBIT growth 1Y29.21%
EBIT growth 3Y29.82%
EBIT growth 5Y16.91%
EBIT Next Year44.2%
EBIT Next 3Y19.42%
EBIT Next 5Y9.98%
FCF growth 1Y11.75%
FCF growth 3Y10.61%
FCF growth 5Y18.31%
OCF growth 1Y8.82%
OCF growth 3Y11.96%
OCF growth 5Y9.4%