BAKER HUGHES CO (BKR)
US05722G1004 - Common Stock
Overall BKR gets a fundamental rating of 5 out of 10. We evaluated BKR against 60 industry peers in the Energy Equipment & Services industry. While BKR has a great profitability rating, there are some minor concerns on its financial health. BKR is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
BKR had positive earnings in the past year.
In the past year BKR had a positive cash flow from operations.
In multiple years BKR reported negative net income over the last 5 years.
In the past 5 years BKR always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.97%, BKR is in the better half of the industry, outperforming 61.67% of the companies in the same industry.
BKR's Return On Equity of 13.84% is fine compared to the rest of the industry. BKR outperforms 65.00% of its industry peers.
BKR has a better Return On Invested Capital (10.38%) than 76.67% of its industry peers.
BKR had an Average Return On Invested Capital over the past 3 years of 6.72%. This is in line with the industry average of 8.29%.
The last Return On Invested Capital (10.38%) for BKR is above the 3 year average (6.72%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.97% | ||
| ROE | 13.84% | ||
| ROIC | 10.38% |
ROA(3y)0.96%
ROA(5y)-4.61%
ROE(3y)2.38%
ROE(5y)-9.47%
ROIC(3y)6.72%
ROIC(5y)5.04%
1.3 Margins
BKR has a Profit Margin of 8.21%. This is in the better half of the industry: BKR outperforms 65.00% of its industry peers.
BKR's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 11.91%, BKR is in the better half of the industry, outperforming 63.33% of the companies in the same industry.
In the last couple of years the Operating Margin of BKR has grown nicely.
Looking at the Gross Margin, with a value of 21.10%, BKR is doing worse than 63.33% of the companies in the same industry.
In the last couple of years the Gross Margin of BKR has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.91% | ||
| PM (TTM) | 8.21% | ||
| GM | 21.1% |
OM growth 3Y39.79%
OM growth 5Y13.27%
PM growth 3YN/A
PM growth 5Y54.97%
GM growth 3Y10.28%
GM growth 5Y3.53%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so BKR is still creating some value.
The number of shares outstanding for BKR has been reduced compared to 1 year ago.
Compared to 5 years ago, BKR has more shares outstanding
Compared to 1 year ago, BKR has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.11 indicates that BKR is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of BKR (2.11) is comparable to the rest of the industry.
BKR has a debt to FCF ratio of 3.37. This is a good value and a sign of high solvency as BKR would need 3.37 years to pay back of all of its debts.
BKR has a Debt to FCF ratio (3.37) which is in line with its industry peers.
A Debt/Equity ratio of 0.37 indicates that BKR is not too dependend on debt financing.
BKR's Debt to Equity ratio of 0.37 is in line compared to the rest of the industry. BKR outperforms 48.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 3.37 | ||
| Altman-Z | 2.11 |
ROIC/WACC1.24
WACC8.4%
2.3 Liquidity
BKR has a Current Ratio of 1.30. This is a normal value and indicates that BKR is financially healthy and should not expect problems in meeting its short term obligations.
BKR has a Current ratio of 1.30. This is in the lower half of the industry: BKR underperforms 78.33% of its industry peers.
A Quick Ratio of 0.88 indicates that BKR may have some problems paying its short term obligations.
The Quick ratio of BKR (0.88) is worse than 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.3 | ||
| Quick Ratio | 0.88 |
3. Growth
3.1 Past
BKR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 48.30%, which is quite impressive.
The Earnings Per Share has been growing by 19.02% on average over the past years. This is quite good.
BKR shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.08%.
BKR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.20% yearly.
EPS 1Y (TTM)48.3%
EPS 3Y276.41%
EPS 5Y19.02%
EPS Q2Q%59.52%
Revenue 1Y (TTM)11.08%
Revenue growth 3Y7.2%
Revenue growth 5Y2.2%
Sales Q2Q%4.02%
3.2 Future
Based on estimates for the next years, BKR will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.64% on average per year.
BKR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.05% yearly.
EPS Next Y45.23%
EPS Next 2Y27.42%
EPS Next 3Y23.31%
EPS Next 5Y16.64%
Revenue Next Year7.81%
Revenue Next 2Y5.02%
Revenue Next 3Y4.52%
Revenue Next 5Y5.05%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 20.59, the valuation of BKR can be described as rather expensive.
BKR's Price/Earnings is on the same level as the industry average.
BKR is valuated rather cheaply when we compare the Price/Earnings ratio to 28.96, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 17.28 indicates a rather expensive valuation of BKR.
Based on the Price/Forward Earnings ratio, BKR is valued a bit more expensive than 60.00% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.82, BKR is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.59 | ||
| Fwd PE | 17.28 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BKR is valued a bit more expensive than 76.67% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of BKR is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.77 | ||
| EV/EBITDA | 10.81 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
BKR has a very decent profitability rating, which may justify a higher PE ratio.
BKR's earnings are expected to grow with 23.31% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.46
PEG (5Y)1.08
EPS Next 2Y27.42%
EPS Next 3Y23.31%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.95%, BKR has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.50, BKR pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.23, BKR has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.95% |
5.2 History
The dividend of BKR has a limited annual growth rate of 3.09%.
BKR has paid a dividend for at least 10 years, which is a reliable track record.
BKR has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)3.09%
Div Incr Years2
Div Non Decr Years9
5.3 Sustainability
36.96% of the earnings are spent on dividend by BKR. This is a low number and sustainable payout ratio.
BKR's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP36.96%
EPS Next 2Y27.42%
EPS Next 3Y23.31%
BAKER HUGHES CO
NASDAQ:BKR (11/21/2024, 6:05:08 PM)
After market: 44.54 -0.34 (-0.76%)44.88
+0.57 (+1.29%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap44.41B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.95% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.59 | ||
| Fwd PE | 17.28 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.46
PEG (5Y)1.08
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.97% | ||
| ROE | 13.84% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 11.91% | ||
| PM (TTM) | 8.21% | ||
| GM | 21.1% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.73
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.3 | ||
| Quick Ratio | 0.88 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)48.3%
EPS 3Y276.41%
EPS 5Y
EPS Q2Q%
EPS Next Y45.23%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)11.08%
Revenue growth 3Y7.2%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y