54.46 USD
+0.87 (+1.62%)
54.74 USD
+0.28 (+0.51%)
We assign a fundamental rating of 6 out of 10 to BKR. BKR was compared to 62 industry peers in the Energy Equipment & Services industry. BKR scores excellent on profitability, but there are some minor concerns on its financial health. BKR is quite expensive at the moment. It does show a decent growth rate. Finally BKR also has an excellent dividend rating. These ratings would make BKR suitable for dividend investing!
1. Profitability
1.1 Basic Checks
- BKR had positive earnings in the past year.
- BKR had a positive operating cash flow in the past year.
- In multiple years BKR reported negative net income over the last 5 years.
- Each year in the past 5 years BKR had a positive operating cash flow.
1.2 Ratios
- BKR's Return On Assets of 7.37% is amongst the best of the industry. BKR outperforms 82.26% of its industry peers.
- BKR has a Return On Equity of 15.92%. This is amongst the best in the industry. BKR outperforms 87.10% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 11.19%, BKR belongs to the top of the industry, outperforming 85.48% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for BKR is below the industry average of 12.77%.
- The last Return On Invested Capital (11.19%) for BKR is above the 3 year average (9.18%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.37% | ||
| ROE | 15.92% | ||
| ROIC | 11.19% |
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
- BKR has a Profit Margin of 10.43%. This is amongst the best in the industry. BKR outperforms 85.48% of its industry peers.
- BKR's Profit Margin has improved in the last couple of years.
- BKR's Operating Margin of 13.01% is fine compared to the rest of the industry. BKR outperforms 69.35% of its industry peers.
- In the last couple of years the Operating Margin of BKR has grown nicely.
- The Gross Margin of BKR (23.07%) is comparable to the rest of the industry.
- In the last couple of years the Gross Margin of BKR has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.01% | ||
| PM (TTM) | 10.43% | ||
| GM | 23.07% |
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
- BKR has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- BKR has less shares outstanding than it did 1 year ago.
- BKR has more shares outstanding than it did 5 years ago.
- BKR has a better debt/assets ratio than last year.
2.2 Solvency
- BKR has an Altman-Z score of 2.55. This is not the best score and indicates that BKR is in the grey zone with still only limited risk for bankruptcy at the moment.
- With a decent Altman-Z score value of 2.55, BKR is doing good in the industry, outperforming 61.29% of the companies in the same industry.
- The Debt to FCF ratio of BKR is 2.90, which is a good value as it means it would take BKR, 2.90 years of fcf income to pay off all of its debts.
- BKR has a Debt to FCF ratio of 2.90. This is in the better half of the industry: BKR outperforms 70.97% of its industry peers.
- A Debt/Equity ratio of 0.33 indicates that BKR is not too dependend on debt financing.
- BKR has a Debt to Equity ratio of 0.33. This is in the better half of the industry: BKR outperforms 62.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 2.9 | ||
| Altman-Z | 2.55 |
ROIC/WACC1.32
WACC8.46%
2.3 Liquidity
- BKR has a Current Ratio of 1.41. This is a normal value and indicates that BKR is financially healthy and should not expect problems in meeting its short term obligations.
- Looking at the Current ratio, with a value of 1.41, BKR is doing worse than 72.58% of the companies in the same industry.
- A Quick Ratio of 1.00 indicates that BKR should not have too much problems paying its short term obligations.
- BKR has a worse Quick ratio (1.00) than 77.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.41 | ||
| Quick Ratio | 1 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 15.60% over the past year.
- BKR shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 23.35% yearly.
- BKR shows a small growth in Revenue. In the last year, the Revenue has grown by 1.51%.
- BKR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.14% yearly.
EPS 1Y (TTM)15.6%
EPS 3Y55.53%
EPS 5Y23.35%
EPS Q2Q%1.49%
Revenue 1Y (TTM)1.51%
Revenue growth 3Y10.72%
Revenue growth 5Y3.14%
Sales Q2Q%1.48%
3.2 Future
- The Earnings Per Share is expected to grow by 10.41% on average over the next years. This is quite good.
- The Revenue is expected to grow by 3.65% on average over the next years.
EPS Next Y6.55%
EPS Next 2Y6.35%
EPS Next 3Y8.67%
EPS Next 5Y10.41%
Revenue Next Year-0.55%
Revenue Next 2Y0.89%
Revenue Next 3Y2.24%
Revenue Next 5Y3.65%
3.3 Evolution
- Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
- The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- BKR is valuated rather expensively with a Price/Earnings ratio of 21.61.
- Based on the Price/Earnings ratio, BKR is valued a bit cheaper than 70.97% of the companies in the same industry.
- BKR is valuated rather cheaply when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 20.32, BKR is valued on the expensive side.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of BKR is on the same level as its industry peers.
- BKR's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 24.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.61 | ||
| Fwd PE | 20.32 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BKR indicates a slightly more expensive valuation: BKR is more expensive than 74.19% of the companies listed in the same industry.
- BKR's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.72 | ||
| EV/EBITDA | 11.46 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- BKR has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)3.3
PEG (5Y)0.93
EPS Next 2Y6.35%
EPS Next 3Y8.67%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.77%, BKR has a reasonable but not impressive dividend return.
- BKR's Dividend Yield is a higher than the industry average which is at 1.17.
- Compared to an average S&P500 Dividend Yield of 1.82, BKR has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.77% |
5.2 History
- The dividend of BKR has a limited annual growth rate of 4.36%.
- BKR has been paying a dividend for at least 10 years, so it has a reliable track record.
- BKR has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)4.36%
Div Incr Years3
Div Non Decr Years10
5.3 Sustainability
- 30.82% 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.
DP30.82%
EPS Next 2Y6.35%
EPS Next 3Y8.67%
BAKER HUGHES CO / BKR FAQ
What is the ChartMill fundamental rating of BAKER HUGHES CO (BKR) stock?
ChartMill assigns a fundamental rating of 6 / 10 to BKR.
What is the valuation status of BAKER HUGHES CO (BKR) stock?
ChartMill assigns a valuation rating of 3 / 10 to BAKER HUGHES CO (BKR). This can be considered as Overvalued.
Can you provide the profitability details for BAKER HUGHES CO?
BAKER HUGHES CO (BKR) has a profitability rating of 8 / 10.
Can you provide the expected EPS growth for BKR stock?
The Earnings per Share (EPS) of BAKER HUGHES CO (BKR) is expected to grow by 6.55% in the next year.
Can you provide the dividend sustainability for BKR stock?
The dividend rating of BAKER HUGHES CO (BKR) is 7 / 10 and the dividend payout ratio is 30.82%.