BAKER HUGHES CO (BKR) Stock Fundamental Analysis
NASDAQ:BKR - Nasdaq - US05722G1004 - Common Stock
Taking everything into account, BKR scores 6 out of 10 in our fundamental rating. BKR was compared to 58 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 has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year BKR was profitable.
BKR had a positive operating cash flow in the past year.
In multiple years BKR reported negative net income over the last 5 years.
BKR had a positive operating cash flow in each of the past 5 years.
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 62.07% of the companies in the same industry.
With a decent Return On Equity value of 13.84%, BKR is doing good in the industry, outperforming 63.79% of the companies in the same industry.
With a decent Return On Invested Capital value of 10.38%, BKR is doing good in the industry, outperforming 75.86% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for BKR is in line with the industry average of 8.32%.
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's Profit Margin of 8.21% is fine compared to the rest of the industry. BKR outperforms 63.79% of its industry peers.
In the last couple of years the Profit Margin of BKR has grown nicely.
BKR has a Operating Margin of 11.91%. This is in the better half of the industry: BKR outperforms 63.79% of its industry peers.
In the last couple of years the Operating Margin of BKR has grown nicely.
BKR has a worse Gross Margin (21.10%) than 65.52% of its industry peers.
BKR's Gross Margin has improved in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), BKR is creating some value.
Compared to 1 year ago, BKR has less shares outstanding
The number of shares outstanding for BKR has been increased compared to 5 years ago.
The debt/assets ratio for BKR has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.18 indicates that BKR is not a great score, but indicates only limited risk for bankruptcy at the moment.
BKR has a Altman-Z score (2.18) which 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.
Looking at the Debt to FCF ratio, with a value of 3.37, BKR is in line with its industry, outperforming 58.62% of the companies in the same industry.
A Debt/Equity ratio of 0.37 indicates that BKR is not too dependend on debt financing.
BKR has a Debt to Equity ratio of 0.37. This is comparable to the rest of the industry: BKR outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 3.37 | ||
| Altman-Z | 2.18 |
ROIC/WACC1.21
WACC8.6%
2.3 Liquidity
A Current Ratio of 1.30 indicates that BKR should not have too much problems paying its short term obligations.
BKR has a worse Current ratio (1.30) than 81.03% of its industry peers.
A Quick Ratio of 0.88 indicates that BKR may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.88, BKR is doing worse than 86.21% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.3 | ||
| Quick Ratio | 0.88 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 48.30% over the past year.
BKR shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 19.02% yearly.
Looking at the last year, BKR shows a quite strong growth in Revenue. The Revenue has grown by 11.08% in the last year.
Measured over the past years, BKR shows a small growth in Revenue. The Revenue has been growing by 2.20% on average per year.
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
The Earnings Per Share is expected to grow by 17.60% on average over the next years. This is quite good.
Based on estimates for the next years, BKR will show a small growth in Revenue. The Revenue will grow by 4.18% on average per year.
EPS Next Y45.37%
EPS Next 2Y27.25%
EPS Next 3Y23.3%
EPS Next 5Y17.6%
Revenue Next Year7.73%
Revenue Next 2Y4.93%
Revenue Next 3Y4.47%
Revenue Next 5Y4.18%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 21.36, which indicates a rather expensive current valuation of BKR.
BKR's Price/Earnings ratio is a bit cheaper when compared to the industry. BKR is cheaper than 62.07% of the companies in the same industry.
BKR's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.29.
BKR is valuated rather expensively with a Price/Forward Earnings ratio of 17.97.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BKR is on the same level as its industry peers.
BKR is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 24.44, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.36 | ||
| Fwd PE | 17.97 |
4.2 Price Multiples
79.31% of the companies in the same industry are cheaper than BKR, based on the Enterprise Value to EBITDA ratio.
BKR's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.7 | ||
| EV/EBITDA | 11.42 |
4.3 Compensation for Growth
BKR's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of BKR may justify a higher PE ratio.
A more expensive valuation may be justified as BKR's earnings are expected to grow with 23.30% in the coming years.
PEG (NY)0.47
PEG (5Y)1.12
EPS Next 2Y27.25%
EPS Next 3Y23.3%
5. Dividend
5.1 Amount
BKR has a Yearly Dividend Yield of 1.81%. Purely for dividend investing, there may be better candidates out there.
BKR's Dividend Yield is a higher than the industry average which is at 3.28.
Compared to the average S&P500 Dividend Yield of 2.28, BKR is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.81% |
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 for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)3.09%
Div Incr Years3
Div Non Decr Years10
5.3 Sustainability
36.96% of the earnings are spent on dividend by BKR. This is a low number and sustainable payout ratio.
The dividend of BKR is growing, but earnings are growing more, so the dividend growth is sustainable.
DP36.96%
EPS Next 2Y27.25%
EPS Next 3Y23.3%
BAKER HUGHES CO
NASDAQ:BKR (1/22/2025, 11:42:01 AM)
46.5595
-0.48 (-1.02%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners97.23%
Inst Owner Change0%
Ins Owners0.09%
Ins Owner Change-10.25%
Market Cap46.07B
Analysts80
Price Target47.67 (2.39%)
Short Float %1.38%
Short Ratio2.15
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.81% |
Yearly Dividend0.78
Dividend Growth(5Y)3.09%
DP36.96%
Div Incr Years3
Div Non Decr Years10
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)12.1%
Min EPS beat(2)9.21%
Max EPS beat(2)14.99%
EPS beat(4)4
Avg EPS beat(4)9.4%
Min EPS beat(4)5.84%
Max EPS beat(4)14.99%
EPS beat(8)7
Avg EPS beat(8)7.4%
EPS beat(12)8
Avg EPS beat(12)-1.79%
EPS beat(16)9
Avg EPS beat(16)-13.67%
Revenue beat(2)1
Avg Revenue beat(2)-0.68%
Min Revenue beat(2)-5.23%
Max Revenue beat(2)3.87%
Revenue beat(4)1
Avg Revenue beat(4)-0.93%
Min Revenue beat(4)-5.23%
Max Revenue beat(4)3.87%
Revenue beat(8)3
Avg Revenue beat(8)-0.5%
Revenue beat(12)3
Avg Revenue beat(12)-1.53%
Revenue beat(16)5
Avg Revenue beat(16)-1.36%
PT rev (1m)4.47%
PT rev (3m)8.65%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.79%
EPS NY rev (1m)0%
EPS NY rev (3m)3.95%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.51%
Revenue NY rev (1m)-0.09%
Revenue NY rev (3m)-1.71%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.36 | ||
| Fwd PE | 17.97 | ||
| P/S | 1.69 | ||
| P/FCF | 25.7 | ||
| P/OCF | 14.99 | ||
| P/B | 2.85 | ||
| P/tB | 7.64 | ||
| EV/EBITDA | 11.42 |
EPS(TTM)2.18
EY4.68%
EPS(NY)2.59
Fwd EY5.56%
FCF(TTM)1.81
FCFY3.89%
OCF(TTM)3.11
OCFY6.67%
SpS27.59
BVpS16.36
TBVpS6.09
PEG (NY)0.47
PEG (5Y)1.12
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.97% | ||
| ROE | 13.84% | ||
| ROCE | 13.14% | ||
| ROIC | 10.38% | ||
| ROICexc | 11.64% | ||
| ROICexgc | 21.56% | ||
| OM | 11.91% | ||
| PM (TTM) | 8.21% | ||
| GM | 21.1% | ||
| FCFM | 6.57% |
ROA(3y)0.96%
ROA(5y)-4.61%
ROE(3y)2.38%
ROE(5y)-9.47%
ROIC(3y)6.72%
ROIC(5y)5.04%
ROICexc(3y)7.88%
ROICexc(5y)5.86%
ROICexgc(3y)15.52%
ROICexgc(5y)11.95%
ROCE(3y)8.5%
ROCE(5y)6.4%
ROICexcg growth 3Y65.48%
ROICexcg growth 5Y23%
ROICexc growth 3Y58.46%
ROICexc growth 5Y32.46%
OM growth 3Y39.79%
OM growth 5Y13.27%
PM growth 3YN/A
PM growth 5Y54.97%
GM growth 3Y10.28%
GM growth 5Y3.53%
F-Score9
Asset Turnover0.73
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 3.37 | ||
| Debt/EBITDA | 1.37 | ||
| Cap/Depr | 114.58% | ||
| Cap/Sales | 4.69% | ||
| Interest Coverage | 10.73 | ||
| Cash Conversion | 70.34% | ||
| Profit Quality | 80.04% | ||
| Current Ratio | 1.3 | ||
| Quick Ratio | 0.88 | ||
| Altman-Z | 2.18 |
F-Score9
WACC8.6%
ROIC/WACC1.21
Cap/Depr(3y)94.43%
Cap/Depr(5y)88.94%
Cap/Sales(3y)4.55%
Cap/Sales(5y)4.71%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)48.3%
EPS 3Y276.41%
EPS 5Y19.02%
EPS Q2Q%59.52%
EPS Next Y45.37%
EPS Next 2Y27.25%
EPS Next 3Y23.3%
EPS Next 5Y17.6%
Revenue 1Y (TTM)11.08%
Revenue growth 3Y7.2%
Revenue growth 5Y2.2%
Sales Q2Q%4.02%
Revenue Next Year7.73%
Revenue Next 2Y4.93%
Revenue Next 3Y4.47%
Revenue Next 5Y4.18%
EBIT growth 1Y27.48%
EBIT growth 3Y49.85%
EBIT growth 5Y15.76%
EBIT Next Year71.78%
EBIT Next 3Y27.03%
EBIT Next 5Y17.59%
FCF growth 1Y130.46%
FCF growth 3Y77.26%
FCF growth 5Y19.1%
OCF growth 1Y74.26%
OCF growth 3Y32.92%
OCF growth 5Y11.69%