49.2 USD
-1.41 (-2.79%)
49.3797 USD
+0.18 (+0.37%)
BKR gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 60 industry peers in the Energy Equipment & Services industry. While BKR belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. BKR is quite expensive at the moment. It does show 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.
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 7.37%, BKR is in the better half of the industry, outperforming 78.33% of the companies in the same industry.
Looking at the Return On Equity, with a value of 15.92%, BKR belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
The Return On Invested Capital of BKR (11.19%) is better than 81.67% of its industry peers.
BKR had an Average Return On Invested Capital over the past 3 years of 9.18%. This is in line with the industry average of 7.48%.
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
The Profit Margin of BKR (10.43%) is better than 81.67% of its industry peers.
BKR's Profit Margin has improved in the last couple of years.
BKR has a better Operating Margin (13.01%) than 66.67% of its industry peers.
BKR's Operating Margin has improved in the last couple of years.
BKR's Gross Margin of 23.07% is in line compared to the rest of the industry. BKR outperforms 45.00% of its industry peers.
BKR's Gross Margin has improved in the last couple of years.
| 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.
Compared to 1 year ago, BKR has less shares outstanding
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
BKR has an Altman-Z score of 2.40. 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.
BKR's Altman-Z score of 2.40 is fine compared to the rest of the industry. BKR outperforms 61.67% of its industry peers.
BKR has a debt to FCF ratio of 2.90. This is a good value and a sign of high solvency as BKR would need 2.90 years to pay back of all of its debts.
The Debt to FCF ratio of BKR (2.90) is better than 71.67% 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 (0.33) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 2.9 | ||
| Altman-Z | 2.4 |
ROIC/WACC1.31
WACC8.52%
2.3 Liquidity
A Current Ratio of 1.41 indicates that BKR should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.41, BKR is doing worse than 73.33% 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's Quick ratio of 1.00 is on the low side compared to the rest of the industry. BKR is outperformed by 78.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.41 | ||
| Quick Ratio | 1 |
3. Growth
3.1 Past
BKR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.60%, which is quite good.
Measured over the past years, BKR shows a very strong growth in Earnings Per Share. The EPS has been growing by 23.35% on average per year.
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.
BKR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.65% yearly.
EPS Next Y6.55%
EPS Next 2Y6.48%
EPS Next 3Y8.77%
EPS Next 5Y10.41%
Revenue Next Year-0.54%
Revenue Next 2Y1.21%
Revenue Next 3Y2.77%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 19.52 indicates a rather expensive valuation of BKR.
66.67% of the companies in the same industry are more expensive than BKR, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of BKR to the average of the S&P500 Index (26.49), we can say BKR is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 18.31, the valuation of BKR can be described as rather expensive.
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 23.69, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.52 | ||
| Fwd PE | 18.31 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BKR indicates a rather expensive valuation: BKR more expensive than 80.00% of the companies listed in the same industry.
BKR's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.24 | ||
| EV/EBITDA | 10.36 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of BKR may justify a higher PE ratio.
PEG (NY)2.98
PEG (5Y)0.84
EPS Next 2Y6.48%
EPS Next 3Y8.77%
5. Dividend
5.1 Amount
BKR has a Yearly Dividend Yield of 1.82%.
BKR's Dividend Yield is a higher than the industry average which is at 2.75.
Compared to the average S&P500 Dividend Yield of 2.31, BKR is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.82% |
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
BKR pays out 30.82% of its income as dividend. This is a sustainable payout ratio.
The dividend of BKR is growing, but earnings are growing more, so the dividend growth is sustainable.
DP30.82%
EPS Next 2Y6.48%
EPS Next 3Y8.77%
49.2
-1.41 (-2.79%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners101.39%
Inst Owner Change0%
Ins Owners0.11%
Ins Owner Change-12.16%
Market Cap48.55B
Revenue(TTM)27.71B
Net Income(TTM)2.89B
Analysts80.77
Price Target53.74 (9.23%)
Short Float %3%
Short Ratio3.99
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.82% |
Yearly Dividend0.84
Dividend Growth(5Y)4.36%
DP30.82%
Div Incr Years3
Div Non Decr Years10
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.74%
Min EPS beat(2)9.31%
Max EPS beat(2)12.17%
EPS beat(4)4
Avg EPS beat(4)9.49%
Min EPS beat(4)5.87%
Max EPS beat(4)12.17%
EPS beat(8)8
Avg EPS beat(8)9.44%
EPS beat(12)11
Avg EPS beat(12)8.09%
EPS beat(16)12
Avg EPS beat(16)1.03%
Revenue beat(2)2
Avg Revenue beat(2)2.34%
Min Revenue beat(2)1.64%
Max Revenue beat(2)3.04%
Revenue beat(4)3
Avg Revenue beat(4)1.43%
Min Revenue beat(4)-1.98%
Max Revenue beat(4)3.04%
Revenue beat(8)4
Avg Revenue beat(8)0.25%
Revenue beat(12)6
Avg Revenue beat(12)0.14%
Revenue beat(16)6
Avg Revenue beat(16)-0.79%
PT rev (1m)1.68%
PT rev (3m)5.75%
EPS NQ rev (1m)-0.3%
EPS NQ rev (3m)2.71%
EPS NY rev (1m)0.43%
EPS NY rev (3m)3.63%
Revenue NQ rev (1m)-0.06%
Revenue NQ rev (3m)0.39%
Revenue NY rev (1m)0.08%
Revenue NY rev (3m)1.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.52 | ||
| Fwd PE | 18.31 | ||
| P/S | 1.75 | ||
| P/FCF | 23.24 | ||
| P/OCF | 14.54 | ||
| P/B | 2.67 | ||
| P/tB | 6.13 | ||
| EV/EBITDA | 10.36 |
EPS(TTM)2.52
EY5.12%
EPS(NY)2.69
Fwd EY5.46%
FCF(TTM)2.12
FCFY4.3%
OCF(TTM)3.38
OCFY6.88%
SpS28.08
BVpS18.4
TBVpS8.03
PEG (NY)2.98
PEG (5Y)0.84
Graham Number32.3
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.37% | ||
| ROE | 15.92% | ||
| ROCE | 13.45% | ||
| ROIC | 11.19% | ||
| ROICexc | 13.15% | ||
| ROICexgc | 23.85% | ||
| OM | 13.01% | ||
| PM (TTM) | 10.43% | ||
| GM | 23.07% | ||
| FCFM | 7.54% |
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)10.94%
ROICexc(5y)8.33%
ROICexgc(3y)21.7%
ROICexgc(5y)16.3%
ROCE(3y)11.03%
ROCE(5y)8.4%
ROICexgc growth 3Y31.82%
ROICexgc growth 5Y23.92%
ROICexc growth 3Y30.99%
ROICexc growth 5Y33.59%
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-Score8
Asset Turnover0.71
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 2.9 | ||
| Debt/EBITDA | 1.26 | ||
| Cap/Depr | 108.33% | ||
| Cap/Sales | 4.51% | ||
| Interest Coverage | 12.18 | ||
| Cash Conversion | 70.16% | ||
| Profit Quality | 72.26% | ||
| Current Ratio | 1.41 | ||
| Quick Ratio | 1 | ||
| Altman-Z | 2.4 |
F-Score8
WACC8.52%
ROIC/WACC1.31
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)15.6%
EPS 3Y55.53%
EPS 5Y23.35%
EPS Q2Q%1.49%
EPS Next Y6.55%
EPS Next 2Y6.48%
EPS Next 3Y8.77%
EPS Next 5Y10.41%
Revenue 1Y (TTM)1.51%
Revenue growth 3Y10.72%
Revenue growth 5Y3.14%
Sales Q2Q%1.48%
Revenue Next Year-0.54%
Revenue Next 2Y1.21%
Revenue Next 3Y2.77%
Revenue Next 5Y3.65%
EBIT growth 1Y10.85%
EBIT growth 3Y29.82%
EBIT growth 5Y16.91%
EBIT Next Year39.66%
EBIT Next 3Y18.54%
EBIT Next 5Y13.95%
FCF growth 1Y10.47%
FCF growth 3Y10.61%
FCF growth 5Y18.31%
OCF growth 1Y10.24%
OCF growth 3Y11.96%
OCF growth 5Y9.4%
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 for 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.
What are the PE and PB ratios of BAKER HUGHES CO (BKR) stock?
The Price/Earnings (PE) ratio for BAKER HUGHES CO (BKR) is 19.52 and the Price/Book (PB) ratio is 2.67.
Can you provide the dividend sustainability for BKR stock?
The dividend rating of BAKER HUGHES CO (BKR) is 6 / 10 and the dividend payout ratio is 30.82%.