50.2 USD
+0.67 (+1.35%)
49.98 USD
-0.22 (-0.44%)
We assign a fundamental rating of 6 out of 10 to BKR. BKR was compared to 60 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 valied quite expensively at the moment, while it does show a decent growth rate. Finally BKR also has an excellent dividend rating. With these ratings, BKR could be worth investigating further 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
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.
BKR has a Return On Invested Capital of 11.19%. This is amongst the best in the industry. BKR outperforms 81.67% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for BKR is in line with the industry average of 7.66%.
The 3 year average ROIC (9.18%) for BKR is below the current ROIC(11.19%), indicating increased profibility in the last year.
| 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
With an excellent Profit Margin value of 10.43%, BKR belongs to the best of the industry, outperforming 81.67% of the companies in the same industry.
In the last couple of years the Profit Margin of BKR has grown nicely.
Looking at the Operating Margin, with a value of 13.01%, BKR is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
BKR's Operating Margin has improved in the last couple of years.
BKR has a Gross Margin of 23.07%. This is comparable 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), BKR is creating some value.
The number of shares outstanding for BKR has been reduced compared to 1 year ago.
BKR has more shares outstanding than it did 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 2.43 indicates that BKR is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 2.43, BKR is doing good in the industry, outperforming 65.00% 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 71.67% of its industry peers.
A Debt/Equity ratio of 0.33 indicates that BKR is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.33, BKR perfoms like the industry average, outperforming 58.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 2.9 | ||
| Altman-Z | 2.43 |
ROIC/WACC1.32
WACC8.46%
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.
BKR has a Quick Ratio of 1.00. 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 worse Quick ratio (1.00) than 81.67% 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.
BKR 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 been growing slightly by 1.51% in the past year.
The Revenue has been growing slightly by 3.14% on average over the past years.
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 Y6.1%
EPS Next 2Y6.02%
EPS Next 3Y8.81%
EPS Next 5Y10.41%
Revenue Next Year-0.62%
Revenue Next 2Y1.26%
Revenue Next 3Y2.85%
Revenue Next 5Y3.65%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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 19.92.
The rest of the industry has a similar Price/Earnings ratio as BKR.
BKR's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.31.
BKR is valuated rather expensively with a Price/Forward Earnings ratio of 18.84.
BKR's Price/Forward Earnings is on the same level as the industry average.
BKR is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 36.56, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.92 | ||
| Fwd PE | 18.84 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BKR is valued expensively inside the industry as 81.67% of the companies are valued cheaper.
The rest of the industry has a similar Price/Free Cash Flow ratio as BKR.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.71 | ||
| EV/EBITDA | 10.57 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates BKR does not grow enough to justify the current Price/Earnings ratio.
BKR has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)3.27
PEG (5Y)0.85
EPS Next 2Y6.02%
EPS Next 3Y8.81%
5. Dividend
5.1 Amount
BKR has a Yearly Dividend Yield of 1.86%.
BKR's Dividend Yield is a higher than the industry average which is at 2.95.
BKR's Dividend Yield is comparable with the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.86% |
5.2 History
The dividend of BKR has a limited annual growth rate of 4.36%.
BKR has paid a dividend for at least 10 years, which is a reliable track record.
BKR has not decreased their dividend for at least 10 years, which is a reliable track record.
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 2Y6.02%
EPS Next 3Y8.81%
50.2
+0.67 (+1.35%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners101.25%
Inst Owner Change0%
Ins Owners0.11%
Ins Owner Change-11.79%
Market Cap49.54B
Revenue(TTM)27.71B
Net Income(TTM)2.89B
Analysts80.77
Price Target53.57 (6.71%)
Short Float %2.99%
Short Ratio4.07
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.86% |
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)1.36%
PT rev (3m)4.61%
EPS NQ rev (1m)0.51%
EPS NQ rev (3m)2.43%
EPS NY rev (1m)2.68%
EPS NY rev (3m)3.19%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.08%
Revenue NY rev (1m)0.79%
Revenue NY rev (3m)1.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.92 | ||
| Fwd PE | 18.84 | ||
| P/S | 1.79 | ||
| P/FCF | 23.71 | ||
| P/OCF | 14.84 | ||
| P/B | 2.73 | ||
| P/tB | 6.25 | ||
| EV/EBITDA | 10.57 |
EPS(TTM)2.52
EY5.02%
EPS(NY)2.66
Fwd EY5.31%
FCF(TTM)2.12
FCFY4.22%
OCF(TTM)3.38
OCFY6.74%
SpS28.08
BVpS18.4
TBVpS8.03
PEG (NY)3.27
PEG (5Y)0.85
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 | 2.43 |
F-Score8
WACC8.46%
ROIC/WACC1.32
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 Y6.1%
EPS Next 2Y6.02%
EPS Next 3Y8.81%
EPS Next 5Y10.41%
Revenue 1Y (TTM)1.51%
Revenue growth 3Y10.72%
Revenue growth 5Y3.14%
Sales Q2Q%1.48%
Revenue Next Year-0.62%
Revenue Next 2Y1.26%
Revenue Next 3Y2.85%
Revenue Next 5Y3.65%
EBIT growth 1Y10.85%
EBIT growth 3Y29.82%
EBIT growth 5Y16.91%
EBIT Next Year37.37%
EBIT Next 3Y18.92%
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 19.92 and the Price/Book (PB) ratio is 2.73.
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%.