53.92 USD
-0.54 (-0.99%)
53.81 USD
-0.11 (-0.2%)
We assign a fundamental rating of 6 out of 10 to BKR. BKR was compared to 61 industry peers in the Energy Equipment & Services industry. BKR scores excellent on profitability, but there are some minor concerns on its financial health. While showing a medium growth rate, BKR is valued expensive at the moment. BKR also has an excellent dividend rating. These ratings could make BKR a good candidate for dividend investing.
1. Profitability
1.1 Basic Checks
- In the past year BKR was profitable.
- BKR had a positive operating cash flow in the past year.
- The reported net income has been mixed in the past 5 years: BKR reported negative net income in multiple years.
- BKR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- BKR has a better Return On Assets (7.37%) than 82.26% of its industry peers.
- The Return On Equity of BKR (15.92%) is better than 87.10% of its industry peers.
- BKR's Return On Invested Capital of 11.19% is amongst the best of the industry. BKR outperforms 85.48% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for BKR is below the industry average of 12.92%.
- 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's Profit Margin of 10.43% is amongst the best of the industry. BKR outperforms 85.48% of its industry peers.
- 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 69.35% of the companies in the same industry.
- In the last couple of years the Operating Margin of BKR has grown nicely.
- BKR has a Gross Margin (23.07%) which 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
- 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
- BKR has an Altman-Z score of 2.53. 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 has a Altman-Z score (2.53) which is comparable to the rest of the industry.
- 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 70.97% of its industry peers.
- BKR has a Debt/Equity ratio of 0.33. This is a healthy value indicating a solid balance between debt and equity.
- BKR has a better Debt to Equity ratio (0.33) than 62.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 2.9 | ||
| Altman-Z | 2.53 |
ROIC/WACC1.32
WACC8.45%
2.3 Liquidity
- A Current Ratio of 1.41 indicates that BKR should not have too much problems paying its short term obligations.
- BKR has a Current ratio of 1.41. This is in the lower half of the industry: BKR underperforms 72.58% of its industry peers.
- A Quick Ratio of 1.00 indicates that BKR should not have too much problems paying its short term obligations.
- With a Quick ratio value of 1.00, BKR is not doing good in the industry: 77.42% of the companies in the same industry are doing better.
| 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.
- 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.
- Looking at the last year, BKR shows a small growth in Revenue. The Revenue has grown by 1.51% in the last year.
- 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
- BKR is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.41% yearly.
- Based on estimates for the next years, BKR will show a small growth in Revenue. The Revenue will grow by 3.65% on average per year.
EPS Next Y6.39%
EPS Next 2Y6%
EPS Next 3Y8.13%
EPS Next 5Y10.41%
Revenue Next Year-0.54%
Revenue Next 2Y0.74%
Revenue Next 3Y2.19%
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.
- 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
- The Price/Earnings ratio is 21.40, which indicates a rather expensive current valuation of BKR.
- Compared to the rest of the industry, the Price/Earnings ratio of BKR indicates a somewhat cheap valuation: BKR is cheaper than 70.97% of the companies listed in the same industry.
- When comparing the Price/Earnings ratio of BKR to the average of the S&P500 Index (27.21), we can say BKR is valued slightly cheaper.
- BKR is valuated rather expensively with a Price/Forward Earnings ratio of 20.25.
- The rest of the industry has a similar Price/Forward Earnings ratio as BKR.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. BKR is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.4 | ||
| Fwd PE | 20.25 |
4.2 Price Multiples
- 72.58% 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 | 25.47 | ||
| EV/EBITDA | 11.34 |
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.
- The excellent profitability rating of BKR may justify a higher PE ratio.
PEG (NY)3.35
PEG (5Y)0.92
EPS Next 2Y6%
EPS Next 3Y8.13%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.69%, BKR has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 1.14, BKR pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.81, BKR has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.69% |
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%
EPS Next 3Y8.13%
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 6.39% 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%.