BAKER HUGHES CO (BKR)
US05722G1004 - Common Stock
We assign a fundamental rating of 6 out of 10 to BKR. BKR was compared to 59 industry peers in the Energy Equipment & Services industry. BKR has an excellent profitability rating, but there are some minor concerns on its financial health. BKR is not valued too expensively and it also shows a decent growth rate. Finally BKR also has an excellent dividend rating.
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.
The reported net income has been mixed in the past 5 years: BKR reported negative net income in multiple years.
In the past 5 years BKR always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 5.97%, BKR is doing good in the industry, outperforming 61.02% of the companies in the same industry.
BKR's Return On Equity of 13.84% is fine compared to the rest of the industry. BKR outperforms 62.71% of its industry peers.
Looking at the Return On Invested Capital, with a value of 10.38%, BKR is in the better half of the industry, outperforming 74.58% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for BKR is in line with the industry average of 8.50%.
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
With a decent Profit Margin value of 8.21%, BKR is doing good in the industry, outperforming 62.71% of the companies in the same industry.
BKR's Profit Margin has improved in the last couple of years.
BKR has a Operating Margin of 11.91%. This is in the better half of the industry: BKR outperforms 62.71% of its industry peers.
BKR's Operating Margin has improved in the last couple of years.
BKR has a Gross Margin of 21.10%. This is in the lower half of the industry: BKR underperforms 66.10% 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
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
BKR has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, BKR has an improved debt to assets ratio.
2.2 Solvency
BKR has an Altman-Z score of 1.99. 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 Altman-Z score value of 1.99, BKR perfoms like the industry average, outperforming 57.63% of the companies in the same 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.
The Debt to FCF ratio of BKR (3.37) is comparable to the rest of the industry.
BKR has a Debt/Equity ratio of 0.37. This is a healthy value indicating a solid balance between debt and equity.
BKR has a Debt to Equity ratio (0.37) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 3.37 | ||
| Altman-Z | 1.99 |
ROIC/WACC1.23
WACC8.47%
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 79.66% of its industry peers.
A Quick Ratio of 0.88 indicates that BKR may have some problems paying its short term obligations.
BKR's Quick ratio of 0.88 is on the low side compared to the rest of the industry. BKR is outperformed by 84.75% of its industry peers.
| 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.
The Earnings Per Share has been growing by 19.02% on average over the past years. This is quite good.
The Revenue has grown by 11.08% in the past year. This is quite good.
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 17.65% 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 4.15% on average per year.
EPS Next Y45.37%
EPS Next 2Y27.25%
EPS Next 3Y23.3%
EPS Next 5Y17.65%
Revenue Next Year7.82%
Revenue Next 2Y5%
Revenue Next 3Y4.45%
Revenue Next 5Y4.15%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
BKR is valuated rather expensively with a Price/Earnings ratio of 18.50.
Compared to the rest of the industry, the Price/Earnings ratio of BKR is on the same level as its industry peers.
BKR's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.73.
A Price/Forward Earnings ratio of 15.56 indicates a correct valuation of BKR.
The rest of the industry has a similar Price/Forward Earnings ratio as BKR.
BKR's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.5 | ||
| Fwd PE | 15.56 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BKR is valued a bit more expensive than 77.97% of the companies 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 | 22.25 | ||
| EV/EBITDA | 9.9 |
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.
BKR has a very decent profitability rating, which may justify a higher PE ratio.
BKR's earnings are expected to grow with 23.30% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.41
PEG (5Y)0.97
EPS Next 2Y27.25%
EPS Next 3Y23.3%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.11%, BKR has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.64, BKR pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.34, BKR has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.11% |
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 their dividend for at least 10 years, which is a reliable track record.
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 (12/20/2024, 8:00:01 PM)
After market: 43.93 +3.61 (+8.95%)40.32
+0.52 (+1.31%)
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-10.84%
Market Cap39.90B
Analysts80.67
Price Target45.63 (13.17%)
Short Float %1.72%
Short Ratio2.74
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.11% |
Dividend Growth(5Y)3.09%
DP36.96%
Div Incr Years3
Div Non Decr Years10
Ex-Date
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)2.88%
PT rev (3m)3.1%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.79%
EPS NY rev (1m)0.1%
EPS NY rev (3m)3.95%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.51%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)-1.62%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.5 | ||
| Fwd PE | 15.56 | ||
| P/S | 1.46 | ||
| P/FCF | 22.25 | ||
| P/OCF | 12.98 | ||
| P/B | 2.46 | ||
| P/tB | 6.62 | ||
| EV/EBITDA | 9.9 |
EPS(TTM)2.18
EY5.41%
EPS(NY)2.59
Fwd EY6.43%
FCF(TTM)1.81
FCFY4.49%
OCF(TTM)3.11
OCFY7.7%
SpS27.59
BVpS16.36
TBVpS6.09
PEG (NY)0.41
PEG (5Y)0.97
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 | 1.99 |
F-Score9
WACC8.47%
ROIC/WACC1.23
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 5Y17.65%
Revenue 1Y (TTM)11.08%
Revenue growth 3Y7.2%
Revenue growth 5Y2.2%
Sales Q2Q%4.02%
Revenue Next Year7.82%
Revenue Next 2Y5%
Revenue Next 3Y4.45%
Revenue Next 5Y4.15%
EBIT growth 1Y27.48%
EBIT growth 3Y49.85%
EBIT growth 5Y15.76%
EBIT Next Year72%
EBIT Next 3Y27.09%
EBIT Next 5Y17.47%
FCF growth 1Y130.46%
FCF growth 3Y77.26%
FCF growth 5Y19.1%
OCF growth 1Y74.26%
OCF growth 3Y32.92%
OCF growth 5Y11.69%