Uncovering Dividend Opportunities with BAKER HUGHES CO (NASDAQ:BKR).

Take a closer look at BAKER HUGHES CO (NASDAQ:BKR), a stock of interest to dividend investors uncovered by our stock screener. BKR excels in fundamentals and provides a decent dividend, all while maintaining a reasonable valuation. Let's break it down further.

Dividend Assessment of BKR

An integral part of ChartMill's stock analysis is the Dividend Rating, which spans from 0 to 10. This rating evaluates diverse dividend factors, including yield, historical data, growth, and sustainability. BKR has received a 7 out of 10:

• BKR's Dividend Yield is a higher than the industry average which is at 4.40.
• BKR has been paying a dividend for at least 10 years, so it has a reliable track record.
• BKR has not decreased their dividend for at least 10 years, which is a reliable track record.
• 28.06% 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.

Analyzing Health Metrics

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. BKR has earned a 5 out of 10:

• The Altman-Z score of BKR (2.02) is better than 62.90% of its industry peers.
• BKR has a debt to FCF ratio of 2.93. This is a good value and a sign of high solvency as BKR would need 2.93 years to pay back of all of its debts.
• The Debt to FCF ratio of BKR (2.93) is better than 61.29% of its industry peers.
• A Debt/Equity ratio of 0.35 indicates that BKR is not too dependend on debt financing.

Profitability Assessment of BKR

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of BKR, the assigned 7 is noteworthy for profitability:

• BKR's Return On Assets of 7.77% is fine compared to the rest of the industry. BKR outperforms 67.74% of its industry peers.
• Looking at the Return On Equity, with a value of 17.63%, BKR belongs to the top of the industry, outperforming 82.26% of the companies in the same industry.
• BKR has a better Return On Invested Capital (11.32%) than 82.26% of its industry peers.
• The 3 year average ROIC (9.18%) for BKR is below the current ROIC(11.32%), indicating increased profibility in the last year.
• With a decent Profit Margin value of 10.70%, BKR is doing good in the industry, outperforming 70.97% of the companies in the same industry.
• In the last couple of years the Profit Margin of BKR has grown nicely.
• BKR's Operating Margin of 12.42% is fine compared to the rest of the industry. BKR outperforms 62.90% of its industry peers.
• In the last couple of years the Operating Margin of BKR has grown nicely.
• BKR's Gross Margin has improved in the last couple of years.

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Check the latest full fundamental report of BKR for a complete fundamental analysis.

Disclaimer

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.