BAKER HUGHES CO (68V.DE) Stock Fundamental Analysis
FRA:68V - Deutsche Boerse Ag - US05722G1004 - Common Stock - Currency: EUR
We assign a fundamental rating of 5 out of 10 to 68V. 68V was compared to 35 industry peers in the Energy Equipment & Services industry. Both the profitability and the financial health of 68V get a neutral evaluation. Nothing too spectacular is happening here. 68V is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year 68V was profitable.
68V had a positive operating cash flow in the past year.
In multiple years 68V reported negative net income over the last 5 years.
68V had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
68V has a better Return On Assets (7.87%) than 77.14% of its industry peers.
68V has a better Return On Equity (17.22%) than 71.43% of its industry peers.
68V has a Return On Invested Capital of 11.38%. This is in the better half of the industry: 68V outperforms 68.57% of its industry peers.
The Average Return On Invested Capital over the past 3 years for 68V is below the industry average of 11.23%.
The 3 year average ROIC (9.18%) for 68V is below the current ROIC(11.38%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.87% | ||
| ROE | 17.22% | ||
| ROIC | 11.38% |
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
68V's Profit Margin of 11.04% is fine compared to the rest of the industry. 68V outperforms 71.43% of its industry peers.
68V's Profit Margin has improved in the last couple of years.
The Operating Margin of 68V (12.99%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of 68V has grown nicely.
Looking at the Gross Margin, with a value of 22.58%, 68V is in line with its industry, outperforming 51.43% of the companies in the same industry.
In the last couple of years the Gross Margin of 68V has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.99% | ||
| PM (TTM) | 11.04% | ||
| GM | 22.58% |
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
68V has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
68V has less shares outstanding than it did 1 year ago.
68V has more shares outstanding than it did 5 years ago.
The debt/assets ratio for 68V has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.32 indicates that 68V is not a great score, but indicates only limited risk for bankruptcy at the moment.
68V has a Altman-Z score of 2.32. This is in the better half of the industry: 68V outperforms 71.43% of its industry peers.
The Debt to FCF ratio of 68V is 2.79, which is a good value as it means it would take 68V, 2.79 years of fcf income to pay off all of its debts.
68V's Debt to FCF ratio of 2.79 is fine compared to the rest of the industry. 68V outperforms 71.43% of its industry peers.
68V has a Debt/Equity ratio of 0.34. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.34, 68V is doing good in the industry, outperforming 74.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 2.79 | ||
| Altman-Z | 2.32 |
ROIC/WACC1.24
WACC9.17%
2.3 Liquidity
68V has a Current Ratio of 1.41. This is a normal value and indicates that 68V is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of 68V (1.41) is comparable to the rest of the industry.
68V has a Quick Ratio of 1.41. This is a bad value and indicates that 68V is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of 68V (1.00) is worse than 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.41 | ||
| Quick Ratio | 1 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 30.05% over the past year.
68V shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 23.35% yearly.
68V shows a small growth in Revenue. In the last year, the Revenue has grown by 2.13%.
The Revenue has been growing slightly by 3.14% on average over the past years.
EPS 1Y (TTM)30.05%
EPS 3Y55.53%
EPS 5Y23.35%
EPS Q2Q%10.53%
Revenue 1Y (TTM)2.13%
Revenue growth 3Y10.72%
Revenue growth 5Y3.14%
Sales Q2Q%-3.21%
3.2 Future
68V is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.23% yearly.
Based on estimates for the next years, 68V will show a small growth in Revenue. The Revenue will grow by 2.06% on average per year.
EPS Next Y1.7%
EPS Next 2Y7.08%
EPS Next 3Y9.01%
EPS Next 5Y8.23%
Revenue Next Year-2.25%
Revenue Next 2Y0.25%
Revenue Next 3Y1.3%
Revenue Next 5Y2.06%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last 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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 18.53 indicates a rather expensive valuation of 68V.
68V's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 27.93. 68V is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 17.08, which indicates a rather expensive current valuation of 68V.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 68V indicates a slightly more expensive valuation: 68V is more expensive than 77.14% of the companies listed in the same industry.
68V's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 37.78.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.53 | ||
| Fwd PE | 17.08 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 68V is valued a bit more expensive than 65.71% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, 68V is valued a bit more expensive than the industry average as 65.71% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.25 | ||
| EV/EBITDA | 9.79 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates 68V does not grow enough to justify the current Price/Earnings ratio.
68V has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)10.87
PEG (5Y)0.79
EPS Next 2Y7.08%
EPS Next 3Y9.01%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.06%, 68V has a reasonable but not impressive dividend return.
68V's Dividend Yield is comparable with the industry average which is at 6.40.
68V's Dividend Yield is comparable with the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.06% |
5.2 History
The dividend of 68V has a limited annual growth rate of 4.36%.
Dividend Growth(5Y)4.36%
Div Incr Years3
Div Non Decr Years4
5.3 Sustainability
28.64% of the earnings are spent on dividend by 68V. This is a low number and sustainable payout ratio.
The dividend of 68V is growing, but earnings are growing more, so the dividend growth is sustainable.
DP28.64%
EPS Next 2Y7.08%
EPS Next 3Y9.01%
FRA:68V (7/28/2025, 7:00:00 PM)
39.84
+0.86 (+2.19%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners100.96%
Inst Owner ChangeN/A
Ins Owners0.13%
Ins Owner ChangeN/A
Market Cap39.47B
Analysts81.33
Price Target41.95 (5.3%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.06% |
Yearly Dividend0.72
Dividend Growth(5Y)4.36%
DP28.64%
Div Incr Years3
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)9.02%
Min EPS beat(2)5.87%
Max EPS beat(2)12.17%
EPS beat(4)4
Avg EPS beat(4)9.46%
Min EPS beat(4)5.87%
Max EPS beat(4)12.17%
EPS beat(8)8
Avg EPS beat(8)8.86%
EPS beat(12)11
Avg EPS beat(12)7.77%
EPS beat(16)11
Avg EPS beat(16)-1.13%
Revenue beat(2)1
Avg Revenue beat(2)0.53%
Min Revenue beat(2)-1.98%
Max Revenue beat(2)3.04%
Revenue beat(4)2
Avg Revenue beat(4)-0.29%
Min Revenue beat(4)-5.23%
Max Revenue beat(4)3.04%
Revenue beat(8)4
Avg Revenue beat(8)0.14%
Revenue beat(12)5
Avg Revenue beat(12)-0.18%
Revenue beat(16)5
Avg Revenue beat(16)-1.22%
PT rev (1m)0.24%
PT rev (3m)-3.66%
EPS NQ rev (1m)-1.87%
EPS NQ rev (3m)-13.04%
EPS NY rev (1m)-0.59%
EPS NY rev (3m)-6.79%
Revenue NQ rev (1m)-0.64%
Revenue NQ rev (3m)-4.15%
Revenue NY rev (1m)-0.3%
Revenue NY rev (3m)-2.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.53 | ||
| Fwd PE | 17.08 | ||
| P/S | 1.67 | ||
| P/FCF | 21.25 | ||
| P/OCF | 13.45 | ||
| P/B | 2.6 | ||
| P/tB | 5.77 | ||
| EV/EBITDA | 9.79 |
EPS(TTM)2.15
EY5.4%
EPS(NY)2.33
Fwd EY5.85%
FCF(TTM)1.88
FCFY4.71%
OCF(TTM)2.96
OCFY7.43%
SpS23.91
BVpS15.33
TBVpS6.91
PEG (NY)10.87
PEG (5Y)0.79
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.87% | ||
| ROE | 17.22% | ||
| ROCE | 13.68% | ||
| ROIC | 11.38% | ||
| ROICexc | 13.66% | ||
| ROICexgc | 24.6% | ||
| OM | 12.99% | ||
| PM (TTM) | 11.04% | ||
| GM | 22.58% | ||
| FCFM | 7.84% |
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%
ROICexcg growth 3Y31.82%
ROICexcg 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 | 0.34 | ||
| Debt/FCF | 2.79 | ||
| Debt/EBITDA | 1.26 | ||
| Cap/Depr | 109.14% | ||
| Cap/Sales | 4.54% | ||
| Interest Coverage | 12.12 | ||
| Cash Conversion | 72.19% | ||
| Profit Quality | 71.03% | ||
| Current Ratio | 1.41 | ||
| Quick Ratio | 1 | ||
| Altman-Z | 2.32 |
F-Score8
WACC9.17%
ROIC/WACC1.24
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)30.05%
EPS 3Y55.53%
EPS 5Y23.35%
EPS Q2Q%10.53%
EPS Next Y1.7%
EPS Next 2Y7.08%
EPS Next 3Y9.01%
EPS Next 5Y8.23%
Revenue 1Y (TTM)2.13%
Revenue growth 3Y10.72%
Revenue growth 5Y3.14%
Sales Q2Q%-3.21%
Revenue Next Year-2.25%
Revenue Next 2Y0.25%
Revenue Next 3Y1.3%
Revenue Next 5Y2.06%
EBIT growth 1Y18.07%
EBIT growth 3Y29.82%
EBIT growth 5Y16.91%
EBIT Next Year36.41%
EBIT Next 3Y16.7%
EBIT Next 5Y11.57%
FCF growth 1Y24.93%
FCF growth 3Y10.61%
FCF growth 5Y18.31%
OCF growth 1Y21.46%
OCF growth 3Y11.96%
OCF growth 5Y9.4%