BAKER HUGHES CO (68V.DE) Stock Fundamental Analysis
FRA:68V - Deutsche Boerse Ag - US05722G1004 - Common Stock - Currency: EUR
Overall 68V gets a fundamental rating of 5 out of 10. We evaluated 68V against 35 industry peers in the Energy Equipment & Services industry. 68V has an excellent profitability rating, but there are some minor concerns on its financial health. While showing a medium growth rate, 68V is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year 68V was profitable.
In the past year 68V had a positive cash flow from operations.
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 (7.68%) than 71.43% of its industry peers.
68V's Return On Equity of 17.17% is fine compared to the rest of the industry. 68V outperforms 68.57% of its industry peers.
68V has a better Return On Invested Capital (11.56%) than 68.57% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for 68V is in line with the industry average of 10.77%.
The last Return On Invested Capital (11.56%) for 68V is above the 3 year average (9.18%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.68% | ||
| ROE | 17.17% | ||
| ROIC | 11.56% |
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 has a better Profit Margin (10.51%) than 65.71% of its industry peers.
68V's Profit Margin has improved in the last couple of years.
With a Operating Margin value of 12.74%, 68V perfoms like the industry average, outperforming 45.71% of the companies in the same industry.
In the last couple of years the Operating Margin of 68V has grown nicely.
68V's Gross Margin of 21.95% is in line compared to the rest of the industry. 68V outperforms 54.29% of its industry peers.
In the last couple of years the Gross Margin of 68V has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.74% | ||
| PM (TTM) | 10.51% | ||
| GM | 21.95% |
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 68V is still creating some value.
Compared to 1 year ago, 68V has less shares outstanding
The number of shares outstanding for 68V has been increased compared to 5 years ago.
The debt/assets ratio for 68V has been reduced compared to a year ago.
2.2 Solvency
68V has an Altman-Z score of 2.10. This is not the best score and indicates that 68V is in the grey zone with still only limited risk for bankruptcy at the moment.
The Altman-Z score of 68V (2.10) is better than 68.57% of its industry peers.
The Debt to FCF ratio of 68V is 2.99, which is a good value as it means it would take 68V, 2.99 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of 68V (2.99) is better than 68.57% of its industry peers.
A Debt/Equity ratio of 0.35 indicates that 68V is not too dependend on debt financing.
68V's Debt to Equity ratio of 0.35 is fine compared to the rest of the industry. 68V outperforms 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 2.99 | ||
| Altman-Z | 2.1 |
ROIC/WACC1.27
WACC9.13%
2.3 Liquidity
A Current Ratio of 1.34 indicates that 68V should not have too much problems paying its short term obligations.
68V has a Current ratio (1.34) which is in line with its industry peers.
A Quick Ratio of 0.93 indicates that 68V may have some problems paying its short term obligations.
68V has a Quick ratio of 0.93. This is in the lower half of the industry: 68V underperforms 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.34 | ||
| Quick Ratio | 0.93 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 40.00% 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.
Looking at the last year, 68V shows a small growth in Revenue. The Revenue has grown by 6.22% in the last year.
Measured over the past years, 68V shows a small growth in Revenue. The Revenue has been growing by 3.14% on average per year.
EPS 1Y (TTM)40%
EPS 3Y55.53%
EPS 5Y23.35%
EPS Q2Q%18.6%
Revenue 1Y (TTM)6.22%
Revenue growth 3Y10.72%
Revenue growth 5Y3.14%
Sales Q2Q%0.14%
3.2 Future
Based on estimates for the next years, 68V will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.23% on average per year.
The Revenue is expected to grow by 2.06% on average over the next years.
EPS Next Y2.3%
EPS Next 2Y7.81%
EPS Next 3Y8.91%
EPS Next 5Y8.23%
Revenue Next Year-1.95%
Revenue Next 2Y0.63%
Revenue Next 3Y1.39%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 16.28, 68V is valued correctly.
The rest of the industry has a similar Price/Earnings ratio as 68V.
Compared to an average S&P500 Price/Earnings ratio of 27.45, 68V is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 14.48, the valuation of 68V can be described as correct.
74.29% of the companies in the same industry are cheaper than 68V, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.90, 68V is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.28 | ||
| Fwd PE | 14.48 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 68V is valued a bit more expensive than the industry average as 62.86% of the companies are valued more cheaply.
68V's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. 68V is more expensive than 74.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.64 | ||
| EV/EBITDA | 8.53 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
68V has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)7.06
PEG (5Y)0.7
EPS Next 2Y7.81%
EPS Next 3Y8.91%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.40%, 68V has a reasonable but not impressive dividend return.
68V's Dividend Yield is comparable with the industry average which is at 6.33.
Compared to an average S&P500 Dividend Yield of 2.42, 68V has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.4% |
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
29.22% of the earnings are spent on dividend by 68V. This is a low number and sustainable payout ratio.
68V's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP29.22%
EPS Next 2Y7.81%
EPS Next 3Y8.91%
FRA:68V (7/3/2025, 7:00:00 PM)
33.855
+0.66 (+1.99%)
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 Cap33.54B
Analysts81.33
Price Target41.85 (23.62%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.4% |
Yearly Dividend0.72
Dividend Growth(5Y)4.36%
DP29.22%
Div Incr Years3
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)8.24%
Min EPS beat(2)5.87%
Max EPS beat(2)10.6%
EPS beat(4)4
Avg EPS beat(4)10.17%
Min EPS beat(4)5.87%
Max EPS beat(4)14.99%
EPS beat(8)8
Avg EPS beat(8)9.27%
EPS beat(12)10
Avg EPS beat(12)2.55%
EPS beat(16)10
Avg EPS beat(16)-4.23%
Revenue beat(2)1
Avg Revenue beat(2)0.51%
Min Revenue beat(2)-1.98%
Max Revenue beat(2)3.01%
Revenue beat(4)2
Avg Revenue beat(4)-0.08%
Min Revenue beat(4)-5.23%
Max Revenue beat(4)3.87%
Revenue beat(8)3
Avg Revenue beat(8)-0.27%
Revenue beat(12)4
Avg Revenue beat(12)-0.97%
Revenue beat(16)5
Avg Revenue beat(16)-1.23%
PT rev (1m)-2.16%
PT rev (3m)-16.61%
EPS NQ rev (1m)-0.08%
EPS NQ rev (3m)-7.84%
EPS NY rev (1m)-0.2%
EPS NY rev (3m)-7.89%
Revenue NQ rev (1m)-0.03%
Revenue NQ rev (3m)-3.7%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)-3.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.28 | ||
| Fwd PE | 14.48 | ||
| P/S | 1.42 | ||
| P/FCF | 19.64 | ||
| P/OCF | 12.13 | ||
| P/B | 2.32 | ||
| P/tB | 5.65 | ||
| EV/EBITDA | 8.53 |
EPS(TTM)2.08
EY6.14%
EPS(NY)2.34
Fwd EY6.91%
FCF(TTM)1.72
FCFY5.09%
OCF(TTM)2.79
OCFY8.24%
SpS23.85
BVpS14.6
TBVpS5.99
PEG (NY)7.06
PEG (5Y)0.7
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.68% | ||
| ROE | 17.17% | ||
| ROCE | 13.9% | ||
| ROIC | 11.56% | ||
| ROICexc | 13.99% | ||
| ROICexgc | 26.74% | ||
| OM | 12.74% | ||
| PM (TTM) | 10.51% | ||
| GM | 21.95% | ||
| FCFM | 7.23% |
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)10.86%
ROICexc(5y)8.29%
ROICexgc(3y)21.38%
ROICexgc(5y)16.11%
ROCE(3y)11.03%
ROCE(5y)8.4%
ROICexcg growth 3Y31.81%
ROICexcg growth 5Y23.91%
ROICexc growth 3Y30.98%
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-Score9
Asset Turnover0.73
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 2.99 | ||
| Debt/EBITDA | 1.27 | ||
| Cap/Depr | 109.4% | ||
| Cap/Sales | 4.47% | ||
| Interest Coverage | 11.82 | ||
| Cash Conversion | 69.52% | ||
| Profit Quality | 68.76% | ||
| Current Ratio | 1.34 | ||
| Quick Ratio | 0.93 | ||
| Altman-Z | 2.1 |
F-Score9
WACC9.13%
ROIC/WACC1.27
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)40%
EPS 3Y55.53%
EPS 5Y23.35%
EPS Q2Q%18.6%
EPS Next Y2.3%
EPS Next 2Y7.81%
EPS Next 3Y8.91%
EPS Next 5Y8.23%
Revenue 1Y (TTM)6.22%
Revenue growth 3Y10.72%
Revenue growth 5Y3.14%
Sales Q2Q%0.14%
Revenue Next Year-1.95%
Revenue Next 2Y0.63%
Revenue Next 3Y1.39%
Revenue Next 5Y2.06%
EBIT growth 1Y25.69%
EBIT growth 3Y29.82%
EBIT growth 5Y16.91%
EBIT Next Year36.41%
EBIT Next 3Y16.7%
EBIT Next 5Y11.57%
FCF growth 1Y61.48%
FCF growth 3Y10.61%
FCF growth 5Y18.31%
OCF growth 1Y43.04%
OCF growth 3Y11.96%
OCF growth 5Y9.4%