BAKER HUGHES CO (68V.DE) Stock Fundamental Analysis
FRA:68V - Deutsche Boerse Ag - US05722G1004 - Common Stock - Currency: EUR
Taking everything into account, 68V scores 5 out of 10 in our fundamental rating. 68V was compared to 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. 68V is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
68V had positive earnings in the past year.
68V had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: 68V reported negative net income in multiple years.
68V had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of 68V (7.68%) is better than 71.43% of its industry peers.
With a decent Return On Equity value of 17.01%, 68V is doing good in the industry, outperforming 68.57% of the companies in the same industry.
68V has a better Return On Invested Capital (11.56%) than 71.43% of its industry peers.
The Average Return On Invested Capital over the past 3 years for 68V is in line with the industry average of 10.50%.
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 | 17.01% | ||
| 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 Profit Margin of 10.51%. This is in the better half of the industry: 68V outperforms 65.71% of its industry peers.
68V's Profit Margin has improved in the last couple of years.
68V has a Operating Margin of 12.74%. This is comparable to the rest of the industry: 68V outperforms 45.71% of its industry peers.
68V's Operating Margin has improved in the last couple of years.
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.
68V has less shares outstanding than it did 1 year ago.
68V has more shares outstanding than it did 5 years ago.
68V has a better debt/assets ratio than last year.
2.2 Solvency
68V has a debt to FCF ratio of 2.99. This is a good value and a sign of high solvency as 68V would need 2.99 years to pay back of all of its debts.
The Debt to FCF ratio of 68V (2.99) is better than 74.29% of its industry peers.
68V has a Debt/Equity ratio of 0.35. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of 68V (0.35) is better than 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 2.99 | ||
| Altman-Z | N/A |
ROIC/WACC1.27
WACC9.09%
2.3 Liquidity
68V has a Current Ratio of 1.34. This is a normal value and indicates that 68V is financially healthy and should not expect problems in meeting its short term obligations.
68V has a Current ratio (1.34) which is comparable to the rest of the industry.
68V has a Quick Ratio of 1.34. This is a bad value and indicates that 68V is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.93, 68V is doing worse than 74.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.34 | ||
| Quick Ratio | 0.93 |
3. Growth
3.1 Past
68V shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 40.00%, which is quite impressive.
The Earnings Per Share has been growing by 23.35% on average over the past years. This is a very strong growth
68V shows a small growth in Revenue. In the last year, the Revenue has grown by 6.22%.
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 8.14% on average per year.
The Revenue is expected to grow by 2.05% on average over the next years.
EPS Next Y2.51%
EPS Next 2Y7.97%
EPS Next 3Y8.67%
EPS Next 5Y8.14%
Revenue Next Year-1.9%
Revenue Next 2Y0.75%
Revenue Next 3Y1.35%
Revenue Next 5Y2.05%
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 14.93, 68V is valued correctly.
68V's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 26.25, 68V is valued a bit cheaper.
A Price/Forward Earnings ratio of 13.23 indicates a correct 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 71.43% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.15. 68V is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.93 | ||
| Fwd PE | 13.23 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 68V is on the same level as its industry peers.
65.71% of the companies in the same industry are cheaper than 68V, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18 | ||
| EV/EBITDA | 8.33 |
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.
The decent profitability rating of 68V may justify a higher PE ratio.
PEG (NY)5.95
PEG (5Y)0.64
EPS Next 2Y7.97%
EPS Next 3Y8.67%
5. Dividend
5.1 Amount
68V has a Yearly Dividend Yield of 2.51%. Purely for dividend investing, there may be better candidates out there.
In the last 3 months the price of 68V has falen by -22.95%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 6.53, 68V has a dividend in line with its industry peers.
68V's Dividend Yield is comparable with the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.51% |
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
68V pays out 29.22% of its income as dividend. This is a sustainable payout ratio.
The dividend of 68V is growing, but earnings are growing more, so the dividend growth is sustainable.
DP29.22%
EPS Next 2Y7.97%
EPS Next 3Y8.67%
FRA:68V (5/29/2025, 7:00:00 PM)
32.395
-0.08 (-0.26%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners97.98%
Inst Owner ChangeN/A
Ins Owners0.12%
Ins Owner ChangeN/A
Market Cap32.10B
Analysts81.33
Price Target42.77 (32.03%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.51% |
Yearly Dividend0.74
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)-11.22%
PT rev (3m)-8.69%
EPS NQ rev (1m)-7.35%
EPS NQ rev (3m)-8.11%
EPS NY rev (1m)-6.05%
EPS NY rev (3m)-7.7%
Revenue NQ rev (1m)-3.43%
Revenue NQ rev (3m)-3.67%
Revenue NY rev (1m)-2.35%
Revenue NY rev (3m)-3.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.93 | ||
| Fwd PE | 13.23 | ||
| P/S | 1.3 | ||
| P/FCF | 18 | ||
| P/OCF | 11.12 | ||
| P/B | 2.1 | ||
| P/tB | 5.06 | ||
| EV/EBITDA | 8.33 |
EPS(TTM)2.17
EY6.7%
EPS(NY)2.45
Fwd EY7.56%
FCF(TTM)1.8
FCFY5.56%
OCF(TTM)2.91
OCFY9%
SpS24.91
BVpS15.39
TBVpS6.4
PEG (NY)5.95
PEG (5Y)0.64
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.68% | ||
| ROE | 17.01% | ||
| ROCE | 13.9% | ||
| ROIC | 11.56% | ||
| ROICexc | 13.26% | ||
| ROICexgc | 24.21% | ||
| 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)10.7%
ROICexc(5y)8.19%
ROICexgc(3y)20.8%
ROICexgc(5y)15.76%
ROCE(3y)11.03%
ROCE(5y)8.4%
ROICexcg growth 3Y28.92%
ROICexcg growth 5Y22.28%
ROICexc growth 3Y29.47%
ROICexc growth 5Y32.66%
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 | N/A |
F-Score9
WACC9.09%
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 Y2.51%
EPS Next 2Y7.97%
EPS Next 3Y8.67%
EPS Next 5Y8.14%
Revenue 1Y (TTM)6.22%
Revenue growth 3Y10.72%
Revenue growth 5Y3.14%
Sales Q2Q%0.14%
Revenue Next Year-1.9%
Revenue Next 2Y0.75%
Revenue Next 3Y1.35%
Revenue Next 5Y2.05%
EBIT growth 1Y25.69%
EBIT growth 3Y29.82%
EBIT growth 5Y16.91%
EBIT Next Year36.41%
EBIT Next 3Y16.7%
EBIT Next 5Y11.81%
FCF growth 1Y61.48%
FCF growth 3Y10.61%
FCF growth 5Y18.31%
OCF growth 1Y43.04%
OCF growth 3Y11.96%
OCF growth 5Y9.4%