BAKER HUGHES CO (BKR) Stock Fundamental Analysis
USA - NASDAQ:BKR - US05722G1004 - Common Stock
45.18 USD
+0.54 (+1.21%)
45.18 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to BKR. BKR was compared to 61 industry peers in the Energy Equipment & Services industry. While BKR belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. While showing a medium growth rate, BKR is valued expensive at the moment. BKR also has an excellent dividend rating. These ratings could make BKR a good candidate for dividend investing.
1. Profitability
1.1 Basic Checks
In the past year BKR was profitable.
In the past year BKR had a positive cash flow from operations.
In multiple years BKR reported negative net income over the last 5 years.
BKR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
BKR has a better Return On Assets (7.87%) than 77.05% of its industry peers.
BKR's Return On Equity of 17.22% is amongst the best of the industry. BKR outperforms 81.97% of its industry peers.
The Return On Invested Capital of BKR (11.38%) is better than 83.61% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for BKR is in line with the industry average of 7.95%.
The 3 year average ROIC (9.18%) for BKR 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
BKR's Profit Margin of 11.04% is amongst the best of the industry. BKR outperforms 81.97% of its industry peers.
In the last couple of years the Profit Margin of BKR has grown nicely.
BKR's Operating Margin of 12.99% is fine compared to the rest of the industry. BKR outperforms 67.21% of its industry peers.
BKR's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 22.58%, BKR is in line with its industry, outperforming 40.98% of the companies in the same industry.
BKR's Gross Margin has improved in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), BKR is creating some value.
Compared to 1 year ago, BKR has less shares outstanding
Compared to 5 years ago, BKR has more shares outstanding
BKR has a better debt/assets ratio than last year.
2.2 Solvency
BKR has an Altman-Z score of 2.28. 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.
BKR's Altman-Z score of 2.28 is fine compared to the rest of the industry. BKR outperforms 63.93% of its industry peers.
The Debt to FCF ratio of BKR is 2.79, which is a good value as it means it would take BKR, 2.79 years of fcf income to pay off all of its debts.
BKR has a better Debt to FCF ratio (2.79) than 68.85% of its industry peers.
BKR has a Debt/Equity ratio of 0.34. This is a healthy value indicating a solid balance between debt and equity.
BKR has a Debt to Equity ratio (0.34) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 2.79 | ||
| Altman-Z | 2.28 |
ROIC/WACC1.37
WACC8.32%
2.3 Liquidity
BKR has a Current Ratio of 1.41. This is a normal value and indicates that BKR is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of BKR (1.41) is worse than 70.49% of its industry peers.
BKR has a Quick Ratio of 1.41. This is a bad value and indicates that BKR is not financially healthy enough and could expect problems in meeting its short term obligations.
BKR has a Quick ratio of 1.00. This is in the lower half of the industry: BKR underperforms 77.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.41 | ||
| Quick Ratio | 1 |
3. Growth
3.1 Past
BKR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 30.05%, which is quite impressive.
Measured over the past years, BKR shows a very strong growth in Earnings Per Share. The EPS has been growing by 23.35% on average per year.
Looking at the last year, BKR shows a small growth in Revenue. The Revenue has grown by 2.13% in the last year.
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
Based on estimates for the next years, BKR will show a small growth in Earnings Per Share. The EPS will grow by 7.64% on average per year.
Based on estimates for the next years, BKR will show a small growth in Revenue. The Revenue will grow by 1.90% on average per year.
EPS Next Y2.91%
EPS Next 2Y6.35%
EPS Next 3Y9.28%
EPS Next 5Y7.64%
Revenue Next Year-1.48%
Revenue Next 2Y1.07%
Revenue Next 3Y2.73%
Revenue Next 5Y1.9%
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
Based on the Price/Earnings ratio of 18.00, the valuation of BKR can be described as rather expensive.
The rest of the industry has a similar Price/Earnings ratio as BKR.
BKR's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.42.
BKR is valuated correctly with a Price/Forward Earnings ratio of 16.86.
BKR's Price/Forward Earnings is on the same level as the industry average.
BKR's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18 | ||
| Fwd PE | 16.86 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BKR is valued a bit more expensive than 78.69% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of BKR is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.57 | ||
| EV/EBITDA | 9.48 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates BKR does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of BKR may justify a higher PE ratio.
PEG (NY)6.18
PEG (5Y)0.77
EPS Next 2Y6.35%
EPS Next 3Y9.28%
5. Dividend
5.1 Amount
BKR has a Yearly Dividend Yield of 2.06%.
BKR's Dividend Yield is a higher than the industry average which is at 3.23.
BKR's Dividend Yield is comparable with the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.06% |
5.2 History
The dividend of BKR has a limited annual growth rate of 4.36%.
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.
Dividend Growth(5Y)4.36%
Div Incr Years3
Div Non Decr Years10
5.3 Sustainability
BKR pays out 28.64% of its income as dividend. This is a sustainable payout ratio.
BKR's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP28.64%
EPS Next 2Y6.35%
EPS Next 3Y9.28%
45.18
+0.54 (+1.21%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners101.25%
Inst Owner Change0%
Ins Owners0.11%
Ins Owner Change-12%
Market Cap44.54B
Analysts80.77
Price Target51.32 (13.59%)
Short Float %2.19%
Short Ratio3.2
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.06% |
Yearly Dividend0.84
Dividend Growth(5Y)4.36%
DP28.64%
Div Incr Years3
Div Non Decr Years10
Ex-Date
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)0.98%
PT rev (3m)6.9%
EPS NQ rev (1m)0.2%
EPS NQ rev (3m)-0.15%
EPS NY rev (1m)0.09%
EPS NY rev (3m)1.19%
Revenue NQ rev (1m)0.03%
Revenue NQ rev (3m)0.61%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)0.79%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18 | ||
| Fwd PE | 16.86 | ||
| P/S | 1.61 | ||
| P/FCF | 20.57 | ||
| P/OCF | 13.03 | ||
| P/B | 2.52 | ||
| P/tB | 5.58 | ||
| EV/EBITDA | 9.48 |
EPS(TTM)2.51
EY5.56%
EPS(NY)2.68
Fwd EY5.93%
FCF(TTM)2.2
FCFY4.86%
OCF(TTM)3.47
OCFY7.68%
SpS28
BVpS17.95
TBVpS8.09
PEG (NY)6.18
PEG (5Y)0.77
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 | 2.28 |
F-Score8
WACC8.32%
ROIC/WACC1.37
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 Y2.91%
EPS Next 2Y6.35%
EPS Next 3Y9.28%
EPS Next 5Y7.64%
Revenue 1Y (TTM)2.13%
Revenue growth 3Y10.72%
Revenue growth 5Y3.14%
Sales Q2Q%-3.21%
Revenue Next Year-1.48%
Revenue Next 2Y1.07%
Revenue Next 3Y2.73%
Revenue Next 5Y1.9%
EBIT growth 1Y18.07%
EBIT growth 3Y29.82%
EBIT growth 5Y16.91%
EBIT Next Year37.37%
EBIT Next 3Y18.92%
EBIT Next 5Y11.6%
FCF growth 1Y24.93%
FCF growth 3Y10.61%
FCF growth 5Y18.31%
OCF growth 1Y21.46%
OCF growth 3Y11.96%
OCF growth 5Y9.4%