BAKER HUGHES CO (BKR)
US05722G1004 - Common Stock
Overall BKR gets a fundamental rating of 5 out of 10. We evaluated BKR against 65 industry peers in the Energy Equipment & Services industry. BKR has an average financial health and profitability rating. BKR has a correct valuation and a medium growth rate.
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.
In the past 5 years BKR always reported a positive cash flow from operatings.
1.2 Ratios
BKR has a Return On Assets (4.91%) which is comparable to the rest of the industry.
BKR's Return On Equity of 11.84% is in line compared to the rest of the industry. BKR outperforms 58.46% of its industry peers.
BKR has a Return On Invested Capital of 9.30%. This is in the better half of the industry: BKR outperforms 73.85% of its industry peers.
The Average Return On Invested Capital over the past 3 years for BKR is in line with the industry average of 7.69%.
The 3 year average ROIC (6.72%) for BKR is below the current ROIC(9.30%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.91% | ||
| ROE | 11.84% | ||
| ROIC | 9.3% |
ROA(3y)0.96%
ROA(5y)-4.61%
ROE(3y)2.38%
ROE(5y)-9.47%
ROIC(3y)6.72%
ROIC(5y)5.04%
1.3 Margins
BKR's Profit Margin of 6.96% is in line compared to the rest of the industry. BKR outperforms 58.46% of its industry peers.
BKR's Profit Margin has improved in the last couple of years.
BKR has a Operating Margin of 10.77%. This is comparable to the rest of the industry: BKR outperforms 58.46% of its industry peers.
BKR's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 20.59%, BKR is not doing good in the industry: 64.62% of the companies in the same industry are doing better.
BKR's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.77% | ||
| PM (TTM) | 6.96% | ||
| GM | 20.59% |
OM growth 3Y39.79%
OM growth 5Y13.27%
PM growth 3YN/A
PM growth 5Y54.97%
GM growth 3Y10.28%
GM growth 5Y3.53%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so BKR is still creating some value.
The number of shares outstanding for BKR has been reduced compared to 1 year ago.
The number of shares outstanding for BKR has been increased compared to 5 years ago.
BKR has a better debt/assets ratio than last year.
2.2 Solvency
BKR has an Altman-Z score of 1.73. This is a bad value and indicates that BKR is not financially healthy and even has some risk of bankruptcy.
BKR's Altman-Z score of 1.73 is in line compared to the rest of the industry. BKR outperforms 49.23% of its industry peers.
BKR has a debt to FCF ratio of 2.81. This is a good value and a sign of high solvency as BKR would need 2.81 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.81, BKR is in the better half of the industry, outperforming 67.69% of the companies in the same industry.
A Debt/Equity ratio of 0.38 indicates that BKR is not too dependend on debt financing.
The Debt to Equity ratio of BKR (0.38) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.38 | ||
| Debt/FCF | 2.81 | ||
| Altman-Z | 1.73 |
ROIC/WACC1.14
WACC8.18%
2.3 Liquidity
A Current Ratio of 1.25 indicates that BKR should not have too much problems paying its short term obligations.
BKR has a worse Current ratio (1.25) than 83.08% of its industry peers.
BKR has a Quick Ratio of 1.25. 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's Quick ratio of 0.84 is on the low side compared to the rest of the industry. BKR is outperformed by 86.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.25 | ||
| Quick Ratio | 0.84 |
3. Growth
3.1 Past
BKR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 47.33%, which is quite impressive.
BKR shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 19.02% yearly.
The Revenue has grown by 20.56% in the past year. This is a very strong growth!
The Revenue has been growing slightly by 2.20% on average over the past years.
EPS 1Y (TTM)47.33%
EPS 3Y276.41%
EPS 5Y19.02%
EPS Q2Q%46.15%
Revenue 1Y (TTM)20.56%
Revenue growth 3Y7.2%
Revenue growth 5Y2.2%
Sales Q2Q%13.05%
3.2 Future
Based on estimates for the next years, BKR will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.64% on average per year.
Based on estimates for the next years, BKR will show a small growth in Revenue. The Revenue will grow by 5.05% on average per year.
EPS Next Y29.62%
EPS Next 2Y26.22%
EPS Next 3Y22.29%
EPS Next 5Y16.64%
Revenue Next Year7.61%
Revenue Next 2Y7.1%
Revenue Next 3Y5.88%
Revenue Next 5Y5.05%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 19.51, BKR is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of BKR indicates a somewhat cheap valuation: BKR is cheaper than 61.54% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of BKR to the average of the S&P500 Index (24.41), we can say BKR is valued slightly cheaper.
With a Price/Forward Earnings ratio of 14.77, BKR is valued correctly.
BKR's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.59, BKR is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.51 | ||
| Fwd PE | 14.77 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BKR indicates a slightly more expensive valuation: BKR is more expensive than 64.62% of the companies listed in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as BKR.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.57 | ||
| EV/EBITDA | 9.89 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of BKR may justify a higher PE ratio.
BKR's earnings are expected to grow with 22.29% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.66
PEG (5Y)1.03
EPS Next 2Y26.22%
EPS Next 3Y22.29%
5. Dividend
5.1 Amount
BKR has a Yearly Dividend Yield of 2.41%. Purely for dividend investing, there may be better candidates out there.
BKR's Dividend Yield is a higher than the industry average which is at 3.04.
Compared to an average S&P500 Dividend Yield of 2.30, BKR has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.41% |
5.2 History
The dividend of BKR has a limited annual growth rate of 3.09%.
BKR has been paying a dividend for at least 10 years, so it has a reliable track record.
BKR has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)3.09%
Div Incr Years2
Div Non Decr Years9
5.3 Sustainability
44.10% of the earnings are spent on dividend by BKR. This is a bit on the high side, but may be sustainable.
The dividend of BKR is growing, but earnings are growing more, so the dividend growth is sustainable.
DP44.1%
EPS Next 2Y26.22%
EPS Next 3Y22.29%
BAKER HUGHES CO
NASDAQ:BKR (7/26/2024, 7:19:17 PM)
After market: 37.65 0 (0%)37.65
+2.07 (+5.82%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap37.57B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.41% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.51 | ||
| Fwd PE | 14.77 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.66
PEG (5Y)1.03
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.91% | ||
| ROE | 11.84% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 10.77% | ||
| PM (TTM) | 6.96% | ||
| GM | 20.59% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.71
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.38 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.25 | ||
| Quick Ratio | 0.84 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)47.33%
EPS 3Y276.41%
EPS 5Y
EPS Q2Q%
EPS Next Y29.62%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)20.56%
Revenue growth 3Y7.2%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y