BAKER HUGHES CO (BKR)
US05722G1004 - Common Stock
We assign a fundamental rating of 5 out of 10 to BKR. BKR was compared to 65 industry peers in the Energy Equipment & Services industry. Both the profitability and the financial health of BKR get a neutral evaluation. Nothing too spectacular is happening here. BKR has a correct valuation and a medium growth rate. BKR also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
BKR had positive earnings in the past year.
BKR had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: BKR reported negative net income in multiple years.
Each year in the past 5 years BKR had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.26%, BKR is in line with its industry, outperforming 58.46% of the companies in the same industry.
With a decent Return On Equity value of 12.65%, BKR is doing good in the industry, outperforming 64.62% of the companies in the same industry.
The Return On Invested Capital of BKR (8.82%) is better than 61.54% 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 8.59%.
The 3 year average ROIC (6.72%) for BKR is below the current ROIC(8.82%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.26% | ||
| ROE | 12.65% | ||
| ROIC | 8.82% |
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 has a better Profit Margin (7.62%) than 64.62% of its industry peers.
BKR's Profit Margin has improved in the last couple of years.
The Operating Margin of BKR (10.48%) is comparable to the rest of the industry.
BKR's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 20.72%, 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 | 10.48% | ||
| PM (TTM) | 7.62% | ||
| GM | 20.72% |
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
BKR has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
BKR has less shares outstanding than it did 1 year ago.
BKR has more shares outstanding than it did 5 years ago.
BKR has a better debt/assets ratio than last year.
2.2 Solvency
BKR has an Altman-Z score of 1.60. This is a bad value and indicates that BKR is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.60, BKR is in line with its industry, outperforming 46.15% of the companies in the same industry.
The Debt to FCF ratio of BKR is 3.28, which is a good value as it means it would take BKR, 3.28 years of fcf income to pay off all of its debts.
BKR has a Debt to FCF ratio of 3.28. This is in the better half of the industry: BKR outperforms 66.15% of its industry peers.
BKR has a Debt/Equity ratio of 0.38. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.38, BKR is in line with its industry, outperforming 46.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.38 | ||
| Debt/FCF | 3.28 | ||
| Altman-Z | 1.6 |
ROIC/WACC1.05
WACC8.4%
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 Current ratio of 1.25. This is in the lower half of the industry: BKR underperforms 78.46% 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.
With a Quick ratio value of 0.86, BKR is not doing good in the industry: 87.69% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.25 | ||
| Quick Ratio | 0.86 |
3. Growth
3.1 Past
BKR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 77.78%, which is quite impressive.
The Earnings Per Share has been growing by 19.02% on average over the past years. This is quite good.
BKR shows a strong growth in Revenue. In the last year, the Revenue has grown by 20.57%.
BKR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.20% yearly.
EPS 1Y (TTM)77.78%
EPS 3Y276.41%
EPS 5Y19.02%
EPS growth Q2Q34.21%
Revenue 1Y (TTM)20.57%
Revenue growth 3Y7.2%
Revenue growth 5Y2.2%
Revenue growth Q2Q15.75%
3.2 Future
The Earnings Per Share is expected to grow by 12.23% on average over the next years. This is quite good.
BKR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.96% yearly.
EPS Next Y27.03%
EPS Next 2Y26.01%
EPS Next 3Y21.87%
EPS Next 5Y12.23%
Revenue Next Year7.58%
Revenue Next 2Y7.38%
Revenue Next 3Y6.03%
Revenue Next 5Y4.96%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past 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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 20.38, which indicates a rather expensive current valuation of BKR.
Compared to the rest of the industry, the Price/Earnings ratio of BKR is on the same level as its industry peers.
When comparing the Price/Earnings ratio of BKR to the average of the S&P500 Index (24.76), we can say BKR is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 16.04, the valuation of BKR can be described as correct.
The rest of the industry has a similar Price/Forward Earnings ratio as BKR.
BKR's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.26.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.38 | ||
| Fwd PE | 16.04 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BKR is valued a bit more expensive than 63.08% of the companies in the same industry.
BKR's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.75 | ||
| EV/EBITDA | 9.15 |
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.
BKR has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as BKR's earnings are expected to grow with 21.87% in the coming years.
PEG (NY)0.75
PEG (5Y)1.07
EPS Next 2Y26.01%
EPS Next 3Y21.87%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.47%, BKR has a reasonable but not impressive dividend return.
BKR's Dividend Yield is rather good when compared to the industry average which is at 2.55. BKR pays more dividend than 84.62% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, BKR has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.47% |
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 for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)3.09%
Div Incr Years2
Div Non Decr Years19
5.3 Sustainability
40.43% 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.
DP40.43%
EPS Next 2Y26.01%
EPS Next 3Y21.87%
BAKER HUGHES CO
NASDAQ:BKR (4/19/2024, 7:00:00 PM)
After market: 32.6 0 (0%)32.6
+0.4 (+1.24%)
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 Cap32.63B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.47% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
Avg Revenue beat(16)
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 | 20.38 | ||
| Fwd PE | 16.04 | ||
| 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)0.75
PEG (5Y)1.07
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.26% | ||
| ROE | 12.65% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 10.48% | ||
| PM (TTM) | 7.62% | ||
| GM | 20.72% | ||
| 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 Turnover0.69
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 | 0.86 | ||
| 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)
Growth
EPS 1Y (TTM)77.78%
EPS 3Y276.41%
EPS 5Y
EPS growth Q2Q
EPS Next Y27.03%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)20.57%
Revenue growth 3Y7.2%
Revenue growth 5Y
Revenue growth 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