BAKER HUGHES CO (BKR)
US05722G1004 - Common Stock
Taking everything into account, BKR scores 6 out of 10 in our fundamental rating. BKR was compared to 60 industry peers in the Energy Equipment & Services industry. While BKR has a great profitability rating, there are some minor concerns on its financial health. BKR has a correct valuation and a medium growth rate. BKR also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year BKR was profitable.
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.
In the past 5 years BKR always reported a positive cash flow from operatings.
1.2 Ratios
BKR has a better Return On Assets (5.97%) than 63.33% of its industry peers.
BKR has a Return On Equity of 13.84%. This is in the better half of the industry: BKR outperforms 65.00% of its industry peers.
The Return On Invested Capital of BKR (10.38%) is better than 76.67% 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 8.31%.
The last Return On Invested Capital (10.38%) for BKR is above the 3 year average (6.72%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.97% | ||
| ROE | 13.84% | ||
| ROIC | 10.38% |
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 Profit Margin of 8.21%. This is in the better half of the industry: BKR outperforms 65.00% of its industry peers.
BKR's Profit Margin has improved in the last couple of years.
BKR has a better Operating Margin (11.91%) than 65.00% of its industry peers.
In the last couple of years the Operating Margin of BKR has grown nicely.
With a Gross Margin value of 21.10%, BKR is not doing good in the industry: 65.00% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of BKR has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.91% | ||
| PM (TTM) | 8.21% | ||
| GM | 21.1% |
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.
Compared to 5 years ago, BKR has more shares outstanding
Compared to 1 year ago, BKR has an improved debt to assets ratio.
2.2 Solvency
BKR has an Altman-Z score of 2.05. 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.
The Altman-Z score of BKR (2.05) is comparable to the rest of the industry.
The Debt to FCF ratio of BKR is 3.37, which is a good value as it means it would take BKR, 3.37 years of fcf income to pay off all of its debts.
BKR's Debt to FCF ratio of 3.37 is in line compared to the rest of the industry. BKR outperforms 56.67% of its industry peers.
A Debt/Equity ratio of 0.37 indicates that BKR is not too dependend on debt financing.
BKR's Debt to Equity ratio of 0.37 is in line compared to the rest of the industry. BKR outperforms 48.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 3.37 | ||
| Altman-Z | 2.05 |
ROIC/WACC1.28
WACC8.14%
2.3 Liquidity
BKR has a Current Ratio of 1.30. This is a normal value and indicates that BKR is financially healthy and should not expect problems in meeting its short term obligations.
BKR has a worse Current ratio (1.30) than 78.33% of its industry peers.
BKR has a Quick Ratio of 1.30. 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 0.88, BKR is not doing good in the industry: 85.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.3 | ||
| Quick Ratio | 0.88 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 48.30% over the past year.
The Earnings Per Share has been growing by 19.02% on average over the past years. This is quite good.
BKR shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.08%.
The Revenue has been growing slightly by 2.20% on average over the past years.
EPS 1Y (TTM)48.3%
EPS 3Y276.41%
EPS 5Y19.02%
EPS Q2Q%59.52%
Revenue 1Y (TTM)11.08%
Revenue growth 3Y7.2%
Revenue growth 5Y2.2%
Sales Q2Q%4.02%
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.
The Revenue is expected to grow by 5.05% on average over the next years.
EPS Next Y45.37%
EPS Next 2Y27.29%
EPS Next 3Y23.33%
EPS Next 5Y16.64%
Revenue Next Year7.83%
Revenue Next 2Y5.01%
Revenue Next 3Y4.46%
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.
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
A Price/Earnings ratio of 18.95 indicates a rather expensive valuation of BKR.
Based on the Price/Earnings ratio, BKR is valued a bit cheaper than the industry average as 61.67% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 29.48. BKR is valued slightly cheaper when compared to this.
BKR is valuated correctly with a Price/Forward Earnings ratio of 15.94.
BKR's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of BKR to the average of the S&P500 Index (23.95), we can say BKR is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.95 | ||
| Fwd PE | 15.94 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BKR is valued a bit more expensive than the industry average as 73.33% of the companies are valued more cheaply.
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 | 22.8 | ||
| EV/EBITDA | 10.4 |
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 23.33% in the coming years.
PEG (NY)0.42
PEG (5Y)1
EPS Next 2Y27.29%
EPS Next 3Y23.33%
5. Dividend
5.1 Amount
BKR has a Yearly Dividend Yield of 1.93%. 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 3.40.
BKR's Dividend Yield is comparable with the S&P500 average which is at 2.16.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.93% |
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 Years3
Div Non Decr Years10
5.3 Sustainability
36.96% of the earnings are spent on dividend by BKR. This is a low number and sustainable payout ratio.
The dividend of BKR is growing, but earnings are growing more, so the dividend growth is sustainable.
DP36.96%
EPS Next 2Y27.29%
EPS Next 3Y23.33%
BAKER HUGHES CO
NASDAQ:BKR (12/6/2024, 8:00:01 PM)
After market: 41.21 -0.1 (-0.24%)41.31
-1.2 (-2.82%)
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 Cap40.88B
Analysts
Price Target
Short Float %
Short Ratio
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.93% |
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)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
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)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
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 | 18.95 | ||
| Fwd PE | 15.94 | ||
| 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)0.42
PEG (5Y)1
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.97% | ||
| ROE | 13.84% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 11.91% | ||
| PM (TTM) | 8.21% | ||
| GM | 21.1% | ||
| 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 Turnover0.73
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.3 | ||
| Quick Ratio | 0.88 | ||
| 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)48.3%
EPS 3Y276.41%
EPS 5Y
EPS Q2Q%
EPS Next Y45.37%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)11.08%
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