49.43 USD
+0.07 (+0.14%)
49.4 USD
-0.03 (-0.06%)
We assign a fundamental rating of 5 out of 10 to BKR. BKR was compared to 60 industry peers in the Energy Equipment & Services industry. BKR has an excellent profitability rating, but there are some minor concerns on its financial health. BKR is valied quite expensively at the moment, while it does show a decent 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.
Each year in the past 5 years BKR had a positive operating cash flow.
1.2 Ratios
BKR has a Return On Assets of 7.37%. This is in the better half of the industry: BKR outperforms 78.33% of its industry peers.
With an excellent Return On Equity value of 15.92%, BKR belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
With an excellent Return On Invested Capital value of 11.19%, BKR belongs to the best of the industry, outperforming 81.67% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for BKR is in line with the industry average of 7.66%.
The 3 year average ROIC (9.18%) for BKR is below the current ROIC(11.19%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.37% | ||
| ROE | 15.92% | ||
| ROIC | 11.19% |
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 has a Profit Margin of 10.43%. This is amongst the best in the industry. BKR outperforms 81.67% of its industry peers.
BKR's Profit Margin has improved in the last couple of years.
BKR's Operating Margin of 13.01% is fine compared to the rest of the industry. BKR outperforms 66.67% of its industry peers.
In the last couple of years the Operating Margin of BKR has grown nicely.
Looking at the Gross Margin, with a value of 23.07%, BKR is in line with its industry, outperforming 45.00% of the companies in the same industry.
In the last couple of years the Gross Margin of BKR has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.01% | ||
| PM (TTM) | 10.43% | ||
| GM | 23.07% |
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 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 2.40. 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.
Looking at the Altman-Z score, with a value of 2.40, BKR is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
BKR has a debt to FCF ratio of 2.90. This is a good value and a sign of high solvency as BKR would need 2.90 years to pay back of all of its debts.
BKR has a Debt to FCF ratio of 2.90. This is in the better half of the industry: BKR outperforms 71.67% of its industry peers.
BKR has a Debt/Equity ratio of 0.33. This is a healthy value indicating a solid balance between debt and equity.
BKR has a Debt to Equity ratio of 0.33. This is comparable to the rest of the industry: BKR outperforms 58.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 2.9 | ||
| Altman-Z | 2.4 |
ROIC/WACC1.33
WACC8.43%
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.
With a Current ratio value of 1.41, BKR is not doing good in the industry: 73.33% of the companies in the same industry are doing better.
BKR has a Quick Ratio of 1.00. This is a normal value and indicates that BKR is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.00, BKR is not doing good in the industry: 81.67% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.41 | ||
| Quick Ratio | 1 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 15.60% over the past year.
The Earnings Per Share has been growing by 23.35% on average over the past years. This is a very strong growth
The Revenue has been growing slightly by 1.51% in the past year.
The Revenue has been growing slightly by 3.14% on average over the past years.
EPS 1Y (TTM)15.6%
EPS 3Y55.53%
EPS 5Y23.35%
EPS Q2Q%1.49%
Revenue 1Y (TTM)1.51%
Revenue growth 3Y10.72%
Revenue growth 5Y3.14%
Sales Q2Q%1.48%
3.2 Future
The Earnings Per Share is expected to grow by 8.42% on average over the next years. This is quite good.
Based on estimates for the next years, BKR will show a small growth in Revenue. The Revenue will grow by 2.40% on average per year.
EPS Next Y6.1%
EPS Next 2Y6.02%
EPS Next 3Y8.81%
EPS Next 5Y8.42%
Revenue Next Year-0.62%
Revenue Next 2Y1.26%
Revenue Next 3Y2.85%
Revenue Next 5Y2.4%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last 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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 19.62, the valuation of BKR can be described as rather expensive.
The rest of the industry has a similar Price/Earnings ratio as BKR.
The average S&P500 Price/Earnings ratio is at 25.98. BKR is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 18.55, the valuation of BKR can be described as rather expensive.
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 (35.79), we can say BKR is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.62 | ||
| Fwd PE | 18.55 |
4.2 Price Multiples
BKR's Enterprise Value to EBITDA ratio is rather expensive when compared to the industry. BKR is more expensive than 81.67% 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 | 23.33 | ||
| EV/EBITDA | 10.39 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of BKR may justify a higher PE ratio.
PEG (NY)3.22
PEG (5Y)0.84
EPS Next 2Y6.02%
EPS Next 3Y8.81%
5. Dividend
5.1 Amount
BKR has a Yearly Dividend Yield of 1.91%.
Compared to an average industry Dividend Yield of 3.03, BKR pays a bit more dividend than its industry peers.
Compared to the average S&P500 Dividend Yield of 2.41, BKR is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.91% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)4.36%
Div Incr Years3
Div Non Decr Years10
5.3 Sustainability
30.82% 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.
DP30.82%
EPS Next 2Y6.02%
EPS Next 3Y8.81%
49.43
+0.07 (+0.14%)
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-11.79%
Market Cap48.73B
Revenue(TTM)27.71B
Net Income(TTM)2.89B
Analysts80.77
Price Target53.57 (8.38%)
Short Float %2.99%
Short Ratio4.07
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.91% |
Yearly Dividend0.84
Dividend Growth(5Y)4.36%
DP30.82%
Div Incr Years3
Div Non Decr Years10
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.74%
Min EPS beat(2)9.31%
Max EPS beat(2)12.17%
EPS beat(4)4
Avg EPS beat(4)9.49%
Min EPS beat(4)5.87%
Max EPS beat(4)12.17%
EPS beat(8)8
Avg EPS beat(8)9.44%
EPS beat(12)11
Avg EPS beat(12)8.09%
EPS beat(16)12
Avg EPS beat(16)1.03%
Revenue beat(2)2
Avg Revenue beat(2)2.34%
Min Revenue beat(2)1.64%
Max Revenue beat(2)3.04%
Revenue beat(4)3
Avg Revenue beat(4)1.43%
Min Revenue beat(4)-1.98%
Max Revenue beat(4)3.04%
Revenue beat(8)4
Avg Revenue beat(8)0.25%
Revenue beat(12)6
Avg Revenue beat(12)0.14%
Revenue beat(16)6
Avg Revenue beat(16)-0.79%
PT rev (1m)4.38%
PT rev (3m)4.61%
EPS NQ rev (1m)2.31%
EPS NQ rev (3m)2.81%
EPS NY rev (1m)2.68%
EPS NY rev (3m)3.19%
Revenue NQ rev (1m)0.04%
Revenue NQ rev (3m)1.23%
Revenue NY rev (1m)0.79%
Revenue NY rev (3m)1.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.62 | ||
| Fwd PE | 18.55 | ||
| P/S | 1.76 | ||
| P/FCF | 23.33 | ||
| P/OCF | 14.6 | ||
| P/B | 2.68 | ||
| P/tB | 6.15 | ||
| EV/EBITDA | 10.39 |
EPS(TTM)2.52
EY5.1%
EPS(NY)2.66
Fwd EY5.39%
FCF(TTM)2.12
FCFY4.29%
OCF(TTM)3.39
OCFY6.85%
SpS28.11
BVpS18.42
TBVpS8.04
PEG (NY)3.22
PEG (5Y)0.84
Graham Number32.31
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.37% | ||
| ROE | 15.92% | ||
| ROCE | 13.45% | ||
| ROIC | 11.19% | ||
| ROICexc | 13.15% | ||
| ROICexgc | 23.85% | ||
| OM | 13.01% | ||
| PM (TTM) | 10.43% | ||
| GM | 23.07% | ||
| FCFM | 7.54% |
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%
ROICexgc growth 3Y31.82%
ROICexgc 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 | 0.33 | ||
| Debt/FCF | 2.9 | ||
| Debt/EBITDA | 1.26 | ||
| Cap/Depr | 108.33% | ||
| Cap/Sales | 4.51% | ||
| Interest Coverage | 12.18 | ||
| Cash Conversion | 70.16% | ||
| Profit Quality | 72.26% | ||
| Current Ratio | 1.41 | ||
| Quick Ratio | 1 | ||
| Altman-Z | 2.4 |
F-Score8
WACC8.43%
ROIC/WACC1.33
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)15.6%
EPS 3Y55.53%
EPS 5Y23.35%
EPS Q2Q%1.49%
EPS Next Y6.1%
EPS Next 2Y6.02%
EPS Next 3Y8.81%
EPS Next 5Y8.42%
Revenue 1Y (TTM)1.51%
Revenue growth 3Y10.72%
Revenue growth 5Y3.14%
Sales Q2Q%1.48%
Revenue Next Year-0.62%
Revenue Next 2Y1.26%
Revenue Next 3Y2.85%
Revenue Next 5Y2.4%
EBIT growth 1Y10.85%
EBIT growth 3Y29.82%
EBIT growth 5Y16.91%
EBIT Next Year37.37%
EBIT Next 3Y18.92%
EBIT Next 5Y11.89%
FCF growth 1Y10.47%
FCF growth 3Y10.61%
FCF growth 5Y18.31%
OCF growth 1Y10.24%
OCF growth 3Y11.96%
OCF growth 5Y9.4%
BAKER HUGHES CO / BKR FAQ
What is the ChartMill fundamental rating of BAKER HUGHES CO (BKR) stock?
ChartMill assigns a fundamental rating of 5 / 10 to BKR.
What is the valuation status for BKR stock?
ChartMill assigns a valuation rating of 3 / 10 to BAKER HUGHES CO (BKR). This can be considered as Overvalued.
Can you provide the profitability details for BAKER HUGHES CO?
BAKER HUGHES CO (BKR) has a profitability rating of 8 / 10.
What are the PE and PB ratios of BAKER HUGHES CO (BKR) stock?
The Price/Earnings (PE) ratio for BAKER HUGHES CO (BKR) is 19.62 and the Price/Book (PB) ratio is 2.68.
Can you provide the dividend sustainability for BKR stock?
The dividend rating of BAKER HUGHES CO (BKR) is 6 / 10 and the dividend payout ratio is 30.82%.