company background image
BKR

Baker Hughes NasdaqGS:BKR Stock Report

Last Price

US$28.87

Market Cap

US$29.6b

7D

0.7%

1Y

22.6%

Updated

30 Jun, 2022

Data

Company Financials +
BKR fundamental analysis
Snowflake Score
Valuation1/6
Future Growth3/6
Past Performance2/6
Financial Health5/6
Dividends2/6

BKR Stock Overview

Baker Hughes Company provides a portfolio of technologies and services to energy and industrial value chain worldwide.

Baker Hughes Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Baker Hughes
Historical stock prices
Current Share PriceUS$28.87
52 Week HighUS$39.78
52 Week LowUS$19.23
Beta1.48
1 Month Change-19.76%
3 Month Change-20.73%
1 Year Change22.64%
3 Year Change17.79%
5 Year Change-21.99%
Change since IPO11.58%

Recent News & Updates

May 16
Here's What To Make Of Baker Hughes' (NASDAQ:BKR) Decelerating Rates Of Return

Here's What To Make Of Baker Hughes' (NASDAQ:BKR) Decelerating Rates Of Return

To find a multi-bagger stock, what are the underlying trends we should look for in a business? Firstly, we'd want to...

May 04

Baker Hughes: Solid Growth Expected In 2022

Revenues were $4,835 million this quarter, up 1.1% from the same quarter a year ago and down 11.9% quarter over quarter. Revenues were lower than expected. The company anticipates a solid energy demand driven by economic growth in 2022. I recommend buying BKR at or below $30.5.

Shareholder Returns

BKRUS Energy ServicesUS Market
7D0.7%3.3%-0.6%
1Y22.6%8.6%-21.7%

Return vs Industry: BKR exceeded the US Energy Services industry which returned 14.9% over the past year.

Return vs Market: BKR exceeded the US Market which returned -20.8% over the past year.

Price Volatility

Is BKR's price volatile compared to industry and market?
BKR volatility
BKR Average Weekly Movement6.5%
Energy Services Industry Average Movement9.3%
Market Average Movement8.0%
10% most volatile stocks in US Market16.8%
10% least volatile stocks in US Market3.2%

Stable Share Price: BKR is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: BKR's weekly volatility (7%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
n/a55,000Lorenzo Simonellihttps://www.bakerhughes.com

Baker Hughes Company provides a portfolio of technologies and services to energy and industrial value chain worldwide. It operates through four segments: Oilfield Services (OFS), Oilfield Equipment (OFE), Turbomachinery & Process Solutions (TPS), and Digital Solutions (DS). The OFS segment offers exploration, drilling, wireline, evaluation, completion, production, and intervention services; and drilling and completions fluids, wireline services, downhole completion tools and systems, wellbore intervention tools and services, pressure pumping systems, oilfield and industrial chemicals, and artificial lift technologies for oil and natural gas, and oilfield service companies.

Baker Hughes Fundamentals Summary

How do Baker Hughes's earnings and revenue compare to its market cap?
BKR fundamental statistics
Market CapUS$29.63b
Earnings (TTM)US$305.00m
Revenue (TTM)US$20.56b

93.2x

P/E Ratio

1.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
BKR income statement (TTM)
RevenueUS$20.56b
Cost of RevenueUS$16.39b
Gross ProfitUS$4.16b
Other ExpensesUS$3.86b
EarningsUS$305.00m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Jul 20, 2022

Earnings per share (EPS)0.31
Gross Margin20.24%
Net Profit Margin1.48%
Debt/Equity Ratio40.6%

How did BKR perform over the long term?

See historical performance and comparison

Dividends

2.5%

Current Dividend Yield

206%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is BKR undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for BKR?

Other financial metrics that can be useful for relative valuation.

BKR key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.5x
Enterprise Value/EBITDA11.4x
PEG Ratio2x

Price to Earnings Ratio vs Peers

How does BKR's PE Ratio compare to its peers?

BKR PE Ratio vs Peers
The above table shows the PE ratio for BKR vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average46.9x
HAL Halliburton
18.2x26.3%US$28.3b
SLB Schlumberger
24.2x23.5%US$50.5b
PFHC ProFrac Holding
103.6x92.6%US$2.7b
WHD Cactus
41.5x45.2%US$3.1b
BKR Baker Hughes
93.2x46.9%US$29.6b

Price-To-Earnings vs Peers: BKR is expensive based on its Price-To-Earnings Ratio (93.2x) compared to the peer average (46.9x).


Price to Earnings Ratio vs Industry

How does BKR's PE Ratio compare vs other companies in the US Energy Services Industry?

Price-To-Earnings vs Industry: BKR is expensive based on its Price-To-Earnings Ratio (93.2x) compared to the US Energy Services industry average (33.7x)


Price to Earnings Ratio vs Fair Ratio

What is BKR's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

BKR PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio93.2x
Fair PE Ratio36.3x

Price-To-Earnings vs Fair Ratio: BKR is expensive based on its Price-To-Earnings Ratio (93.2x) compared to the estimated Fair Price-To-Earnings Ratio (36.3x).


Share Price vs Fair Value

What is the Fair Price of BKR when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: BKR ($28.87) is trading below our estimate of fair value ($32.97)

Significantly Below Fair Value: BKR is trading below fair value, but not by a significant amount.


Price to Earnings Growth Ratio

PEG Ratio: BKR is poor value based on its PEG Ratio (2x)


Discover undervalued companies

Future Growth

How is Baker Hughes forecast to perform in the next 1 to 3 years based on estimates from 23 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


46.9%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BKR's forecast earnings growth (46.9% per year) is above the savings rate (1.9%).

Earnings vs Market: BKR's earnings (46.9% per year) are forecast to grow faster than the US market (13.7% per year).

High Growth Earnings: BKR's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: BKR's revenue (7.8% per year) is forecast to grow slower than the US market (8.3% per year).

High Growth Revenue: BKR's revenue (7.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BKR's Return on Equity is forecast to be low in 3 years time (11.4%).


Discover growth companies

Past Performance

How has Baker Hughes performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-35.3%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: BKR has a large one-off loss of $305.0M impacting its March 31 2022 financial results.

Growing Profit Margin: BKR became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: BKR has become profitable over the past 5 years, growing earnings by -35.3% per year.

Accelerating Growth: BKR has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: BKR has become profitable in the last year, making it difficult to compare its past year earnings growth to the Energy Services industry (-1.8%).


Return on Equity

High ROE: BKR's Return on Equity (2.2%) is considered low.


Discover strong past performing companies

Financial Health

How is Baker Hughes's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: BKR's short term assets ($14.7B) exceed its short term liabilities ($9.1B).

Long Term Liabilities: BKR's short term assets ($14.7B) exceed its long term liabilities ($9.4B).


Debt to Equity History and Analysis

Debt Level: BKR's net debt to equity ratio (14.9%) is considered satisfactory.

Reducing Debt: BKR's debt to equity ratio has increased from 2.9% to 40.6% over the past 5 years.

Debt Coverage: BKR's debt is well covered by operating cash flow (26.4%).

Interest Coverage: BKR's interest payments on its debt are well covered by EBIT (6.4x coverage).


Balance Sheet


Discover healthy companies

Dividend

What is Baker Hughes's current dividend yield, its reliability and sustainability?

Dividend Score

2/6

Dividend Score 2/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


2.49%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: BKR's dividend (2.49%) is higher than the bottom 25% of dividend payers in the US market (1.6%).

High Dividend: BKR's dividend (2.49%) is low compared to the top 25% of dividend payers in the US market (4.3%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, BKR has been paying a dividend for less than 10 years.

Growing Dividend: BKR's dividend payments have increased, but the company has only paid a dividend for 5 years.


Earnings Payout to Shareholders

Earnings Coverage: With its high payout ratio (206.2%), BKR's dividend payments are not well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: At its current cash payout ratio (85.3%), BKR's dividend payments are covered by cash flows.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

2.4yrs

Average management tenure


CEO

Lorenzo Simonelli (48 yo)

4.92yrs

Tenure

US$15,646,452

Compensation

Mr. Lorenzo Simonelli serves as Senior Non-Executive Director?? at Iveco Group N.V. since March 2022. He serves as Independent Non-Executive Director of Iveco Group N.V.He has been the Chief Executive Off...


CEO Compensation Analysis

Compensation vs Market: Lorenzo's total compensation ($USD15.65M) is about average for companies of similar size in the US market ($USD13.59M).

Compensation vs Earnings: Lorenzo's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: BKR's management team is considered experienced (2.4 years average tenure).


Board Members

Experienced Board: BKR's board of directors are considered experienced (4.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: BKR insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Baker Hughes Company's employee growth, exchange listings and data sources


Key Information

  • Name: Baker Hughes Company
  • Ticker: BKR
  • Exchange: NasdaqGS
  • Founded: NaN
  • Industry: Oil and Gas Equipment and Services
  • Sector: Energy
  • Implied Market Cap: US$29.627b
  • Market Cap: US$28.425b
  • Shares outstanding: 1.03b
  • Website: https://www.bakerhughes.com

Number of Employees


Location

  • Baker Hughes Company
  • 17021 Aldine Westfield Road
  • Houston
  • Texas
  • 77073-5101
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/30 00:00
End of Day Share Price2022/06/30 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.