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Baker Hughes a GE

NYSE:BHGE
Snowflake Description

Adequate balance sheet with reasonable growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
BHGE
NYSE
$24B
Imp Market Cap
  1. Home
  2. US
  3. Energy
Company description

Baker Hughes, a GE company provides integrated oilfield products, services, and digital solutions worldwide. The last earnings update was 81 days ago. More info.


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BHGE Share Price and Events
7 Day Returns
-5.8%
NYSE:BHGE
-6.7%
US Energy Services
-0.3%
US Market
1 Year Returns
-26.4%
NYSE:BHGE
-41.8%
US Energy Services
3.9%
US Market
BHGE Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Baker Hughes a GE (BHGE) -5.8% -3.3% -8% -26.4% -47.1% -67.9%
US Energy Services -6.7% -0.1% -20% -41.8% -50% -72.9%
US Market -0.3% 2.3% 2.3% 3.9% 36.7% 41.8%
1 Year Return vs Industry and Market
  • BHGE outperformed the Energy Services industry which returned -41.8% over the past year.
  • BHGE underperformed the Market in United States of America which returned 3.9% over the past year.
Price Volatility
BHGE
Industry
5yr Volatility vs Market

BHGE Value

 Is Baker Hughes a GE undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Baker Hughes a GE to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Baker Hughes a GE.

NYSE:BHGE Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 25 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 10.1%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:BHGE
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Energy Services Unlevered Beta Simply Wall St/ S&P Global 1.07
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.069 (1 + (1- 21%) (33.28%))
1.235
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.23
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.235 * 5.96%)
10.09%

Discounted Cash Flow Calculation for NYSE:BHGE using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Baker Hughes a GE is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:BHGE DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 10.09%)
2020 1,329.96 Analyst x11 1,208.07
2021 1,808.38 Analyst x4 1,492.08
2022 2,584.00 Analyst x1 1,936.64
2023 3,231.94 Est @ 25.08% 2,200.26
2024 3,825.70 Est @ 18.37% 2,365.78
2025 4,349.02 Est @ 13.68% 2,442.91
2026 4,801.08 Est @ 10.39% 2,449.66
2027 5,189.73 Est @ 8.1% 2,405.27
2028 5,526.31 Est @ 6.49% 2,326.53
2029 5,822.46 Est @ 5.36% 2,226.54
Present value of next 10 years cash flows $21,053.74
NYSE:BHGE DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $5,822.46 × (1 + 2.73%) ÷ (10.09% – 2.73%)
$81,270.20
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $81,270.20 ÷ (1 + 10.09%)10
$31,078.21
NYSE:BHGE Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $21,053.74 + $31,078.21
$52,131.96
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $52,131.96 / 1,037.10
$50.27
NYSE:BHGE Discount to Share Price
Calculation Result
Value per share (USD) From above. $50.27
Current discount Discount to share price of $23.56
= -1 x ($23.56 - $50.27) / $50.27
53.1%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Baker Hughes a GE is available for.
Intrinsic value
>50%
Share price is $23.56 vs Future cash flow value of $50.27
Current Discount Checks
For Baker Hughes a GE to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Baker Hughes a GE's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Baker Hughes a GE's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Baker Hughes a GE's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Baker Hughes a GE's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:BHGE PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $0.35
NYSE:BHGE Share Price ** NYSE (2019-07-19) in USD $23.56
United States of America Energy Services Industry PE Ratio Median Figure of 31 Publicly-Listed Energy Services Companies 17.44x
United States of America Market PE Ratio Median Figure of 3,083 Publicly-Listed Companies 17.92x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Baker Hughes a GE.

NYSE:BHGE PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:BHGE Share Price ÷ EPS (both in USD)

= 23.56 ÷ 0.35

67.6x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Baker Hughes a GE is overvalued based on earnings compared to the US Energy Services industry average.
  • Baker Hughes a GE is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Baker Hughes a GE's expected growth come at a high price?
Raw Data
NYSE:BHGE PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 67.6x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 25 Analysts
42%per year
United States of America Energy Services Industry PEG Ratio Median Figure of 27 Publicly-Listed Energy Services Companies 0.54x
United States of America Market PEG Ratio Median Figure of 2,123 Publicly-Listed Companies 1.57x

*Line of best fit is calculated by linear regression .

NYSE:BHGE PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 67.6x ÷ 42%

1.61x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Baker Hughes a GE is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Baker Hughes a GE's assets?
Raw Data
NYSE:BHGE PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $34.01
NYSE:BHGE Share Price * NYSE (2019-07-19) in USD $23.56
United States of America Energy Services Industry PB Ratio Median Figure of 88 Publicly-Listed Energy Services Companies 0.8x
United States of America Market PB Ratio Median Figure of 5,248 Publicly-Listed Companies 1.8x
NYSE:BHGE PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:BHGE Share Price ÷ Book Value per Share (both in USD)

= 23.56 ÷ 34.01

0.69x

* Primary Listing of Baker Hughes a GE.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Baker Hughes a GE is good value based on assets compared to the US Energy Services industry average.
X
Value checks
We assess Baker Hughes a GE's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Energy Services industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Energy Services industry average (and greater than 0)? (1 check)
  5. Baker Hughes a GE has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

BHGE Future Performance

 How is Baker Hughes a GE expected to perform in the next 1 to 3 years based on estimates from 25 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
42%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Baker Hughes a GE expected to grow at an attractive rate?
  • Baker Hughes a GE's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Baker Hughes a GE's earnings growth is expected to exceed the United States of America market average.
  • Baker Hughes a GE's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:BHGE Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:BHGE Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 25 Analysts 42%
NYSE:BHGE Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 25 Analysts 8.7%
United States of America Energy Services Industry Earnings Growth Rate Market Cap Weighted Average 37.4%
United States of America Energy Services Industry Revenue Growth Rate Market Cap Weighted Average 7.8%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:BHGE Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 25 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:BHGE Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-12-31 32,181 4,904 1,570 1
2021-12-31 28,763 3,340 1,043 7
2020-12-31 26,292 2,478 831 25
2019-12-31 24,103 1,974 475 25
NYSE:BHGE Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 23,093 1,284 157
2018-12-31 22,877 1,762 195
2018-09-30 22,411 459 95
2018-06-30 22,047 23 -52
2018-03-31 19,514 -159 -33
2017-12-31 17,179 -799 -103
2017-09-30 14,896 -128 -134
2017-06-30 12,619 109 0
2017-03-31 12,926 145 -141
2016-12-31 13,082 262 0

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Baker Hughes a GE's earnings are expected to grow significantly at over 20% yearly.
  • Baker Hughes a GE's revenue is expected to grow by 8.7% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:BHGE Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 25 Analyst Estimates (S&P Global) See Below

All data from Baker Hughes a GE Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:BHGE Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-12-31 3.10 3.10 3.10 1.00
2021-12-31 2.03 2.33 1.73 4.00
2020-12-31 1.49 1.66 1.30 12.00
2019-12-31 0.99 1.19 0.88 8.00
NYSE:BHGE Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 0.35
2018-12-31 0.46
2018-09-30 0.23
2018-06-30 -0.12
2018-03-31 -0.08
2017-12-31 -0.24
2017-09-30 -0.31
2017-06-30
2017-03-31 -0.33
2016-12-31

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Baker Hughes a GE is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Baker Hughes a GE's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Baker Hughes a GE has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

BHGE Past Performance

  How has Baker Hughes a GE performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Baker Hughes a GE's growth in the last year to its industry (Energy Services).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Baker Hughes a GE's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.
  • Baker Hughes a GE has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.
  • Baker Hughes a GE has become profitable in the last year making it difficult to compare the US Energy Services industry average.
Earnings and Revenue History
Baker Hughes a GE's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Baker Hughes a GE Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:BHGE Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 23,093.00 157.00 2,695.00
2018-12-31 22,877.00 195.00 2,657.00
2018-09-30 22,411.00 95.00 2,704.00
2018-06-30 22,047.00 -52.00 2,891.00
2018-03-31 19,514.00 -33.00 2,690.00
2017-12-31 17,179.00 -103.00 2,518.00
2017-09-30 14,896.00 -134.00 2,200.00
2017-06-30 12,619.00 0.00 1,890.00
2017-03-31 12,926.00 -141.00 1,905.00
2016-12-31 13,082.00 0.00 1,931.00
2015-12-31 16,688.00 0.00 2,115.00
2014-12-31 19,191.00 1,840.00 2,402.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Baker Hughes a GE has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Baker Hughes a GE used its assets less efficiently than the US Energy Services industry average last year based on Return on Assets.
  • Baker Hughes a GE's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Baker Hughes a GE's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Energy Services industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Baker Hughes a GE has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

BHGE Health

 How is Baker Hughes a GE's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Baker Hughes a GE's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Baker Hughes a GE is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Baker Hughes a GE's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Baker Hughes a GE's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 2.1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Baker Hughes a GE Company Filings, last reported 3 months ago.

NYSE:BHGE Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 35,086.00 7,176.00 3,073.00
2018-12-31 35,013.00 7,124.00 3,723.00
2018-09-30 36,563.00 7,186.00 4,765.00
2018-06-30 36,817.00 7,275.00 4,879.00
2018-03-31 38,095.00 7,393.00 5,631.00
2017-12-31 38,410.00 8,262.00 7,023.00
2017-09-30 40,148.00 4,816.00 4,777.00
2017-06-30 16,853.00 301.00 2,021.00
2017-03-31 15,287.00 442.00 1,027.00
2016-12-31 14,855.00 276.00 981.00
2015-12-31 14,545.00 509.00 1,432.00
2014-12-31
  • Baker Hughes a GE's level of debt (20.5%) compared to net worth is satisfactory (less than 40%).
  • Unable to establish if Baker Hughes a GE's debt level has increased without past 5-year debt data.
  • Debt is not well covered by operating cash flow (17.9%, less than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 6.2x coverage).
X
Financial health checks
We assess Baker Hughes a GE's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Baker Hughes a GE has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

BHGE Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
3.06%
Current annual income from Baker Hughes a GE dividends. Estimated to be 3.02% next year.
If you bought $2,000 of Baker Hughes a GE shares you are expected to receive $61 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Baker Hughes a GE's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.43%).
  • Baker Hughes a GE's dividend is below the markets top 25% of dividend payers in United States of America (3.74%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:BHGE Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 25 Analyst Estimates (S&P Global) See Below
United States of America Energy Services Industry Average Dividend Yield Market Cap Weighted Average of 16 Stocks 3.8%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2017 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:BHGE Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2022-12-31
2021-12-31 0.62 4.00
2020-12-31 0.73 14.00
2019-12-31 0.72 13.00
NYSE:BHGE Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-05-10 0.720 3.080
2019-01-24 0.720 2.800
2018-11-05 0.720 3.177
2018-08-03 0.720 2.287
2018-05-11 0.720 2.123
2018-01-23 0.720 2.354
2017-10-31 0.680 2.115
2017-10-20 0.680 2.181

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, Baker Hughes a GE has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but Baker Hughes a GE only paid a dividend in the past 2 years.
Current Payout to shareholders
What portion of Baker Hughes a GE's earnings are paid to the shareholders as a dividend.
  • Dividends paid are not well covered by earnings (0.5x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (3.3x coverage).
X
Income/ dividend checks
We assess Baker Hughes a GE's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Baker Hughes a GE afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Baker Hughes a GE has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

BHGE Management

 What is the CEO of Baker Hughes a GE's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Lorenzo Simonelli
COMPENSATION $15,959,761
AGE 46
TENURE AS CEO 2 years
CEO Bio

Mr. Lorenzo Simonelli has been the Chief Executive Officer and President of Baker Hughes, a GE company since October 2017 and has been its Chairman of the Board since October 2, 2017. Mr. Simonelli has been a Non-Executive Director of CNH Industrial N.V. since April 12, 2019. He is Senior Vice President at General Electric Company. He served as the Chief Executive Officer and President of GE Oil & Gas since October 01, 2013. He served as the Chief Executive Officer and President of GE Oil & Gas Inc. He served as the Chief Executive Officer and President of GE Transportation, a subsidiary of General Electric Company from July 2008 to October 1, 2013. He served as Chief Executive Officer and President of Europe, Middle East and Africa operations of GE Consumer & Industrial of General Electric Co. since March 15, 2007. He joined GE Consumer and Industrial in 2002. He served as General Manager of product management for Consumer & Industrial of General Electric Co. and headed its Consumer & Industrial's Global Product Management team. He joined GE in 1994 and GE Consumer and Industrial in 2002, where he worked on assignments in GE International, GE Shared Services, GE Oil & Gas and Consolidated Financial Insurance. He has 20 years of experience. Prior to joining GE Oil & Gas, he was President and CEO of GE Transportation, a global transportation Leader in the rail, mining, marine and energy storage industries. He served as Chief Financial Officer of GE Consumer & Industrial - Americas and as the Global Financial Planning and Accounting Manager of GE Consumer Products, where he was instrumental in the successful integration of GE's Appliances and Lighting businesses. He serves as a Director of Greater Houston Partnership, Inc. He has been Director of Baker Hughes, a GE company since October 2, 2017. He started his career with Mitsubishi Bank in International & Corporate Finance and worked for three years. He serves as Member of the Board of Governors at Manufacturer & Business Association. He serves as a Director of PII Pipeline Solutions. He is a Business and Economics graduate of Cardiff University in Wales and a graduate of Es Audit Staff.

CEO Compensation
  • Lorenzo's compensation has increased in line with Baker Hughes a GE recently becoming profitable.
  • Lorenzo's remuneration is higher than average for companies of similar size in United States of America.
Management Team

Lorenzo Simonelli

TITLE
Chairman
COMPENSATION
$16M
AGE
46
TENURE
2 yrs

Brian Worrell

TITLE
Chief Financial Officer
COMPENSATION
$7M
AGE
43

Derek Mathieson

TITLE
Chief Marketing & Technology Officer
COMPENSATION
$4M
AGE
49

Maria Borras

TITLE
President & CEO of Oilfield Services
COMPENSATION
$6M
AGE
50

Rod Christie

TITLE
President and CEO of Turbomachinery & Process Solutions
COMPENSATION
$4M
AGE
57

Uwem Ukpong

TITLE
Chief Global Operations & Integration Officer
AGE
47

Kurt Camilleri

TITLE
VP, Controller & Chief Accounting Officer
AGE
44

Jen Hartsock

TITLE
Chief Information Officer

Phil Mueller

TITLE
Vice President of Investor Relations
TENURE
2 yrs

Will Marsh

TITLE
Chief Legal Officer
COMPENSATION
$5M
AGE
56
Board of Directors Tenure

Average tenure and age of the Baker Hughes a GE board of directors in years:

2
Average Tenure
59
Average Age
  • The average tenure for the Baker Hughes a GE board of directors is less than 3 years, this suggests a new board.
Board of Directors

Geoff Beattie

TITLE
Lead Director
COMPENSATION
$302K
AGE
59
TENURE
1.8 yrs

Lorenzo Simonelli

TITLE
Chairman
COMPENSATION
$16M
AGE
46
TENURE
1.8 yrs

Clarence Cazalot

TITLE
Director
COMPENSATION
$297K
AGE
69
TENURE
2 yrs

Lynn Elsenhans

TITLE
Director
COMPENSATION
$307K
AGE
62
TENURE
2 yrs

John Rice

TITLE
Director
COMPENSATION
$261K
AGE
62
TENURE
2 yrs

Greg Brenneman

TITLE
Director
COMPENSATION
$292K
AGE
57
TENURE
2 yrs

Jamie Miller

TITLE
Director
AGE
50
TENURE
2 yrs

Jim Mulva

TITLE
Director
COMPENSATION
$292K
AGE
72
TENURE
2 yrs

Greg Ebel

TITLE
Director
AGE
55
TENURE
0.2 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
07. Aug 18 Sell Kurt Camilleri Individual 06. Aug 18 06. Aug 18 -2,513 $34.00 $-85,429
07. Aug 18 Sell Matthias Heilmann Individual 06. Aug 18 06. Aug 18 -12,000 $34.00 $-408,000
X
Management checks
We assess Baker Hughes a GE's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Baker Hughes a GE has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

BHGE News

Simply Wall St News

Baker Hughes a GE (NYSE:BHGE) Has A Pretty Healthy Balance Sheet

NYSE:BHGE Historical Debt, July 3rd 2019 How Healthy Is Baker Hughes a GE's Balance Sheet? … Since Baker Hughes a GE does have net debt, we think it is worthwhile for shareholders to keep an eye on the balance sheet, over time. … While Baker Hughes a GE's low debt to EBITDA ratio of 1.43 suggests only modest use of debt, the fact that EBIT only covered the interest expense by 6.18 last year does give us pause.

Simply Wall St -

How Does Baker Hughes, a GE company (NYSE:BHGE) Fare As A Dividend Stock?

Could Baker Hughes, a GE company (NYSE:BHGE) be an attractive dividend share to own for the long haul? … NYSE:BHGE Historical Dividend Yield, June 11th 2019 Payout ratios Companies (usually) pay dividends out of their earnings. If a company is paying more than it earns, the dividend might have to be cut. So we need to form a view on if a company's dividend is sustainable, relative to its net profit after tax. Looking at the data, we can see that 207% of Baker Hughes a GE's profits were paid out as dividends in the last 12 months. Unless there are extenuating circumstances, from the perspective of an investor who hopes to own the company for many years, a payout ratio of above 100% is definitely a concern. We also measure dividends paid against a company's levered free cash flow, to see if enough cash was generated to cover the dividend. Baker Hughes a GE paid out 183% of its free cash last year. Cash flows can be lumpy, but this dividend was not well covered by cash flow. Paying out such a high percentage of cash flow suggests that the dividend was funded from either cash at bank or by borrowing, neither of which is desirable over the long term. Cash is slightly more important than profit from a dividend perspective, but given Baker Hughes a GE's payments were not well covered by either earnings or cash flow, we are concerned about the sustainability of this dividend. Is Baker Hughes a GE's Balance Sheet Risky? As Baker Hughes a GE's dividend was not well covered by earnings, we need to check its balance sheet for signs of financial distress. A rough way to check this is with these two simple ratios: a) net debt divided by EBITDA (earnings before interest, tax, depreciation and amortisation), and b) net interest cover. … Dividend Growth Potential The other half of the dividend investing equation is evaluating whether earnings per share (EPS) are growing. Growing EPS can help maintain or increase the purchasing power of the dividend over the long run. Earnings per share have been growing very rapidly, although the company is also paying out virtually all of its profit in dividends. Generally, a company that is growing rapidly while paying out a majority of its earnings, is seeing its debt burden increase. We'd be conscious of any extra risk added by this practice. Conclusion Dividend investors should always want to know if a) a company's dividends are affordable, b) if there is a track record of consistent payments, and c) if the dividend is capable of growing.

Simply Wall St -

Baker Hughes, a GE company (NYSE:BHGE) Has Attractive Fundamentals

I've been keeping an eye on Baker Hughes, a GE company (NYSE:BHGE) because I'm attracted to its fundamentals. … Looking at the company as a whole, as a potential stock investment, I believe BHGE has a lot to offer. … is a company with

Simply Wall St -

Examining Baker Hughes, a GE company’s (NYSE:BHGE) Weak Return On Capital Employed

Specifically, we're going to calculate its Return On Capital Employed (ROCE), in the hopes of getting some insight into the business. … Understanding Return On Capital Employed (ROCE). … ROCE measures the 'return' (pre-tax profit) a company generates from capital employed in its business.

Simply Wall St -

Zooming in on NYSE:BHGE's 2.7% Dividend Yield

A sizeable part of portfolio returns can be produced by dividend stocks due to their contribution to compounding returns in the long run. … Baker Hughes, a GE company (NYSE:BHGE) has started paying a dividend to shareholders. … Let's dig deeper into whether Baker Hughes a GE should have a place in your portfolio.

Simply Wall St -

Baker Hughes, a GE company (NYSE:BHGE): Financial Strength Analysis

Baker Hughes, a GE company (NYSE:BHGE), a large-cap worth US$24b, comes to mind for investors seeking a strong and reliable stock investment. … Most investors favour these big stocks due to their strong balance sheet and high market liquidity, meaning there are an abundance of stock in the public market available for trading. … In times of low liquidity in the market, these firms won’t be left high and dry.

Simply Wall St -

An Examination Of Baker Hughes, a GE company (NYSE:BHGE)

Building up an investment case requires looking at a stock holistically. … Today I've chosen to put the spotlight on Baker Hughes, a GE company (NYSE:BHGE) due to its excellent fundamentals in more than one area. … is a company with

Simply Wall St -

How Many Baker Hughes a GE company (NYSE:BHGE) Shares Do Institutions Own?

The big shareholder groups in Baker Hughes a GE company (NYSE:BHGE) have power over the company. … Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies. … Baker Hughes a GE has a market capitalization of US$23b, so it's too big to fly under the radar.

Simply Wall St -

What You Must Know About Baker Hughes a GE company's (NYSE:BHGE) Financial Health

Baker Hughes a GE company (NYSE:BHGE), a large-cap worth US$33.9b, comes to mind for investors seeking a strong and reliable stock investment. … Most investors favour these big stocks due to their strong balance sheet and high market liquidity, meaning there are an abundance of stock in the public market available for trading. … In times of low liquidity in the market, these firms won’t be left high and dry.

Simply Wall St -

Be Careful About Buying Baker Hughes a GE company (NYSE:BHGE) For The 2.21% Dividend

In the past, Baker Hughes a GE company (NYSE:BHGE) has returned an average of 2.00% per year to investors in the form of dividend payouts. … Let's take a look at Baker Hughes a GE in more detail. … When assessing a stock as a potential addition to my dividend Portfolio, I look at these five areas:

Simply Wall St -

BHGE Company Info

Description

Baker Hughes, a GE company provides integrated oilfield products, services, and digital solutions worldwide. Its Oilfield Services segment offers drilling, wireline, evaluation, completion, production, and intervention services; and drilling and completions fluids, completions tools and systems, wellbore intervention tools and services, artificial lift systems, pressure pumping systems, and oilfield and industrial chemicals for integrated oil and natural gas, and oilfield service companies. The company’s Oilfield Equipment segment designs and manufactures products and services, including pressure control equipment and services, subsea production systems and services, drilling equipment, and flexible pipeline systems; and onshore and offshore drilling and production systems, and equipment for floating production platforms, as well as provides a range of services related to onshore and offshore drilling activities. Its Turbomachinery & Process Solutions segment provides equipment and related services for mechanical-drive, compression, and power-generation applications across the oil and gas industry, as well as products and services to serve the downstream segments of industry. Its product portfolio includes drivers, compressors, and turnkey solutions; and pumps, valves, and compressed natural gas and small-scale liquefied natural gas solutions. This segment serves upstream, midstream, onshore and offshore, industrial, engineering, procurement, and construction companies. The company’s Digital Solutions segment provides sensor-based measurement, non-destructive testing and inspection, turbine, generator and plant controls, and condition monitoring, as well as pipeline integrity solutions for a range of industries, including oil and gas, power generation, aerospace, metals, and transportation. It serves through direct and indirect channels. The company is based in Houston, Texas. Baker Hughes, a GE company operates as a subsidiary of General Electric Company.

Details
Name: Baker Hughes, a GE company
BHGE
Exchange: NYSE
Founded:
$24,174,838,435
$12,146,558,519
1,037,101,606
Website: http://www.bhge.com
Address: Baker Hughes, a GE company
17021 Aldine Westfield Road,
Houston,
Texas, 77073,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE BHGE Class A Common Stock New York Stock Exchange US USD 01. Mar 1964
DB 68V Class A Common Stock Deutsche Boerse AG DE EUR 01. Mar 1964
LSE 0RR8 Class A Common Stock London Stock Exchange GB USD 01. Mar 1964
BMV BHGE * Class A Common Stock Bolsa Mexicana de Valores MX MXN 01. Mar 1964
Number of employees
Current staff
Staff numbers
67,000
Baker Hughes a GE employees.
Industry
Oil and Gas Equipment and Services
Energy
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/20 00:39
End of day share price update: 2019/07/19 00:00
Last estimates confirmation: 2019/07/17
Last earnings filing: 2019/04/30
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.