NYSE:BKR

Stock Analysis Report

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Executive Summary

Baker Hughes Company provides a portfolio of technologies and services worldwide. More Details


Snowflake Analysis

Excellent balance sheet with reasonable growth potential.


Similar Companies

Share Price & News

How has Baker Hughes's share price performed over time and what events caused price changes?


Latest Share Price and Events

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.


Market Performance


7 Day Return

6.5%

BKR

11.7%

US Energy Services

2.8%

US Market


1 Year Return

-12.3%

BKR

-33.1%

US Energy Services

19.7%

US Market

Return vs Industry: BKR exceeded the US Energy Services industry which returned -33.1% over the past year.

Return vs Market: BKR underperformed the US Market which returned 19.7% over the past year.


Shareholder returns

BKRIndustryMarket
7 Day6.5%11.7%2.8%
30 Day42.3%44.6%8.0%
90 Day34.3%20.8%6.8%
1 Year-8.5%-12.3%-30.9%-33.1%22.4%19.7%
3 Year-27.3%-34.0%-56.1%-59.6%47.3%37.5%
5 Year-40.1%-63.3%-59.3%-66.6%93.6%72.3%

Long-Term Price Volatility Vs. Market

How volatile is Baker Hughes's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Baker Hughes undervalued compared to its fair value and its price relative to the market?

1.17x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: BKR ($19.78) is trading above our estimate of fair value ($16.45)

Significantly Below Fair Value: BKR is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: BKR is unprofitable, so we can't compare its PE Ratio to the US Energy Services industry average.

PE vs Market: BKR is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate BKR's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: BKR is overvalued based on its PB Ratio (1.2x) compared to the US Energy Services industry average (0.7x).


Next Steps

Future Growth

How is Baker Hughes forecast to perform in the next 1 to 3 years based on estimates from 24 analysts?

82.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BKR is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.2%).

Earnings vs Market: BKR is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: BKR's is expected to become profitable in the next 3 years.

Revenue vs Market: BKR's revenue (4.6% per year) is forecast to grow slower than the US market (10.2% per year).

High Growth Revenue: BKR's revenue (4.6% 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 very high in 3 years time (41%).


Next Steps

Past Performance

How has Baker Hughes performed over the past 5 years?

-98.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BKR is currently unprofitable.

Growing Profit Margin: BKR is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: BKR is unprofitable, and losses have increased over the past 5 years at a rate of 98.7% per year.

Accelerating Growth: Unable to compare BKR's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: BKR is unprofitable, making it difficult to compare its past year earnings growth to the Energy Services industry (-38.2%).


Return on Equity

High ROE: BKR has a negative Return on Equity (-96.34%), as it is currently unprofitable.


Next Steps

Financial Health

How is Baker Hughes's financial position?


Financial Position Analysis

Short Term Liabilities: BKR's short term assets ($15.2B) exceed its short term liabilities ($10.6B).

Long Term Liabilities: BKR's short term assets ($15.2B) exceed its long term liabilities ($9.5B).


Debt to Equity History and Analysis

Debt Level: BKR's debt to equity ratio (39.7%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if BKR's debt to equity ratio has reduced over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable BKR has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: BKR is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 20.5% per year.


Next Steps

Dividend

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

3.64%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: BKR's dividend (3.64%) is higher than the bottom 25% of dividend payers in the US market (1.47%).

High Dividend: BKR's dividend (3.64%) is low compared to the top 25% of dividend payers in the US market (4.05%).


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 3 years.


Current Payout to Shareholders

Dividend Coverage: BKR is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: BKR's dividends in 3 years are forecast to be covered by earnings (60.1% payout ratio).


Next Steps

Management

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

1.0yrs

Average management tenure


CEO

Lorenzo Simonelli (47 yo)

3.33yrs

Tenure

US$14,922,621

Compensation

Mr. Lorenzo Simonelli serves as a Director of C3.ai, Inc. since August 2019. Mr. Simonelli has been the Chief Executive Officer and Director of Baker Hughes Company (formerly known as Baker Hughes, a GE co...


CEO Compensation Analysis

Compensation vs Market: Lorenzo's total compensation ($USD14.92M) is above average for companies of similar size in the US market ($USD10.79M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Lorenzo Simonelli
Chairman & CEO3.33yrsUS$14.92m0.042%
$ 8.8m
Brian Worrell
Chief Financial Officerno dataUS$7.10m0.013%
$ 2.7m
Maria Borras
Executive Vice President of Oilfield Servicesno dataUS$4.17m0.0083%
$ 1.7m
Roderick Christie
Executive Vice President of Turbomachinery & Process Solutionsno dataUS$4.00m0.0065%
$ 1.4m
Kurt Camilleri
Senior VPno datano data0.00068%
$ 142.6k
Jennifer Hartsock
Chief Information Officerno datano datano data
Judson Bailey
Vice President of Investor Relations1.25yrsno datano data
Regina Jones
Chief Legal Officer0.58yrno datano data
Russell Wilkerson
Chief Communications Officer & Chief Corporate Affairs Officerno datano datano data
Neeraj Sethi
Director of Sales & Commercial - OFSno datano datano data
Deanna Jones
Chief Human Resources Officer0.83yrno datano data
Neil Saunders
Executive Vice President of Oilfield Equipmentno datano data0.0054%
$ 1.1m

1.0yrs

Average Tenure

49.5yo

Average Age

Experienced Management: BKR's management team is not considered experienced ( 1 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Lorenzo Simonelli
Chairman & CEO3.33yrsUS$14.92m0.042%
$ 8.8m
Gregory Brenneman
Independent Director3.33yrsUS$300.46k0.015%
$ 3.1m
John Rice
Director3.33yrsUS$297.08k0.0022%
$ 459.3k
Cynthia Carroll
Independent Director0.50yrno datano data
Gregory Ebel
Independent Director1.5yrsUS$237.79k0.0021%
$ 432.1k
Clarence Cazalot
Independent Director3.33yrsUS$298.85k0.0083%
$ 1.7m
William Beattie
Lead Independent Director3.08yrsUS$309.03k0.0026%
$ 534.8k
Lynn Elsenhans
Independent Director3.33yrsUS$308.43k0.0061%
$ 1.3m
Nelda Connors
Independent Director0.50yrno datano data

3.1yrs

Average Tenure

60yo

Average Age

Experienced Board: BKR's board of directors are considered experienced (3.1 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: BKR insiders have bought more shares than they have sold 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 company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Baker Hughes Company
  • Ticker: BKR
  • Exchange: NYSE
  • Founded:
  • Industry: Oil and Gas Equipment and Services
  • Sector: Energy
  • Implied Market Cap: US$20.974b
  • Market Cap: US$13.895b
  • Shares outstanding: 1.04b
  • Website: https://www.bakerhughes.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BKRNYSE (New York Stock Exchange)YesClass A Common StockUSUSDMar 1964
68VDB (Deutsche Boerse AG)YesClass A Common StockDEEURMar 1964
BKR *BMV (Bolsa Mexicana de Valores)YesClass A Common StockMXMXNMar 1964
0RR8LSE (London Stock Exchange)YesClass A Common StockGBUSDMar 1964
BKRBVL (Bolsa de Valores de Lima)YesClass A Common StockPEUSDMar 1964
B1KR34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH REPR 1 COMBRBRLDec 2019

Biography

Baker Hughes Company provides a portfolio of technologies and services worldwide. The company operates through four segments: Oilfield Services (OFS), Oilfield Equipment (OFE), Turbomachinery & Process Sol...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/25 23:50
End of Day Share Price2020/11/25 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


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.