Baker Hughes
Market Cap
US$21.2b
Last Updated
2020/02/24 03:47 UTC
Data Sources
Company Financials +
Executive Summary
Baker Hughes Company, an energy technology company, provides a portfolio of technologies and services worldwide.
Rewards
Risk Analysis
Snowflake Analysis
Excellent balance sheet with moderate 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 has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
-6.6%
BKR
-3.4%
US Energy Services
-1.1%
US Market
1 Year Return
-23.3%
BKR
-32.2%
US Energy Services
17.8%
US Market
Return vs Industry: BKR exceeded the US Energy Services industry which returned -32.2% over the past year.
Return vs Market: BKR underperformed the US Market which returned 17.8% over the past year.
Shareholder returns
| BKR | Industry | Market | |
|---|---|---|---|
| 7 Day | -6.6% | -3.4% | -1.1% |
| 30 Day | -10.2% | -6.9% | 1.5% |
| 90 Day | -9.2% | -6.5% | 6.6% |
| 1 Year | -20.8%-23.3% | -30.0%-32.2% | 20.2%17.8% |
| 3 Year | -47.2%-65.9% | -55.7%-61.3% | 47.5%38.1% |
| 5 Year | -47.8%-67.2% | -57.6%-64.8% | 71.2%52.4% |
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
1 week ago | Simply Wall St
Do Investors Have Good Reason To Be Wary Of Baker Hughes Company's (NYSE:BKR) 3.3% Dividend Yield?3 weeks ago | Simply Wall St
Should You Worry About Baker Hughes Company's (NYSE:BKR) CEO Pay?1 month ago | Simply Wall St
Does Baker Hughes's (NYSE:BKR) Statutory Profit Adequately Reflect Its Underlying Profit?Valuation
Is Baker Hughes undervalued compared to its fair value and its price relative to the market?
89.02x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: BKR ($20.53) is trading above our estimate of fair value ($8.16)
Significantly Below Fair Value: BKR is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: BKR is poor value based on its PE Ratio (89x) compared to the Energy Services industry average (14.2x).
PE vs Market: BKR is poor value based on its PE Ratio (89x) compared to the US market (18.2x).
Price to Earnings Growth Ratio
PEG Ratio: BKR is poor value based on its PEG Ratio (4.2x)
Price to Book Ratio
PB vs Industry: BKR is overvalued based on its PB Ratio (0.6x) compared to the US Energy Services industry average (0.6x).
Next Steps
Future Growth
How is Baker Hughes forecast to perform in the next 1 to 3 years based on estimates from 25 analysts?
21.2%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: BKR's forecast earnings growth (21.2% per year) is above the savings rate (1.7%).
Earnings vs Market: BKR's earnings (21.2% per year) are forecast to grow faster than the US market (14.1% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: BKR's revenue (4.4% per year) is forecast to grow slower than the US market (7.6% per year).
High Growth Revenue: BKR's revenue (4.4% 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 (6.3%).
Next Steps
Past Performance
How has Baker Hughes performed over the past 5 years?
-72.3%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: BKR has a large one-off loss of $645.0M impacting its December 31 2019 financial results.
Growing Profit Margin: BKR's current net profit margins (0.5%) are lower than last year (0.9%).
Past Earnings Growth Analysis
Earnings Trend: BKR's earnings have declined by -72.3% per year over the past 5 years.
Accelerating Growth: BKR's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: BKR had negative earnings growth (-34.4%) over the past year, making it difficult to compare to the Energy Services industry average (-32.9%).
Return on Equity
High ROE: BKR's Return on Equity (0.8%) is considered low.
Return on Assets
Return on Capital Employed
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 ($10.0B).
Long Term Liabilities: BKR's short term assets ($15.2B) exceed its long term liabilities ($8.9B).
Debt to Equity History and Analysis
Debt Level: BKR's debt to equity ratio (19.2%) is considered satisfactory.
Reducing Debt: Insufficient data to determine if BKR's debt to equity ratio has reduced over the past 5 years.
Debt Coverage: BKR's debt is well covered by operating cash flow (32.1%).
Interest Coverage: BKR's interest payments on its debt are well covered by EBIT (6.8x coverage).
Balance Sheet
Inventory Level: BKR has a high level of physical assets or inventory.
Debt Coverage by Assets: BKR's debt is covered by short term assets (assets are 2.3x debt).
Next Steps
Dividend
What is Baker Hughes's current dividend yield, its reliability and sustainability?
3.51%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: BKR's dividend (3.51%) is higher than the bottom 25% of dividend payers in the US market (1.45%).
High Dividend: BKR's dividend (3.51%) is low compared to the top 25% of dividend payers in the US market (3.73%).
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 2 years.
Current Payout to Shareholders
Dividend Coverage: With its high payout ratio (312.2%), BKR's dividend payments are not well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: BKR's dividends in 3 years are forecast to be well covered by earnings (37.7% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.6yrs
Average board tenure
CEO
Lorenzo Simonelli (46yo)
2.6yrs
Tenure
US$15,959,761
Compensation
Mr. Lorenzo Simonelli has been the Chief Executive Officer, President and Director of Baker Hughes Company (formerly known as Baker Hughes, a GE company) since July 2017 and has been its Chairman of the Bo ...
CEO Compensation Analysis
Compensation vs Market: Lorenzo's total compensation ($USD15.96M) is above average for companies of similar size in the US market ($USD10.81M).
Compensation vs Earnings: Lorenzo's compensation has been consistent with company performance over the past year.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | 2.6yrs | US$15.96m | 0.023% $4.9m | |
| Independent Director | 2.6yrs | US$292.19k | 0.016% $3.3m | |
| Director | 2.6yrs | US$261.22k | 0.0023% $486.8k | |
| Independent Director | 0.8yrs | no data | 0.0022% $459.3k | |
| Independent Director | 2.6yrs | US$297.19k | 0.0075% $1.6m | |
| Lead Director | 2.3yrs | US$302.19k | 0.0019% $402.1k | |
| Independent Director | 2.6yrs | US$307.19k | 0.0052% $1.1m |
2.6yrs
Average Tenure
59yo
Average Age
Experienced Board: BKR's board of directors are not considered experienced ( 2.6 years average tenure), which suggests a new board.
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 30%.
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$21.165b
- Market Cap: US$13.417b
- 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| BKR | NYSE (New York Stock Exchange) | Yes | Class A Common Stock | US | USD | Mar 1964 |
| 68V | DB (Deutsche Boerse AG) | Yes | Class A Common Stock | DE | EUR | Mar 1964 |
| BKR * | BMV (Bolsa Mexicana de Valores) | Yes | Class A Common Stock | MX | MXN | Mar 1964 |
| 0RR8 | LSE (London Stock Exchange) | Yes | Class A Common Stock | GB | USD | Mar 1964 |
| B1KR34 | BOVESPA (Bolsa de Valores de Sao Paulo) | BDR EACH REPR 1 COM | BR | BRL | Dec 2019 |
Biography
Baker Hughes Company, an energy technology company, provides a portfolio of technologies and services worldwide. Its Oilfield Services segment offers drilling, evaluation, completion, production, and intervention services; and directional drilling technology, measurement and logging while drillings, downhole completions tools and systems, wellbore intervention tools and services, wireline services, drilling and completion fluids, oilfield and industrial chemicals, pressure pumping systems, and artificial lift technologies. 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 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 offers equipment and related services for mechanical-drive, compression, and power-generation applications in the oil and gas industry. The Turbomachinery & Process Solutions segment also provides 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, and small and large scale companies. The company’s Digital Solutions segment offers sensor-based process measurement, non-destructive testing and inspection, turbine, generator and plant control, 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 customers through direct and indirect channels. The company was formerly known as Baker Hughes, a GE company and changed its name to Baker Hughes Company in October 2019. Baker Hughes Company is based in Houston, Texas.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/24 03:47 |
| End of Day Share Price | 2020/02/21 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
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.