Baker Hughes
Market Cap
US$16.0b
Last Updated
2020/07/09 23:52 UTC
Data Sources
Company Financials +
Executive Summary
Baker Hughes Company provides a portfolio of technologies and services worldwide.
Rewards
Risk Analysis
Dividend of 4.91% is not well covered by earnings or forecast to be in the next 3 years
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's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
-4.9%
BKR
-5.7%
US Energy Services
1.3%
US Market
1 Year Return
-42.0%
BKR
-58.5%
US Energy Services
6.1%
US Market
Return vs Industry: BKR exceeded the US Energy Services industry which returned -56.2% over the past year.
Return vs Market: BKR underperformed the US Market which returned 6.7% over the past year.
Shareholder returns
| BKR | Industry | Market | |
|---|---|---|---|
| 7 Day | -4.9% | -5.7% | 1.3% |
| 30 Day | -21.5% | -25.6% | -0.3% |
| 90 Day | 13.9% | 9.2% | 16.6% |
| 1 Year | -39.8%-42.0% | -57.2%-58.5% | 8.4%6.1% |
| 3 Year | -56.7%-60.2% | -70.0%-72.3% | 35.8%26.9% |
| 5 Year | -60.1%-75.1% | -72.5%-77.6% | 62.7%44.7% |
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) 4.8% Dividend Yield?1 month ago | Simply Wall St
Does Baker Hughes Company's (NYSE:BKR) CEO Pay Matter?1 month ago | Simply Wall St
Don't Race Out To Buy Baker Hughes Company (NYSE:BKR) Just Because It's Going Ex-DividendValuation
Is Baker Hughes undervalued compared to its fair value and its price relative to the market?
0.83x
Price to Book (PB) ratio
Share Price vs. Fair Value
Below Fair Value: BKR ($14.65) is trading above our estimate of fair value ($10.67)
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 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 (0.8x) compared to the US Energy Services industry average (0.5x).
Next Steps
Future Growth
How is Baker Hughes forecast to perform in the next 1 to 3 years based on estimates from 24 analysts?
98.3%
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 (2.2% per year) is forecast to grow slower than the US market (9.3% per year).
High Growth Revenue: BKR's revenue (2.2% 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 (4.5%).
Next Steps
Past Performance
How has Baker Hughes performed over the past 5 years?
-107.1%
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 -107.1% 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 (-58.7%).
Return on Equity
High ROE: BKR has a negative Return on Equity (-88.4%), 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 ($14.7B) exceed its short term liabilities ($10.1B).
Long Term Liabilities: BKR's short term assets ($14.7B) exceed its long term liabilities ($9.1B).
Debt to Equity History and Analysis
Debt Level: BKR's debt to equity ratio (31.4%) 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 9.3% per year.
Next Steps
Dividend
What is Baker Hughes's current dividend yield, its reliability and sustainability?
4.91%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: BKR's dividend (4.91%) is higher than the bottom 25% of dividend payers in the US market (1.68%).
High Dividend: BKR's dividend (4.91%) is in the top 25% of dividend payers in the US market (4.58%)
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 not forecast to be well covered by earnings (92.7% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
0.7yrs
Average management tenure
CEO
Lorenzo Simonelli (47yo)
3yrs
Tenure
US$14,922,621
Compensation
Mr. Lorenzo Simonelli has been the Chief Executive Officer, President and Director of Baker Hughes Company (formerly known as Baker Hughes, a GE company) since July 2017 and has been its Chairman of the Bo ...
CEO Compensation Analysis
Compensation vs Market: Lorenzo's total compensation ($USD14.92M) is about average for companies of similar size in the US market ($USD11.49M).
Compensation vs Earnings: Lorenzo's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | 3yrs | US$14.92m | 0.027% $4.4m | |
| Chief Financial Officer | no data | US$7.10m | 0.010% $1.6m | |
| Executive Vice President of Oilfield Services | no data | US$4.17m | 0.0067% $1.1m | |
| Executive Vice President of Turbomachinery & Process Solutions | no data | US$4.00m | 0.0049% $791.6k | |
| Senior VP | no data | no data | 0.00033% $52.9k | |
| Chief Information Officer | no data | no data | no data | |
| Vice President of Investor Relations | 0.92yr | no data | no data | |
| Chief Legal Officer | 0.25yr | no data | no data | |
| Director of Sales & Commercial - OFS | no data | no data | no data | |
| Chief Human Resources Officer | 0.50yr | no data | no data |
0.7yrs
Average Tenure
49yo
Average Age
Experienced Management: BKR's management team is not considered experienced ( 0.7 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | 3yrs | US$14.92m | 0.027% $4.4m | |
| Independent Director | 3yrs | US$300.46k | 0.016% $2.5m | |
| Director | 3yrs | US$297.08k | 0.0023% $366.9k | |
| Independent Director | 0.17yr | no data | no data | |
| Independent Director | 1.17yrs | US$237.79k | 0.0022% $346.1k | |
| Independent Director | 3yrs | US$298.85k | 0.0087% $1.4m | |
| Lead Independent Director | 2.75yrs | US$309.03k | 0.0027% $427.8k | |
| Independent Director | 3yrs | US$308.43k | 0.0063% $1.0m | |
| Independent Director | 0.17yr | no data | no data |
2.8yrs
Average Tenure
60yo
Average Age
Experienced Board: BKR's board of directors are not considered experienced ( 2.8 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 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$16.024b
- Market Cap: US$9.596b
- 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 provides a portfolio of technologies and services worldwide. The company operates through four segments: Oilfield Services (OFS), Oilfield Equipment (OFE), Turbomachinery & Process Solutions (TPS), and Digital Solutions (DS). The OFS 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 oil and natural gas, and oilfield service companies. The OFE 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 services related to onshore and offshore drilling activities. The TPS segment provides equipment and related services for mechanical-drive, compression, and power-generation applications across the oil and gas 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, and industrial, as well as engineering, procurement, and construction companies. The DS 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 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 | 2020/07/09 23:52 |
| End of Day Share Price | 2020/07/09 00:00 |
| Earnings | 2020/03/31 |
| 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.