GuruFocus Manual of Stocks™  |  Jan 23, 2022
Baker Hughes Co (NAS:BKR)
www.gurufocus.com/stock/NAS:BKR
Baker Hughes Co (NAS:BKR)
Not Rated
Significantly Overvalued[5]$ 27.24
Oil & Gas - Oil & Gas Equipment & Services
Market Cap: $ 23,698 Mil
Baker Hughes, a GE Co is a fullstream provider of integrated oilfield products, services, and digital solutions. The company offers the full spectrum of services to oil and gas companies, from upstream to downstream.
Valuation Rank
Score: 0 /10CurrentIndustry MedianHistorical Median
PE Ratio118.4313.9584.69
Forward P/E21.679.47N/A
PB Ratio1.651.360.91
PS Ratio1.031.340.6
P/FCF17.359.5216.09
Shiller P/EN/A15.66N/A
PEG RatioN/A1.29N/A
Valuation Analysis
% of Price
NCAV-7.85-29
Tangible Book4.6317
Graham Number4.8918
Price27.24
Dividend & Ownership
Dividend Yield(ttm) %2.64
Dividend Yield(forward) %2.64
Payout1.13
Dividend Growth(5y) %N/A
Yield on Cost(5y) %2.62
Continuous Div. since2017
Insider Ownership %0.19
Institution Ownership %91.52
Financial Strength
Score: 5 /10CurrentIndustry MedianHistorical Median
Cash-to-Debt0.580.460.58
Equity-to-Asset0.400.460.33
Interest Coverage5.256.846.26
Piotroski F-Score755
Profitability Rank
Score: 4 /10CurrentIndustry MedianHistorical Median
Operating Margin %7.034.386.17
Net Margin %0.681.810.09
ROE %1.072.410.65
ROA %0.380.380.24
ROC (Joel Greenblatt) %23.883.468.37
Growth (Per Share)
10 Yr5 Yr1 Yr
Revenue Growth (%)N/A0.4-19.4
EBITDA Growth (%)N/AN/AN/A
Oprt. Income Growth (%)N/A-16.234.5
EPS w/o NRI Growth (%)N/AN/AN/A
Free Cash Flow Growth (%)N/AN/A-8.1
Book Value Growth (%)N/AN/A-2.6
Quarterly
Sep20Dec20Mar21Jun21Sep21
Revenue50495495478251425093
Net Income-170652-452-688
EPS-0.250.91-0.61-0.080.01
Revenue (YoY) %-14.16-13.44-11.858.570.87
Net Income (YoY) %-398.251258.33-95.58-65.13-104.71
EPS (YoY) %-327.271200-96.1-73.33-104
Warning Signs
SEVEREAltman Z-Score: Distress
SEVERESloan Ratio: Poor quality of earnings
SEVERERevenue per Share: Declined
SEVEREGross Margin %: Declined
Good Signs
GOODPiotroski F-Score: High
Insider Trades
InsiderPositionDateTradesCur. Shares
Borras Maria CEVP, Oilfield S12/10/21-12274--
As of 01-23-2022
* All financial numbers are in millions except for per share data, ratios and percentage change.
Gain % SP500 %
1W-0.80-5.75
1M14.50-5.42
3M12.98-3.10
6M36.431.47
YTD13.22-7.79
1Y23.9915.50
3Y6.8219.94
5Y--16.09
10Y--14.91
37.91
14.29
9.33
13M
6.3M
2012201320142015201620172018201920202021CurrentPerformance
------------37.9137.228.4625.6427.88Highest Stock Price
--------------20.4820.719.3318.75Lowest Stock Price
------------1335211030166611509523698Market Cap
--------430430427429557675857Shares Outstanding-Diluted
--------N/AN/AAt Loss47.78111.43At Loss118.43PE Ratio
------------0.940.630.761.171.65PB Ratio
------------0.790.40.60.681.03PS Ratio
------------43.714.2613.54-1.769.93EV-to-EBITDA
--------201520162017201820192020TTMPer Share Data
--------38.8130.4240.2353.3342.830.6726.38Revenue per Share
-------------0.240.450.23-14.730.23Earnings per Share
--------1.56-0.38-3.431.791.590.491.57Free Cash Flow per Share
------------0.350.720.720.720.72Dividends per Share
----------12.93-28.46-17.49-6.373.484.63Tangible Book per Share
----------------------Median PS Value
--------------------4.89Graham Number
--------201520162017201820192020TTMIncome Statement
--------16688130821717922877238382070520512Revenue
--------4495293230363986443231993853Gross Profit
--------26.922.417.717.418.615.518.8Gross Margin %
--------2115192625352699283224042410Total Operating Expense
--------23801006501128716007951443Operating Income
--------14.37.72.95.66.73.87Operating Margin %
---------606254-61195128-9940140Net Income
---------3.61.9-0.40.90.5-480.7Net Margin %
---------38460-215764990-149381534EBIT
--------492101088822502408-136212673EBITDA
----------1.7-0.71.20.7-57.11.1ROE %
----------1.2-0.20.40.2-21.80.4ROA %
--------201520162017201820192020Sep21Balance Sheet
----------98170303723324941323926Cash & Equivalents
----------256360155969641656225326Total Receivables
----------217215650052439533693800735772Total Assets
----------239203794232188956Short-Term Debt & CLO
----------3863126285630167446708Long-Term Debt & CLO
----------68661809017426188701976518736Total Liabilities
----------146881427717465219291289314142Total Stockholders Equity
----------148553841035013344991824217036Total Equity
--------201520162017201820192020TTMCashflow Statement
--------1277262-7991762212613041977Cash Flow from Operations
---------466-472-4123-578-1045-618-279Cash Flow from Investing
-------------477-2486-250----Repurchase of Stock
--------177-1563088-1060-587991-968Net Issuance of Debt
---------515-10210919-4363-1534225-1854Cash Flow from Financing
--------42-4516049-3307-474883-135Net Change in Cash
---------607-424-665-995-1240-974-763Capital Expenditure
--------670-162-14647678863301214Free Cash Flow
Competitor
TickerCompanyFinancial
Strength
Profitability
Rank
Market Cap
($M)
PE RatioPS RatioNet
Margin %
ROA %ROE %
NYSE:HALHalliburton Co4624,65162.591.722.791.917.53
NAS:BKRBaker Hughes Co5423,698118.431.030.680.381.07
MIL:TENTenaris SA7613,87517.382.6114.985.967.34
SHSE:601808China Oilfield Services Ltd578,43134.792.527.312.645.19
SZSE:002353Yantai Jereh Oilfield Services Group Co Ltd786,82325.085.1420.509.2415.19
GuruFocus Manual of Stocks™  |  Jan 23, 2022
Baker Hughes Co (NAS:BKR)
www.gurufocus.com/stock/NAS:BKR

Financial Strength[2] (Quarterly data, as of Sep. 2021) : Fair (5/10)

0
1
2
3
4
5
6
7
8
9

Cash-to-Debt : 0.58

Cash-to-Debt Ratio measures the financial strength of a company. It is calculated as a company's cash, cash equivalents, and marketable securities divide by its debt. A high ratio indicates that a company is better able to pay back its debt, and is thus able to take on more debt if necessary.


Equity-to-Asset : 0.40

Equity-to-Asset ratio is calculated as total stockholders equity divided by its total assets. Equity-to-Asset ratio can vary greatly across different industries, as they have different capital structure. A company with smaller Equity-to-Asset ratio (more leveraged) may have higher ROE % because of the leverage.


Debt-to-Equity : 0.48

A high Debt-to-Equity ratio generally means that a company has been aggressive in financing its growth with debt.


Piotroski F-Score : 7

The Piotroski F-Score is used to determine the strength of a firm's financial position, with 9 being the best and 0 being the worst.

0
1
2
3
4
5
6
7
8
9


WACC : 10.45% vs ROIC : 1.11%

The weighted average cost of capital (WACC) is the rate that a company is expected to pay on average to all its security holders to finance its assets. Return on invested capital (ROIC) measures how well a company generates cash flow relative to the capital it has invested in its business.


Dividend Yield : 2.91%

Dividend yield is a way to measure how much cash flow you are getting for each dollar invested in an equity position.

GuruFocus Manual of Stocks™  |  Jan 23, 2022
Baker Hughes Co (NAS:BKR)
www.gurufocus.com/stock/NAS:BKR

Profitability[3] (Annual data, as of Dec. 2020) : Fair (4/10)

0
1
2
3
4
5
6
7
8
9

Revenue : $5,093 Mil vs Net Income : $8 Mil

Revenue is the amount of money that a company actually receives during a specific period, including discounts and deductions for returned merchandise. Net Income is a company's total profit. Net income is calculated by taking revenues and adjusting for the cost of doing business, depreciation, interest, taxes and other expenses.


Cash & Equivalents : $3,926 Mil vs Long-Term Debt* : $6,708 Mil

Cash & equivalents are the most liquid assets on the balance sheet. Cash equivalents are assets that are readily convertible into cash. Long-Term Debt* consists of loans and obligations lasting over one year.


Operating Margin % : 7.91%

Operating margin % measures how much profit a company makes on a dollar of sales. Operating Margin % is calculated as Operating Income divided by Revenue.


EPS without NRI : $0.01

Earnings Per Share without Non-Recurring Items is the amount of earnings without non-recurring items per outstanding share of the company's stock. In calculating earnings per share without non-recurring items, the dividends of preferred stocks and Non Operating Income need to subtracted from the total net income first.


Dividends per Share : $0.18

Dividends per Share is the amount of dividends that the shareholders of a company receive on a per-share basis. It is calculated using the total dividends paid out to shareholders over one fiscal year and the number of shares outstanding.


Free Cash Flow per Share : $0.25

Free Cash flow per Share is the amount of Free cash flow per outstanding share of the company's stock.

GuruFocus Manual of Stocks™  |  Jan 23, 2022
Baker Hughes Co (NAS:BKR)
www.gurufocus.com/stock/NAS:BKR

Valuation (Quarterly data, as of Sep. 2021)

These valuation metrics should give you a sense of reasonable prices, but be careful with them. Always seek to understand why a valuation is changing over time.


Valuation Chart (Current stock price : $27.24)


PE Ratio without NRI : 107.52

The price-to-earnings ratio can be affected by Non Operating Income such as the sale of part of businesses. This may increase for the current year or quarter dramatically. But it cannot be repeated over and over. Therefore PE Ratio without NRI is a more accurate indication of valuation than regular PE Ratio.


PB Ratio : 1.50

The price-to-book ratio measures the valuation of the stock relative to the underlying asset of the company.


PS Ratio : 0.94

The price-to-sales ratio is a valuation ratio that compares a company’s stock price to its revenues. The price-to-sales ratio is an indicator of the value placed on each dollar of a company’s sales or revenues.


Price-to-Free-Cash-Flow : 15.75

Price-to-free-cash-flow is very similar to the valuation metric of price-to-operating-cash-flow but is considered a more exact measure, owing to the fact that it uses free cash flow, which subtracts capital expenditures from a company's total operating cash flow, thereby reflecting the actual cash flow available to fund non-asset-related growth.


EV-to-EBIT : 17.58

Enterprise value of a company divided by its trailing 12 months earnings before interest and taxes (EBIT).

GuruFocus Manual of Stocks™  |  Jan 23, 2022
Baker Hughes Co (NAS:BKR)
www.gurufocus.com/stock/NAS:BKR

Valuation Bands

In these charts the 10-year valuation bands of the price-to-earnings ratio (PE Ratio), price-to-book ratio (PB Ratio), price-to-sales ratio (PS Ratio) and price-to-operating-cash-flow ratio (POCF) are drawn together with the historical stock prices. For example, the upper line of the PE band is where the stock price would have been if it were always traded at the maximum PE ratio of the past 10 years. The lower line of the PE band is where the stock price would have been if it were always traded at the lowest PE ratio of the past 10 years. It is always better if the stock price is close to the lower line, which indicates a lower valuation.


Historical Price and PE Band


Historical Price and PS Band


Historical Price and PB Band


Historical Price and Price-to-Operating-Cash-Flow (POCF) Band

GuruFocus Manual of Stocks™  |  Jan 23, 2022
Baker Hughes Co (NAS:BKR)
www.gurufocus.com/stock/NAS:BKR

Warning Signs

GuruFocus conducted a thorough checkup using a checklist of 32 items that cover the areas of financial strength, profitability, growth, and valuation of each company. The purpose of Warning Signs is to warn you that the company may have red flags in certain areas, helping to avoid overlooking them. These warning signs do not necessarily mean you should not invest in the stock. But you should be aware of them before you invest.


Severe Warning Signs

Altman Z-Score : Distress

Altman Z-score of 1.25 is in distress zone. This implies bankrupcy possibility in the next two years.

Sloan Ratio : Poor quality of earnings

When Sloan Ratio (-27.96)% higher than 25% or lower than -25%, earnings are more likely to be made up of accruals.

Revenue per Share : Declined

Baker Hughes Co revenue per share has been in decline over the past 3 years.

Gross Margin % : Declined

Baker Hughes Co gross margin has been in long term decline. The average rate of decline per year is -9.1%.

Operating Margin % : Declined

Baker Hughes Co operating margin has been in 5-year decline. The average rate of decline per year is -16.5%.

Good Signs

Piotroski F-Score : High

Piotroski F-Score is 7, indicating very healthy situation.

Beneish M-Score : Unlikely manipulator

Beneish M-Score -2.8 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

Medium Warning Signs

Dividend Payout Ratio : Too high

If a company dividend payout ratio is too high, its dividend may not be sustainable. The dividend payout ratio of Baker Hughes Co is 1.13, which seems too high.

Dividend Yield % : Close to 3-year low

Baker Hughes Co stock dividend yield is close to 3-year low.

Price : Close to 3-year high

Baker Hughes Co stock Price is close to 3-year high

PE Ratio : Close to 3-year high

Baker Hughes Co stock PE Ratio (=118.92) is close to 3-year high of 119.39

PS Ratio : Close to 3-year high

Baker Hughes Co stock PS Ratio (=1.03) is close to 3-year high of 1.04

ROIC vs. WACC : Return on invested capital is less than weighted average cost of capital.

Companys's return on invested capital is less than weighted average cost of capital. It might not be capital efficient

Insider Sell : Insider Selling

There were 8 insider selling transactions and no insider buying over the past 3 months. 47,503,911 shares were sold.
GuruFocus Manual of Stocks™  |  Jan 23, 2022
Baker Hughes Co (NAS:BKR)
www.gurufocus.com/stock/NAS:BKR

Competitive Comparison


5 Year Price Change Comparison


Financial Strength

CompanyFinancial StrengthCash-to-DebtEquity-to-AssetDebt-to-EquityInterest CoveragePiotroski F-ScoreAltman Z-ScoreBeneish M-ScoreWACC %ROIC %
NYSE:DRQDril-Quip Inc8/1070.850.900.010.0046.83-2.768.40-6.57
NYSE:WHDCactus Inc7/109.200.470.0774.3535.51-1.5517.9610.14
NYSE:DNOWNOW Inc6/109.750.630.05N/A61.67-2.1512.83-6.63
NAS:BKRBaker Hughes Co5/100.580.400.485.2571.25-2.8010.451.11
NYSE:NOVNOV Inc5/100.700.520.480.0041.29-2.8012.57-6.22
NYSE:CLBCore Laboratories NV4/100.080.271.635.4353.13-2.0916.197.16
NYSE:HALHalliburton Co4/100.260.271.813.1772.72-2.6015.736.65
NYSE:SLBSchlumberger Ltd4/100.190.331.154.4672.21-2.7613.596.53
NYSE:AROCArchrock Inc3/100.000.351.701.335-0.38-2.979.703.71
NYSE:USACUSA Compression Partners LP3/100.000.233.121.0950.83-3.0410.844.35

Profitability

CompanyProfitability RankOperating
Margin %
Net Margin %ROE %ROA %Price-to-Free-Cash-FlowROC (Joel Greenblatt) %3-Year Revenue Growth %3-Year EBITDA Growth %3-Year EPS w/o NRI Growth %
NYSE:WHDCactus Inc7/1015.4310.039.404.2856.3721.80-33.80-34.300.00
NYSE:CLBCore Laboratories NV7/1011.236.6626.025.22278.6021.74-9.200.000.00
NYSE:DRQDril-Quip Inc6/10-11.73-22.82-7.49-6.70119.37-13.07-5.20-7.8031.40
NYSE:HALHalliburton Co6/1011.062.797.531.9121.0212.58-11.600.00-87.10
NYSE:SLBSchlumberger Ltd6/1010.957.4413.193.9319.7336.47-8.200.00-91.40
NYSE:AROCArchrock Inc5/1018.183.442.790.996.176.10-20.20-24.800.00
NYSE:USACUSA Compression Partners LP5/1022.360.90-5.700.206.475.7515.70-14.60-16.00
NAS:BKRBaker Hughes Co4/107.030.681.070.3817.3523.88-8.600.00-294.50
NYSE:NOVNOV Inc4/10-7.87-10.44-10.76-5.6923.67-12.28-6.500.00-119.00
NYSE:DNOWNOW Inc4/10-1.97-3.36-7.25-4.8612.17-8.64-15.500.00-101.20

Valuation

CompanyPE RatioPB RatioPS RatioPrice-to-Intrinsic-Value-Projected-FCFPrice-to-Intrinsic-Value-DCF (Earnings Based)Price-to-Median-PS-ValuePrice-to-Peter-Lynch-Fair-ValuePrice-to-Graham-NumberEarnings Yield (Joel Greenblatt) %Forward Rate of Return (Yacktman) %
NYSE:DRQDril-Quip IncAt Loss0.882.600.640.000.690.000.00-12.996.02
NYSE:NOVNOV IncAt Loss1.201.120.620.000.780.000.00-6.6612.15
NYSE:DNOWNOW IncAt Loss1.390.640.530.000.000.000.00-4.340.00
NYSE:USACUSA Compression Partners LPAt Loss2.462.481.240.000.000.000.003.83-10.84
NYSE:SLBSchlumberger Ltd31.103.822.311.220.000.930.000.004.15-10.95
NYSE:CLBCore Laboratories NV38.677.662.611.310.000.430.006.453.80-5.46
NYSE:AROCArchrock Inc44.891.361.540.880.001.530.001.695.35-6.72
NYSE:HALHalliburton Co62.594.331.722.950.001.280.004.913.38-5.12
NYSE:WHDCactus Inc69.825.869.150.000.000.002.524.302.390.00
NAS:BKRBaker Hughes Co118.431.651.030.000.000.000.005.575.780.00
GuruFocus Manual of Stocks™  |  Jan 23, 2022
Baker Hughes Co (NAS:BKR)
www.gurufocus.com/stock/NAS:BKR

Peter Lynch Chart[4]

GuruFocus Manual of Stocks™  |  Jan 23, 2022
Baker Hughes Co (NAS:BKR)
www.gurufocus.com/stock/NAS:BKR

Per Share Data



Per Share Data

Dec15
Dec16
Dec17
Dec18
Dec19
Dec20
TTM Fiscal Period
38.81
30.42
40.23
53.33
42.8
30.67
26.38
Revenue per Share
1.14
2.35
2.08
5.25
4.32
-20.18
3.52
EBITDA per Share
-0.09
1.07
-0.5
1.78
1.78
-22.13
2.06
EBIT per Share
--
--
-0.24
0.45
0.23
-14.73
0.23
Earnings per Share (Diluted)
--
-2.08
-0.24
0.45
0.23
-14.73
0.23
EPS without NRI
--
--
--
--
--
--
1.02
Owner Earnings per Share (TTM)
1.56
-0.38
-3.43
1.79
1.59
0.49
1.57
Free Cash Flow per Share
2.97
0.61
-1.87
4.11
3.82
1.93
2.55
Operating Cash Flow per Share
--
2.28
16.66
7.26
5
5.71
4.57
Cash per Share
--
--
0.35
0.72
0.72
0.72
0.72
Dividends per Share
--
34.16
33.83
34.05
33.73
17.81
16.46
Book Value per Share
--
12.93
-28.46
-17.49
-6.37
3.48
4.63
Tangible Book per Share
--
0.64
19.78
14.09
10.19
10.54
7.87
Total Debt per Share
--
--
31.64
21.5
25.63
20.85
27.24
Month End Stock Price

Ratios

Dec15
Dec16
Dec17
Dec18
Dec19
Dec20
TTM Fiscal Period
--
1.73
-0.71
1.23
0.65
-57.09
1.07
ROE %
--
--
-0.76
1.95
0.86
-48.79
0.65
ROE % Adjusted to Book Value
--
1.17
-0.16
0.36
0.24
-21.76
0.38
ROA %
--
4.57
--
Neg. E
Neg. E
--
4.91
Return-on-Tangible-Equity
--
2.02
-0.29
0.69
0.48
-36.19
0.53
Return-on-Tangible-Asset
--
14.44
-3.3
8.37
12.41
-200
23.88
ROC (Joel Greenblatt) %
--
2.74
-0.67
1.68
2.28
-42
5.7
ROCE %
--
2.76
1.74
1.48
1.27
2.16
1.11
ROIC %
--
--
--
6.21
5.63
9.23
10.45
WACC %
--
36.82
3.04
2.86
3.42
3.7
3.77
Effective Interest Rate on Debt %
26.94
22.41
17.67
17.42
18.59
15.45
18.78
Gross Margin %
14.26
7.69
2.92
5.63
6.71
3.84
7.03
Operating Margin %
-3.63
1.94
-0.36
0.85
0.54
-48.01
0.68
Net Margin %
4.01
-1.24
-8.52
3.35
3.72
1.59
5.92
FCF Margin %
N/A
0.02
0.59
0.41
0.3
0.59
0.48
Debt-to-Equity
--
0.68
0.25
0.33
0.41
0.34
0.4
Equity-to-Asset
--
0.01
0.15
0.14
0.12
0.2
0.19
Debt-to-Asset
--
0.32
0.32
0.33
0.35
0.52
0.52
Liabilities-to-Assets
--
13.5
7.76
7.32
8.38
7
10.43
Gross-Profit-to-Asset %
--
0.6
0.44
0.42
0.45
0.45
0.56
Asset Turnover
--
--
--
1.6
3.13
--
1.13
Dividend Payout Ratio
--
47.4
67.98
77.17
79.79
89.24
81.8
Days Sales Outstanding
--
68.25
68.07
71.51
77.99
81.31
77.08
Days Payable
--
116
99.76
88.17
86.78
94.13
93.74
Days Inventory
--
95.09
99.67
93.83
88.58
102
98.46
Cash Conversion Cycle
--
3.15
3.66
4.14
4.21
3.88
3.89
Inventory Turnover
0.73
0.78
0.82
0.83
0.81
0.85
0.81
COGS-to-Revenue
--
0.25
0.23
0.2
0.19
0.22
0.21
Inventory-to-Revenue
0.04
0.03
0.04
0.04
0.05
0.05
0.04
Capex-to-Revenue
0.26
0.42
1.33
0.77
0.78
1.23
0.53
Capex-to-Operating-Income
* All financial numbers are in millions except for per share data, ratios and percentage change. When Return-on-Tangible-Equity displays Neg. E, it means the the tangible equity is negative.
GuruFocus Manual of Stocks™  |  Jan 23, 2022
Baker Hughes Co (NAS:BKR)
www.gurufocus.com/stock/NAS:BKR

Financial Satement



Income Statement

Dec15
Dec16
Dec17
Dec18
Dec19
Dec20
TTM Fiscal Period
16688
13082
17179
22877
23838
20705
20512
Revenue
12193
10150
14143
18891
19406
17506
16659
Cost of Goods Sold
4495
2932
3036
3986
4432
3199
3853
Gross Profit
26.94
22.41
17.67
17.42
18.59
15.45
18.78
Gross Margin %
2115
1926
2535
2699
2832
2404
2410
Selling, General, & Admin. Expense
2115
1926
2535
2699
2832
2404
2410
Total Operating Expense
2380
1006
501
1287
1600
795
1443
Operating Income
14.26
7.69
2.92
5.63
6.71
3.84
7.03
Operating Margin %
-120
-102
-131
-223
-237
-264
-275
  Interest Expense
-120
-102
-131
-223
-237
-264
-275
Net Interest Income
-2418
-546
-716
-523
-610
-15733
91
Other Income (Expense)
-158
358
-346
541
753
-15202
1259
Pre-Tax Income
-473
-173
-45
-258
-482
-559
-974
Tax Provision
-299
48.32
-13.01
47.69
64.01
-3.68
77.36
Tax Rate %
-631
185
-391
283
271
-15761
285
Net Income (Continuing Operations)
25
69
330
-88
-143
5821
-145
  Other Income (Minority Interest)
-606
254
-61
195
128
-9940
140
Net Income
-3.63
1.94
-0.36
0.85
0.54
-48.01
0.68
Net Margin %
--
--
-0.24
0.46
0.23
-14.73
0.24
EPS (Basic)
--
--
-0.24
0.45
0.23
-14.73
0.23
EPS (Diluted)
430
430
427
429
557
675
857
Shares Outstanding (Diluted Average)
-38
460
-215
764
990
-14938
1534
EBIT
530
550
1103
1486
1418
1317
1139
Depreciation, Depletion and Amortization
492
1010
888
2250
2408
-13621
2673
EBITDA

Cashflow Statement

Dec15
Dec16
Dec17
Dec18
Dec19
Dec20
TTM Fiscal Period
-631
185
-391
283
271
-15761
285
Net Income From Continuing Operations
530
550
1103
1486
1418
1317
1139
Depreciation, Depletion and Amortization
469
190
-1629
-75
-643
611
608
  Change In Receivables
442
367
418
-339
-200
-80
254
  Change In Inventory
-450
-256
303
794
249
-711
-51
  Change In Payables And Accrued Expense
-954
-719
-293
-291
735
623
-472
  Change In Other Working Capital
-493
-418
-1201
89
141
443
339
Change In Working Capital
-96
-38
-333
-249
51
160
-- Deferred Tax
2080
--
--
185
107
16209
91
Asset Impairment Charge
-113
-17
23
-32
138
-1064
123
Cash Flow from Others
1277
262
-799
1762
2126
1304
1977
Cash Flow from Operations
-607
-424
-665
-995
-1240
-974
-763
Purchase Of Property, Plant, Equipment
-86
-16
-3375
-530
-176
-26
-- Purchase Of Business
181
--
20
453
77
187
-- Sale Of Business
46
-32
-103
494
294
195
484
Cash From Other Investing Activities
-466
-472
-4123
-578
-1045
-618
-279
Cash Flow from Investing
--
--
-477
-2486
-250
--
-- Repurchase of Stock
177
--
3928
--
525
1237
--   Issuance of Debt
--
-156
-840
-1060
-1112
-246
-968
  Payments of Debt
177
-156
3088
-1060
-587
991
-968
Net Issuance of Debt
--
--
-406
-810
-745
-744
-749
Cash Flow for Dividends
-692
54
8714
-7
48
-22
-137
Other Financing
-515
-102
10919
-4363
-1534
225
-1854
Cash Flow from Financing
-254
-139
52
-128
-21
-28
21
Effect of Exchange Rate Changes
42
-451
6049
-3307
-474
883
-135
Net Change in Cash
-607
-424
-665
-995
-1240
-974
-763
Capital Expenditure
670
-162
-1464
767
886
330
1214
Free Cash Flow
* All financial numbers are in millions except for per share data, ratios and percentage change.
GuruFocus Manual of Stocks™  |  Jan 23, 2022
Baker Hughes Co (NAS:BKR)
www.gurufocus.com/stock/NAS:BKR

Financial Satement


Balance Sheet

Dec15
Dec16
Dec17
Dec18
Dec19
Dec20
TTM Fiscal Period
--
981
7030
3723
3249
4132
3926
  Cash And Cash Equivalents
--
981
7030
3723
3249
4132
3926
Cash, Cash Equivalents, Marketable Securities
--
1699
4700
4974
5448
4676
4569
  Accounts Receivable
--
864
1315
995
968
946
757
  Other Current Receivables
--
2563
6015
5969
6416
5622
5326
Total Receivables
--
1639
1930
2045
2062
2084
1855
  Inventories, Work In Process
--
1585
2577
2575
2546
2337
2255
  Inventories, Finished Goods
--
3224
4507
4620
4608
4421
4110
Total Inventories
--
633
872
659
949
2280
1525
Other Current Assets
--
7401
18424
14971
15222
16455
14887
Total Current Assets
--
130
413
432
430
404
--   Land And Improvements
--
1344
3168
2854
2870
2618
--   Buildings And Improvements
--
2916
6195
6567
7324
7451
--   Machinery, Furniture, Equipment
--
--
--
--
--
--
10064
  Other Gross PPE
--
4390
9776
9853
10624
10473
10064
Gross Property, Plant and Equipment
--
-2065
-2817
-3625
-4384
-5115
-5082
  Accumulated Depreciation
--
2325
6959
6228
6240
5358
4982
Property, Plant and Equipment
--
9129
26285
26436
26071
10374
10166
Intangible Assets
--
6680
19927
20717
20690
5977
6015
  Goodwill
--
2866
4832
4804
5836
5820
5737
Other Long Term Assets
--
14320
38076
37468
38147
21552
20885
Total Long-Term Assets
--
21721
56500
52439
53369
38007
35772
Total Assets
--
1898
3377
4025
4268
3532
3514
  Accounts Payable
--
1898
3377
4025
4268
3532
3514
Accounts Payable & Accrued Expense
--
239
2037
942
321
889
56
  Short-Term Debt
--
239
2037
942
321
889
56
Short-Term Debt & Capital Lease Obligation
--
--
--
1765
2870
3454
3263
  Current Deferred Revenue
--
--
--
1765
2870
3454
3263
DeferredTaxAndRevenue
--
2797
3813
2288
2555
2352
2521
Other Current Liabilities
--
4934
9227
9020
10014
10227
9354
Total Current Liabilities
--
37
6225
6285
6301
6744
6708
  Long-Term Debt
--
1
87
--
--
--
--   Long-Term Capital Lease Obligation
--
38
6312
6285
6301
6744
6708
Long-Term Debt & Capital Lease Obligation
N/A
0.02
0.59
0.41
0.3
0.59
0.48
Debt-to-Equity
--
519
1172
1018
1079
1217
1132
PensionAndRetirementBenefit
--
880
490
143
51
186
157
NonCurrent Deferred Liabilities
--
495
889
960
1425
1391
1385
Other Long-Term Liabilities
--
1932
8863
8406
8856
9538
9382
Total Long-Term Liabilities
--
6866
18090
17426
18870
19765
18736
Total Liabilities
--
--
-103
25
--
-9942
-10454
Retained Earnings
--
-1894
-703
-1219
-1636
-1778
-2092
Accumulated other comprehensive income (loss)
--
--
15083
18659
23565
24613
26688
Additional Paid-In Capital
--
16582
--
--
--
--
-- Other Stockholders Equity
--
14688
14277
17465
21929
12893
14142
Total Stockholders Equity
--
167
24133
17548
12570
5349
2894
Minority Interest
--
14855
38410
35013
34499
18242
17036
Total Equity
--
0.68
0.25
0.33
0.41
0.34
0.4
Equity-to-Asset
* All financial numbers are in millions except for per share data, ratios and percentage change.
GuruFocus Manual of Stocks™  |  Jan 23, 2022
Baker Hughes Co (NAS:BKR)
www.gurufocus.com/stock/NAS:BKR

Valuation Ratios



Valuation Ratios

Dec15
Dec16
Dec17
Dec18
Dec19
Dec20
TTM Fiscal Period
N/A
N/A
At Loss
47.78
111
At Loss
118
PE Ratio
N/A
N/A
At Loss
47.78
111
At Loss
118
PE Ratio without NRI
--
--
0.94
0.63
0.76
1.17
1.65
PB Ratio
--
--
--
--
--
5.99
5.88
Price-to-Tangible-Book
--
--
--
12.02
16.11
42.64
17.35
Price-to-Free-Cash-Flow
--
--
--
5.23
6.71
10.79
10.68
Price-to-Operating-Cash-Flow
--
--
0.79
0.4
0.6
0.68
1.03
PS Ratio
--
--
2.26
1.4
1.37
1.16
1.29
EV-to-Revenue
--
--
43.7
14.26
13.54
-1.76
9.93
EV-to-EBITDA
--
--
-180
41.99
32.93
-1.6
17.3
EV-to-EBIT
--
--
-0.55
2.38
3.04
-62.5
5.78
Earnings Yield (Joel Greenblatt) %
--
--
1.11
3.35
2.81
3.45
2.64
Dividend Yield %

Valuation and Quality

Dec15
Dec16
Dec17
Dec18
Dec19
Dec20
TTM Fiscal Period
--
--
13352
11030
16661
15095
23698
Market Cap
--
--
38804
32082
32604
23945
26536
Enterprise Value
--
--
31.64
21.5
25.63
20.85
27.24
Month End Stock Price
--
-14.07
-83.4
-60.92
-43.37
-28.98
-20.61
Net Cash per Share
--
0.86
-56.4
-38.99
-24.95
-11.96
-7.85
Net Current Asset Value
--
-7.36
-69.7
-49.14
-33.54
-21.08
-14.23
Net-Net Working Capital
--
--
--
--
--
--
4.89
Graham Number
--
--
--
--
--
--
0.65
Earnings Power Value (EPV)
--
--
0.93
1
1.15
-0.46
1.25
Altman Z-Score
N/A
N/A
N/A
5
5
3
7
Piotroski F-Score
--
--
--
-2.44
-2.56
-2.22
-2.8
Beneish M-Score
--
--
1.83
0.68
0.72
0.41
0.54
Scaled Net Operating Assets
--
2.14
8.6
-1.89
-1.79
-27.96
-4.36
Sloan Ratio %
--
1.5
2
1.66
1.52
1.61
1.59
Current Ratio
--
0.85
1.51
1.15
1.06
1.18
1.15
Quick Ratio
--
0.2
0.76
0.41
0.32
0.4
0.42
Cash Ratio
19.83
9.86
3.82
5.77
6.75
3.01
5.25
Interest Coverage
--
--
37.91
37.2
28.46
25.64
27.88
Highest Stock Price
--
--
--
20.48
20.71
9.33
18.75
Lowest Stock Price
--
--
1.86
-21.56
-26.72
-11.37
-25.4
Shares Buyback Ratio %
--
--
3.57
22.54
1.5
--
-- Buyback Yield %
--
-21.61
32.24
32.55
-19.74
-28.33
-19.41
YoY Rev. per Sh. Growth
--
--
--
288
-48.89
-6504
101
YoY EPS Growth
--
105
-11.45
152
-17.58
-567
116
YoY EBITDA Growth
429
429
427
427
555
675
851
Shares Outstanding (Basic Average)
430
430
422
513
650
724
870
Shares Outstanding (EOP)
--
--
--
--
--
1.94
1.83
Beta
02/23/18
05/30/17
02/23/18
02/19/19
02/13/20
02/25/21
  Filing Date
02/23/18
02/19/19
02/13/20
02/25/21
02/25/21
02/25/21
  Restated Filing Date
01/24/18
01/31/19
01/22/20
01/21/21
  Earnings Release Date
--
--
6853
6901
6658
6506
6506
Number of Shareholders
--
34000
64000
66000
68000
55000
54000
Number of Employees
* All financial numbers are in millions except for per share data, ratios and percentage change.
GuruFocus Manual of Stocks™  |  Jan 23, 2022
Baker Hughes Co (NAS:BKR)
www.gurufocus.com/stock/NAS:BKR

Explanation

1. Predictability Rank

GuruFocus Predictability Rank is a proprietary ranking of the consistency of a business. We rank the predictability of companies based on the consistency of their revenue per share and EBITDA (earnings before interest, tax, depreciation and amortization) per share over the past 10 fiscal years. Our study found that there is a strong correlation between the stock performance and the predictability of a business. Over the long term, companies with higher predictability also have better stock performance.

The rank is from 1-star to 5-star, with 5-star as the best.

2. Financial Strength

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

  1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
  2. Debt to revenue ratio. The lower, the better.
  3. Altman Z-Score.

The rank is from 1 to 10, with 10 as the highest.

A Financial Strength rank of 8 or above indicates good financial strength; between 4-7 indicates fair financial strength; 3 or below means poor financial strength.

3. Profitability Rank

GuruFocus Profitability Rank indicates how profitable a company is and how likely it is that the company's business will stay that way. It is based on these factors:

  1. Operating Margin %.
  2. Piotroski F-Score.
  3. Trend of the Operating Margin percentage (five-year average). A company with an uptrend in profit margin will have a higher rank.
  4. Consistency of the profitability.
  5. Predictability Rank.

The rank is from 1 to 10, with 10 as the highest.

A Profitability Rank of 8 or above indicates good profitability; between 4-7 indicates fair profitability; 3 or below means poor profitability.

4. Peter Lynch Chart

In Peter Lynch's excellent book, "One Up on Wall Street," he used many charts to illustrate the valuation of stocks. “A quick way to tell if a stock is overpriced is to compare the price line to the earnings line. If you bought familiar growth companies – such as Shoney’s, The Limited, or Marriott – when the stock price fell well below the earnings line, and sold them when the stock price rose dramatically above it, the chances are you’d do pretty well.”

The original Peter Lynch Chart does have limitations due to the right side price scale is pre-set at 15 times the earnings scale on the left side. When the stock price and earnings line coincide, the price-to-earnings ratio is always 15 times. Instead of using the fixed PE Ratio of 15, our approach is using 15-year historical median PE without NRI Ratio for each stock.

The Peter Lynch Chart with earnings line at median PE without NRI ratio works well for the companies with steady growth and earnings trends, or the stalwarts, as coined by Lynch. These companies tend to be found in sectors such as consumer staples, healthcare, and utilities, where the consumption of the product or service is relatively independent of economic conditions. It does not work well with the sectors that are cyclical: industrials, chemicals, durable goods, and so forth.

5. GF Value

Based on the relationship between the current stock price and the GF Value, GuruFocus provides the following 6 evaluations:

  1. Possible Value Trap, Think Twice
  2. Significantly Overvalued
  3. Modestly Overvalued
  4. Fairly Valued
  5. Modestly Undervalued
  6. Significantly Undervalued
There is only a sufficient margin of safety when the stock is undervalued.

Disclaimer

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