Baker Hughes Co
BKR
Oil & Gas Field Machinery & Equipment
Mkt Cap
$32.63BPE
17.91Debt
$6.006BCash
$2.717BEV
$35.92BFCF
$2.138BP/E Ratio
17.91Debt
$6.006BCash
$2.717BEV
$35.92BFCF
$2.138BCharts data: {"Earnings":[{"time":"2015-12-30","value":-631000000},{"time":"2016-12-30","value":0},{"time":"2018-12-30","value":195000000},{"time":"2019-12-30","value":128000000},{"time":"2020-12-30","value":-15761000000},{"time":"2021-12-30","value":-330000000},{"time":"2022-12-30","value":-601000000},{"time":"2023-12-30","value":1943000000}],"Sales":[{"time":"2015-12-30","value":16688000000},{"time":"2016-12-30","value":13269000000},{"time":"2018-12-30","value":22877000000},{"time":"2019-12-30","value":23838000000},{"time":"2020-12-30","value":20705000000},{"time":"2021-12-30","value":20502000000},{"time":"2022-12-30","value":21156000000},{"time":"2023-12-30","value":25506000000}],"Net Margins":[{"time":"2015-12-30","value":-0.03781160115052733},{"time":"2016-12-30","value":0},{"time":"2018-12-30","value":0.008523844909734669},{"time":"2019-12-30","value":0.005369577984730263},{"time":"2020-12-30","value":-0.7612170973194881},{"time":"2021-12-30","value":-0.016095990635059995},{"time":"2022-12-30","value":-0.028408016638305916},{"time":"2023-12-30","value":0.07617815415980554}],"Assets":[{"time":"2016-12-30","value":0},{"time":"2018-12-30","value":52439000000},{"time":"2019-12-30","value":53369000000},{"time":"2020-12-30","value":38007000000},{"time":"2021-12-30","value":35308000000},{"time":"2022-12-30","value":34181000000},{"time":"2023-12-30","value":36945000000}],"Stockholders Equity":[{"time":"2015-12-30","value":14545000000},{"time":"2016-12-30","value":14855000000},{"time":"2018-12-30","value":35013000000},{"time":"2019-12-30","value":34499000000},{"time":"2020-12-30","value":18242000000},{"time":"2021-12-30","value":16746000000},{"time":"2022-12-30","value":14525000000},{"time":"2023-12-30","value":15519000000}],"ROE":[{"time":"2015-12-30","value":-0.04338260570642832},{"time":"2016-12-30","value":0},{"time":"2018-12-30","value":0.005569359952017822},{"time":"2019-12-30","value":0.0037102524710861183},{"time":"2020-12-30","value":-0.8639951759675474},{"time":"2021-12-30","value":-0.019706198495163023},{"time":"2022-12-30","value":-0.041376936316695354},{"time":"2023-12-30","value":0.12520136606740126}],"ROA":[{"time":"2018-12-30","value":0.01336791319437823},{"time":"2019-12-30","value":0.020124042046881147},{"time":"2020-12-30","value":-0.3999789512458231},{"time":"2021-12-30","value":0.03710207318454741},{"time":"2022-12-30","value":0.03466838301980633},{"time":"2023-12-30","value":0.07186358099878197}]}
Baker Hughes Company provides a portfolio of technologies and services to energy and industrial value chain worldwide. It operates through two segments: Oilfield Services & Equipment (OFSE) and Industrial & Energy Technology (IET). The OFSE segment designs and manufactures products and provides related services, including exploration, appraisal, development, production, rejuvenation, and decommissioning for onshore and offshore oilfield operations. This segment also provides drilling services, drill bits, and drilling and completions fluids; completions, intervention, measurements, pressure pumping, and wireline services; artificial lift systems, and oilfield and industrial chemicals; subsea projects and services, flexible pipe systems, and surface pressure control systems; and integrated well services and solutions. It serves oil and natural gas companies; the United States and international independent oil and natural gas companies; national or state-owned oil companies; engineering, procurement, and construction contractors; geothermal companies; and other oilfield service companies. The IET segment designs, manufactures, tests, and installs gas technology equipment, including drivers, driven equipment, flow control, and turnkey solutions for the mechanical-drive, compression, and power-generation applications; and gas technology services, such as advanced solutions, spare parts, specialized field service engineers, and repair services. This segment also provides rack-based vibration monitoring equipment and sensors; integrated asset performance management products; inspection services; pumps, valves, and gears; precision sensors and instrumentation, and controls. It serves upstream, midstream, downstream, onshore, offshore, and small and large scale customers. 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 was incorporated in 2016 and is based in Houston, Texas.
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DCF
Discounted Cash Flow Valuation of Baker Hughes Co
Value
Growth
%
%
Discount
%
%
Multiple
| g\r | +10% | +11% | +12% | +13% | +14% |
|---|---|---|---|---|---|
| 0% | 10 | 9 | 8 | 8 | 7 |
| +1% | 11 | 10 | 9 | 8 | 8 |
| +2% | 13 | 11 | 10 | 9 | 8 |
| +3% | 14 | 13 | 11 | 10 | 9 |
| +4% | 17 | 14 | 12 | 11 | 10 |
| Years | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | TV |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| FCF | $2.138B | $2.747B | $3.457B | $4.261B | $5.141B | $6.068B | $7.005B | $7.903B | $8.711B | $9.373B | $9.842B | $98.42B |
| DCF | $2.388B | $2.614B | $2.802B | $2.939B | $3.017B | $3.028B | $2.971B | $2.848B | $2.665B | $2.433B | $24.33B | |
| Value | $52.03B | |||||||||||
In the chart Earnings are multiplied by this value.
Earnings Growth 49%
Earnings Stability -47%
Competitiveness and MOAT
High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.
| Years | 12-2015 | 12-2016 | 12-2018 | 12-2019 | 12-2020 | 12-2021 | 12-2022 | 12-2023 | TTM |
|---|---|---|---|---|---|---|---|---|---|
| Net Margin | -3.8% | 0% | 0.85% | 0.54% | -76% | -1.6% | -2.8% | 7.6% | 7% |
| ROA | - | - | 1.3% | 2% | -40% | 3.7% | 3.5% | 7.2% | 6.9% |
| ROE | -4.3% | 0% | 0.56% | 0.37% | -86% | -2% | -4.1% | 13% | 12% |
What is the average Net Margin?
The average Net Margin over the past 5 years is -11.93%.
What is the trend of Net Margin?
The trend of Net Margin over the past 5 years is +2.81%.
What is the average Return on Assets (ROA)?
The average ROA over the past 5 years is -3.71%.
What is the trend of Return on Assets (ROA)?
The trend of ROA over the past 5 years is +2.21%.
What is the average Return on Equity (ROE)?
The average ROE over the past 5 years is -13.18%.
What is the trend of Return on Equity (ROE)?
The trend of ROE over the past 5 years is +3.73%.
Safety & Stabiliy
Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.
| Years | 12-2015 | 12-2016 | 12-2018 | 12-2019 | 12-2020 | 12-2021 | 12-2022 | 12-2023 | TTM | |
|---|---|---|---|---|---|---|---|---|---|---|
| Debt FCF | - | -1.71 | - | 7.47 | 23.13 | 4.43 | 7.40 | 3.28 | 2.81 | |
| Debt Equity | - | 0.02 | 0.21 | 0.19 | 0.42 | 0.40 | 0.46 | 0.39 | 0.39 | |
| MIN | ||||||||||
| Graham Stability | - | - | - | - | -15K% | - | - | - | -15K% | |
What is the Debt/FCF?
The Debt/FCF trailing twelve month is 2.81.
What is the trend of Debt/FCF?
The trend of Debt/FCF over the past 5 years is -2.41.
What is the Graham’s Stability?
Graham’s Stability measure stands at -146.39.
Growth
Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.
| Years | 12-2015 | 12-2018 | 12-2020 | 12-2022 | Trend |
|---|---|---|---|---|---|
| Revenue | 6.2% | 2.2% | 7.2% | 21% | -0.73% |
| Net Income | - | 58% | - | - | 0% |
| Stockholders Equity | 0.93% | -15% | -5.2% | 6.8% | -10% |
| FCF | 16% | 19% | 77% | 100% | 20% |
What is the 5 year Revenue CAGR?
The Revenue CAGR over the past 5 years is +2.2%.
What is the trend of Revenue growth?
The trend of Revenue growth rate over the past 5 years is -0.73%.
What is the 5 year Earnings CAGR?
The Earnings CAGR over the past 5 years is +58.38%.
What is the trend of Earnings growth?
The trend of Earnings growth rate over the past 5 years is 0%.
What is the 5 year Equity CAGR?
The Equity CAGR over the past 5 years is -15.02%.
What is the trend of Equity growth?
The trend of Equity growth rate over the past 5 years is -10.38%.
What is the 5 year FCF CAGR?
The FCF CAGR over the past 5 years is +19.1%.
What is the trend of FCF growth?
The trend of FCF growth rate over the past 5 years is +19.98%.