Baker Hughes Co

Industrials
Metal Fabrications
www.bakerhughes.com

Earnings Score
Moat Score
Safety Score

Market Cap $41.77B
PE 19
Debt $6.04B
Cash $2.66B
EV $45.14B
FCF $1.79B

Earnings

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Sales & Net Margins

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Earnings	$2.24B
EBIT	$3.00B
ROE	14%
ROA	8%
FCF	$1.79B
Equity	$16.34B
Growth Stability	-15K%
PE	18.65
PEG	0.4
PB	2.56
P/FCF	23.3
P/S	1.53
Price/Cash	0.06
Debt/Equity	0.37
Debt/FCF	3.37
Net Margins	9%
Op. Margins	11%
Earnings CAGR	8%
Sales Growth YoY	4%
Sales Growth QoQ	-3%
Sales CAGR	11%
FCF CAGR	16%
Equity CAGR	-6%
Earnings Stability	0.05
Earnings Growth YoY	48%
Earnings Growth QoQ	32%

Earnings CAGR 5Y	46%
Sales CAGR 5Y	4%
FCF CAGR 5Y	18%
Equity CAGR 5Y	-7%
Earnings CAGR 3Y	13%
Sales CAGR 3Y	13%
FCF CAGR 3Y	38%
Equity CAGR 3Y	0%
Market Cap	$41.77B
Revenue	$27.30B
Dividend Yield	2%
Payout Ratio	37%
Assets	$37.53B
Total Debt	$6.04B
Cash	$2.66B
EV	45.14B
Earnings Score	7%
Moat Score	89%
Safety Score	59%
Final Score	52%
Working Capital	3.78B
Current Ratio	1.3
Equity Growth QoQ	4%
Equity Growth YoY	6%

Assets & ROA

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Stockholders Equity & ROE

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Baker Hughes is a global leader in oilfield services and oilfield equipment, with particularly strong presences in the artificial lift, specialty chemicals, and completions markets. The other half of its business focuses on industrial power generation, process solutions, and industrial asset management, with high exposure to the liquid natural gas market specifically, as well as broader industrials end markets.

SEC Filings

Direct access to Baker Hughes Co (BKR) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2022
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31

Sector Comparison

How does Baker Hughes Co compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Baker Hughes Co compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 8%

Stability 5%

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Baker Hughes Co Discounted Cash Flow

Fully customizable DCF calculator online for Baker Hughes Co.

Years

Calculation mode

= $54B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$1.8B	$2.1B	$2.4B	$2.8B	$3.2B	$3.7B	$4.3B	$5B	$5.8B	$6.7B	$7.7B	$77B
DCF		$1.9B	$2B	$2.1B	$2.2B	$2.3B	$2.4B	$2.6B	$2.7B	$2.8B	$3B	$30B
Value	$54B

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 Margins	-4%	0%	1%	1%	-76%	-2%	-3%	8%	9%
ROA	-	-	-	2%	-40%	4%	3%	7%	8%
ROE	-	0%	1%	0%	-86%	-2%	-4%	13%	14%

Net Margins (8.8%)

Net Margins are at a level that is not too high nor too low. They are not a competitive advantage but they are not a competitive disadvantage either.

Safety and Stability

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 over FCF	-	-1.71	-	7.47	23.13	4.43	7.41	3.28	3.37
Debt over Equity	-	0.02	0.21	0.19	0.42	0.4	0.46	0.39	0.37
Growth Stability	-	-	-	-	-15K%	-	-	-	-15K%

Neutral Debt/FCF ratio (3.37)

Net Margins are at a level that is not too high nor too low. They are not a competitive advantage but they are not a competitive disadvantage either.

Good Debt/Equity ratio (0.37)

The company is not overleveraged and has a good balance between equity and debt.

Bad Graham’s Stability (-15K%)

The company has a bad stability in its earnings, which is a sign of a bad competitive advantage.

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	12/2016	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	CAGR 5Y
Revenue YoY growth	-	-20%	72%	4%	-13%	-1%	3%	21%	4%
Earnings YoY growth	-	-100%	-	-34%	-12K%	-98%	82%	-423%	46%
Equity YoY growth	-	2%	136%	-1%	-47%	-8%	-13%	7%	-7%
FCF YoY growth	-	-124%	-573%	16%	-63%	360%	-41%	104%	18%