BAKER HUGHES INC's gross profit margin for the first quarter of its fiscal year 2016 has significantly decreased when compared to the same period a year ago. Sales and net income fell significantly, but still managed to outperform when compared to the average company in its industry. BAKER HUGHES INC is extremely liquid. Currently, the Quick Ratio is 2.03 which clearly shows the ability to cover any short-term cash needs. The company's liquidity has increased from the same period last year.
During the same period, stockholders' equity ("net worth") has decreased by 13.53% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is very unlikely to face financial difficulties in the near future.
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|Income Statement||Q1 FY16||Q1 FY15|
|Net Sales ($mil)||2670.0||4594.0|
|Net Income ($mil)||-981.0||-589.0|
|Balance Sheet||Q1 FY16||Q1 FY15|
|Cash & Equiv. ($mil)||2192.0||1606.0|
|Total Assets ($mil)||22936.0||26926.0|
|Total Debt ($mil)||4047.0||4055.0|
|Profitability||Q1 FY16||Q1 FY15|
|Gross Profit Margin||13.71||19.22|
|Return on Assets||-10.28||2.97|
|Return on Equity||-15.31||4.5|
|Debt||Q1 FY16||Q1 FY15|
|Share Data||Q1 FY16||Q1 FY15|
|Shares outstanding (mil)||437.0||434.68|
|Div / share||0.17||0.17|
|Book value / share||35.24||40.98|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||4095673.0||4079576.0|
SELL. The current P/E ratio is negative, which has no meaningful value in the assessment of premium or discount valuation, it simply displays that the company has negative earnings. For additional comparison, its price-to-book ratio of 1.33 indicates a discount versus the S&P 500 average of 2.76 and a discount versus the industry average of 1.98. The price-to-sales ratio is below the S&P 500 average and is well below the industry average, indicating a discount. After reviewing these and other key valuation criteria, BAKER HUGHES INC proves to trade at a discount to investment alternatives within the industry.
|BHI NM||Peers 54.50||BHI 14.25||Peers 10.53|
Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings.
BHI's P/E is negative making this valuation measure meaningless.
Premium. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.
BHI is trading at a significant premium to its peers.
|BHI 469.40||Peers 165.15||BHI NA||Peers 0.13|
Neutral. The absence of a valid price-to-projected earnings ratio happens when a stock can not be valued on the basis of a negative expected future earnings.
BHI's ratio is negative making this valuation measure meaningless.
Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.
Ratio not available.
|BHI 1.33||Peers 1.98||BHI -392.89||Peers -122.62|
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.
BHI is trading at a significant discount to its peers.
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
However, BHI is expected to significantly trail its peers on the basis of its earnings growth rate.
|BHI 1.48||Peers 2.34||BHI -40.99||Peers -30.64|
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.
BHI is trading at a significant discount to its industry on this measurement.
Lower. A sales growth rate that trails the industry implies that a company is losing market share.
BHI significantly trails its peers on the basis of sales growth
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