BAKER HUGHES INC's gross profit margin for the second quarter of its fiscal year 2015 has decreased when compared to the same period a year ago. Sales and net income fell significantly; although net income growth outperformed the average competitor in its industry, revenue growth did not. BAKER HUGHES INC has strong liquidity. Currently, the Quick Ratio is 1.82 which shows the ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.
During the same period, stockholders' equity ("net worth") has remained virtually unchanged only decreasing by 1.88% from the same quarter last year. The key liquidity measurements indicate that the company is unlikely to face financial difficulties in the near future.
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|Income Statement||Q2 FY15||Q2 FY14|
|Net Sales ($mil)||3968.0||5935.0|
|Net Income ($mil)||-188.0||353.0|
|Balance Sheet||Q2 FY15||Q2 FY14|
|Cash & Equiv. ($mil)||1973.0||1163.0|
|Total Assets ($mil)||26018.0||28277.0|
|Total Debt ($mil)||4043.0||4557.0|
|Profitability||Q2 FY15||Q2 FY14|
|Gross Profit Margin||21.19||27.7|
|Return on Assets||1.0||4.49|
|Return on Equity||1.47||7.04|
|Debt||Q2 FY15||Q2 FY14|
|Share Data||Q2 FY15||Q2 FY14|
|Shares outstanding (mil)||435.88||435.0|
|Div / share||0.17||0.15|
|Book value / share||40.6||41.46|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||3689989.0||3207180.0|
HOLD. BAKER HUGHES INC's P/E ratio indicates a significant premium compared to an average of 28.48 for the Energy Equipment & Services industry and a significant premium compared to the S&P 500 average of 20.03. To use another comparison, its price-to-book ratio of 1.32 indicates a discount versus the S&P 500 average of 2.67 and a significant discount versus the industry average of 67.48. The current price-to-sales ratio is well below the S&P 500 average and is also below the industry average, indicating a discount.
|BHI 89.58||Peers 28.48||BHI 7.54||Peers 7.67|
Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.
BHI is trading at a significant premium to its peers.
Average. 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 valuation on par to its peers.
|BHI 69.35||Peers 19.82||BHI NM||Peers 0.68|
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.
BHI's negative PEG ratio makes this valuation measure meaningless.
|BHI 1.32||Peers 67.48||BHI -79.10||Peers -106.06|
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.
Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
BHI is expected to have an earnings growth rate that significantly exceeds its peers.
|BHI 1.09||Peers 1.45||BHI -8.01||Peers -1.95|
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 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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