BAKER HUGHES INC's gross profit margin for the third quarter of its fiscal year 2015 has 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 has strong liquidity. Currently, the Quick Ratio is 1.91 which shows the ability to cover 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 remained virtually unchanged only decreasing by 3.69% 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||Q3 FY15||Q3 FY14|
|Net Sales ($mil)||3786.0||6250.0|
|Net Income ($mil)||-159.0||375.0|
|Balance Sheet||Q3 FY15||Q3 FY14|
|Cash & Equiv. ($mil)||2043.0||1209.0|
|Total Assets ($mil)||25416.0||28642.0|
|Total Debt ($mil)||4052.0||4413.0|
|Profitability||Q3 FY15||Q3 FY14|
|Gross Profit Margin||22.27||26.5|
|Return on Assets||-1.07||4.55|
|Return on Equity||-1.56||7.21|
|Debt||Q3 FY15||Q3 FY14|
|Share Data||Q3 FY15||Q3 FY14|
|Shares outstanding (mil)||436.09||433.0|
|Div / share||0.17||0.17|
|Book value / share||39.93||41.76|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||3677267.0||3473755.0|
HOLD. This stock’s P/E ratio is negative, making its value useless in the assessment of premium or discount valuation, only displaying that the company has negative earnings per share. For additional comparison, its price-to-book ratio of 1.27 indicates a discount versus the S&P 500 average of 2.77 and a discount versus the industry average of 1.88. The current price-to-sales ratio is well below the S&P 500 average and is also 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 45.01||BHI 9.00||Peers 8.59|
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.
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 NM||Peers 22.38||BHI NA||Peers 1.68|
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.
Ratio not available.
|BHI 1.27||Peers 1.88||BHI -120.94||Peers -126.42|
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 1.17||Peers 1.65||BHI -20.16||Peers -12.40|
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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