BAKER HUGHES INC's gross profit margin for the third quarter of its fiscal year 2014 is essentially unchanged when compared to the same period a year ago. The company has grown sales and net income during the past quarter when compared with the same quarter a year ago, however, it was unable to keep up with the growth of the average competitor within its industry. BAKER HUGHES INC has average liquidity. Currently, the Quick Ratio is 1.36 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.
At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 1.61% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.
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|Income Statement||Q3 FY14||Q3 FY13|
|Net Sales ($mil)||6250.0||5787.0|
|Net Income ($mil)||375.0||341.0|
|Balance Sheet||Q3 FY14||Q3 FY13|
|Cash & Equiv. ($mil)||1209.0||1368.0|
|Total Assets ($mil)||28642.0||28074.0|
|Total Debt ($mil)||4413.0||4575.0|
|Profitability||Q3 FY14||Q3 FY13|
|Gross Profit Margin||26.5||25.56|
|Return on Assets||4.55||3.78|
|Return on Equity||7.21||5.96|
|Debt||Q3 FY14||Q3 FY13|
|Share Data||Q3 FY14||Q3 FY13|
|Shares outstanding (mil)||433.0||443.0|
|Div / share||0.17||0.15|
|Book value / share||41.76||40.17|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||5030688.0||3216131.0|
BUY. The current P/E ratio indicates a premium compared to an average of 17.23 for the Energy Equipment & Services industry and a value on par with the S&P 500 average of 19.78. To use another comparison, its price-to-book ratio of 1.41 indicates a discount versus the S&P 500 average of 2.73 and a significant discount versus the industry average of 3.04. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount.
|BHI 19.85||Peers 17.23||BHI 9.18||Peers 9.93|
Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.
BHI is trading at a 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 12.05||Peers 14.93||BHI 0.33||Peers 1.85|
Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.
BHI is trading at a valuation on par with its peers.
Discount. 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 trades at a significant discount to its peers.
|BHI 1.41||Peers 3.04||BHI 23.33||Peers 55.31|
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 1.07||Peers 1.87||BHI 8.91||Peers 9.67|
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.
Average. Comparing a company's sales growth to its industry helps to determine if the company is adding or losing market share.
BHI is keeping pace with its peers on the basis of sales growth.
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