Baker Hughes Inc

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BHI : NYSE : Basic Materials
$60.26 up 0.46 | 0.77%
Today's Range: 59.72 - 60.7893
Avg. Daily Volume: 2792800.0
02/27/17 - 3:59 PM ET

Financial Analysis


BAKER HUGHES INC's gross profit margin for the fourth quarter of its fiscal year 2016 has increased when compared to the same period a year ago. Even though sales decreased, the net income has increased. BAKER HUGHES INC is extremely liquid. Currently, the Quick Ratio is 2.96 which clearly shows the ability to cover any short-term cash needs. The company managed to increase its liquidity from the same period a year ago, despite already having strong liquidity to begin with. This would indicate improved cash flow.

During the same period, stockholders' equity ("net worth") has decreased by 22.34% 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 Q4 FY16 Q4 FY15
Net Sales ($mil)2410.03394.0
EBITDA ($mil)269.0376.0
EBIT ($mil)24.0-40.0
Net Income ($mil)-417.0-1031.0


Balance Sheet Q4 FY16 Q4 FY15
Cash & Equiv. ($mil)4572.02324.0
Total Assets ($mil)19034.024080.0
Total Debt ($mil)3018.04041.0
Equity ($mil)12656.016298.0


Profitability Q4 FY16 Q4 FY15
Gross Profit Margin22.4520.51
EBITDA Margin11.1611.07
Operating Margin1.0-1.18
Sales Turnover0.520.65
Return on Assets-14.38-8.16
Return on Equity-21.63-12.06
Debt Q4 FY16 Q4 FY15
Current Ratio3.983.34
Debt/Capital0.190.2
Interest Expense36.055.0
Interest Coverage0.67-0.73


Share Data Q4 FY16 Q4 FY15
Shares outstanding (mil)424.0437.0
Div / share0.170.17
EPS-0.98-2.35
Book value / share29.8537.3
Institutional Own % n/a n/a
Avg Daily Volume2760711.04236664.0

Valuation


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. To use another comparison, its price-to-book ratio of 2.01 indicates a discount versus the S&P 500 average of 2.96 and a significant discount versus the industry average of 3.99. The price-to-sales ratio is well above the S&P 500 average, but well below the industry average. After reviewing these and other key valuation criteria, BAKER HUGHES INC proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
BHI NM Peers 188.37   BHI 6.01 Peers 18.26

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.

 

Discount. 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 discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
BHI 31.56 Peers 86.00   BHI NA Peers 1.01

Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.

BHI is trading at a significant premium to its peers.

 

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.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
BHI 2.01 Peers 3.99   BHI -39.86 Peers -58.22

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.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
BHI 2.58 Peers 3.39   BHI -37.49 Peers -30.92

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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