Baker Hughes Inc

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BHI : NYSE : Basic Materials
$53.99 | %
Today's Range: 53.57 - 54.76
Avg. Daily Volume: 2745200.0
06/23/17 - 4:00 PM ET

Financial Analysis


BAKER HUGHES INC's gross profit margin for the first quarter of its fiscal year 2017 has significantly 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 3.00 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 18.59% 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 FY17 Q1 FY16
Net Sales ($mil)2262.02670.0
EBITDA ($mil)309.0108.0
EBIT ($mil)91.0-246.0
Net Income ($mil)-129.0-981.0


Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)4222.02192.0
Total Assets ($mil)18676.022936.0
Total Debt ($mil)3018.04047.0
Equity ($mil)12471.015319.0


Profitability Q1 FY17 Q1 FY16
Gross Profit Margin26.1715.62
EBITDA Margin13.664.04
Operating Margin4.02-9.21
Sales Turnover0.510.6
Return on Assets-10.09-10.28
Return on Equity-15.12-15.39
Debt Q1 FY17 Q1 FY16
Current Ratio4.213.56
Debt/Capital0.190.21
Interest Expense35.055.0
Interest Coverage2.6-4.47


Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)426.0437.91
Div / share0.170.17
EPS-0.3-2.22
Book value / share29.2734.98
Institutional Own % n/a n/a
Avg Daily Volume2645434.02409774.0

Valuation


HOLD. 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 1.92 indicates a discount versus the S&P 500 average of 3.08 and a discount versus the industry average of 2.68. The current price-to-sales ratio is above the S&P 500 average, but 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 86.70   BHI 5.74 Peers 20.02

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 35.20 Peers 47.65   BHI NA Peers 0.27

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.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
BHI 1.92 Peers 2.68   BHI 18.66 Peers -70.11

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 2.54 Peers 2.84   BHI -31.74 Peers -21.30

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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