ScoreWhy is Baker Hughes Co. ?
1
Strong ability to service debt as the company has a low Debt to EBITDA ratio of 1.32 times
2
Healthy long term growth as Operating profit has grown by an annual rate 39.55%
3
Positive results in Mar 26
- OPERATING CASH FLOW(Y) Highest at USD 3,601 MM
- DEBTORS TURNOVER RATIO(HY) Highest at 4.16 times
- OPERATING PROFIT MARGIN(Q) Highest at 17.66 %
4
With ROCE of 17.66%, it has a attractive valuation with a 3.17 Enterprise value to Capital Employed
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 49.85%, its profits have risen by 0.1% ; the PEG ratio of the company is 21
5
High Institutional Holdings at 100%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
6
Market Beating Performance
- The stock has generated a return of 49.85% in the last 1 year, much higher than market (S&P 500) returns of 25.41%
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Baker Hughes Co. should be less than 10%
- Overall Portfolio exposure to Construction should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Construction)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Baker Hughes Co. for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Baker Hughes Co.
49.85%
3.87
34.18%
S&P 500
25.41%
1.92
13.25%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
6.02%
EBIT Growth (5y)
39.55%
EBIT to Interest (avg)
9.64
Debt to EBITDA (avg)
0.80
Net Debt to Equity (avg)
0.09
Sales to Capital Employed (avg)
1.18
Tax Ratio
7.28%
Dividend Payout Ratio
35.34%
Pledged Shares
0
Institutional Holding
100.00%
ROCE (avg)
12.16%
ROE (avg)
7.89%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
21
Industry P/E
Price to Book Value
3.32
EV to EBIT
17.93
EV to EBITDA
13.44
EV to Capital Employed
3.17
EV to Sales
2.30
PEG Ratio
20.95
Dividend Yield
1.47%
ROCE (Latest)
17.66%
ROE (Latest)
15.84%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
No Trend
No Trend
OBV
No Trend
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend15What is working for the Company
OPERATING CASH FLOW(Y)
Highest at USD 3,601 MM
DEBTORS TURNOVER RATIO(HY)
Highest at 4.16 times
OPERATING PROFIT MARGIN(Q)
Highest at 17.66 %
NET PROFIT(Q)
At USD 1,014.67 MM has Grown at 101.3%
RAW MATERIAL COST(Y)
Fallen by 0.55% (YoY
CASH AND EQV(HY)
Highest at USD 20,918 MM
DEBT-EQUITY RATIO
(HY)
Lowest at 1.05 %
INVENTORY TURNOVER RATIO(HY)
Highest at 4.25 times
PRE-TAX PROFIT(Q)
Highest at USD 1,389 MM
EPS(Q)
Highest at USD 0.93
-10What is not working for the Company
INTEREST COVERAGE RATIO(Q)
Lowest at 1,352.33
DIVIDEND PAYOUT RATIO(Y)
Lowest at 24.63%
INTEREST(Q)
Highest at USD 86 MM
Here's what is working for Baker Hughes Co.
Operating Profit Margin
Highest at 17.66 % and Grown
In each period in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Net Profit
At USD 1,014.67 MM has Grown at 101.3%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very positive
Net Profit (USD MM)
Debtors Turnover Ratio
Highest at 4.16 times and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Operating Cash Flow
Highest at USD 3,601 MM
in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (USD MM)
Pre-Tax Profit
Highest at USD 1,389 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (USD MM)
Pre-Tax Profit
At USD 1,389 MM has Grown at 98.15%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (USD MM)
EPS
Highest at USD 0.93
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (USD)
Cash and Eqv
Highest at USD 20,918 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Debt-Equity Ratio
Lowest at 1.05 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Inventory Turnover Ratio
Highest at 4.25 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Raw Material Cost
Fallen by 0.55% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Depreciation
Highest at USD 354 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (USD MM)
Here's what is not working for Baker Hughes Co.
Interest
At USD 86 MM has Grown at 40.98%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
Interest Coverage Ratio
Lowest at 1,352.33
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Interest
Highest at USD 86 MM
in the last five periods and Increased by 40.98% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
Dividend Payout Ratio
Lowest at 24.63%
in the last five yearsMOJO Watch
Company is distributing lower proportion of profits generated as dividend
DPR (%)
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