Loading...

You're on the old version of Simply Wall St. We will no longer be supporting this site, so we recommend you switch to our brand new platform.

Baker Hughes

DB:68V
Snowflake Description

Excellent balance sheet second-rate dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
68V
DB
$11B
Imp Market Cap
  1. Home
  2. DE
  3. Energy
Company description

Baker Hughes Company provides a portfolio of technologies and services worldwide. The last earnings update was 54 days ago. More info.


Add to Portfolio Compare Print
  • Baker Hughes has significant price volatility in the past 3 months.
68V Share Price and Events
7 Day Returns
4.2%
DB:68V
8.1%
Europe Energy Services
-0.6%
DE Market
1 Year Returns
-56%
DB:68V
-57.2%
Europe Energy Services
-20.9%
DE Market
68V Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Baker Hughes (68V) 4.2% -30.3% -53.7% -56% - -
Europe Energy Services 8.1% -27.8% -50.1% -57.2% -65.6% -87.6%
DE Market -0.6% -16.6% -26% -20.9% -25.8% -31.8%
1 Year Return vs Industry and Market
  • 68V outperformed the Energy Services industry which returned -57.2% over the past year.
  • 68V underperformed the Market in Germany which returned -20.9% over the past year.
Price Volatility
68V
Industry
5yr Volatility vs Market

68V Value

 Is Baker Hughes undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Baker Hughes to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Baker Hughes.

DB:68V Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Dividend Discount Model
Dividend Per Share Company Filings (2019-12-31) in USD $ 0.72726973684211
Payout Ratio Company Filings (2019-12-31) 16821%
Discount Rate (Cost of Equity) See below 6.6%
Perpetual Growth Rate 10-Year DE Government Bond Rate -0.4%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:68V
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate -0.4%
Equity Risk Premium S&P Global 5.4%
Energy Services Unlevered Beta Simply Wall St/ S&P Global 0.91
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.912 (1 + (1- 21%) (69.6%))
1.277
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.28
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= -0.39% + (1.277 * 5.44%)
6.55%

Discounted Cash Flow Calculation for DB:68V using Dividend Discount Model Model

The calculations below outline how an intrinsic value for Baker Hughes is arrived at by discounting future dividends to their present value. This approach is used for finance firms where free cash flow is difficult to estimate (e.g. Banks/ Insurance firms).

If the firm does not pay the majority of its earnings out as a dividend this method will often arrive at a value significantly lower than the share price.

See our documentation to learn about this calculation.

DB:68V Gordon Growth Model
Calculation Result
Value per share = Expected dividends per share / (Discount Rate - Perpetual growth rate)
= $0.73 / (6.55% - -0.39%)
$8.15
DB:68V Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in DB:68V represents 0.88222x of NYSE:BKR
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.88222x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (USD) x Listing Adjustment Factor
= $ 10.47 x 0.88222
€9.24
Value per share (EUR) From above. €9.24
Current discount Discount to share price of €10.37
= -1 x (€10.37 - €9.24) / €9.24
-12.2%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Baker Hughes is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Baker Hughes's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Baker Hughes's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:68V PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in USD $0.23
NYSE:BKR Share Price ** NYSE (2020-04-06) in USD $11.75
Europe Energy Services Industry PE Ratio Median Figure of 31 Publicly-Listed Energy Services Companies 8.85x
Germany Market PE Ratio Median Figure of 401 Publicly-Listed Companies 16.45x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Baker Hughes.

DB:68V PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:BKR Share Price ÷ EPS (both in USD)

= 11.75 ÷ 0.23

50.95x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Baker Hughes is overvalued based on earnings compared to the Europe Energy Services industry average.
  • Baker Hughes is overvalued based on earnings compared to the Germany market.
Price based on expected Growth
Does Baker Hughes's expected growth come at a high price?
Raw Data
DB:68V PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 50.95x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 21 Analysts
-31.5%per year
Europe Energy Services Industry PEG Ratio Median Figure of 20 Publicly-Listed Energy Services Companies 0.51x
Germany Market PEG Ratio Median Figure of 256 Publicly-Listed Companies 1.16x

*Line of best fit is calculated by linear regression .

DB:68V PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 50.95x ÷ -31.5%

-1.62x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Baker Hughes earnings are not expected to grow next year, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Baker Hughes's assets?
Raw Data
DB:68V PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in USD $33.73
NYSE:BKR Share Price * NYSE (2020-04-06) in USD $11.75
Europe Energy Services Industry PB Ratio Median Figure of 70 Publicly-Listed Energy Services Companies 0.4x
Germany Market PB Ratio Median Figure of 572 Publicly-Listed Companies 1.44x
DB:68V PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:BKR Share Price ÷ Book Value per Share (both in USD)

= 11.75 ÷ 33.73

0.35x

* Primary Listing of Baker Hughes.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Baker Hughes is good value based on assets compared to the Europe Energy Services industry average.
X
Value checks
We assess Baker Hughes's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Energy Services industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Energy Services industry average (and greater than 0)? (1 check)
  5. Baker Hughes has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

68V Future Performance

 How is Baker Hughes expected to perform in the next 1 to 3 years based on estimates from 21 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
-31.5%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Baker Hughes expected to grow at an attractive rate?
  • Baker Hughes's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of -0.4%.
Growth vs Market Checks
  • Baker Hughes's earnings are expected to decrease over the next 1-3 years, this is below the Germany market average.
  • Baker Hughes's revenues are expected to decrease over the next 1-3 years, this is below the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:68V Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:68V Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 21 Analysts -31.5%
DB:68V Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 21 Analysts -3.3%
Europe Energy Services Industry Earnings Growth Rate Market Cap Weighted Average 21.1%
Europe Energy Services Industry Revenue Growth Rate Market Cap Weighted Average -0.4%
Germany Market Earnings Growth Rate Market Cap Weighted Average 14.1%
Germany Market Revenue Growth Rate Market Cap Weighted Average 4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:68V Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 21 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:68V Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 14,113 895 -813 1
2022-12-31 23,102 2,263 116 8
2021-12-31 22,382 2,408 257 20
2020-12-31 22,912 2,092 406 21
2020-04-07
DB:68V Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-12-31 23,838 2,126 128
2019-09-30 23,755 1,858 211
2019-06-30 23,538 1,738 167
2019-03-31 23,093 1,284 157
2018-12-31 22,877 1,762 195
2018-09-30 22,411 459 95
2018-06-30 22,047 23 -52
2018-03-31 19,514 -159 -33
2017-12-31 17,179 -799 -103
2017-09-30 14,896 -128 -134
2017-06-30 12,619 109 0
2017-03-31 12,926 145 -141

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Baker Hughes's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • Baker Hughes's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:68V Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 21 Analyst Estimates (S&P Global) See Below

All data from Baker Hughes Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:68V Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31 -1.24 -1.24 -1.24 1.00
2022-12-31 0.27 1.29 -0.79 3.00
2021-12-31 0.49 0.83 0.15 5.00
2020-12-31 0.56 1.17 -0.10 6.00
2020-04-07
DB:68V Past Financials Data
Date (Data in USD Millions) EPS *
2019-12-31 0.23
2019-09-30 0.42
2019-06-30 0.35
2019-03-31 0.35
2018-12-31 0.46
2018-09-30 0.23
2018-06-30 -0.12
2018-03-31 -0.08
2017-12-31 -0.24
2017-09-30 -0.31
2017-06-30
2017-03-31 -0.33

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Baker Hughes is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Baker Hughes's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Europe market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Europe market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Baker Hughes has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

68V Past Performance

  How has Baker Hughes performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Baker Hughes's growth in the last year to its industry (Energy Services).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Baker Hughes's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
  • Baker Hughes's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Baker Hughes's 1-year earnings growth is negative, it can't be compared to the Europe Energy Services industry average.
Earnings and Revenue History
Baker Hughes's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Baker Hughes Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:68V Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 23,838.00 128.00 2,812.00
2019-09-30 23,755.00 211.00 2,817.00
2019-06-30 23,538.00 167.00 2,747.00
2019-03-31 23,093.00 157.00 2,695.00
2018-12-31 22,877.00 195.00 2,657.00
2018-09-30 22,411.00 95.00 2,694.00
2018-06-30 22,047.00 -52.00 2,881.00
2018-03-31 19,514.00 -33.00 2,690.00
2017-12-31 17,179.00 -103.00 2,518.00
2017-09-30 14,896.00 -134.00 2,200.00
2017-06-30 12,619.00 0.00 1,890.00
2017-03-31 12,926.00 -141.00 1,905.00
2016-12-31 13,082.00 0.00 1,931.00
2015-12-31 16,688.00 0.00 2,115.00
2014-12-31 19,191.00 1,840.00 2,402.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Baker Hughes has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Baker Hughes used its assets less efficiently than the Europe Energy Services industry average last year based on Return on Assets.
  • Baker Hughes's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Baker Hughes's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Energy Services industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Baker Hughes has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

68V Health

 How is Baker Hughes's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Baker Hughes's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Baker Hughes is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Baker Hughes's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Baker Hughes's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 2.3x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Baker Hughes Company Filings, last reported 3 months ago.

DB:68V Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 34,499.00 6,622.00 3,249.00
2019-09-30 34,436.00 7,007.00 2,808.00
2019-06-30 34,781.00 7,148.00 3,138.00
2019-03-31 35,086.00 7,176.00 3,073.00
2018-12-31 35,013.00 7,227.00 3,723.00
2018-09-30 36,563.00 7,186.00 4,765.00
2018-06-30 36,817.00 7,275.00 4,879.00
2018-03-31 38,095.00 7,393.00 5,631.00
2017-12-31 38,410.00 8,262.00 7,023.00
2017-09-30 40,148.00 4,816.00 4,777.00
2017-06-30 16,853.00 301.00 2,021.00
2017-03-31 15,287.00 442.00 1,027.00
2016-12-31 14,855.00 276.00 981.00
2015-12-31 14,545.00 509.00 1,432.00
2014-12-31
  • Baker Hughes's level of debt (19.2%) compared to net worth is satisfactory (less than 40%).
  • Unable to establish if Baker Hughes's debt level has increased without past 5-year debt data.
  • Debt is well covered by operating cash flow (32.1%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 6.8x coverage).
X
Financial health checks
We assess Baker Hughes's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Baker Hughes has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

68V Dividends

 What is Baker Hughes's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
6.13%
Current annual income from Baker Hughes dividends. Estimated to be 6.19% next year.
If you bought €2,000 of Baker Hughes shares you are expected to receive €123 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Baker Hughes's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.69%).
  • Baker Hughes's dividend is above the markets top 25% of dividend payers in Germany (4.85%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:68V Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 21 Analyst Estimates (S&P Global) See Below
Europe Energy Services Industry Average Dividend Yield Market Cap Weighted Average of 14 Stocks 6.8%
Germany Market Average Dividend Yield Market Cap Weighted Average of 315 Stocks 3.9%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.9%
Germany Bottom 25% Dividend Yield 25th Percentile 1.7%
Germany Top 25% Dividend Yield 75th Percentile 4.9%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:68V Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31 0.72 1.00
2022-12-31 0.71 7.00
2021-12-31 0.74 15.00
2020-12-31 0.73 15.00
2020-04-07
DB:68V Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2020-01-23 0.720 4.761
2019-10-31 0.720 3.092
2019-08-02 0.720 3.197
2019-05-10 0.720 3.054
2019-01-24 0.720 2.800
2018-11-05 0.720 3.177
2018-08-03 0.720 2.287
2018-05-11 0.720 2.123
2018-01-23 0.720 2.354
2017-10-31 0.680 2.115
2017-10-20 0.680 2.181

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, Baker Hughes has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but Baker Hughes only paid a dividend in the past 2 years.
Current Payout to shareholders
What portion of Baker Hughes's earnings are paid to the shareholders as a dividend.
  • Dividends paid are not well covered by earnings (0.3x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.3x coverage).
X
Income/ dividend checks
We assess Baker Hughes's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.9%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Baker Hughes afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Baker Hughes has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

68V Management

 What is the CEO of Baker Hughes's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Lorenzo Simonelli
COMPENSATION $14,922,621
AGE 46
TENURE AS CEO 2.8 years
CEO Bio

Mr. Lorenzo Simonelli has been the Chief Executive Officer, President and Director of Baker Hughes Company (formerly known as Baker Hughes, a GE company) since July 2017 and has been its Chairman of the Board since October 2, 2017. Mr. Simonelli has been a Non-Executive independent Director of CNH Industrial N.V. since April 12, 2019. He served as Senior Vice President at General Electric Company. He served as the Chief Executive Officer and President of GE Oil & Gas since October 01, 2013. He served as the Chief Executive Officer and President of GE Oil & Gas Inc. He served as the Chief Executive Officer and President of GE Transportation, a subsidiary of General Electric Company from July 2008 to October 1, 2013. He served as Chief Executive Officer and President of Europe, Middle East and Africa operations of GE Consumer & Industrial of General Electric Co. since March 15, 2007. He joined GE Consumer and Industrial in 2002. He served as General Manager of product management for Consumer & Industrial of General Electric Co. and headed its Consumer & Industrial's Global Product Management team. He joined GE in 1994 and GE Consumer and Industrial in 2002, where he worked on assignments in GE International, GE Shared Services, GE Oil & Gas and Consolidated Financial Insurance. Prior to joining GE Oil & Gas, he was President and CEO of GE Transportation, a global transportation Leader in the rail, mining, marine and energy storage industries. He served as Chief Financial Officer of GE Consumer & Industrial - Americas and as the Global Financial Planning and Accounting Manager of GE Consumer Products, where he was instrumental in the successful integration of GE's Appliances and Lighting businesses. He serves as a Director of Greater Houston Partnership, Inc. He started his career with Mitsubishi Bank in International & Corporate Finance and worked for few years. He serves as Member of the Board of Governors at Manufacturer & Business Association. He serves as a Director of PII Pipeline Solutions. He is a Business and Economics graduate of Cardiff University in Wales and a graduate of Es Audit Staff.

CEO Compensation
  • Lorenzo's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Lorenzo's remuneration is higher than average for companies of similar size in Germany.
Management Team

Lorenzo Simonelli

TITLE
Chairman
COMPENSATION
$15M
AGE
46
TENURE
2.8 yrs

Brian Worrell

TITLE
Chief Financial Officer
COMPENSATION
$7M
AGE
43

Derek Mathieson

TITLE
Chief Marketing & Technology Officer
COMPENSATION
$5M
AGE
49

Maria Borras

TITLE
Executive Vice President of Oilfield Services
COMPENSATION
$4M
AGE
50

Rod Christie

TITLE
Executive Vice President of Turbomachinery & Process Solutions
COMPENSATION
$4M
AGE
57

Uwem Ukpong

TITLE
Executive Vice President of Global Operations
AGE
47

Kurt Camilleri

TITLE
Senior VP
AGE
44

Jen Hartsock

TITLE
Chief Information Officer

Jud Bailey

TITLE
Vice President of Investor Relations
TENURE
0.7 yrs

Will Marsh

TITLE
Chief Legal Officer
COMPENSATION
$5M
AGE
56
Board of Directors Tenure

Average tenure and age of the Baker Hughes board of directors in years:

2.8
Average Tenure
59
Average Age
  • The average tenure for the Baker Hughes board of directors is less than 3 years, this suggests a new board.
Board of Directors

Geoff Beattie

TITLE
Lead Independent Director
COMPENSATION
$309K
AGE
59
TENURE
2.5 yrs

Lorenzo Simonelli

TITLE
Chairman
COMPENSATION
$15M
AGE
46
TENURE
2.5 yrs

Greg Brenneman

TITLE
Independent Director
COMPENSATION
$300K
AGE
57
TENURE
2.8 yrs

Greg Ebel

TITLE
Independent Director
COMPENSATION
$238K
AGE
55
TENURE
0.9 yrs

Clarence Cazalot

TITLE
Independent Director
COMPENSATION
$299K
AGE
69
TENURE
2.8 yrs

Lynn Elsenhans

TITLE
Independent Director
COMPENSATION
$308K
AGE
62
TENURE
2.8 yrs

John Rice

TITLE
Director
COMPENSATION
$297K
AGE
62
TENURE
2.8 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Baker Hughes individual insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
26. Feb 20 Buy William Beattie Individual 26. Feb 20 26. Feb 20 5,000 €16.36 €81,812
26. Feb 20 Buy Brian Worrell Individual 26. Feb 20 26. Feb 20 3,000 €16.59 €49,781
26. Feb 20 Buy Lorenzo Simonelli Individual 26. Feb 20 26. Feb 20 11,254 €16.31 €183,559
24. Feb 20 Buy Lorenzo Simonelli Individual 24. Feb 20 24. Feb 20 15,368 €17.96 €275,950
22. Nov 19 Sell William Marsh Individual 22. Nov 19 22. Nov 19 -5,857 €20.54 €-120,297
07. Nov 19 Sell Kurt Camilleri Individual 05. Nov 19 05. Nov 19 -3,338 €20.38 €-68,031
16. Aug 19 Buy John Rice Individual 16. Aug 19 16. Aug 19 10,000 €18.70 €186,999
16. Aug 19 Buy Gregory Ebel Individual 15. Aug 19 15. Aug 19 5,000 €18.78 €93,870
16. Aug 19 Buy Lorenzo Simonelli Individual 15. Aug 19 15. Aug 19 15,000 €18.56 €278,358
14. Aug 19 Sell Uwem Ukpong Individual 12. Aug 19 12. Aug 19 -16,686 €21.04 €-351,124
X
Management checks
We assess Baker Hughes's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Baker Hughes has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

68V News

Simply Wall St News

68V Company Info

Description

Baker Hughes Company provides a portfolio of technologies and services worldwide. The company operates through four segments: Oilfield Services (OFS), Oilfield Equipment (OFE), Turbomachinery & Process Solutions (TPS), and Digital Solutions (DS). The OFS segment offers drilling, wireline, evaluation, completion, production, and intervention services; and drilling and completions fluids, completions tools and systems, wellbore intervention tools and services, artificial lift systems, pressure pumping systems, and oilfield and industrial chemicals for oil and natural gas, and oilfield service companies. The OFE segment designs and manufactures products and services, including pressure control equipment and services, subsea production systems and services, drilling equipment, and flexible pipeline systems; and onshore and offshore drilling and production systems, and equipment for floating production platforms, as well as provides services related to onshore and offshore drilling activities. The TPS segment provides equipment and related services for mechanical-drive, compression, and power-generation applications across the oil and gas industry. Its product portfolio includes drivers, compressors, and turnkey solutions; and pumps, valves, and compressed natural gas and small-scale liquefied natural gas solutions. This segment serves upstream, midstream, onshore and offshore, and industrial, as well as engineering, procurement, and construction companies. The DS segment provides sensor-based measurement, non-destructive testing and inspection, turbine, generator and plant controls, and condition monitoring, as well as pipeline integrity solutions for a range of industries, including oil and gas, power generation, aerospace, metals, and transportation. It serves through direct and indirect channels. The company was formerly known as Baker Hughes, a GE company and changed its name to Baker Hughes Company in October 2019. Baker Hughes Company is based in Houston, Texas.

Details
Name: Baker Hughes Company
68V
Exchange: DB
Founded:
$9,940,219,723
$7,119,941,313
1,031,168,797
Website: http://www.bakerhughes.com
Address: Baker Hughes Company
17021 Aldine Westfield Road,
Houston,
Texas, 77073-5101,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE BKR Class A Common Stock New York Stock Exchange US USD 01. Mar 1964
DB 68V Class A Common Stock Deutsche Boerse AG DE EUR 01. Mar 1964
LSE 0RR8 Class A Common Stock London Stock Exchange GB USD 01. Mar 1964
BMV BKR * Class A Common Stock Bolsa Mexicana de Valores MX MXN 01. Mar 1964
BOVESPA B1KR34 BDR EACH REPR 1 COM Bolsa de Valores de Sao Paulo BR BRL 30. Dec 2019
Number of employees
Current staff
Staff numbers
68,000
Baker Hughes employees.
Industry
Oil and Gas Equipment and Services
Energy
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/04/07 00:37
End of day share price update: 2020/04/06 00:00
Last estimates confirmation: 2020/04/06
Last earnings filing: 2020/02/13
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.