In today's rapidly changing and highly competitive business world, it is vital for investors and industry enthusiasts to carefully assess companies. In this article, we will perform a comprehensive industry comparison, evaluating Baker Hughes BKR against its key competitors in the Energy Equipment & Services industry. By analyzing important financial metrics, market position, and growth prospects, we aim to provide valuable insights for investors and shed light on company's performance within the industry.
Baker Hughes Background
Baker Hughes is a global leader in oilfield services and oilfield equipment, with particularly strong presences in the artificial lift, specialty chemicals, and completions markets. It maintains modest exposure to offshore oil and gas production. The other half of its business focuses on industrial power generation, process solutions, and industrial asset management, with high exposure to the liquid natural gas market specifically, as well as broader industrials end markets.
| Company | P/E | P/B | P/S | ROE | EBITDA (in billions) | Gross Profit (in billions) | Revenue Growth |
|---|---|---|---|---|---|---|---|
| Baker Hughes Co | 20.93 | 2.31 | 1.44 | 3.41% | $1.08 | $1.34 | 23.69% |
| SLB | 19.58 | 4.16 | 2.54 | 5.91% | $2.1 | $1.72 | 11.14% |
| Halliburton Co | 13.55 | 3.86 | 1.56 | 8.03% | $1.26 | $1.12 | 8.34% |
| Tenaris SA | 5.10 | 1.20 | 1.26 | 7.32% | $1.58 | $1.81 | 45.51% |
| NOV Inc | 15.71 | 1.41 | 0.94 | 2.9% | $0.27 | $0.46 | 21.19% |
| Weatherford International PLC | 19.17 | 8.89 | 1.34 | 17.74% | $0.3 | $0.45 | 17.23% |
| ChampionX Corp | 20.18 | 3.45 | 1.62 | 4.5% | $0.19 | $0.29 | -8.01% |
| Tidewater Inc | 64.08 | 4.01 | 4.26 | 2.56% | $0.06 | $0.06 | 31.52% |
| Liberty Energy Inc | 5.69 | 1.84 | 0.71 | 8.58% | $0.31 | $0.26 | 2.33% |
| Cactus Inc | 22.90 | 3.97 | 4.02 | 3.3% | $0.09 | $0.1 | 79.67% |
| USA Compression Partners LP | 821.67 | 9 | 3.15 | 3.94% | $0.13 | $0.08 | 20.68% |
| Oceaneering International Inc | 30.08 | 4.01 | 1 | 5.33% | $0.06 | $0.11 | 6.23% |
| Archrock Inc | 29.95 | 2.30 | 2.13 | 2.84% | $0.11 | $0.09 | 14.69% |
| RPC Inc | 7.56 | 1.82 | 1.05 | 1.82% | $0.05 | $0.06 | -28.11% |
| ProFrac Holding Corp | 2.51 | 1.19 | 0.09 | -0.41% | $0.15 | $0.13 | 20.24% |
| Helix Energy Solutions Group Inc | 75.15 | 0.96 | 1.21 | 1.01% | $0.07 | $0.08 | 45.17% |
| Kodiak Gas Services Inc | 24.30 | 6.87 | 1.75 | 2.73% | $0.13 | $0.12 | 14.76% |
| ProPetro Holding Corp | 12.89 | 1.17 | 0.76 | 3.94% | $0.11 | $0.08 | 38.14% |
| Atlas Energy Solutions Inc | 22.71 | 14.52 | 1.82 | 57.86% | $0.09 | $0.09 | 23.2% |
| US Silica Holdings Inc | 6.21 | 1.20 | 0.57 | 6.08% | $0.12 | $0.15 | 4.7% |
| Select Water Solutions Inc | 12.16 | 1.03 | 0.55 | 2.66% | $0.06 | $0.06 | 20.46% |
| Bristow Group Inc | 45.77 | 0.90 | 0.62 | -0.2% | $0.02 | $0.21 | 5.85% |
| Tetra Technologies Inc | 31 | 5.23 | 1.20 | 14.25% | $0.04 | $0.05 | 24.69% |
| Average | 59.45 | 3.77 | 1.55 | 7.39% | $0.33 | $0.34 | 19.07% |
Through a thorough examination of Baker Hughes, we can discern the following trends:
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With a Price to Earnings ratio of 20.93, which is 0.35x less than the industry average, the stock shows potential for growth at a reasonable price, making it an interesting consideration for market participants.
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The current Price to Book ratio of 2.31, which is 0.61x the industry average, is substantially lower than the industry average, indicating potential undervaluation.
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The Price to Sales ratio is 1.44, which is 0.93x the industry average. This suggests a possible undervaluation based on sales performance.
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The Return on Equity (ROE) of 3.41% is 3.98% below the industry average, suggesting potential inefficiency in utilizing equity to generate profits.
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Compared to its industry, the company has higher Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $1.08 Billion, which is 3.27x above the industry average, indicating stronger profitability and robust cash flow generation.
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Compared to its industry, the company has higher gross profit of $1.34 Billion, which indicates 3.94x above the industry average, indicating stronger profitability and higher earnings from its core operations.
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The company's revenue growth of 23.69% is notably higher compared to the industry average of 19.07%, showcasing exceptional sales performance and strong demand for its products or services.
Debt To Equity Ratio
The debt-to-equity (D/E) ratio helps evaluate the capital structure and financial leverage of a company.
Considering the debt-to-equity ratio in industry comparisons allows for a concise evaluation of a company's financial health and risk profile, aiding in informed decision-making.
In terms of the Debt-to-Equity ratio, Baker Hughes can be assessed by comparing it to its top 4 peers, resulting in the following observations:
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When considering the debt-to-equity ratio, Baker Hughes exhibits a stronger financial position compared to its top 4 peers.
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This indicates that the company has a favorable balance between debt and equity, with a lower debt-to-equity ratio of 0.44, which can be perceived as a positive aspect by investors.
Key Takeaways
Baker Hughes has a low PE ratio, indicating that its stock price is relatively low compared to its earnings. The low PB ratio suggests that the company's stock is undervalued based on its book value. The low PS ratio indicates that the stock is trading at a low price relative to its sales. On the other hand, Baker Hughes has a high ROE, indicating that it is generating strong returns on its shareholders' equity. The high EBITDA and gross profit suggest that the company is generating significant earnings and has a strong profitability. Lastly, the high revenue growth indicates that Baker Hughes is experiencing strong growth in its sales.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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