Baker Z Score

BKR
 Stock
  

USD 29.49  1.02  3.58%   

Altman Z Score is one of the simplest fundamental models to determine how likely your company is to fail. The module uses available fundamental data of a given equity to approximate the Altman Z score. Altman Z Score is determined by evaluating five fundamental price points available from the company's current public disclosure documents. Continue to Baker Hughes Piotroski F Score and Baker Hughes Valuation analysis.
  
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Baker Hughes Return on Invested Capital is relatively stable at the moment as compared to the past year. Baker Hughes reported last year Return on Invested Capital of 0.043. As of 06/27/2022, Invested Capital is likely to grow to about 19.6 B, while Capital Expenditure is likely to drop (583.7 M). Baker Hughes Cost of Revenue is relatively stable at the moment as compared to the past year. Baker Hughes reported last year Cost of Revenue of 16.45 Billion. As of 06/27/2022, Earning Before Interest and Taxes EBIT is likely to grow to about 904.2 M, while Consolidated Income is likely to drop (356.1 M).

Baker Z Score Analysis

Baker Hughes' Z-Score is a simple linear, multi-factor model that measures the financial health and economic stability of a company. The score is used to predict the probability of a firm going into bankruptcy within next 24 months or two fiscal years from the day stated on the accounting statements used to calculate it. The model uses five fundamental business ratios that are weighted according to algorithm of Professor Edward Altman who developed it in the late 1960s at New York University..
 2019 2020 2021 (projected)
Long Term Debt to Equity0.290.520.45
Interest Coverage4.534.385.04
Z Score 
 = 
Sum Of  
 
5 Factors 
More About Z Score | All Equity Analysis

Current Baker Hughes Z Score

    
  79.85  
Most of Baker Hughes' fundamental indicators, such as Z Score, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, Baker Hughes A is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.
First Factor
 = 
1.2 * (
Working Capital
/
Total Assets )
Second Factor
 = 
1.4 * (
Retained Earnings
/
Total Assets )
Thrid Factor
 = 
3.3 * (
EBITAD
/
Total Assets )
Fouth Factor
 = 
0.6 * (
Market Value of Equity
/
Total Liabilities )
Fifth Factor
 = 
0.99 * (
Revenue
/
Total Assets )

Baker Z Score Driver Correlations

Understanding the fundamental principles of building solid financial models for Baker Hughes is extremely important. It helps to project a fair market value of Ford stock properly, considering its historical fundamentals such as Z Score. Since Baker Hughes' main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of Baker Hughes' historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of Baker Hughes' interrelated accounts and indicators.
To calculate Z-Score one would need to know current working capital of the company, its total assets, and liabilities, amount of latest retained earnings as well as earnings before interest and tax. Z-Score can be used to compare the odds of bankruptcy of companies in a similar line of business or firms operating in the same industry. Companies with Z-Scores above 3.1 are generally considered to be stable and healthy with a low probability of bankruptcy. Scores that fall between 1.8 and 3.1 lie in a so-called 'grey area' with scores of less than 1, indicating the high probability of distress. Z Score is used widely by financial auditors, accountants, money managers, loan processers, wealth advisers, as well as day traders. In the last 25 years, many financial models that utilize z score has been proved to be successful as a predictor of corporate bankruptcy.
Compare to competition

In accordance with the company's disclosures, Baker Hughes A has a Z Score of 79. This is much higher than that of the Energy sector and notably higher than that of the Oil & Gas Equipment & Services industry. The z score for all United States stocks is notably lower than that of the firm.

Baker Z Score Peer Comparison

Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses Baker Hughes' direct or indirect competition against its Z Score to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of Baker Hughes could also be used in its relative valuation, which is a method of valuing Baker Hughes by comparing valuation metrics of similar companies.
Baker Hughes is currently under evaluation in z score category among related companies.

Baker Hughes Current Valuation Drivers

We derive many important indicators used in calculating different scores of Baker Hughes from analyzing Baker Hughes' financial statements. These drivers represent accounts that assess Baker Hughes' ability to generate profits relative to its revenue, operating costs, and shareholders' equity. Below are some of Baker Hughes' important valuation drivers and their relationship over time.
201720182019202020212022 (projected)
Net Income Per Employee(1.14 K)2.96 K1.88 K(180.23 K)(4.06 K)(4.38 K)
Revenue Per Employee269.67 K346.62 K350.56 K375.43 K379.67 K347.98 K
Average Assets39.11 B53.84 B52.98 B37.52 B36.15 B42.38 B
Earnings Before Interest Taxes and Depreciation Amortization EBITDA1.18 B2.16 B2.27 B(7.8 B)1.94 B2.1 B
Earnings Before Interest Taxes and Depreciation Amortization USD1.18 B2.16 B2.27 B(7.8 B)1.94 B2.1 B
Earnings before Tax(58 M)453 M610 M(9.38 B)539 M581.55 M
Average Equity14.48 B14.82 B19.68 B11.8 B13.98 B13.62 B
Free Cash Flow(1.29 B)1.23 B1.15 B517 M1.83 B1.98 B
Invested Capital22.31 B20.49 B20.66 B20.91 B18.96 B19.6 B
Invested Capital Average14.63 B21.22 B21.27 B20.32 B19.36 B20.16 B
Tangible Asset Value30.21 B26 B27.3 B27.63 B25.22 B26.72 B
Working Capital9.2 B5.95 B5.21 B6.23 B5.94 B6.17 B

Baker Fundamentals

About Baker Hughes Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Baker Hughes A's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Baker Hughes using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Baker Hughes A based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Baker Hughes Company provides a portfolio of technologies and services to energy and industrial value chain worldwide. The company was formerly known as Baker Hughes, a GE company and changed its name to Baker Hughes Company in October 2019. Baker Hughes operates under Oil Gas Equipment Services classification in the United States and is traded on NASDAQ Exchange. It employs 55000 people.

Baker Hughes Investors Sentiment

The influence of Baker Hughes' investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in Baker. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock markets does not have a solid backing from leading economists and market statisticians.

Baker Hughes Implied Volatility

    
  45.93  
Baker Hughes' implied volatility exposes the market's sentiment of Baker Hughes A stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Baker Hughes' implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Baker Hughes stock will not fluctuate a lot when Baker Hughes' options are near their expiration.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards Baker Hughes in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, Baker Hughes' short interest history, or implied volatility extrapolated from Baker Hughes options trading.

Current Sentiment - BKR

Baker Hughes A Investor Sentiment

Greater number of Macroaxis users are currently bullish on Baker Hughes A. What is your opinion about investing in Baker Hughes A? Are you bullish or bearish?
Bullish
Bearish
98% Bullish
2% Bearish

Pair Trading with Baker Hughes

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Baker Hughes position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Baker Hughes will appreciate offsetting losses from the drop in the long position's value.

Baker Hughes Pair Correlation

Correlation Analysis For Direct Indexing and Tax-loss Harvesting

The ability to find closely correlated positions to Baker Hughes could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Baker Hughes when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Baker Hughes - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Baker Hughes A to buy it.
The correlation of Baker Hughes is a statistical measure of how it moves in relation to other equities. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Baker Hughes moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Baker Hughes A moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Baker Hughes can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching
Continue to Baker Hughes Piotroski F Score and Baker Hughes Valuation analysis. Note that the Baker Hughes A information on this page should be used as a complementary analysis to other Baker Hughes' statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.

Complementary Tools for Baker Stock analysis

When running Baker Hughes A price analysis, check to measure Baker Hughes' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Baker Hughes is operating at the current time. Most of Baker Hughes' value examination focuses on studying past and present price action to predict the probability of Baker Hughes' future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Baker Hughes' price. Additionally, you may evaluate how the addition of Baker Hughes to your portfolios can decrease your overall portfolio volatility.
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Is Baker Hughes' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Baker Hughes. If investors know Baker will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Baker Hughes listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
-0.65
Market Capitalization
30.9 B
Quarterly Revenue Growth YOY
0.011
Return On Assets
0.0292
Return On Equity
0.021
The market value of Baker Hughes A is measured differently than its book value, which is the value of Baker that is recorded on the company's balance sheet. Investors also form their own opinion of Baker Hughes' value that differs from its market value or its book value, called intrinsic value, which is Baker Hughes' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Baker Hughes' market value can be influenced by many factors that don't directly affect Baker Hughes' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Baker Hughes' value and its price as these two are different measures arrived at by different means. Investors typically determine Baker Hughes value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Baker Hughes' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.