Baker Hughes Profitability Analysis

BKR
 Stock
  

USD 25.16  0.17  0.68%   

For Baker Hughes profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Baker Hughes to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Baker Hughes A utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Baker Hughes's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Baker Hughes A over time as well as its relative position and ranking within its peers. Continue to Trending Equities.
  
Baker Hughes Return on Sales is relatively stable at the moment as compared to the past year. Baker Hughes reported last year Return on Sales of 0.041. As of 08/19/2022, Sales per Share is likely to grow to 21.05, while Price to Sales Ratio is likely to drop 1.19. As of 08/19/2022, Operating Income is likely to grow to about 1.4 B, while Accumulated Other Comprehensive Income is likely to drop (2.6 B).

Baker Hughes Revenues

21.94 Billion

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
25.5 B
Quarterly Revenue Growth YOY
-0.018
Return On Assets
0.0306
Return On Equity
-0.0249
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.

Baker Hughes A Market Capitalization vs. Debt to Equity Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Baker Hughes's current stock value. Our valuation model uses many indicators to compare Baker Hughes value to that of its competitors to determine the firm's financial worth.
Baker Hughes A is number one stock in debt to equity category among related companies. It is number one stock in market capitalization category among related companies creating about  57,891,156,463  of Market Capitalization per Debt to Equity. Baker Hughes Market Capitalization is relatively stable at the moment as compared to the past year. Baker Hughes reported last year Market Capitalization of 24.94 Billion. Comparative valuation analysis is a catch-all model that can be used if you cannot value Baker Hughes by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Baker Hughes' Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Baker Hughes' earnings, one of the primary drivers of an investment's value.

Baker Market Capitalization vs. Debt to Equity

Debt to Equity is calculated by dividing the Total Debt of a company by its Equity. If the debt exceeds equity of a company, then the creditors have more stakes in a firm than the stockholders. In other words, Debt to Equity ratio provides analysts with insights about composition of both equity and debt, and its influence on the valuation of the company.
Baker Hughes 
D/E 
 = 
Total Debt 
Total Equity 
0.44 %
High Debt to Equity ratio typically indicates that a firm has been borrowing aggressively to finance its growth and as a result may experience a burden of additional interest expense. This may reduce earnings or future growth. On the other hand a small D/E ratio may indicate that a company is not taking enough advantage from financial leverage. Debt to Equity ratio measures how the company is leveraging borrowing against the capital invested by the owners.
Market Capitalization is the total market value of a company's equity. It is one of many ways to value a company and is calculated by multiplying the price of the stock by the number of shares issued. If a firm has one type of stock its market capitalization will be the current market share price multiplied by the number of shares. However, if a company has multiple types of equities then the market cap will be the total of the market caps of the different types of shares.
Baker Hughes 
Market Cap 
 = 
Shares Outstanding 
X  
Share Price 
25.53 B
In most publications or references market cap is broken down into the mega-cap, large-cap, mid-cap, small-cap, micro-cap, and nano-cap. Market Cap is a measurement of business as total market value of all of the outstanding shares at a given time, and can be used to compare different companies based on their size.

Baker Market Capitalization vs Competition

Baker Hughes A is number one stock in market capitalization category among related companies. Market capitalization of Oil & Gas Equipment & Services industry is currently estimated at about 4.04 Trillion. Baker Hughes maintains roughly 25.53 Billion in market capitalization contributing less than 1% to all equities under Oil & Gas Equipment & Services industry.
Capitalization  Revenue  Valuation  Total debt  Workforce

Baker Hughes Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Baker Hughes, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Baker Hughes will eventually generate negative long term returns. The profitability progress is the general direction of Baker Hughes' change in net profit over the period of time. It can combine multiple indicators of Baker Hughes, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for 2022
Accumulated Other Comprehensive Income-2.4 B-2.6 B
Consolidated Income-330 M-356.1 M
Net Income-219 M-236.3 M
Net Income Common Stock-219 M-236.3 M
Net Income to Non Controlling Interests-111 M-119.8 M
Operating Income1.3 B1.4 B
Income Tax Expense758 M632.8 M
Net Income Per Employee-4.1 K-4.4 K

Baker Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Baker Hughes. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Baker Hughes position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Baker Hughes' important profitability drivers and their relationship over time.

Baker Hughes Profitability Trends

Baker Hughes profitability trend refers to the progression of profit or loss within a business. An upward trend means that Baker Hughes' profit has generally increased over time, and a downward profitability trend means profits are declining. Recognizing problems early in profitability trends allows investors to address revenue and cost issues in advance. Investors and analysts usually monitor three types of profitability trends: gross, operating, and net. Gross profit is the difference between revenue and costs of goods sold. Operating profit is Baker Hughes' gross profit minus its overhead. After you account for other unusual revenue, expenses, and costs, you get net profit. Gross profit trends are often a good indicator of future profitability. If you have high gross profit margins, you have a better chance to cover overhead and make money.

Baker Hughes Profitability Drivers Correlations

One of the toughest challenges investors face today is learning how to quickly synthesize and read into endless financial statements and information provided by the company, SEC reporting, and various external parties. Understanding the correlation between Baker Hughes different financial indicators related to revenue and profit generation helps investors identify and prioritize their investing strategies towards Baker Hughes in a much-optimized way. Analyzing correlations between profit drivers that are directly associated with dollar figures is the most effective way to break down Baker Hughes' future profitability.

Use Baker Hughes in pair-trading

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 Trading

Baker Hughes A Pair Trading Analysis

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

Use Investing Themes to Complement your Baker Hughes position

In addition to having Baker Hughes in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Trump Equities Thematic Idea Now

Trump Equities
Trump Equities Theme
Stocks that have significantly increased in valuation since Trump was elected president of the United States. The Trump Equities theme has 42 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Trump Equities Theme or any other thematic opportunities.
View All  Next Launch
Continue to Trending Equities. 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 Commodity Channel Index module to use Commodity Channel Index to analyze current equity momentum.

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.
Performance Analysis
Check effects of mean-variance optimization against your current asset allocation
Go
Bond Directory
Find actively traded corporate debentures issued by US companies
Go
Global Markets Map
Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes
Go
Idea Optimizer
Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio
Go
Headlines Timeline
Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity
Go
Portfolio Diagnostics
Use generated alerts and portfolio events aggregator to diagnose current holdings
Go
Money Flow Index
Determine momentum by analyzing Money Flow Index and other technical indicators
Go
Portfolio Volatility
Check portfolio volatility and analyze historical return density to properly model market risk
Go
Analyst Recommendations
Analyst recommendations and target price estimates broken down by several categories
Go
ETF Directory
Find actively traded Exchange Traded Funds (ETF) from around the world
Go
Cryptocurrency Center
Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency
Go
To fully project Baker Hughes' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Baker Hughes A at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Baker Hughes' income statement, its balance sheet, and the statement of cash flows.
Potential Baker Hughes investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Baker Hughes investors may work on each financial statement separately, they are all related. The changes in Baker Hughes's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Baker Hughes's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.