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GuruFocus Financial Strength Rank measures how strong a company’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 6/10

vs
industry
vs
history
Cash to Debt 0.32
BHI's Cash to Debt is ranked higher than
70% of the 442 Companies
in the Global Oil & Gas Equipment & Services industry.

( Industry Median: 0.41 vs. BHI: 0.32 )
BHI' s 10-Year Cash to Debt Range
Min: 0.01   Max: 1.03
Current: 0.32

0.01
1.03
Equity to Asset 0.64
BHI's Equity to Asset is ranked higher than
84% of the 437 Companies
in the Global Oil & Gas Equipment & Services industry.

( Industry Median: 0.52 vs. BHI: 0.64 )
BHI' s 10-Year Equity to Asset Range
Min: 0.42   Max: 0.64
Current: 0.64

0.42
0.64
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 7/10

vs
industry
vs
history
Operating margin (%) 8.71
BHI's Operating margin (%) is ranked higher than
73% of the 452 Companies
in the Global Oil & Gas Equipment & Services industry.

( Industry Median: 10.81 vs. BHI: 8.71 )
BHI' s 10-Year Operating margin (%) Range
Min: 3.74   Max: 21.84
Current: 8.71

3.74
21.84
Net-margin (%) 4.90
BHI's Net-margin (%) is ranked higher than
73% of the 452 Companies
in the Global Oil & Gas Equipment & Services industry.

( Industry Median: 6.57 vs. BHI: 4.90 )
BHI' s 10-Year Net-margin (%) Range
Min: -4.69   Max: 26.8
Current: 4.9

-4.69
26.8
ROE (%) 6.12
BHI's ROE (%) is ranked higher than
72% of the 447 Companies
in the Global Oil & Gas Equipment & Services industry.

( Industry Median: 8.33 vs. BHI: 6.12 )
BHI' s 10-Year ROE (%) Range
Min: -9.36   Max: 46.14
Current: 6.12

-9.36
46.14
ROA (%) 3.92
BHI's ROA (%) is ranked higher than
73% of the 451 Companies
in the Global Oil & Gas Equipment & Services industry.

( Industry Median: 4.25 vs. BHI: 3.92 )
BHI' s 10-Year ROA (%) Range
Min: -3.88   Max: 27.79
Current: 3.92

-3.88
27.79
ROC (Joel Greenblatt) (%) 13.09
BHI's ROC (Joel Greenblatt) (%) is ranked higher than
77% of the 452 Companies
in the Global Oil & Gas Equipment & Services industry.

( Industry Median: 13.09 vs. BHI: 13.09 )
BHI' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: 5.58   Max: 47.83
Current: 13.09

5.58
47.83
Revenue Growth (%) 11.30
BHI's Revenue Growth (%) is ranked higher than
79% of the 378 Companies
in the Global Oil & Gas Equipment & Services industry.

( Industry Median: 10.00 vs. BHI: 11.30 )
BHI' s 10-Year Revenue Growth (%) Range
Min: -14.8   Max: 25.4
Current: 11.3

-14.8
25.4
EBITDA Growth (%) 9.30
BHI's EBITDA Growth (%) is ranked higher than
79% of the 335 Companies
in the Global Oil & Gas Equipment & Services industry.

( Industry Median: 7.20 vs. BHI: 9.30 )
BHI' s 10-Year EBITDA Growth (%) Range
Min: -28.6   Max: 60.1
Current: 9.3

-28.6
60.1
EPS Growth (%) 6.20
BHI's EPS Growth (%) is ranked higher than
81% of the 288 Companies
in the Global Oil & Gas Equipment & Services industry.

( Industry Median: 4.70 vs. BHI: 6.20 )
BHI' s 10-Year EPS Growth (%) Range
Min: -54.5   Max: 140.2
Current: 6.2

-54.5
140.2
» BHI's 10-Y Financials

Financials


Revenue & Net Income
Cash & Debt
Oprt. Cash Flow & Free Cash Flow

» Details

Guru Trades

Q2 2013

BHI Guru Trades in Q2 2013

George Soros 222,141 sh (New)
Jeremy Grantham 23,000 sh (+12.2%)
Richard Pzena 9,425,678 sh (+4.98%)
Richard Snow 1,130,205 sh (+1.48%)
John Buckingham 91,277 sh (+1.36%)
FPA Capital Fund 428,772 sh (unchged)
Charles de Vaulx 1,721,346 sh (unchged)
Jean-Marie Eveillard 250 sh (unchged)
Jim Simons Sold Out
Dodge & Cox 24,824,534 sh (-1.03%)
First Pacific Advisors 903,225 sh (-1.4%)
Manning & Napier Advisors, Inc 7,396,671 sh (-5.08%)
Steven Cohen 1,877,959 sh (-27.8%)
Paul Tudor Jones 7,100 sh (-85.8%)
NWQ Managers 16,945 sh (-95.21%)
» More
Q3 2013

BHI Guru Trades in Q3 2013

Jim Simons 685,440 sh (New)
Louis Moore Bacon 25,000 sh (New)
NWQ Managers 2,210,033 sh (+12942.4%)
Paul Tudor Jones 13,900 sh (+95.77%)
Jeremy Grantham 43,200 sh (+87.83%)
George Soros 350,791 sh (+57.91%)
Richard Pzena 10,606,614 sh (+12.53%)
Richard Snow 1,151,265 sh (+1.86%)
Manning & Napier Advisors, Inc 7,457,283 sh (+0.82%)
John Buckingham 91,750 sh (+0.52%)
FPA Capital Fund 428,772 sh (unchged)
Jean-Marie Eveillard 250 sh (unchged)
George Soros 800,000 sh (unchged)
Dodge & Cox 24,278,759 sh (-2.2%)
First Pacific Advisors 853,976 sh (-5.45%)
Charles de Vaulx 1,400,704 sh (-18.63%)
Steven Cohen 955,333 sh (-49.13%)
» More
Q4 2013

BHI Guru Trades in Q4 2013

Stanley Druckenmiller 268,000 sh (New)
Joel Greenblatt 59,876 sh (New)
Mario Gabelli 4,000 sh (New)
Ray Dalio 7,611 sh (New)
Pioneer Investments 65,248 sh (New)
Louis Moore Bacon 69,600 sh (+178.4%)
Jim Simons 986,840 sh (+43.97%)
John Buckingham 92,681 sh (+1.01%)
Jean-Marie Eveillard 250 sh (unchged)
Charles de Vaulx 1,400,704 sh (unchged)
FPA Capital Fund 428,772 sh (unchged)
George Soros Sold Out
Richard Snow 1,132,333 sh (-1.64%)
NWQ Managers 2,160,580 sh (-2.24%)
Manning & Napier Advisors, Inc 7,110,915 sh (-4.64%)
Dodge & Cox 22,878,609 sh (-5.77%)
First Pacific Advisors 783,939 sh (-8.2%)
Richard Pzena 9,699,551 sh (-8.55%)
Paul Tudor Jones 12,027 sh (-13.47%)
Steven Cohen 823,971 sh (-13.75%)
Jeremy Grantham 22,300 sh (-48.38%)
» More
Q1 2014

BHI Guru Trades in Q1 2014

FPA Capital Fund 366,672 sh (-14.48%)
» More
» Details

Insider Trades

Latest Guru Trades with BHI

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
FPA Capital Fund 2014-03-31 Reduce -14.48%0.41%$51.82 - $65.27 $ 68.3316%366672
George Soros 2013-12-31 Sold Out 0.19%$48.64 - $58.66 $ 68.3325%0
Joel Greenblatt 2013-12-31 New Buy0.08%$48.64 - $58.66 $ 68.3325%59876
Ray Dalio 2013-12-31 New Buy$48.64 - $58.66 $ 68.3325%7611
Mario Gabelli 2013-12-31 New Buy$48.64 - $58.66 $ 68.3325%4000
George Soros 2013-09-30 Add 57.91%0.07%$46.22 - $50.38 $ 68.3342%350791
George Soros 2013-06-30 New Buy0.11%$43.21 - $48.22 $ 68.3349%222141
Mario Gabelli 2012-12-31 Sold Out 0.0042%$39.64 - $47.1 $ 68.3361%0
Scott Black 2012-09-30 Sold Out 0.09%$38.84 - $50.02 $ 68.3351%0
Dodge & Cox 2012-06-30 Add 41.42%0.44%$37.93 - $44.29 $ 68.3366%26188364
Scott Black 2012-06-30 Reduce -34.5%0.05%$37.93 - $44.29 $ 68.3366%14701
John Burbank 2012-06-30 Sold Out 0.04%$37.93 - $44.29 $ 68.3366%0
John Burbank 2012-03-31 Reduce -34.75%0.06%$40.65 - $52.4 $ 68.3352%27600
Mario Gabelli 2012-03-31 Add 153.85%$40.65 - $52.4 $ 68.3352%16500
John Griffin 2011-12-31 Sold Out 1.35%$44.47 - $60.89 $ 68.3330%0
Mario Gabelli 2011-12-31 Reduce -24.42%$44.47 - $60.89 $ 68.3330%6500
John Griffin 2011-09-30 Reduce -43.17%1.19%$48.59 - $79.94 $ 68.336%1435000
FPA Capital Fund 2011-09-30 Reduce -14.5%0.56%$48.59 - $79.94 $ 68.336%428772
Mario Gabelli 2011-09-30 New Buy$48.59 - $79.94 $ 68.336%8600
Mario Gabelli 2011-06-30 Sold Out $67.27 - $78 $ 68.33-5%0
John Griffin 2011-03-31 New Buy3.13%$54.83 - $74.16 $ 68.333%2525000
FPA Capital Fund 2011-03-31 Reduce -26%1.36%$54.83 - $74.16 $ 68.333%515475
Jean-Marie Eveillard 2011-03-31 Reduce -99.34%$54.83 - $74.16 $ 68.333%250
Mario Gabelli 2011-03-31 Reduce -98.93%$54.83 - $74.16 $ 68.333%3100
Premium More recent guru trades are included for Premium Members only!!
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Guru Investment Theses on Baker Hughes Inc.

Bill Nygren's Oakmark Comments on Baker Hughes - Jul 10, 2012

From Oakmark's second-quarter letter:

Baker Hughes (BHI) is one of only four global oil service companies. Over time, this industry benefits from the fact that incremental hydrocarbon reserves require increasing service intensity to develop. In the short term, however, the recent increase in North American natural gas production has caused an oversupply of gas, and this has caused exploration and production companies to reduce their drilling. We believe that this oversupply is temporary and that Baker Hughes will again be a beneficiary of positive secular trends in its industry. Blount is the global leader in the production of cutting chain for chainsaws. This is a classic “razor blade business,” as professional loggers need to replace their chains every 5-10 days. International sales, especially to emerging markets, are a large percentage of the total.
Check out Bill Nygren latest stock trades

Ratios

vs
industry
vs
history
P/E(ttm) 27.70
BHI's P/E(ttm) is ranked higher than
55% of the 341 Companies
in the Global Oil & Gas Equipment & Services industry.

( Industry Median: 17.50 vs. BHI: 27.70 )
BHI' s 10-Year P/E(ttm) Range
Min: 5.14   Max: 111.48
Current: 27.7

5.14
111.48
P/B 1.69
BHI's P/B is ranked higher than
68% of the 433 Companies
in the Global Oil & Gas Equipment & Services industry.

( Industry Median: 1.60 vs. BHI: 1.69 )
BHI' s 10-Year P/B Range
Min: 1.03   Max: 6.02
Current: 1.69

1.03
6.02
PFCF 27.22
BHI's PFCF is ranked higher than
54% of the 228 Companies
in the Global Oil & Gas Equipment & Services industry.

( Industry Median: 18.54 vs. BHI: 27.22 )
BHI' s 10-Year PFCF Range
Min: 18.68   Max: 268.48
Current: 27.22

18.68
268.48
PEG 1.78
BHI's PEG is ranked higher than
64% of the 206 Companies
in the Global Oil & Gas Equipment & Services industry.

( Industry Median: 1.70 vs. BHI: 1.78 )
BHI' s 10-Year PEG Range
Min: 0.14   Max: 82.65
Current: 1.78

0.14
82.65
Shiller P/E 21.58
BHI's Shiller P/E is ranked higher than
70% of the 233 Companies
in the Global Oil & Gas Equipment & Services industry.

( Industry Median: 20.01 vs. BHI: 21.58 )
BHI' s 10-Year Shiller P/E Range
Min: 6.83   Max: 149.26
Current: 21.58

6.83
149.26

Dividend & Buy Back

vs
industry
vs
history
Dividend Yield 0.90
BHI's Dividend Yield is ranked lower than
80% of the 285 Companies
in the Global Oil & Gas Equipment & Services industry.

( Industry Median: 2.26 vs. BHI: 0.90 )
BHI' s 10-Year Dividend Yield Range
Min: 0.54   Max: 2.18
Current: 0.9

0.54
2.18
Dividend Payout 0.30
BHI's Dividend Payout is ranked higher than
81% of the 237 Companies
in the Global Oil & Gas Equipment & Services industry.

( Industry Median: 0.34 vs. BHI: 0.30 )
BHI' s 10-Year Dividend Payout Range
Min: 0.07   Max: 5.75
Current: 0.3

0.07
5.75
Yield on cost (5-Year) 0.90
BHI's Yield on cost (5-Year) is ranked lower than
83% of the 295 Companies
in the Global Oil & Gas Equipment & Services industry.

( Industry Median: 2.77 vs. BHI: 0.90 )
BHI' s 10-Year Yield on cost (5-Year) Range
Min: 0.54   Max: 2.18
Current: 0.9

0.54
2.18
Share Buyback Rate -4.00
BHI's Share Buyback Rate is ranked higher than
74% of the 349 Companies
in the Global Oil & Gas Equipment & Services industry.

( Industry Median: -2.70 vs. BHI: -4.00 )
BHI' s 10-Year Share Buyback Rate Range
Min: 20.2   Max: -30.4
Current: -4

Valuation & Return

vs
industry
vs
history
Price/Tangible Book 2.73
BHI's Price/Tangible Book is ranked higher than
56% of the 425 Companies
in the Global Oil & Gas Equipment & Services industry.

( Industry Median: 2.00 vs. BHI: 2.73 )
BHI' s 10-Year Price/Tangible Book Range
Min: 1.78   Max: 9.46
Current: 2.73

1.78
9.46
Price/DCF (Projected) 2.53
BHI's Price/DCF (Projected) is ranked lower than
53% of the 232 Companies
in the Global Oil & Gas Equipment & Services industry.

( Industry Median: 1.60 vs. BHI: 2.53 )
BHI' s 10-Year Price/DCF (Projected) Range
Min: 1.08   Max: 44.45
Current: 2.53

1.08
44.45
Price/Median PS Value 0.73
BHI's Price/Median PS Value is ranked higher than
88% of the 419 Companies
in the Global Oil & Gas Equipment & Services industry.

( Industry Median: 0.90 vs. BHI: 0.73 )
BHI' s 10-Year Price/Median PS Value Range
Min: 0.32   Max: 1.7
Current: 0.73

0.32
1.7
Price/Peter Lynch Fair Value 2.98
BHI's Price/Peter Lynch Fair Value is ranked lower than
53% of the 103 Companies
in the Global Oil & Gas Equipment & Services industry.

( Industry Median: 1.10 vs. BHI: 2.98 )
BHI' s 10-Year Price/Peter Lynch Fair Value Range
Min: 0.24   Max: 37.61
Current: 2.98

0.24
37.61
Price/Graham Number 1.83
BHI's Price/Graham Number is ranked higher than
60% of the 335 Companies
in the Global Oil & Gas Equipment & Services industry.

( Industry Median: 1.30 vs. BHI: 1.83 )
BHI' s 10-Year Price/Graham Number Range
Min: 0.71   Max: 9.12
Current: 1.83

0.71
9.12
Earnings Yield (Greenblatt) 6.00
BHI's Earnings Yield (Greenblatt) is ranked higher than
70% of the 402 Companies
in the Global Oil & Gas Equipment & Services industry.

( Industry Median: 6.40 vs. BHI: 6.00 )
BHI' s 10-Year Earnings Yield (Greenblatt) Range
Min: 3.3   Max: 27.1
Current: 6

3.3
27.1
Forward Rate of Return (Yacktman) 8.64
BHI's Forward Rate of Return (Yacktman) is ranked higher than
84% of the 337 Companies
in the Global Oil & Gas Equipment & Services industry.

( Industry Median: 2.32 vs. BHI: 8.64 )
BHI' s 10-Year Forward Rate of Return (Yacktman) Range
Min: -17   Max: 51.8
Current: 8.64

-17
51.8

Business Description

Industry: Oil & Gas - Services » Oil & Gas Equipment & Services
Compare:SPN, GLF, NOV, HAL, SAPMY » details
Traded in other countries:BHI.Switzerland, BHU.Germany
Baker Hughes Inc.,a Delaware corporation was formed in April 1987. The Company is a supplier of oilfield services, products, technology and systems to the oil and natural gas industry. It also provides industrial and other products and services to the downstream refining, and the process and pipeline industries. The Company conducts its operations in more than 80 countries. Its global oilfield operations are organized into a number of geomarket organizations, which are combined into eight geographic regions .The Company's support operations are organized at the enterprise level and include the product line marketing and technology, supply chain, and information technology organizations, which comprise the Global Products and Services group. The Company's oilfield products and services fall into two groups namely Drilling and Evaluation Group and Completion and Production Group. This classification is based on the two major phases of constructing an oil and/or natural gas well and how its products and services are utilized for each phase. The Drilling and Evaluation group consists of products and services such as Drill Bits, Drilling Services, Wireline Services and Drilling and Completion Fluids. The Completion and Production group consists of products and services such as Completion Systems, Wellbore Intervention, Intelligent Production Systems, Artificial Lift, Upstream Chemicals and Pressure Pumping. The Company markets its products and services on a product line basis mainly through its own sales organizations. Its competitors include the oilfield service companies such as Schlumberger, Halliburton and Weatherford International. It also competes with other companies like National Oilwell Varco, Ecolab, Newpark Resources, and FTS International. The Company's past & present operations include activities that are subject to domestic including U.S. federal, state and local and international regulations.

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