TheStreet Ratings Top 10 Rating Changes
Highlights from the ratings report include:
- BHI's revenue growth trails the industry average of 16.5%. Since the same quarter one year prior, revenues slightly increased by 3.2%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- The current debt-to-equity ratio, 0.30, is low and is below the industry average, implying that there has been successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.33, which illustrates the ability to avoid short-term cash problems.
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Energy Equipment & Services industry. The net income has significantly decreased by 60.5% when compared to the same quarter one year ago, falling from $706.00 million to $279.00 million.
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. When compared to other companies in the Energy Equipment & Services industry and the overall market, BAKER HUGHES INC's return on equity is below that of both the industry average and the S&P 500.
Baker Hughes Incorporated supplies oilfield services, products, and technology services and systems to the oil and natural gas industry worldwide. The company has a P/E ratio of 13.4, below the S&P 500 P/E ratio of 17.7. Baker Hughes has a market cap of $18.76 billion and is part of the basic materials sector and energy industry. Shares are down 12.3% year to date as of the close of trading on Thursday.
Rating Change #6
ArcelorMittal SA (MT) has been downgraded by TheStreet Ratings from hold to sell. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, disappointing return on equity, poor profit margins and weak operating cash flow.