BAKER HUGHES CO (BKR) Stock Fundamental Analysis
NASDAQ:BKR - US05722G1004 - Common Stock
44.82 USD
-0.54 (-1.19%)
Taking everything into account, BKR scores 5 out of 10 in our fundamental rating. BKR was compared to 61 industry peers in the Energy Equipment & Services industry. While BKR belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. While showing a medium growth rate, BKR is valued expensive at the moment. BKR also has an excellent dividend rating. These ratings would make BKR suitable for dividend investing!
1. Profitability
1.1 Basic Checks
In the past year BKR was profitable.
In the past year BKR had a positive cash flow from operations.
In multiple years BKR reported negative net income over the last 5 years.
Each year in the past 5 years BKR had a positive operating cash flow.
1.2 Ratios
BKR's Return On Assets of 7.87% is fine compared to the rest of the industry. BKR outperforms 77.05% of its industry peers.
The Return On Equity of BKR (17.22%) is better than 81.97% of its industry peers.
Looking at the Return On Invested Capital, with a value of 11.38%, BKR belongs to the top of the industry, outperforming 81.97% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for BKR is in line with the industry average of 8.01%.
The 3 year average ROIC (9.18%) for BKR is below the current ROIC(11.38%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.87% | ||
| ROE | 17.22% | ||
| ROIC | 11.38% |
ROA(3y)3.76%
ROA(5y)-3.1%
ROE(3y)8.7%
ROE(5y)-6.02%
ROIC(3y)9.18%
ROIC(5y)6.97%
1.3 Margins
BKR has a Profit Margin of 11.04%. This is amongst the best in the industry. BKR outperforms 80.33% of its industry peers.
BKR's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 12.99%, BKR is in the better half of the industry, outperforming 68.85% of the companies in the same industry.
In the last couple of years the Operating Margin of BKR has grown nicely.
With a Gross Margin value of 22.58%, BKR is not doing good in the industry: 60.66% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of BKR has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.99% | ||
| PM (TTM) | 11.04% | ||
| GM | 22.58% |
OM growth 3Y17.25%
OM growth 5Y13.35%
PM growth 3YN/A
PM growth 5Y81.94%
GM growth 3Y2.47%
GM growth 5Y2.69%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), BKR is creating some value.
Compared to 1 year ago, BKR has less shares outstanding
BKR has more shares outstanding than it did 5 years ago.
The debt/assets ratio for BKR has been reduced compared to a year ago.
2.2 Solvency
BKR has an Altman-Z score of 2.28. This is not the best score and indicates that BKR is in the grey zone with still only limited risk for bankruptcy at the moment.
BKR has a better Altman-Z score (2.28) than 65.57% of its industry peers.
BKR has a debt to FCF ratio of 2.79. This is a good value and a sign of high solvency as BKR would need 2.79 years to pay back of all of its debts.
BKR's Debt to FCF ratio of 2.79 is fine compared to the rest of the industry. BKR outperforms 68.85% of its industry peers.
A Debt/Equity ratio of 0.34 indicates that BKR is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.34, BKR perfoms like the industry average, outperforming 59.02% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 2.79 | ||
| Altman-Z | 2.28 |
ROIC/WACC1.28
WACC8.92%
2.3 Liquidity
BKR has a Current Ratio of 1.41. This is a normal value and indicates that BKR is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of BKR (1.41) is worse than 72.13% of its industry peers.
BKR has a Quick Ratio of 1.41. This is a bad value and indicates that BKR is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 1.00, BKR is not doing good in the industry: 77.05% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.41 | ||
| Quick Ratio | 1 |
3. Growth
3.1 Past
BKR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 30.05%, which is quite impressive.
The Earnings Per Share has been growing by 23.35% on average over the past years. This is a very strong growth
Looking at the last year, BKR shows a small growth in Revenue. The Revenue has grown by 2.13% in the last year.
Measured over the past years, BKR shows a small growth in Revenue. The Revenue has been growing by 3.14% on average per year.
EPS 1Y (TTM)30.05%
EPS 3Y55.53%
EPS 5Y23.35%
EPS Q2Q%10.53%
Revenue 1Y (TTM)2.13%
Revenue growth 3Y10.72%
Revenue growth 5Y3.14%
Sales Q2Q%-3.21%
3.2 Future
Based on estimates for the next years, BKR will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.01% on average per year.
BKR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.13% yearly.
EPS Next Y2.82%
EPS Next 2Y6.41%
EPS Next 3Y9.61%
EPS Next 5Y8.01%
Revenue Next Year-1.62%
Revenue Next 2Y0.97%
Revenue Next 3Y2.86%
Revenue Next 5Y2.13%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 17.86, which indicates a rather expensive current valuation of BKR.
Compared to the rest of the industry, the Price/Earnings ratio of BKR is on the same level as its industry peers.
When comparing the Price/Earnings ratio of BKR to the average of the S&P500 Index (26.90), we can say BKR is valued slightly cheaper.
BKR is valuated correctly with a Price/Forward Earnings ratio of 16.70.
BKR's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. BKR is more expensive than 60.66% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.52, BKR is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.86 | ||
| Fwd PE | 16.7 |
4.2 Price Multiples
78.69% of the companies in the same industry are cheaper than BKR, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of BKR is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.41 | ||
| EV/EBITDA | 9.52 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates BKR does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of BKR may justify a higher PE ratio.
PEG (NY)6.34
PEG (5Y)0.76
EPS Next 2Y6.41%
EPS Next 3Y9.61%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.02%, BKR has a reasonable but not impressive dividend return.
BKR's Dividend Yield is a higher than the industry average which is at 3.33.
BKR's Dividend Yield is comparable with the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.02% |
5.2 History
The dividend of BKR has a limited annual growth rate of 4.36%.
BKR has been paying a dividend for at least 10 years, so it has a reliable track record.
BKR has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)4.36%
Div Incr Years3
Div Non Decr Years10
5.3 Sustainability
BKR pays out 28.64% of its income as dividend. This is a sustainable payout ratio.
BKR's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP28.64%
EPS Next 2Y6.41%
EPS Next 3Y9.61%
NASDAQ:BKR (9/3/2025, 2:14:06 PM)
44.82
-0.54 (-1.19%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners101.15%
Inst Owner Change0%
Ins Owners0.11%
Ins Owner Change4.07%
Market Cap44.19B
Analysts82.31
Price Target51.2 (14.23%)
Short Float %2.66%
Short Ratio3.63
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.02% |
Yearly Dividend0.84
Dividend Growth(5Y)4.36%
DP28.64%
Div Incr Years3
Div Non Decr Years10
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)9.02%
Min EPS beat(2)5.87%
Max EPS beat(2)12.17%
EPS beat(4)4
Avg EPS beat(4)9.46%
Min EPS beat(4)5.87%
Max EPS beat(4)12.17%
EPS beat(8)8
Avg EPS beat(8)8.86%
EPS beat(12)11
Avg EPS beat(12)7.77%
EPS beat(16)11
Avg EPS beat(16)-1.13%
Revenue beat(2)1
Avg Revenue beat(2)0.53%
Min Revenue beat(2)-1.98%
Max Revenue beat(2)3.04%
Revenue beat(4)2
Avg Revenue beat(4)-0.29%
Min Revenue beat(4)-5.23%
Max Revenue beat(4)3.04%
Revenue beat(8)4
Avg Revenue beat(8)0.14%
Revenue beat(12)5
Avg Revenue beat(12)-0.18%
Revenue beat(16)5
Avg Revenue beat(16)-1.22%
PT rev (1m)6.67%
PT rev (3m)5.02%
EPS NQ rev (1m)0.88%
EPS NQ rev (3m)-12.22%
EPS NY rev (1m)1.09%
EPS NY rev (3m)0.3%
Revenue NQ rev (1m)-0.01%
Revenue NQ rev (3m)-3.44%
Revenue NY rev (1m)0.15%
Revenue NY rev (3m)0.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.86 | ||
| Fwd PE | 16.7 | ||
| P/S | 1.6 | ||
| P/FCF | 20.41 | ||
| P/OCF | 12.92 | ||
| P/B | 2.5 | ||
| P/tB | 5.54 | ||
| EV/EBITDA | 9.52 |
EPS(TTM)2.51
EY5.6%
EPS(NY)2.68
Fwd EY5.99%
FCF(TTM)2.2
FCFY4.9%
OCF(TTM)3.47
OCFY7.74%
SpS28
BVpS17.95
TBVpS8.09
PEG (NY)6.34
PEG (5Y)0.76
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.87% | ||
| ROE | 17.22% | ||
| ROCE | 13.68% | ||
| ROIC | 11.38% | ||
| ROICexc | 13.66% | ||
| ROICexgc | 24.6% | ||
| OM | 12.99% | ||
| PM (TTM) | 11.04% | ||
| GM | 22.58% | ||
| FCFM | 7.84% |
ROA(3y)3.76%
ROA(5y)-3.1%
ROE(3y)8.7%
ROE(5y)-6.02%
ROIC(3y)9.18%
ROIC(5y)6.97%
ROICexc(3y)10.94%
ROICexc(5y)8.33%
ROICexgc(3y)21.7%
ROICexgc(5y)16.3%
ROCE(3y)11.03%
ROCE(5y)8.4%
ROICexcg growth 3Y31.82%
ROICexcg growth 5Y23.92%
ROICexc growth 3Y30.99%
ROICexc growth 5Y33.59%
OM growth 3Y17.25%
OM growth 5Y13.35%
PM growth 3YN/A
PM growth 5Y81.94%
GM growth 3Y2.47%
GM growth 5Y2.69%
F-Score8
Asset Turnover0.71
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 2.79 | ||
| Debt/EBITDA | 1.26 | ||
| Cap/Depr | 109.14% | ||
| Cap/Sales | 4.54% | ||
| Interest Coverage | 12.12 | ||
| Cash Conversion | 72.19% | ||
| Profit Quality | 71.03% | ||
| Current Ratio | 1.41 | ||
| Quick Ratio | 1 | ||
| Altman-Z | 2.28 |
F-Score8
WACC8.92%
ROIC/WACC1.28
Cap/Depr(3y)106.11%
Cap/Depr(5y)93.95%
Cap/Sales(3y)4.69%
Cap/Sales(5y)4.59%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)30.05%
EPS 3Y55.53%
EPS 5Y23.35%
EPS Q2Q%10.53%
EPS Next Y2.82%
EPS Next 2Y6.41%
EPS Next 3Y9.61%
EPS Next 5Y8.01%
Revenue 1Y (TTM)2.13%
Revenue growth 3Y10.72%
Revenue growth 5Y3.14%
Sales Q2Q%-3.21%
Revenue Next Year-1.62%
Revenue Next 2Y0.97%
Revenue Next 3Y2.86%
Revenue Next 5Y2.13%
EBIT growth 1Y18.07%
EBIT growth 3Y29.82%
EBIT growth 5Y16.91%
EBIT Next Year37.25%
EBIT Next 3Y18.57%
EBIT Next 5Y11.51%
FCF growth 1Y24.93%
FCF growth 3Y10.61%
FCF growth 5Y18.31%
OCF growth 1Y21.46%
OCF growth 3Y11.96%
OCF growth 5Y9.4%