BAKER HUGHES CO (BKR) Fundamental Analysis & Valuation
NASDAQ:BKR • US05722G1004
59.81 USD
-0.38 (-0.63%)
At close: Mar 6, 2026
59.72 USD
-0.09 (-0.15%)
After Hours: 3/6/2026, 8:02:44 PM
This BKR fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
Taking everything into account, BKR scores 5 out of 10 in our fundamental rating. BKR was compared to 60 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. BKR is quite expensive at the moment. It does show a decent growth rate.
1. BKR Profitability Analysis
1.1 Basic Checks
- In the past year BKR was profitable.
- BKR had a positive operating cash flow in the past year.
- The reported net income has been mixed in the past 5 years: BKR reported negative net income in multiple years.
- Each year in the past 5 years BKR had a positive operating cash flow.
1.2 Ratios
- Looking at the Return On Assets, with a value of 6.33%, BKR is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 13.74%, BKR belongs to the top of the industry, outperforming 86.67% of the companies in the same industry.
- With an excellent Return On Invested Capital value of 10.47%, BKR belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for BKR is below the industry average of 13.22%.
- The last Return On Invested Capital (10.47%) for BKR is above the 3 year average (10.02%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.33% | ||
| ROE | 13.74% | ||
| ROIC | 10.47% |
ROA(3y)6.45%
ROA(5y)3.4%
ROE(3y)14.67%
ROE(5y)7.7%
ROIC(3y)10.02%
ROIC(5y)8.28%
1.3 Margins
- Looking at the Profit Margin, with a value of 9.33%, BKR belongs to the top of the industry, outperforming 81.67% of the companies in the same industry.
- With a decent Operating Margin value of 12.91%, BKR is doing good in the industry, outperforming 68.33% of the companies in the same industry.
- BKR's Operating Margin has improved in the last couple of years.
- BKR's Gross Margin of 23.68% is in line compared to the rest of the industry. BKR outperforms 48.33% of its industry peers.
- In the last couple of years the Gross Margin of BKR has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.91% | ||
| PM (TTM) | 9.33% | ||
| GM | 23.68% |
OM growth 3Y12.43%
OM growth 5Y27.44%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y4.17%
GM growth 5Y8.91%
2. BKR Health Analysis
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so BKR is still creating some value.
- The number of shares outstanding for BKR has been reduced compared to 1 year ago.
- 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 2.62. 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.
- With a decent Altman-Z score value of 2.62, BKR is doing good in the industry, outperforming 65.00% of the companies in the same industry.
- BKR has a debt to FCF ratio of 2.40. This is a good value and a sign of high solvency as BKR would need 2.40 years to pay back of all of its debts.
- BKR's Debt to FCF ratio of 2.40 is fine compared to the rest of the industry. BKR outperforms 71.67% of its industry peers.
- BKR has a Debt/Equity ratio of 0.29. This is a healthy value indicating a solid balance between debt and equity.
- With a decent Debt to Equity ratio value of 0.29, BKR is doing good in the industry, outperforming 65.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 2.4 | ||
| Altman-Z | 2.62 |
ROIC/WACC1.23
WACC8.51%
2.3 Liquidity
- A Current Ratio of 1.36 indicates that BKR should not have too much problems paying its short term obligations.
- With a Current ratio value of 1.36, BKR is not doing good in the industry: 71.67% of the companies in the same industry are doing better.
- A Quick Ratio of 1.00 indicates that BKR may have some problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 1.00, BKR is doing worse than 71.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.36 | ||
| Quick Ratio | 1 |
3. BKR Growth Analysis
3.1 Past
- The Earnings Per Share has grown by an nice 9.70% over the past year.
- BKR shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 144.10% yearly.
- Looking at the last year, BKR shows a decrease in Revenue. The Revenue has decreased by -0.34% in the last year.
- BKR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.02% yearly.
EPS 1Y (TTM)9.7%
EPS 3Y42.42%
EPS 5Y144.1%
EPS Q2Q%11.43%
Revenue 1Y (TTM)-0.34%
Revenue growth 3Y9.44%
Revenue growth 5Y6.02%
Sales Q2Q%0.3%
3.2 Future
- The Earnings Per Share is expected to grow by 7.00% on average over the next years.
- BKR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.24% yearly.
EPS Next Y2.41%
EPS Next 2Y8.53%
EPS Next 3Y9.51%
EPS Next 5Y7%
Revenue Next Year2.17%
Revenue Next 2Y4.11%
Revenue Next 3Y3.77%
Revenue Next 5Y2.24%
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. BKR Valuation Analysis
4.1 Price/Earnings Ratio
- BKR is valuated rather expensively with a Price/Earnings ratio of 23.00.
- Compared to the rest of the industry, the Price/Earnings ratio of BKR indicates a somewhat cheap valuation: BKR is cheaper than 71.67% of the companies listed in the same industry.
- BKR's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.29.
- A Price/Forward Earnings ratio of 22.46 indicates a rather expensive valuation of BKR.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of BKR is on the same level as its industry peers.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.57, BKR is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23 | ||
| Fwd PE | 22.46 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, BKR is valued a bit more expensive than 71.67% of the companies in the same industry.
- The rest of the industry has a similar Price/Free Cash Flow ratio as BKR.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.3 | ||
| EV/EBITDA | 12.45 |
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)9.55
PEG (5Y)0.16
EPS Next 2Y8.53%
EPS Next 3Y9.51%
5. BKR Dividend Analysis
5.1 Amount
- BKR has a Yearly Dividend Yield of 1.42%.
- Compared to an average industry Dividend Yield of 1.04, BKR pays a bit more dividend than its industry peers.
- BKR's Dividend Yield is slightly below the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.42% |
5.2 History
- The dividend of BKR has a limited annual growth rate of 5.32%.
- BKR has paid a dividend for at least 10 years, which is a reliable track record.
- BKR has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)5.32%
Div Incr Years3
Div Non Decr Years10
5.3 Sustainability
- BKR pays out 35.16% of its income as dividend. This is a sustainable payout ratio.
- The dividend of BKR is growing, but earnings are growing more, so the dividend growth is sustainable.
DP35.16%
EPS Next 2Y8.53%
EPS Next 3Y9.51%
BKR Fundamentals: All Metrics, Ratios and Statistics
59.81
-0.38 (-0.63%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)01-28 2026-01-28/amc
Earnings (Next)04-20 2026-04-20/amc
Inst Owners101.58%
Inst Owner Change0%
Ins Owners0.11%
Ins Owner Change3.09%
Market Cap59.11B
Revenue(TTM)27.73B
Net Income(TTM)2.59B
Analysts81.6
Price Target61.39 (2.64%)
Short Float %2.55%
Short Ratio2.78
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.42% |
Yearly Dividend0.92
Dividend Growth(5Y)5.32%
DP35.16%
Div Incr Years3
Div Non Decr Years10
Ex-Date02-17 2026-02-17 (0.23)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)12.22%
Min EPS beat(2)9.31%
Max EPS beat(2)15.13%
EPS beat(4)4
Avg EPS beat(4)10.62%
Min EPS beat(4)5.87%
Max EPS beat(4)15.13%
EPS beat(8)8
Avg EPS beat(8)10.61%
EPS beat(12)12
Avg EPS beat(12)9.77%
EPS beat(16)13
Avg EPS beat(16)2.7%
Revenue beat(2)2
Avg Revenue beat(2)2.55%
Min Revenue beat(2)1.64%
Max Revenue beat(2)3.46%
Revenue beat(4)3
Avg Revenue beat(4)1.54%
Min Revenue beat(4)-1.98%
Max Revenue beat(4)3.46%
Revenue beat(8)5
Avg Revenue beat(8)0.95%
Revenue beat(12)7
Avg Revenue beat(12)0.73%
Revenue beat(16)7
Avg Revenue beat(16)-0.51%
PT rev (1m)12.94%
PT rev (3m)14.61%
EPS NQ rev (1m)-0.12%
EPS NQ rev (3m)-2.2%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)-0.06%
Revenue NQ rev (1m)0.58%
Revenue NQ rev (3m)-0.23%
Revenue NY rev (1m)0.13%
Revenue NY rev (3m)-0.9%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23 | ||
| Fwd PE | 22.46 | ||
| P/S | 2.13 | ||
| P/FCF | 23.3 | ||
| P/OCF | 15.51 | ||
| P/B | 3.14 | ||
| P/tB | 6.82 | ||
| EV/EBITDA | 12.45 |
EPS(TTM)2.6
EY4.35%
EPS(NY)2.66
Fwd EY4.45%
FCF(TTM)2.57
FCFY4.29%
OCF(TTM)3.86
OCFY6.45%
SpS28.06
BVpS19.06
TBVpS8.77
PEG (NY)9.55
PEG (5Y)0.16
Graham Number33.39
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.33% | ||
| ROE | 13.74% | ||
| ROCE | 13.25% | ||
| ROIC | 10.47% | ||
| ROICexc | 12.82% | ||
| ROICexgc | 23.79% | ||
| OM | 12.91% | ||
| PM (TTM) | 9.33% | ||
| GM | 23.68% | ||
| FCFM | 9.15% |
ROA(3y)6.45%
ROA(5y)3.4%
ROE(3y)14.67%
ROE(5y)7.7%
ROIC(3y)10.02%
ROIC(5y)8.28%
ROICexc(3y)12.14%
ROICexc(5y)9.97%
ROICexgc(3y)23.46%
ROICexgc(5y)19.35%
ROCE(3y)12.68%
ROCE(5y)10.48%
ROICexgc growth 3Y15.98%
ROICexgc growth 5Y39.85%
ROICexc growth 3Y19.24%
ROICexc growth 5Y37.98%
OM growth 3Y12.43%
OM growth 5Y27.44%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y4.17%
GM growth 5Y8.91%
F-Score7
Asset Turnover0.68
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 2.4 | ||
| Debt/EBITDA | 1.13 | ||
| Cap/Depr | 107.16% | ||
| Cap/Sales | 4.59% | ||
| Interest Coverage | 12.17 | ||
| Cash Conversion | 79.92% | ||
| Profit Quality | 98.03% | ||
| Current Ratio | 1.36 | ||
| Quick Ratio | 1 | ||
| Altman-Z | 2.62 |
F-Score7
WACC8.51%
ROIC/WACC1.23
Cap/Depr(3y)110.75%
Cap/Depr(5y)100.59%
Cap/Sales(3y)4.66%
Cap/Sales(5y)4.57%
Profit Quality(3y)87.19%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)9.7%
EPS 3Y42.42%
EPS 5Y144.1%
EPS Q2Q%11.43%
EPS Next Y2.41%
EPS Next 2Y8.53%
EPS Next 3Y9.51%
EPS Next 5Y7%
Revenue 1Y (TTM)-0.34%
Revenue growth 3Y9.44%
Revenue growth 5Y6.02%
Sales Q2Q%0.3%
Revenue Next Year2.17%
Revenue Next 2Y4.11%
Revenue Next 3Y3.77%
Revenue Next 5Y2.24%
EBIT growth 1Y3.59%
EBIT growth 3Y23.05%
EBIT growth 5Y35.11%
EBIT Next Year39.14%
EBIT Next 3Y18.29%
EBIT Next 5Y10.56%
FCF growth 1Y23.52%
FCF growth 3Y41.31%
FCF growth 5Y50.37%
OCF growth 1Y14.35%
OCF growth 3Y26.37%
OCF growth 5Y23.92%
BAKER HUGHES CO / BKR FAQ
What is the ChartMill fundamental rating of BAKER HUGHES CO (BKR) stock?
ChartMill assigns a fundamental rating of 5 / 10 to BKR.
What is the valuation status of BAKER HUGHES CO (BKR) stock?
ChartMill assigns a valuation rating of 2 / 10 to BAKER HUGHES CO (BKR). This can be considered as Overvalued.
Can you provide the profitability details for BAKER HUGHES CO?
BAKER HUGHES CO (BKR) has a profitability rating of 7 / 10.
Can you provide the expected EPS growth for BKR stock?
The Earnings per Share (EPS) of BAKER HUGHES CO (BKR) is expected to grow by 2.41% in the next year.
Can you provide the dividend sustainability for BKR stock?
The dividend rating of BAKER HUGHES CO (BKR) is 6 / 10 and the dividend payout ratio is 35.16%.