BAKER HUGHES CO (BKR) Stock Fundamental Analysis
USA - NASDAQ:BKR - US05722G1004 - Common Stock
47.68 USD
+0.64 (+1.36%)
BKR gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 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. While showing a medium growth rate, BKR is valued expensive at the moment.
1. Profitability
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.
BKR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
BKR has a Return On Assets of 7.37%. This is in the better half of the industry: BKR outperforms 75.00% of its industry peers.
The Return On Equity of BKR (15.77%) is better than 80.00% of its industry peers.
BKR's Return On Invested Capital of 11.19% is amongst the best of the industry. BKR outperforms 83.33% of its industry peers.
BKR had an Average Return On Invested Capital over the past 3 years of 9.18%. This is in line with the industry average of 7.82%.
The last Return On Invested Capital (11.19%) for BKR is above the 3 year average (9.18%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.37% | ||
| ROE | 15.77% | ||
| ROIC | 11.19% |
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 10.43%. This is in the better half of the industry: BKR outperforms 80.00% of its industry peers.
In the last couple of years the Profit Margin of BKR has grown nicely.
BKR's Operating Margin of 13.01% is fine compared to the rest of the industry. BKR outperforms 66.67% of its industry peers.
BKR's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 23.07%, BKR is in line with its industry, outperforming 43.33% of the companies in the same industry.
BKR's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.01% | ||
| PM (TTM) | 10.43% | ||
| GM | 23.07% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so BKR is still creating some value.
BKR has less shares outstanding than it did 1 year ago.
BKR has more shares outstanding than it did 5 years ago.
BKR has a better debt/assets ratio than last year.
2.2 Solvency
BKR has a debt to FCF ratio of 2.90. This is a good value and a sign of high solvency as BKR would need 2.90 years to pay back of all of its debts.
BKR's Debt to FCF ratio of 2.90 is fine compared to the rest of the industry. BKR outperforms 66.67% of its industry peers.
BKR has a Debt/Equity ratio of 0.33. This is a healthy value indicating a solid balance between debt and equity.
BKR has a Debt to Equity ratio of 0.33. This is comparable to the rest of the industry: BKR outperforms 58.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 2.9 | ||
| Altman-Z | N/A |
ROIC/WACC1.32
WACC8.49%
2.3 Liquidity
A Current Ratio of 1.41 indicates that BKR should not have too much problems paying its short term obligations.
BKR has a worse Current ratio (1.41) than 71.67% of its industry peers.
A Quick Ratio of 1.00 indicates that BKR should not have too much problems paying its short term obligations.
BKR has a worse Quick ratio (1.00) than 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.41 | ||
| Quick Ratio | 1 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 15.60% over the past year.
BKR shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 23.35% yearly.
The Revenue has been growing slightly by 1.51% in the past year.
BKR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.14% yearly.
EPS 1Y (TTM)15.6%
EPS 3Y55.53%
EPS 5Y23.35%
EPS Q2Q%1.49%
Revenue 1Y (TTM)1.51%
Revenue growth 3Y10.72%
Revenue growth 5Y3.14%
Sales Q2Q%1.48%
3.2 Future
Based on estimates for the next years, BKR will show a small growth in Earnings Per Share. The EPS will grow by 7.64% on average per year.
BKR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.90% yearly.
EPS Next Y3.33%
EPS Next 2Y6.33%
EPS Next 3Y8.89%
EPS Next 5Y7.64%
Revenue Next Year-1.39%
Revenue Next 2Y1.13%
Revenue Next 3Y2.73%
Revenue Next 5Y1.9%
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
BKR is valuated rather expensively with a Price/Earnings ratio of 18.92.
BKR's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of BKR to the average of the S&P500 Index (26.13), we can say BKR is valued slightly cheaper.
A Price/Forward Earnings ratio of 17.79 indicates a rather expensive valuation of BKR.
The rest of the industry has a similar Price/Forward Earnings ratio as BKR.
BKR is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.35, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.92 | ||
| Fwd PE | 17.79 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BKR is valued more expensive than 80.00% of the companies in the same industry.
BKR's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.5 | ||
| EV/EBITDA | 10.45 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
BKR has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)5.69
PEG (5Y)0.81
EPS Next 2Y6.33%
EPS Next 3Y8.89%
5. Dividend
5.1 Amount
BKR has a Yearly Dividend Yield of 1.89%.
BKR's Dividend Yield is a higher than the industry average which is at 2.92.
Compared to the average S&P500 Dividend Yield of 2.39, BKR is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.89% |
5.2 History
The dividend of BKR has a limited annual growth rate of 4.36%.
BKR has paid a dividend for at least 10 years, which is a reliable track record.
BKR has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)4.36%
Div Incr Years3
Div Non Decr Years10
5.3 Sustainability
30.82% of the earnings are spent on dividend by BKR. This is a low number and sustainable payout ratio.
The dividend of BKR is growing, but earnings are growing more, so the dividend growth is sustainable.
DP30.82%
EPS Next 2Y6.33%
EPS Next 3Y8.89%
NASDAQ:BKR (11/6/2025, 2:58:08 PM)
47.68
+0.64 (+1.36%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners101.25%
Inst Owner Change0%
Ins Owners0.11%
Ins Owner Change-12%
Market Cap47.01B
Revenue(TTM)27.71B
Net Income(TTM)2.89B
Analysts80.77
Price Target52.85 (10.84%)
Short Float %2.14%
Short Ratio3.17
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.89% |
Yearly Dividend0.84
Dividend Growth(5Y)4.36%
DP30.82%
Div Incr Years3
Div Non Decr Years10
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.74%
Min EPS beat(2)9.31%
Max EPS beat(2)12.17%
EPS beat(4)4
Avg EPS beat(4)9.49%
Min EPS beat(4)5.87%
Max EPS beat(4)12.17%
EPS beat(8)8
Avg EPS beat(8)9.44%
EPS beat(12)11
Avg EPS beat(12)8.09%
EPS beat(16)12
Avg EPS beat(16)1.03%
Revenue beat(2)2
Avg Revenue beat(2)2.34%
Min Revenue beat(2)1.64%
Max Revenue beat(2)3.04%
Revenue beat(4)3
Avg Revenue beat(4)1.43%
Min Revenue beat(4)-1.98%
Max Revenue beat(4)3.04%
Revenue beat(8)4
Avg Revenue beat(8)0.25%
Revenue beat(12)6
Avg Revenue beat(12)0.14%
Revenue beat(16)6
Avg Revenue beat(16)-0.79%
PT rev (1m)3.99%
PT rev (3m)10.09%
EPS NQ rev (1m)2.05%
EPS NQ rev (3m)0.59%
EPS NY rev (1m)0.4%
EPS NY rev (3m)1.6%
Revenue NQ rev (1m)0.31%
Revenue NQ rev (3m)1.06%
Revenue NY rev (1m)0.08%
Revenue NY rev (3m)0.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.92 | ||
| Fwd PE | 17.79 | ||
| P/S | 1.7 | ||
| P/FCF | 22.5 | ||
| P/OCF | 14.08 | ||
| P/B | 2.56 | ||
| P/tB | 5.81 | ||
| EV/EBITDA | 10.45 |
EPS(TTM)2.52
EY5.29%
EPS(NY)2.68
Fwd EY5.62%
FCF(TTM)2.12
FCFY4.44%
OCF(TTM)3.39
OCFY7.1%
SpS28.11
BVpS18.59
TBVpS8.21
PEG (NY)5.69
PEG (5Y)0.81
Graham Number32.47
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.37% | ||
| ROE | 15.77% | ||
| ROCE | 13.45% | ||
| ROIC | 11.19% | ||
| ROICexc | 12.44% | ||
| ROICexgc | 21.61% | ||
| OM | 13.01% | ||
| PM (TTM) | 10.43% | ||
| GM | 23.07% | ||
| FCFM | 7.54% |
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%
ROICexgc growth 3Y31.82%
ROICexgc 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 | 0.33 | ||
| Debt/FCF | 2.9 | ||
| Debt/EBITDA | 1.26 | ||
| Cap/Depr | 108.33% | ||
| Cap/Sales | 4.51% | ||
| Interest Coverage | 12.18 | ||
| Cash Conversion | 70.16% | ||
| Profit Quality | 72.26% | ||
| Current Ratio | 1.41 | ||
| Quick Ratio | 1 | ||
| Altman-Z | N/A |
F-Score8
WACC8.49%
ROIC/WACC1.32
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)15.6%
EPS 3Y55.53%
EPS 5Y23.35%
EPS Q2Q%1.49%
EPS Next Y3.33%
EPS Next 2Y6.33%
EPS Next 3Y8.89%
EPS Next 5Y7.64%
Revenue 1Y (TTM)1.51%
Revenue growth 3Y10.72%
Revenue growth 5Y3.14%
Sales Q2Q%1.48%
Revenue Next Year-1.39%
Revenue Next 2Y1.13%
Revenue Next 3Y2.73%
Revenue Next 5Y1.9%
EBIT growth 1Y10.85%
EBIT growth 3Y29.82%
EBIT growth 5Y16.91%
EBIT Next Year37.37%
EBIT Next 3Y18.92%
EBIT Next 5Y11.6%
FCF growth 1Y10.47%
FCF growth 3Y10.61%
FCF growth 5Y18.31%
OCF growth 1Y10.24%
OCF growth 3Y11.96%
OCF growth 5Y9.4%
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 for BKR stock?
ChartMill assigns a valuation rating of 3 / 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.
What are the PE and PB ratios of BAKER HUGHES CO (BKR) stock?
The Price/Earnings (PE) ratio for BAKER HUGHES CO (BKR) is 18.92 and the Price/Book (PB) ratio is 2.56.
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 30.82%.