BAKER HUGHES CO (BKR) Stock Fundamental Analysis
USA - NASDAQ:BKR - US05722G1004 - Common Stock
46.62 USD
-0.66 (-1.4%)
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. BKR scores excellent on profitability, but there are some minor concerns on its financial health. BKR is valied quite expensively at the moment, while it does show a decent growth rate. Finally BKR also has an excellent dividend rating. With these ratings, BKR could be worth investigating further for dividend investing!.
1. Profitability
1.1 Basic Checks
BKR had positive earnings in the past year.
BKR had a positive operating cash flow in the past year.
In multiple years BKR reported negative net income over the last 5 years.
BKR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 7.87%, BKR is doing good in the industry, outperforming 77.05% of the companies in the same industry.
BKR has a better Return On Equity (17.22%) than 81.97% of its industry peers.
BKR has a Return On Invested Capital of 11.38%. This is amongst the best in the industry. BKR outperforms 81.97% of its industry peers.
The Average Return On Invested Capital over the past 3 years 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
The Profit Margin of BKR (11.04%) is better than 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.
BKR's Gross Margin of 22.58% is on the low side compared to the rest of the industry. BKR is outperformed by 60.66% of its industry peers.
BKR's Gross Margin has improved in the last couple of years.
| 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
BKR has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for BKR has been reduced compared to 1 year ago.
The number of shares outstanding for BKR has been increased compared to 5 years ago.
Compared to 1 year ago, BKR has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.33 indicates that BKR is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.33, BKR is in the better half of the industry, outperforming 65.57% of the companies in the same industry.
The Debt to FCF ratio of BKR is 2.79, which is a good value as it means it would take BKR, 2.79 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of BKR (2.79) is better than 68.85% of its industry peers.
BKR has a Debt/Equity ratio of 0.34. This is a healthy value indicating a solid balance between debt and equity.
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 | 2.33 |
ROIC/WACC1.32
WACC8.59%
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 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
The Earnings Per Share has grown by an impressive 30.05% over the past year.
Measured over the past years, BKR shows a very strong growth in Earnings Per Share. The EPS has been growing by 23.35% on average per year.
BKR shows a small growth in Revenue. In the last year, the Revenue has grown by 2.13%.
BKR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.14% yearly.
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-1.53%
Revenue Next 2Y0.96%
Revenue Next 3Y2.75%
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
A Price/Earnings ratio of 18.57 indicates a rather expensive valuation of BKR.
BKR's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.41, BKR is valued a bit cheaper.
With a Price/Forward Earnings ratio of 17.37, BKR is valued on the expensive side.
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.
When comparing the Price/Forward Earnings ratio of BKR to the average of the S&P500 Index (22.88), we can say BKR is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.57 | ||
| Fwd PE | 17.37 |
4.2 Price Multiples
BKR's Enterprise Value to EBITDA ratio is rather expensive when compared to the industry. BKR is more expensive than 83.61% of the companies in the same industry.
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 | 21.23 | ||
| EV/EBITDA | 9.92 |
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.
BKR has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)6.59
PEG (5Y)0.8
EPS Next 2Y6.41%
EPS Next 3Y9.61%
5. Dividend
5.1 Amount
BKR has a Yearly Dividend Yield of 1.96%. Purely for dividend investing, there may be better candidates out there.
BKR's Dividend Yield is a higher than the industry average which is at 3.34.
BKR's Dividend Yield is comparable with the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.96% |
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
28.64% 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.
DP28.64%
EPS Next 2Y6.41%
EPS Next 3Y9.61%
NASDAQ:BKR (9/19/2025, 11:59:03 AM)
46.62
-0.66 (-1.4%)
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 Change-10.62%
Market Cap45.96B
Analysts80
Price Target50.82 (9.01%)
Short Float %2.57%
Short Ratio3.83
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.96% |
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)0.13%
PT rev (3m)5.47%
EPS NQ rev (1m)-0.08%
EPS NQ rev (3m)-1.16%
EPS NY rev (1m)1.09%
EPS NY rev (3m)0.3%
Revenue NQ rev (1m)0.04%
Revenue NQ rev (3m)0.15%
Revenue NY rev (1m)0.24%
Revenue NY rev (3m)0.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.57 | ||
| Fwd PE | 17.37 | ||
| P/S | 1.66 | ||
| P/FCF | 21.23 | ||
| P/OCF | 13.44 | ||
| P/B | 2.6 | ||
| P/tB | 5.76 | ||
| EV/EBITDA | 9.92 |
EPS(TTM)2.51
EY5.38%
EPS(NY)2.68
Fwd EY5.76%
FCF(TTM)2.2
FCFY4.71%
OCF(TTM)3.47
OCFY7.44%
SpS28
BVpS17.95
TBVpS8.09
PEG (NY)6.59
PEG (5Y)0.8
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 | 2.33 |
F-Score8
WACC8.59%
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)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-1.53%
Revenue Next 2Y0.96%
Revenue Next 3Y2.75%
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%