BKR Baker Hughes Company - Fundamental Analysis
NEUTRAL
Sign in to save
Save this symbol to a watchlist or track a position.
BKR Stock | Fundamental Analysis & Investment Insights
NASDAQ
Energy
Oil & Gas Equipment & Services
Current Price
Live
$58.92
Analyst Target
$59.75
+1.4%
Upside
52W High
$59.54
52W Low
$33.6
At a glance
Key valuation, profitability, growth, and risk metrics.
Updated Feb 07, 2026
Market cap
$58.23B
P/E
22.66
ROE
14.6%
Profit margin
9.3%
Debt/Equity
0.35
Dividend yield
1.56%
AI Analysis
Powered by advanced machine learning algorithms
Confidence Score
78%
Analysis Accuracy
Baker Hughes (BKR) exhibits a Piotroski F-Score of 6/9, indicating stable financial health, though it lacks the strength of a top-tier score. The absence of an Altman Z-Score raises concern about default risk, particularly given the company’s modest current ratio (1.36) and quick ratio (0.75). While the Graham Number ($33.41) suggests undervaluation, the current price of $58.92 trades at a significant premium, supported by a forward P/E of 20.32 and strong earnings surprises in recent quarters. However, year-over-year earnings growth is sharply negative (-25.6%), and the 12-month revenue growth is negligible (0.3%), signaling underlying operational challenges. Analysts remain bullish with a 'buy' recommendation, but technical momentum is weak (10/100).
Key Strengths
Piotroski F-Score of 6 indicates stable financial health with consistent profitability and positive operating cash flow trends
Strong earnings surprise history (average +18.32% over last 4 quarters) reflects solid execution and management guidance accuracy
Attractive forward P/E of 20.32, below sector average of 22.86, suggesting relative valuation appeal
Dividend payout ratio of 35.38% is sustainable and supports income-oriented investors
Recent quarterly EPS growth (Q/Q +29.4%) signals potential recovery in earnings momentum
Key Risks
Negative year-over-year earnings growth (-25.6%) and near-zero revenue growth (0.3%) indicate ongoing business headwinds
Lack of an Altman Z-Score raises unquantified bankruptcy risk; current ratio (1.36) and quick ratio (0.75) are below ideal levels
Technical trend is bearish (10/100), suggesting weak momentum and potential resistance near $59.54
High P/E of 22.66 and Price/Book of 3.09 suggest premium valuation relative to intrinsic value estimates
Insider sentiment and dividend strength are both low (40/100), indicating limited confidence from insiders and modest income appeal
AI Fair Value Estimate
Based on comprehensive analysis
$33.41
-43.3% below current price
Performance Snowflake
Multi-dimensional analysis across 5 key categories
Overall
53
Moderate
45
68
58
55
40
AI Verdict
neutral
Key drivers: Stable Piotroski F-Score (6/9), Strong earnings surprise history, Negative YoY earnings and revenue growth, High valuation relative to Graham Number, Bearish technical trend
Confidence
78%
Value
45/100
Ref P/E, PEG, Graham Number
Positives
- Forward P/E (20.32) is below sector average (22.86)
- Payout ratio (35.38%) is sustainable and below 50%
Watchpoints
- Current price ($58.92) is 77% above Graham Number ($33.41)
- Price/Book (3.09) is high, indicating premium valuation
- No PEG ratio available limits growth-adjusted valuation analysis
Future
68/100
Ref Growth rates
Positives
- Recent Q/Q EPS growth of +29.4% suggests improving earnings momentum
- Average earnings surprise of +18.32% over last 4 quarters indicates strong execution
Watchpoints
- YoY earnings growth is -25.6%, signaling contraction
- Revenue growth is flat at 0.30% year-over-year
- No forward growth guidance or PEG ratio available
Past
58/100
Ref Historical trends
Positives
- Consistent earnings beat rate (3/4 in last 4 quarters)
- Historical earnings surprises show resilience, including multiple +10%+ beats
Watchpoints
- Significant negative surprises in 2021–2022 (e.g., -144.2% in Q1 2021)
- Multiple quarters of negative EPS (2020–2022), including a -1134.6% surprise in Q3 2020
- Long-term earnings volatility and cyclical weakness
Health
55/100
Ref Altman Z-Score, Piotroski F-Score
Positives
- Piotroski F-Score of 6/9 indicates stable financial health
- Debt/Equity of 0.35 is below sector average (0.67), indicating conservative leverage
Watchpoints
- No Altman Z-Score available, raising unquantified bankruptcy risk
- Quick ratio of 0.75 is below 1.0, indicating potential liquidity strain
- Current ratio of 1.36 is only marginally healthy
Dividend
40/100
Ref Yield, Payout
Positives
- Dividend yield of 1.56% is modest but consistent
- Payout ratio of 35.38% is well below 100%, indicating sustainability
Watchpoints
- Dividend strength score of 40/100 reflects weak investor appeal
- No 5-year average yield or dividend growth data available
- Low insider sentiment suggests limited confidence in long-term payout stability
Valuation Metrics
Key valuation ratios and pricing indicators
P/E Ratio
22.66
Forward P/E
20.32
PEG Ratio
N/A
P/B Ratio
3.09
P/S Ratio
2.1
EV/Revenue
2.21
EV/EBITDA
13.06
Market Cap
$58.23B
Profitability
Profit margins and return metrics
Profit Margin
9.33%
Operating Margin
12.51%
Gross Margin
23.68%
ROE
14.55%
ROA
5.54%
Growth
Revenue and earnings growth rates
Revenue Growth
+0.3%
Earnings Growth
-25.6%
Q/Q Revenue Growth
N/A
Q/Q Earnings Growth
-25.7%
Financial Health
Balance sheet strength and liquidity metrics
Debt/Equity
0.35
Low debt
Current Ratio
1.36
Good
Quick Ratio
0.75
Poor
Cash/Share
$3.76
Quarterly Earnings History
EPS performance vs analyst estimates
2026-04-21
$N/A
2026-01-25
$0.88
+32.0% surprise
2025-10-23
$0.68
+9.3% surprise
2025-07-22
$0.63
+13.6% surprise
Energy Sector Comparison
Comparing BKR against 26 companies in the Energy sector
(0 bullish, 20 neutral, 6 bearish)
P/E Ratio
22.66
This Stock
vs
23.13
Sector Avg
-2.0%
(Discount)
Return on Equity (ROE)
14.55%
This Stock
vs
7.95%
Sector Avg
+83.0%
(Excellent)
Profit Margin
9.33%
This Stock
vs
8.82%
Sector Avg
+5.8%
(Better)
Debt to Equity
0.35
This Stock
vs
0.68
Sector Avg
-47.8%
(Less Debt)
Revenue Growth
0.3%
This Stock
vs
4.1%
Sector Avg
-92.7%
(Slower)
Current Ratio
1.36
This Stock
vs
1.18
Sector Avg
+14.6%
(Better)
Similar Companies
Peer comparison within the same industry
| Company | AI Rating | Market Cap | P/E | ROE | Profit Margin | Price | |
|---|---|---|---|---|---|---|---|
|
BKR
Baker Hughes Company
|
NEUTRAL | $58.23B | 22.66 | 14.6% | 9.3% | $58.92 | |
|
EOG
EOG Resources, Inc.
|
NEUTRAL | $57.5B | 10.46 | 18.5% | 24.4% | $105.32 | |
|
VLO
Valero Energy Corporation
|
NEUTRAL | $56.99B | 38.06 | 5.2% | 1.3% | $183.46 | |
|
PSX
Phillips 66
|
NEUTRAL | $55.88B | 37.27 | 5.6% | 1.1% | $138.28 | |
|
KMI
Kinder Morgan, Inc.
|
NEUTRAL | $61.0B | 22.48 | 8.9% | 16.6% | $27.42 |
Wall Street Analysts
Professional analyst ratings and price targets
Consensus
BUY
20 analysts
Stifel
2026-02-02
Buy
Buy
Jefferies
2026-02-02
Buy
Buy
Citigroup
2026-01-28
Buy
Buy
UBS
2026-01-28
Neutral
Neutral
Barclays
2026-01-27
Overweight
Overweight
Susquehanna
2026-01-27
Positive
Positive
JP Morgan
2026-01-27
Overweight
Overweight
BMO Capital
2026-01-27
Outperform
Outperform
Stifel
2026-01-27
Buy
Buy
Stifel
2026-01-21
Buy
Buy
Past News Coverage
Recent headlines mentioning BKR from our newsroom.
Newest → oldest
No matching news yet.