BKR Baker Hughes Company - Fundamental Analysis
NEUTRAL
BKR Stock | Fundamental Analysis & Investment Insights
NYSE
•
Energy
•
Oil & Gas Equipment & Services
Current Price
$47.14
Analyst Target
$53.14
+12.7% Upside
52W High
$51.12
52W Low
$33.6
At a glance
Key valuation, profitability, growth, and risk metrics.
Updated Jan 04, 2026
Market cap
$46.52B
P/E
16.26
ROE
16.9%
Profit margin
10.4%
Debt/Equity
0.33
Dividend yield
1.95%
AI Analysis
Powered by advanced machine learning algorithms
Confidence Score
72%
Analysis Accuracy
Baker Hughes (BKR) exhibits mixed financial health with a Piotroski F-Score of 4/9 indicating stable but not strong fundamentals, while the Altman Z-Score of 99034222848.0 suggests an extremely low distress risk, reflecting robust balance sheet resilience. The stock trades above its Graham Number of $34.66 and intrinsic value estimate of $20.30 at $47.14, implying a significant premium, though this is partially justified by solid ROE of 16.89% and sector-relative profitability. Despite positive recent earnings surprises and strong 5-year price performance (+154.8%), weakening YoY earnings growth (-20.80%) and negative insider activity raise caution. Analysts maintain a 'buy' recommendation with a $53.14 target, suggesting upside potential, but near-term technical trends are bearish.
Key Strengths
Exceptionally high Altman Z-Score indicates near-zero bankruptcy risk and strong financial stability
Above-sector average ROE (16.89% vs 11.38%) and profit margin (10.43% vs 9.13%) reflect efficient operations
Low Debt/Equity ratio of 0.33 provides financial flexibility and resilience in volatile energy markets
Dividend payout ratio of 31.03% is sustainable with room for future increases
Recent quarterly earnings have consistently beaten estimates, with 3 of the last 4 quarters showing positive surprises
Key Risks
Piotroski F-Score of 4/9 indicates weak to stable financial health, particularly concerning earnings and cash flow trends
Year-over-year earnings growth is sharply negative at -20.80%, signaling deteriorating profitability
Insider selling activity totaling $27.40M over the last 6 months reflects bearish sentiment from management
Technical trend score of 10/100 suggests strong near-term bearish momentum
Forward P/E of 17.61 is elevated relative to current P/E, with no PEG ratio available to justify growth expectations
AI Fair Value Estimate
Based on comprehensive analysis
$36.5
-22.6% below current price
Performance Snowflake
Multi-dimensional analysis across 5 key categories
Overall
62
Strong
58
52
70
68
60
AI Verdict
Neutral with upside potential if earnings stabilize
Key drivers: High Altman Z-Score and ROE support stability, Negative earnings growth and insider selling cap upside, Valuation premium to Graham Number limits margin of safety, Analyst target implies 12.7% upside, supporting moderate optimism
Confidence
75%
Value
58/100
Ref P/E, PEG, Graham Number
Positives
- P/E of 16.26 is below sector average of 21.83, offering relative value
- Price/Sales of 1.68 is reasonable for equipment & services firm
Watchpoints
- Stock trades at 36% premium to Graham Number ($34.66)
- No PEG ratio due to unreliable growth forecast or negative growth
Future
52/100
Ref Growth rates
Positives
- Most recent Q/Q EPS growth of +7.9% shows short-term improvement
- Analyst target price implies positive forward outlook
Watchpoints
- YoY earnings growth is -20.80%, indicating fundamental weakness
- Revenue growth is minimal at 1.50%, limiting top-line momentum
Past
70/100
Ref Historical trends
Positives
- 5-year price return of +154.8% outperforms most peers
- History of beating earnings estimates in recent quarters
Watchpoints
- Earnings volatility evident with multiple large negative surprises in 2021–2022
- 1-month price change of -6.6% breaks recent uptrend
Health
68/100
Ref Altman Z-Score, Piotroski F-Score
Positives
- Altman Z-Score of 99034222848.0 is astronomically high, indicating extreme financial safety
- Debt/Equity of 0.33 is conservative and below sector average
Watchpoints
- Piotroski F-Score of 4/9 reflects weak profitability and cash flow trends
- Quick ratio of 0.74 suggests potential liquidity pressure
Dividend
60/100
Ref Yield, Payout
Positives
- Dividend yield of 1.95% is modest but above some peers
- Payout ratio of 31.03% is sustainable and leaves room for growth
Watchpoints
- Dividend strength score of 40/100 indicates below-average reliability or growth history
- No 5-year average yield data available, limiting trend assessment
Stock Price & Analyst Targets
Real-time price movements and analyst price targets
Current Price
$47.14
Analyst Target
$53.14
Upside/Downside
+12.7%
Multi-Horizon Performance vs Peers
Price momentum across 5Y → 1W horizons for BKR and closest competitors.
Updated 2026-01-02
| Company | 5Y | 3Y | 1Y | 6M | 1M | 1W |
|---|---|---|---|---|---|---|
|
BKR
Baker Hughes Company
Primary
|
+154.8% | +76.0% | +15.8% | +20.1% | -6.6% | +4.2% |
|
FANG
Diamondback Energy, Inc.
Peer
|
+284.5% | +31.5% | -6.1% | +9.7% | -3.8% | +4.1% |
|
MPC
Marathon Petroleum Corporation
Peer
|
+361.9% | +58.9% | +19.3% | -5.2% | -12.8% | +0.9% |
|
OXY
Occidental Petroleum Corporation
Peer
|
+157.7% | -27.0% | -13.0% | -2.2% | +0.4% | +6.3% |
|
VLO
Valero Energy Corporation
Peer
|
+255.9% | +51.0% | +38.5% | +16.0% | -6.6% | +0.8% |
Positive values indicate cumulative gains over the specified period. Comparables pulled from the same sector to highlight whether momentum is stock-specific or industry-wide.
Historical Performance Trends
Long-term financial metrics and growth patterns
Revenue & Net Income
Profit & Operating Margins
Return on Equity (ROE)
Quarterly Revenue Growth
Historical data shows last 12 quarters (3 years)
Valuation Metrics
Key valuation ratios and pricing indicators
P/E Ratio
16.26
Forward P/E
17.61
PEG Ratio
N/A
P/B Ratio
2.56
P/S Ratio
1.68
EV/Revenue
1.81
EV/EBITDA
10.65
Market Cap
$46.52B
Profitability
Profit margins and return metrics
Profit Margin
10.43%
Operating Margin
13.52%
Gross Margin
21.35%
ROE
16.89%
ROA
5.77%
Growth
Revenue and earnings growth rates
Revenue Growth
+1.5%
Earnings Growth
-20.8%
Q/Q Revenue Growth
N/A
Q/Q Earnings Growth
-20.5%
Financial Health
Balance sheet strength and liquidity metrics
Debt/Equity
0.33
Low debt
Current Ratio
1.41
Good
Quick Ratio
0.74
Poor
Cash/Share
$2.73
Quarterly Earnings History
EPS performance vs analyst estimates
2026-01-25
$N/A
2025-10-23
$0.68
+9.3% surprise
2025-07-22
$0.63
+13.6% surprise
2025-04-22
$0.4
-15.4% surprise
Energy Sector Comparison
Comparing BKR against 15 companies in the Energy sector
(0 bullish, 15 neutral, 0 bearish)
P/E Ratio
16.26
This Stock
vs
18.8
Sector Avg
-13.5%
(Discount)
Return on Equity (ROE)
16.89%
This Stock
vs
13.27%
Sector Avg
+27.3%
(Excellent)
Profit Margin
10.43%
This Stock
vs
11.47%
Sector Avg
-9.0%
(Weaker)
Debt to Equity
0.33
This Stock
vs
0.56
Sector Avg
-41.5%
(Less Debt)
Revenue Growth
1.5%
This Stock
vs
2.17%
Sector Avg
-31.0%
(Slower)
Current Ratio
1.41
This Stock
vs
1.2
Sector Avg
+17.1%
(Stronger)
Similar Companies
Peer comparison within the same industry
| Company | AI Rating | Market Cap | P/E | ROE | Profit Margin | Price | |
|---|---|---|---|---|---|---|---|
|
BKR
Baker Hughes Company
|
NEUTRAL | $46.52B | 16.26 | 16.9% | 10.4% | $47.14 | |
|
FANG
Diamondback Energy, Inc.
|
NEUTRAL | $44.1B | 10.7 | 10.9% | 28.7% | $152.34 | |
|
MPC
Marathon Petroleum Corporation
|
NEUTRAL | $50.21B | 17.57 | 18.9% | 2.2% | $165.14 | |
|
OXY
Occidental Petroleum Corporation
|
NEUTRAL | $41.75B | 31.16 | 6.0% | 8.2% | $42.38 | |
|
VLO
Valero Energy Corporation
|
NEUTRAL | $51.35B | 34.37 | 5.2% | 1.3% | $165.31 |
Recent Insider Trading
Insider buy and sell transactions from the last 6 months
| Date | Insider | Position | Transaction | Shares | Value |
|---|---|---|---|---|---|
| 2025-12-15 | SOHI MOHSEN M | Director | Stock Award | 10,309 | - |
| 2025-11-13 | CHARLTON REBECCA L | Officer | Sale | 278 | $13,222 |
| 2025-11-12 | CHARLTON REBECCA L | Officer | Stock Award | 1,526 | - |
| 2025-11-10 | MOGHAL AHMED FARHAN | Chief Financial Officer | Stock Award | 5,128 | - |
| 2025-09-23 | RAMASWAMY SREEGANESH | Officer | Sale | 25,000 | $1,250,000 |
| 2025-09-23 | APOSTOLIDES JAMES E | Officer | Sale | 6,216 | $310,800 |
| 2025-09-23 | CHARLTON REBECCA L | Officer | Sale | 1,000 | $50,000 |
| 2025-09-23 | APOSTOLIDES JAMES E | Officer | Option Exercise | 6,216 | $220,979 |
| 2025-09-10 | BORRAS MARIA CLAUDIA | Officer | Sale | 50,362 | $2,361,474 |
| 2025-09-10 | BORRAS MARIA CLAUDIA | Officer | Option Exercise | 50,362 | $1,857,854 |
| 2025-09-03 | GATTI AMERINO | Officer | Stock Award | 9,806 | - |
| 2025-07-24 | CHARLTON REBECCA L | Officer | Sale | 500 | $22,500 |
| 2025-07-23 | SIMONELLI LORENZO | Chief Executive Officer | Sale | 526,568 | $23,390,151 |
| 2025-07-23 | SIMONELLI LORENZO | Chief Executive Officer | Option Exercise | 353,218 | $8,116,950 |
Insider transactions can signal confidence or concerns about company prospects
Wall Street Analysts
Professional analyst ratings and price targets
Consensus
BUY
21 analysts
UBS
2025-12-12
Neutral
Neutral
Citigroup
2025-12-11
Buy
Buy
Jefferies
2025-11-20
Buy
Buy
Citigroup
2025-10-28
Buy
Buy
TD Cowen
2025-10-27
Buy
Buy
Barclays
2025-10-27
Overweight
Overweight
Stifel
2025-10-27
Buy
Buy
Piper Sandler
2025-10-16
Overweight
Overweight
Citigroup
2025-10-08
Buy
Buy
UBS
2025-10-06
Neutral
Neutral