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Relative valuation derived from Industrials sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 50GRADE C+
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
13.2%
Sector: 8.9%
Dividend Analysis audit
No Dividend
This company does not currently pay a dividend.
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, Baker Hughes Co (BKR) receives a "Hold" rating with a composite score of 52.9/100, ranked #745 out of 4446 stocks. Key factor scores: Quality 50/100, Value 60/100, Momentum 64/100. This is quantitative analysis only — not investment advice.
Baker Hughes Co (BKR) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does Baker Hughes Co Do?
Baker Hughes Company provides a portfolio of technologies and services to energy and industrial value chain worldwide. It operates through four segments: Oilfield Services (OFS), Oilfield Equipment (OFE), Turbomachinery & Process Solutions (TPS), and Digital Solutions (DS). The OFS segment offers exploration, drilling, wireline, evaluation, completion, production, and intervention services; and drilling and completions fluids, wireline services, downhole completion tools and systems, wellbore intervention tools and services, pressure pumping systems, oilfield and industrial chemicals, and artificial lift technologies for oil and natural gas, and oilfield service companies. The OFE segment provides subsea and surface wellheads, pressure control and production systems and services, flexible pipe systems for offshore and onshore applications, and life-of-field solutions, including well intervention and decommissioning solutions; and services related to onshore and offshore drilling and production operations. The TPS segment provides equipment and related services for mechanical-drive, compression, and power-generation applications across the oil and gas industry. Its product portfolio includes drivers, compressors, and turnkey solutions; and pumps, valves, and compressed natural gas and small-scale liquefied natural gas solutions. This segment serves upstream, midstream, downstream, onshore, offshore, and industrial customers. The DS segment provides sensor-based process measurements, machine health and condition monitoring, asset strategy and management, control systems, as well as non-destructive testing and inspection, and pipeline integrity solutions. The company was formerly known as Baker Hughes, a GE company and changed its name to Baker Hughes Company in October 2019. Baker Hughes Company is based in Houston, Texas. Baker Hughes Co (BKR) is classified as a large-cap stock in the Industrials sector, specifically within the Machinery industry. The company is led by CEO Lorenzo Simonelli and employs approximately 55,000 people. With a market capitalization of $59.8B, BKR is one of the prominent companies in the Industrials sector.
Baker Hughes Co (BKR) Stock Rating — Hold (April 2026)
As of April 2026, Baker Hughes Co receives a Hold rating with a composite score of 52.9/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.BKR ranks #745 out of 4,446 stocks in our coverage universe. Within the Industrials sector, Baker Hughes Co ranks #126 of 752 stocks, placing it in the top quartile of its Industrials peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
BKR Stock Price and 52-Week Range
Baker Hughes Co (BKR) currently trades at $63.10. The stock lost $0.32 (0.5%) in the most recent trading session. The 52-week high for BKR is $65.78, which means the stock is currently trading -4.1% from its annual peak. The 52-week low is $33.60, putting the stock 87.8% above its annual trough. Recent trading volume was 6.2M shares, reflecting moderate market activity.
Is BKR Overvalued or Undervalued? — Valuation Analysis
Baker Hughes Co (BKR) carries a value factor score of 60/100 in the Blank Capital model, indicating fair valuation relative to historical norms. The trailing price-to-earnings ratio is 24.95x, compared to the Industrials sector average of 28.33x — a discount of 12%. The price-to-book ratio stands at 3.30x, versus the sector average of 2.23x. The price-to-sales ratio is 2.30x, compared to 0.50x for the average Industrials stock. On an enterprise value basis, BKR trades at 19.10x EV/EBITDA, versus 5.70x for the sector. The EV/EBIT multiple is 21.52x.
Overall, BKR's valuation appears roughly in line with sector benchmarks, suggesting the market is pricing the stock fairly given its current fundamentals and growth trajectory. Neither deep value nor significantly overpriced, the stock occupies a middle ground on valuation.
Baker Hughes Co Profitability — ROE, Margins, and Quality Score
Baker Hughes Co (BKR) earns a quality factor score of 50/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 13.2%, compared to the Industrials sector average of 8.9%, which is within a healthy range. Return on assets (ROA) comes in at 6.1% versus the sector average of 3.3%.
On a margin basis, Baker Hughes Co reports gross margins of 23.6%, compared to 35.8% for the sector. The operating margin is 12.0% (sector: 6.2%). Net profit margin stands at 9.2%, versus 3.9% for the average Industrials stock. Revenue growth is running at -1.8% on a trailing basis, compared to 6.4% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.
BKR Debt, Balance Sheet, and Financial Health
Baker Hughes Co has a debt-to-equity ratio of 115.0%, compared to the Industrials sector average of 70.0%. Leverage is within a manageable range for the industry, though investors should monitor debt trends over time. The current ratio is 1.36x, suggesting adequate working capital coverage. Total debt on the balance sheet is $6.09B. Cash and equivalents stand at $2.69B.
BKR has a beta of 0.83, meaning it is roughly in line with the broader market in terms of price volatility. The stability factor score for Baker Hughes Co is 64/100, reflecting average volatility within the normal range for its sector.
Baker Hughes Co Revenue and Earnings History — Quarterly Trend
In TTM 2026, Baker Hughes Co reported revenue of $27.25B. Net income for the quarter was $2.51B. Gross margin was 23.6%. Operating income came in at $3.28B.
In FY 2025, Baker Hughes Co reported revenue of $27.73B. Net income for the quarter was $2.62B. Revenue grew -0.3% year-over-year compared to FY 2024. Operating income came in at $2.88B.
In Q3 2025, Baker Hughes Co reported revenue of $7.01B. Net income for the quarter was $617M. Revenue grew 1.5% year-over-year compared to Q3 2024. Operating income came in at $821M.
In Q2 2025, Baker Hughes Co reported revenue of $6.91B. Net income for the quarter was $711M. Revenue grew -3.2% year-over-year compared to Q2 2024. Operating income came in at $967M.
Over the past 8 quarters, Baker Hughes Co has demonstrated a growth trajectory, with revenue expanding from $7.14B to $27.25B. Investors analyzing BKR stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
BKR Dividend Yield and Income Analysis
Baker Hughes Co (BKR) does not currently pay a dividend. This is common among growth-oriented companies in the Machinery industry that prefer to reinvest cash flows into business expansion rather than returning capital to shareholders. Income-focused investors looking for Industrials dividend stocks may want to explore other Industrials stocks or use the stock screener to filter by dividend yield.
BKR Momentum and Technical Analysis Profile
Baker Hughes Co (BKR) has a momentum factor score of 64/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 34/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 33/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
BKR vs Competitors — Industrials Sector Ranking and Peer Comparison
Comparing BKR against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full BKR vs S&P 500 (SPY) comparison to assess how Baker Hughes Co stacks up against the broader market across all factor dimensions.
BKR Next Earnings Date
No upcoming earnings date has been announced for Baker Hughes Co (BKR) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy BKR? — Investment Thesis Summary
Baker Hughes Co presents a balanced picture with arguments on both sides. The value score of 60/100 suggests attractive pricing relative to fundamentals. Price momentum is positive at 64/100, suggesting the trend favors buyers. Low volatility (stability score 64/100) reduces downside risk.
In summary, Baker Hughes Co (BKR) earns a Hold rating with a composite score of 52.9/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on BKR stock.
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Institutional Research Dossier
Baker Hughes Co (BKR) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
Baker Hughes (BKR) currently holds a BCR Action Rating of Hold, a reflection of its mixed performance and valuation. While the company exhibits strengths in profitability and operational efficiency compared to its sector, concerns persist regarding its revenue growth and capital allocation. The current valuation appears fair, but significant improvements in investment and sustained revenue growth are necessary to warrant a more bullish outlook.
The company's exposure to the cyclical oil and gas industry presents both opportunities and challenges. While the energy sector's recovery has benefited Baker Hughes, the long-term transition towards renewable energy sources poses a potential threat. The company's ability to adapt and diversify its offerings, particularly within its Digital Solutions segment, will be crucial for maintaining its competitive position and driving future growth. The Hold rating acknowledges the company's current strengths while recognizing the uncertainties surrounding its long-term prospects.
Business Strategy & Overview
Baker Hughes operates as a diversified energy technology company, providing a wide array of products and services across the energy value chain. Its four segments – Oilfield Services (OFS), Oilfield Equipment (OFE), Turbomachinery & Process Solutions (TPS), and Digital Solutions (DS) – cater to various aspects of the oil and gas industry, from exploration and drilling to production and processing. This diversified approach allows Baker Hughes to capture revenue streams from different stages of the energy lifecycle and mitigate risks associated with specific market segments.
The company's strategic positioning revolves around providing integrated solutions that enhance efficiency, productivity, and sustainability for its customers. Baker Hughes invests heavily in research and development to develop innovative technologies that address the evolving needs of the energy industry. For example, its Digital Solutions segment focuses on leveraging data analytics and artificial intelligence to optimize operations, improve asset performance, and reduce environmental impact. This emphasis on technology and innovation is crucial for maintaining a competitive edge in a rapidly changing industry.
Baker Hughes's product pipeline includes a range of advanced technologies, such as subsea production systems, advanced drilling tools, and digital solutions for asset management. The company is also actively involved in developing solutions for the energy transition, including carbon capture, utilization, and storage (CCUS) technologies, as well as solutions for hydrogen production and transportation. These initiatives demonstrate Baker Hughes's commitment to adapting to the changing energy landscape and capitalizing on emerging opportunities.
The company's industry context is characterized by cyclicality and volatility, driven by fluctuations in oil and gas prices, geopolitical events, and technological advancements. Baker Hughes competes with other major players in the energy technology sector, such as Schlumberger and Halliburton, as well as smaller, specialized companies. The company's ability to differentiate itself through innovation, customer service, and integrated solutions is critical for success in this competitive environment.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
-1.8%
Sector: 6.4%
-128% VS SCTR
Economic Moat Analysis
Baker Hughes possesses a narrow economic moat, primarily derived from intangible assets and switching costs. The company's intangible assets include its proprietary technologies, engineering expertise, and established brand reputation within the energy industry. These assets provide a degree of differentiation and allow Baker Hughes to command premium pricing for certain products and services. However, the energy technology sector is characterized by rapid innovation and competition, which limits the durability of these advantages.
Switching costs also contribute to Baker Hughes's narrow moat. Customers who have integrated Baker Hughes's technologies and services into their operations may face significant costs and disruptions if they switch to alternative providers. These switching costs create a degree of customer stickiness and provide Baker Hughes with a recurring revenue stream. However, the magnitude of these switching costs varies depending on the specific product or service and the customer's circumstances.
The company's efficient scale is not a significant source of competitive advantage. While Baker Hughes benefits from economies of scale in its manufacturing and distribution operations, these advantages are not unique to the company and are readily replicable by competitors. Furthermore, the energy technology sector is not characterized by natural monopolies or significant barriers to entry, which limits the potential for efficient scale to create a sustainable competitive advantage.
Network effects are not a material driver of Baker Hughes's moat. While the company's Digital Solutions segment benefits from data aggregation and analytics, these network effects are not strong enough to create a significant competitive advantage. Furthermore, the energy technology sector is not characterized by strong network externalities, which limits the potential for network effects to create a durable moat.
Overall, Baker Hughes's narrow moat provides a degree of protection against competition, but it is not wide enough to guarantee long-term profitability and market share. The company must continue to invest in innovation, customer service, and strategic partnerships to maintain its competitive position and defend its moat against erosion.
Financial Health & Profitability
Baker Hughes's financial health presents a mixed picture. The company has demonstrated strong profitability in recent periods, with a net income of $2.62 billion on revenue of $27.73 billion for the trailing twelve months (TTM). This translates to a net margin of 9.2%, significantly higher than the sector average of 3.7%. The company's operating margin of 12.0% also exceeds the sector average of 6.2%, indicating efficient cost management and operational excellence.
However, Baker Hughes's revenue growth has been lackluster. The company's TTM revenue of $27.73 billion represents a decline of 1.8% compared to the previous year. This contrasts with the sector average revenue growth of 6.6%, suggesting that Baker Hughes is underperforming its peers in terms of top-line expansion. The quarterly financial history reveals some volatility in revenue, with fluctuations from quarter to quarter.
The company's balance sheet exhibits a moderate level of leverage. Baker Hughes has total debt of $6.09 billion and total cash of $2.69 billion, resulting in a debt-to-equity ratio of 115.00. This is higher than the sector average of 70.00, indicating that Baker Hughes is more leveraged than its peers. However, the company's current ratio of 1.36 suggests that it has sufficient liquidity to meet its short-term obligations.
Baker Hughes's return on equity (ROE) of 13.2% is higher than the sector average of 9.2%, indicating that the company is effectively utilizing its equity to generate profits. However, the company's free cash flow (FCF) of $1.38 billion is relatively modest compared to its market capitalization of $59.64 billion. The quarterly financial history shows that FCF has fluctuated significantly, with periods of strong cash generation followed by periods of weaker performance.
Overall, Baker Hughes's financial health is characterized by strong profitability and operational efficiency, but concerns remain regarding its revenue growth and leverage. The company's ability to improve its top-line performance and manage its debt levels will be crucial for sustaining its financial health and creating long-term shareholder value.
Valuation Assessment
Baker Hughes's valuation appears to be fair based on several key metrics. The company's price-to-earnings (P/E) ratio of 23.8x is slightly below the sector average of 27.7x, suggesting that the stock is modestly undervalued relative to its peers. Similarly, the company's enterprise value-to-EBITDA (EV/EBITDA) ratio of 5.2x is below the sector average of 5.7x, further supporting the notion that the stock is reasonably priced.
However, it's important to consider Baker Hughes's growth prospects when assessing its valuation. The company's revenue growth has been negative in recent periods, which warrants a lower valuation multiple compared to companies with stronger growth trajectories. If Baker Hughes can successfully execute its growth strategy and improve its top-line performance, there is potential for multiple expansion and stock price appreciation.
The company's free cash flow (FCF) yield, which is calculated by dividing FCF by market capitalization, is relatively low at approximately 2.3%. This suggests that the stock is not particularly attractive from a cash flow perspective. However, it's worth noting that FCF can be volatile and may not accurately reflect the company's long-term earnings potential.
Compared to its historical valuation, Baker Hughes's current multiples are within a reasonable range. The company's P/E ratio has fluctuated significantly over time, reflecting the cyclical nature of the energy industry. However, the current P/E ratio is not significantly above or below its historical average, suggesting that the stock is not excessively overvalued or undervalued.
Overall, Baker Hughes's valuation appears to be fair based on its current financial performance and growth prospects. While the stock is not significantly undervalued, it is also not excessively overvalued. Investors should carefully consider the company's growth potential and risk factors before making an investment decision.
Risk & Uncertainty
Baker Hughes faces several specific risks that could negatively impact its business and financial performance. One of the most significant risks is its exposure to the cyclical oil and gas industry. Fluctuations in oil and gas prices can significantly affect demand for the company's products and services, leading to revenue volatility and earnings pressure. A prolonged downturn in the energy sector could have a material adverse effect on Baker Hughes's financial results.
Another risk is the increasing competition in the energy technology sector. Baker Hughes competes with other major players, such as Schlumberger and Halliburton, as well as smaller, specialized companies. The company must continuously innovate and differentiate its offerings to maintain its competitive edge. Failure to do so could result in market share losses and reduced profitability.
The energy transition towards renewable energy sources also poses a potential risk to Baker Hughes. As the world shifts away from fossil fuels, demand for the company's traditional oil and gas products and services may decline. Baker Hughes must adapt to this changing landscape by developing and offering solutions for renewable energy, carbon capture, and other sustainable technologies. Failure to successfully transition to a lower-carbon economy could negatively impact the company's long-term growth prospects.
Regulatory risks also exist, particularly related to environmental regulations and safety standards. Changes in regulations could increase the company's compliance costs and limit its ability to operate in certain areas. Furthermore, the company faces potential liabilities related to environmental damage or safety incidents.
Bulls Say / Bears Say
The Bull Case
BULL VIEWBaker Hughes is well-positioned to benefit from the continued recovery in the oil and gas industry, driven by increased demand and higher prices.
BULL VIEWThe company's Digital Solutions segment offers significant growth potential, as it leverages data analytics and artificial intelligence to optimize operations and improve asset performance for its customers.
The Bear Case
BEAR VIEWBaker Hughes's revenue growth has been lackluster, and the company faces significant challenges in adapting to the energy transition towards renewable energy sources.
BEAR VIEWThe company's high debt levels and exposure to the cyclical oil and gas industry make it vulnerable to economic downturns and fluctuations in commodity prices.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score BKR and 4,400+ other equities.
Baker Hughes Co exhibits a 158% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
6.1%
Sector: 3.3%
Gross Margin
Pricing power and cost efficiency
23.6%
Sector: 35.8%
Operating Margin
Core business profitability
12.0%
Sector: 6.2%
Net Margin
Bottom-line profitability
9.2%
Sector: 3.9%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
