Baker Hughes Company (BKR) AI Stock Analysis

• Market Cap: $44.12B
• Dividend Yield: 2.06%
• Average Volume (3M): 6.75M
• Price to Earnings (P/E): 15.4
• Beta (1Y): 0.85
• Revenue Growth: 1.51%
• EPS Growth: 30.09%
• Country: US
• Employees: 57,000
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Equipment & Services
• EPS (TTM): 0.68
• Shares Outstanding: 986,773,860
• 10 Day Avg. Volume: 7,915,717
• 30 Day Avg. Volume: 6,748,024
• PEG Ratio: 0.25
• Price to Book (P/B): 2.43
• Price to Sales (P/S): 1.47
• P/FCF Ratio: 19.96
• Enterprise Value/Market Cap: 1.15
• Enterprise Value/Revenue: 1.82
• Enterprise Value/Gross Profit: 8.00
• Enterprise Value/Ebitda: 11.21
• 1Y Price Target: $55.08
• Price Target Upside: 23.19% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 12
• EPS Forecast (FY): 2.48
• Revenue Forecast (FY): $27.40B

• Rating: 76 Outperform
• Price Target: $54.00 ▲(20.78% Upside)

Baker Hughes' strong financial performance and positive earnings call sentiment are the most significant factors contributing to its score. The company's strategic growth in the Industrial and Energy Technology segment and positive outlook for natural gas are key strengths. Technical analysis and valuation are neutral, reflecting a balanced market position.

Positive Factors

Revenue Growth

The significant revenue growth indicates strong market demand and effective business strategies, positioning Baker Hughes for continued expansion.

Strategic Acquisition

The acquisition is expected to bolster Baker Hughes' market position and operational capabilities, providing long-term growth opportunities in key sectors.

Positive Natural Gas Outlook

The favorable outlook for natural gas and LNG demand supports Baker Hughes' strategic focus and potential for sustained growth in these markets.

Negative Factors

OFSE Margin Challenges

Declining margins in the OFSE segment could pressure profitability and require strategic adjustments to maintain competitive positioning.

Subdued Upstream Investment

Reduced upstream investment may limit growth opportunities and impact revenue from oilfield services, necessitating diversification efforts.

Potential Impact of Trade Policies

Trade policy changes could affect cost structures and profitability, requiring strategic adaptations to mitigate potential financial impacts.

Baker Hughes Company Business Overview & Revenue Model

Company Description

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.

How the Company Makes Money

Baker Hughes generates revenue through several key streams, primarily from its oilfield services and products, which include drilling services, pressure pumping, and completion systems. The company also earns revenue from its turbomachinery and process solutions, which provide equipment and services for natural gas processing and power generation. Additionally, Baker Hughes offers digital solutions that leverage data analytics and software to improve operational efficiencies for its clients. Significant partnerships with major oil and gas companies enhance its market position, and the company's focus on innovation and sustainability helps to attract investments and projects, thereby contributing to its earnings.

Baker Hughes Company Financial Statement Overview

Summary

Baker Hughes demonstrates robust financial health with strong revenue growth and profitability. The balance sheet is solid with manageable debt levels, and cash flows are generally healthy despite some recent declines in free cash flow growth.

Income Statement

Baker Hughes has shown strong revenue growth with a 36.9% increase in TTM, supported by improving margins. The gross profit margin stands at 22.81%, and the net profit margin is 10.43%, indicating solid profitability. The EBIT and EBITDA margins are also healthy at 12.11% and 16.27% respectively, reflecting efficient operations.

Balance Sheet

The company maintains a stable financial position with a debt-to-equity ratio of 0.33, which is relatively low for the industry, indicating prudent leverage. The return on equity is strong at 16.53%, showcasing effective use of equity. The equity ratio is 46.71%, reflecting a balanced capital structure.

Cash Flow

Cash flow performance is mixed, with a slight decline in free cash flow growth at -3.08% TTM. However, the operating cash flow to net income ratio is 0.27, and the free cash flow to net income ratio is 0.72, indicating reasonable cash generation relative to earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	27.71B	27.83B	25.51B	21.16B	20.50B	20.70B
Gross Profit	6.32B	5.84B	5.25B	4.40B	4.05B	3.20B
EBITDA	4.51B	4.60B	3.96B	1.33B	1.83B	-13.62B
Net Income	2.89B	2.98B	1.94B	-601.00M	-219.00M	-9.94B
Balance Sheet
Total Assets	39.23B	38.36B	36.95B	34.18B	35.35B	38.03B
Cash, Cash Equivalents and Short-Term Investments	2.69B	3.36B	2.65B	2.49B	3.85B	4.13B
Total Debt	6.06B	6.02B	6.02B	6.66B	6.73B	7.63B
Total Liabilities	20.91B	21.31B	21.43B	19.66B	18.56B	19.77B
Stockholders Equity	18.16B	16.89B	15.37B	14.39B	14.83B	12.89B
Cash Flow
Free Cash Flow	2.09B	2.05B	1.84B	1.12B	1.83B	517.00M
Operating Cash Flow	3.34B	3.33B	3.06B	1.89B	2.37B	1.30B
Investing Cash Flow	-1.87B	-1.02B	-817.00M	-1.56B	-463.00M	-618.00M
Financing Cash Flow	-1.46B	-1.53B	-2.03B	-1.59B	-2.14B	225.00M

Baker Hughes Company Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 44.71
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BKR, the sentiment is Negative. The current price of 44.71 is below the 20-day moving average (MA) of 48.06, below the 50-day MA of 47.48, and above the 200-day MA of 42.77, indicating a neutral trend. The MACD of -0.85 indicates Positive momentum. The RSI at 33.99 is Neutral, neither overbought nor oversold. The STOCH value of 9.24 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BKR.

Baker Hughes Company Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FTI	80 Outperform	$18.09B	20.05	28.72%	0.45%	11.73%	45.70%
BKR	76 Outperform	$44.12B	15.40	16.83%	2.06%	1.51%	30.09%
SLB	75 Outperform	$56.89B	14.72	15.46%	2.99%	-2.13%	-16.76%
TS	75 Outperform	$20.35B	10.13	11.69%	4.50%	-9.76%	-18.94%
NOV	72 Outperform	$5.72B	15.65	5.93%	3.25%	-1.43%	-63.13%
HAL	72 Outperform	$23.33B	18.35	12.77%	2.45%	-4.06%	-47.41%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%

Baker Hughes Company Corporate Events

Baker Hughes Awaits Regulatory Approval for Chart Merger

On July 28, 2025, Baker Hughes Company announced a merger agreement to acquire Chart Industries, Inc., with the merger expected to close by mid-2026. The merger’s completion is contingent upon regulatory approvals, including the expiration of the Hart-Scott-Rodino Antitrust Improvements Act waiting period, which ended on November 6, 2025. This acquisition aims to enhance Baker Hughes’s market position and operational capabilities, although it faces challenges such as integration difficulties and increased competition.

Baker Hughes Reports Q3 Results with Revenue Growth

On October 23, 2025, Baker Hughes Company announced its third-quarter results, reporting $8.2 billion in orders and $7.0 billion in revenue, marking a 1% year-over-year increase. The company highlighted strong performance in its Industrial & Energy Technology segment, with significant orders in LNG and power generation, and completed strategic acquisitions to enhance its portfolio, positioning itself strongly in the market.

Baker Hughes EVP Resignation and Interim Appointment

On October 7, 2025, Ganesh Ramaswamy resigned as Executive Vice President, Industrial & Energy Technology of Baker Hughes Company to pursue another opportunity. Maria Claudia Borras will take over the role on an interim basis starting October 24, 2025, while continuing her duties as Chief Growth and Experience Officer. Borras, with over 30 years of experience in the energy sector, is tasked with driving growth and enhancing customer experience, indicating a strategic focus on business expansion.