Baker Hughes Company (BKR) AI Stock Analysis

• Market Cap: $37.56B
• Dividend Yield: 2.36%
• Average Volume (3M): 9.47M
• Price to Earnings (P/E): 12.7
• Beta (1Y): 0.89
• Revenue Growth: 6.22%
• EPS Growth: 62.58%
• Country: US
• Employees: 57,000
• Sector: Energy
• Sector Strength: 53
• Industry: Oil & Gas Equipment & Services
• EPS (TTM): 0.70
• Shares Outstanding: 990,349,600
• 10 Day Avg. Volume: 12,490,648
• 30 Day Avg. Volume: 9,473,745
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.57
• Price to Cash Flow (P/CF): 9.20
• P/FCF Ratio: 8.80
• Enterprise Value/Market Cap: 1.15
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 7.30
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $50.42
• Price Target Upside: 39.24% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 20

Baker Hughes receives a solid score of 74, reflecting its strong financial performance and positive corporate strategy. The company's profitability and operational efficiency are major strengths. However, technical indicators caution in the short term due to bearish trends. Despite a challenging macroeconomic environment and uncertainties in oil markets and tariffs, the company's attractive valuation and strategic initiatives position it well for future growth.

Positive Factors

Financial Performance

The IET segment's EBITDA exceeded the high-end guidance, contributing positively to overall results.

Revenue Growth

The IET segment is expected to continue showing strong performance, with notable revenue growth and improved margins.

Negative Factors

Market Activity Decline

There is an expectation of a mid-single-digit decline in NAM activity, impacting overall performance.

Tariff Impact

There is an anticipated net impact of $100-$200 million due to tariffs affecting the 2025 EBITDA.

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 primarily through the sale of its products and services across its two main business segments. The Oilfield Services & Equipment segment offers drilling services, evaluation, completion, and production services, as well as integrated well services and products. This segment's revenue is largely influenced by global oil and gas exploration, drilling activities, and production levels. The Industrial & Energy Technology segment provides advanced technologies and services for industrial applications, including turbomachinery & process solutions and digital solutions, catering to a range of industries like power generation and renewable energy. The company's earnings are also supported by strategic partnerships and collaborations with oil and gas companies, as well as investments in digital and energy transition solutions, which help expand its market reach and enhance service offerings.

Baker Hughes Company Financial Statement Overview

Summary

Baker Hughes demonstrates strong financial health with impressive profitability and efficient operations. The income statement is highlighted by robust revenue and profit growth. The balance sheet shows a stable financial structure with moderate leverage. However, recent declines in free cash flow growth suggest potential areas for improvement.

Income Statement

Baker Hughes has demonstrated robust growth and profitability. The TTM gross profit margin stands at 21.94%, and the net profit margin is an impressive 10.51%, indicating efficient cost management. Revenue growth has been strong, with a 9.14% increase from 2023 to 2024. The EBIT margin is 11.47%, and EBITDA margin is 16.42%, reflecting solid operational efficiency.

Balance Sheet

The company maintains a healthy balance sheet with a debt-to-equity ratio of 0.31, showing moderate leverage. The return on equity is 14.97%, indicating good profitability relative to equity. The equity ratio stands at 51.29%, suggesting a strong equity base compared to assets.

Cash Flow

Cash flow performance is solid, with a free cash flow to net income ratio of 0.79, indicating good cash generation relative to profit. Operating cash flow to net income ratio is 1.11, reflecting effective cash conversion. However, free cash flow growth has been negative recently, impacting the overall cash flow score.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
27.83B	25.51B	21.16B	20.54B	20.70B
	Gross Profit
5.91B	5.25B	4.40B	4.05B	3.20B
	EBIT
3.08B	2.65B	1.19B	996.00M	1.83B
	EBITDA
4.60B	3.96B	1.33B	1.83B	-13.62B
	Net Income Common Stockholders
2.98B	1.94B	-578.00M	-330.00M	-15.76B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
3.36B	2.65B	2.49B	3.85B	4.13B
	Total Assets
38.36B	36.95B	34.18B	35.35B	38.03B
	Total Debt
6.02B	6.02B	6.66B	6.73B	7.63B
	Net Debt
2.66B	3.38B	4.17B	2.87B	3.50B
	Total Liabilities
21.31B	21.43B	19.66B	18.60B	19.79B
	Stockholders Equity
17.05B	15.37B	14.53B	16.75B	18.24B
Cash Flow		Free Cash Flow
3.33B	1.84B	1.12B	1.83B	517.00M
	Operating Cash Flow
3.33B	3.06B	1.89B	2.37B	1.30B
	Investing Cash Flow
-1.02B	-817.00M	-1.56B	-463.00M	-618.00M
	Financing Cash Flow
-1.53B	-2.03B	-1.59B	-2.14B	225.00M

Baker Hughes Company Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 36.21
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 36.21 is below the 20-day moving average (MA) of 38.40, below the 50-day MA of 41.73, and below the 200-day MA of 39.72, indicating a bearish trend. The MACD of -1.59 indicates Positive momentum. The RSI at 38.47 is Neutral, neither overbought nor oversold. The STOCH value of 21.27 is Neutral, 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
NOV	78 Outperform	$4.48B	7.38	10.12%	2.43%	3.42%	-35.98%
FTI	77 Outperform	$12.04B	15.16	27.24%	0.70%	14.26%	294.37%
BKR	74 Outperform	$37.56B	12.75	18.04%	2.36%	6.22%	62.58%
SLB	72 Outperform	$46.94B	11.70	20.82%	3.21%	5.83%	-2.03%
HAL	70 Outperform	$17.97B	8.74	20.99%	3.26%	-2.54%	-17.53%
TS	69 Neutral	$19.91B	9.34	12.18%	3.98%	-15.77%	-45.74%
Sector *	55 Neutral	$7.14B	3.55	-6.61%	5.99%	-0.04%	-51.63%

Baker Hughes Company Corporate Events

Baker Hughes Reports Strong Q1 2025 Financial Results

On April 22, 2025, Baker Hughes reported its first-quarter 2025 results, highlighting orders of $6.5 billion and revenue of $6.4 billion. The company achieved a net income of $402 million and adjusted EBITDA of $1,037 million, marking a 10% increase year-over-year. Baker Hughes expanded its leadership in LNG with new awards and strategic agreements, and made significant progress in power solutions for data centers. Despite macroeconomic uncertainties, the company remains confident in its strategy, focusing on structural margin improvement and sustainable growth.

Spark’s Take on BKR Stock

According to Spark, TipRanks’ AI Analyst, BKR is a Outperform.

Baker Hughes receives a solid score of 76.5, reflecting its strong financial performance and positive earnings call outlook, which highlight record-breaking revenue and strategic growth initiatives. The technical analysis suggests caution in the short term due to bearish indicators, while the valuation is attractive, offering potential for future appreciation. The company’s well-managed financials, combined with strategic initiatives, position it well despite challenges in certain markets.

To see Spark’s full report on BKR stock, click here.

Baker Hughes Appoints New CFO Amid Strategic Transformation

On February 24, 2025, Baker Hughes announced the appointment of Ahmed Moghal as the new Executive Vice President and Chief Financial Officer, succeeding Nancy Buese. This executive transition is part of Baker Hughes’ strategic transformation efforts, aiming to drive profitable growth and enhance margins across its business segments. The company reaffirmed its financial outlook for 2025, highlighting expectations of EBITDA growth and a commitment to returning a significant portion of free cash flow to shareholders.

Baker Hughes Reports Strong 2024 Financial Performance

On January 30, 2025, Baker Hughes Company announced its fourth-quarter and full-year 2024 financial results, showcasing a year of strong performance. The company reported record revenue growth, free cash flow, and improvements in adjusted earnings per share and EBITDA, driven by significant orders in its Industrial & Energy Technology segment. The company highlighted its strategic focus on profitable growth and margin improvement, with a strong performance in gas infrastructure and LNG technology solutions, including major contracts and service agreements globally. These results reflect Baker Hughes’ successful execution and enhanced market position, allowing for increased shareholder returns, including a 10% dividend increase.