Baker Hughes Company (BKR) AI Stock Analysis

• Market Cap: $36.25B
• Dividend Yield: 2.35%
• Average Volume (3M): 7.73M
• Price to Earnings (P/E): 12.5
• Beta (1Y): 0.75
• Revenue Growth: 6.22%
• EPS Growth: 62.58%
• Country: US
• Employees: 57,000
• Sector: Energy
• Sector Strength: 41
• Industry: Oil & Gas Equipment & Services
• EPS (TTM): 0.51
• Shares Outstanding: 990,750,000
• 10 Day Avg. Volume: 7,696,410
• 30 Day Avg. Volume: 7,732,719
• PEG Ratio: -7.42
• Price to Book (P/B): 2.12
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 17.97
• Enterprise Value/Market Cap: 1.07
• Enterprise Value/Revenue: 0.35
• Enterprise Value/Gross Profit: 6.37
• Enterprise Value/Ebitda: 2.18
• 1Y Price Target: $48.81
• Price Target Upside: 33.40% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 17

• Rating: 74 Outperform
• Price Target: ―

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

Growth Opportunities

The company cites a robust set of non-LNG growth opportunities in Gas Tech Equipment, with a projected $100 to $120bn total addressable market by 2030.

Investment Trends

CEO Simonelli continues to be optimistic about global investment trends for natural gas, which appear to have decoupled from oil.

Portfolio Strength

Enhanced value is seen in the diverse, defensive characteristics and idiosyncratic growth opportunities of BKR's portfolio, including a rapidly growing new energy portfolio.

Negative Factors

Market Activity

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

Stock Performance

The stock underperformed the OIH by approximately 450 basis points.

Tariff Impact

Baker Hughes expects some cost headwinds tied to imports from China, Germany, and the UK, affecting its operating segments.

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 makes money primarily through the sale of oilfield products, services, and digital solutions to the energy sector. The company's revenue streams are diversified across its four business segments. Oilfield Services generate income by providing drilling, evaluation, completion, and production services to oil and gas operators. Oilfield Equipment earns revenue through the sale and maintenance of critical equipment used in the exploration and extraction of oil and gas. Turbomachinery & Process Solutions segment generates income by supplying and servicing turbomachinery used in the energy and industrial markets. Lastly, the Digital Solutions segment provides software, sensors, and analytics to optimize performance and efficiency across various industries. Significant partnerships with major energy companies, along with a focus on innovation and sustainability, contribute to the company's earnings.

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
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
27.84B	27.83B	25.51B	21.16B	20.54B	20.70B
	Gross Profit
6.11B	5.91B	5.25B	4.40B	4.05B	3.20B
	EBIT
3.19B	3.08B	2.65B	1.19B	996.00M	1.83B
	EBITDA
4.72B	4.60B	3.96B	1.33B	1.83B	-13.62B
	Net Income Common Stockholders
2.93B	2.98B	1.94B	-578.00M	-330.00M	-15.76B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
3.28B	3.36B	2.65B	2.49B	3.85B	4.13B
	Total Assets
38.11B	38.36B	36.95B	34.18B	35.35B	38.03B
	Total Debt
6.02B	6.02B	6.02B	6.66B	6.73B	7.63B
	Net Debt
2.75B	2.66B	3.38B	4.17B	2.87B	3.50B
	Total Liabilities
20.90B	21.31B	21.43B	19.66B	18.60B	19.79B
	Stockholders Equity
17.04B	16.89B	15.37B	14.53B	16.75B	18.24B
Cash Flow		Free Cash Flow
2.01B	2.05B	1.84B	1.12B	1.83B	517.00M
	Operating Cash Flow
3.26B	3.33B	3.06B	1.89B	2.37B	1.30B
	Investing Cash Flow
-1.06B	-1.02B	-817.00M	-1.56B	-463.00M	-618.00M
	Financing Cash Flow
-1.60B	-1.53B	-2.03B	-1.59B	-2.14B	225.00M

Baker Hughes Company Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 36.59
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 36.59 is below the 20-day moving average (MA) of 36.78, below the 50-day MA of 38.99, and below the 200-day MA of 39.60, indicating a bearish trend. The MACD of -0.34 indicates Negative momentum. The RSI at 43.19 is Neutral, neither overbought nor oversold. The STOCH value of 30.46 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
FTI	77 Outperform	$12.85B	15.77	27.24%	0.64%	14.26%	294.37%
TS	76 Outperform	$19.84B	10.17	10.45%	4.08%	-15.28%	-45.42%
BKR	74 Outperform	$36.25B	12.50	18.04%	2.35%	6.22%	62.58%
HAL	73 Outperform	$17.61B	8.58	20.99%	3.42%	-2.54%	-17.53%
SLB	72 Outperform	$47.02B	11.73	20.82%	3.28%	5.83%	-2.03%
NOV	70 Outperform	$4.71B	8.36	9.29%	2.46%	0.54%	-39.88%
Sector *	57 Neutral	$7.04B	3.12	-3.45%	5.79%	0.62%	-50.55%

Baker Hughes Company Corporate Events

Baker Hughes Approves Board and Executive Compensation

On May 20, 2025, Baker Hughes Company held its Annual Meeting of Stockholders to elect nine members to its Board of Directors, approve the executive compensation program, and ratify KPMG LLP as its independent registered public accounting firm for fiscal year 2025. All nominated directors were elected, the executive compensation program was approved, and KPMG LLP was ratified, with a significant majority of the votes cast in favor of each proposal.

The most recent analyst rating on (BKR) stock is a Buy with a $43.00 price target. To see the full list of analyst forecasts on Baker Hughes Company stock, see the BKR Stock Forecast page.

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.

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.