One-glance verdict
Within fair range
$63.51 our estimate vs market $57.83
Wall Street consensus: $72.30 (13.8% higher than our fair-value estimate)
9% below our estimate
Fundamentals snapshot
Baker Hughes Company
BKR · NMS · Energy · Oil & Gas Equipment & Services
Current price
$57.83
52-week range
$43.92 - $70.41
Market cap
$57.41B
Balance sheet
Healthy
16.02x Strong cushion
Net cash $771.00M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
2 Risks
3 rewards · 2 risks
- Reward Returns 16.5% on equity, ahead of 50% of its peers.
- Reward Free cash flow was positive in 8/10 years.
- Risk Stock trades 13.4% above its 5-year average P/E.
- Risk Insider ownership is only 0.2% (peer median: 0.7%).
What this company does
Baker Hughes Company
Baker Hughes is an energy technology company that sells the essential equipment and services used to find and produce oil and gas, as well as turbines and software for other industrial and new energy customers. The company's success is closely tied to global energy markets, as it makes money when oil and gas producers spend on new projects, which they tend to do when energy prices are high.
How the company got here
Baker Hughes was formed in 1987 through the merger of two long-standing oilfield companies, Baker International and Hughes Tool Company, which was founded by the father of the famous billionaire Howard Hughes, Jr. For decades, it was a major player in providing equipment and services for drilling oil wells. A pivotal moment came in 2017 when it merged with GE's oil and gas business, which significantly broadened its focus beyond traditional oil services into a wider energy technology company. After GE separated from the company, Baker Hughes has focused on streamlining its business to better serve both traditional oil and gas clients and the growing market for new energy technologies like natural gas and carbon capture.
What it actually does
Think of Baker Hughes as a high-tech engineering and equipment provider for the entire energy industry, from oil fields to power plants. They don't own the oil or the power plants, but they sell the specialized products and services needed to find, drill for, and produce energy, as well as the massive equipment used to process it and generate power. This includes everything from drill bits that cut through rock deep underground to giant turbines used in natural gas facilities. They operate globally, in over 120 countries, helping energy companies run their operations more efficiently and safely.
Oilfield Services & Equipment (OFSE)
This is the company's original and largest business, making up a little more than half of its sales. It provides the heavy-duty tools and expert services that oil and gas companies need to drill and operate wells, both on land and deep offshore. This includes things like drill bits, fluids for drilling, and services to get the most oil or gas out of a well over its lifetime. Their customers are the big national and international oil companies who pay for this equipment and expertise to help them produce energy.
Industrial & Energy Technology (IET)
This part of the company, which accounts for a little less than half of revenue, is focused on large-scale industrial equipment and technology. It builds and services things like massive turbines and compressors that are essential for liquefied natural gas (LNG) plants, pipelines, and other industrial facilities. This segment also develops technologies for the future of energy, including solutions for carbon capture, hydrogen, and geothermal energy. Its customers are not just oil and gas companies, but a wider range of industrial players who need to power their operations or transition to cleaner energy.
What management is betting on now
Management is focused on positioning the company as a broad 'energy technology' provider, not just an oilfield servicer. A major bet is on the growth of liquefied natural gas (LNG), where they are a world leader in providing the necessary equipment, seeing it as a key fuel for the future. They are also investing heavily in technologies that support the energy transition, such as carbon capture and hydrogen solutions, to help their industrial customers reduce emissions. The strategy aims to balance the steady business from traditional oil and gas with growth from these newer, cleaner energy markets.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$710.00M
FY2024 Q4
$837.00M
FY2025 Q1
$409.00M
FY2025 Q2
$209.00M
FY2025 Q3
$634.00M
FY2025 Q4
$1.28B
FY2026 Q1
$164.00M
FY2026 Q2
$1.04B
Revenue
$6.74B
Net income
$681.00M
Diluted EPS
—
Operating cash flow
$1.34B
Free cash flow
$1.04B
Fetching…
Sources
Revenue
$6.59B
Net income
$930.00M
Diluted EPS
—
Operating cash flow
$500.00M
Free cash flow
$164.00M
Fetching…
Sources
Revenue
$7.39B
Net income
$876.00M
Diluted EPS
—
Operating cash flow
$1.66B
Free cash flow
$1.28B
Fetching…
Sources
Revenue
$7.01B
Net income
$609.00M
Diluted EPS
—
Operating cash flow
$929.00M
Free cash flow
$634.00M
Fetching…
Sources
Revenue
$6.91B
Net income
$701.00M
Diluted EPS
—
Operating cash flow
$510.00M
Free cash flow
$209.00M
Fetching…
Sources
Revenue
$6.43B
Net income
$402.00M
Diluted EPS
—
Operating cash flow
$709.00M
Free cash flow
$409.00M
Fetching…
Sources
Revenue
$7.36B
Net income
$1.18B
Diluted EPS
2.98
Operating cash flow
$1.19B
Free cash flow
$837.00M
Fetching…
Sources
Revenue
$6.91B
Net income
$766.00M
Diluted EPS
—
Operating cash flow
$1.01B
Free cash flow
$710.00M
Fetching…
Sources
Is it cheap or expensive?
Fair value $63.51 vs current price $57.83
Wall Street consensus is the average analyst price target: $72.30 (13.8% higher than our fair-value estimate).
Our most-likely fair value is $63.51 a share — about 9.8% away from today's price of $57.83, so the stock currently looks fairly priced.
Is it drowning in debt?
Healthy
Net cash $771.0M - more cash than debt. Interest coverage 16.0x.
Net debt
$-771.00M
Interest coverage
16.02x
Baker Hughes Company's profit covers its interest bill about 16.0 times over. which is stronger than most peers shown here.
Healthy
Worse cushion
Baseline
Better cushion
BKR
BASELINE
Baker Hughes Company
Total debt $16.25B Interest coverage 16.02x This is the baseline the peer rows are being compared against.
Total debt $12.81B Interest coverage 9.78x -39% vs BKR Carries about 1.6x less debt cushion than BKR.
Total debt $8.20B Interest coverage 8.78x -45% vs BKR Carries about 1.8x less debt cushion than BKR.
Total debt $1.24B Interest coverage 17.11x +7% vs BKR Has roughly the same debt cushion as BKR.
Total debt $2.33B Interest coverage 6.41x -60% vs BKR Carries about 2.5x less debt cushion than BKR.
Total debt $1.62B Interest coverage 5.43x -66% vs BKR Carries about 3.0x less debt cushion than BKR.
What you should know
The case for and against BKR
3 Rewards
2 Risks
Rewards
-
Returns 16.5% on equity, ahead of 50% of its peers.
-
Free cash flow was positive in 8/10 years.
-
Trades at 18.6x P/E vs peer median 24.9x (25.4% cheaper).
Risks
-
Stock trades 13.4% above its 5-year average P/E.
-
Insider ownership is only 0.2% (peer median: 0.7%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
18.59x
Forward P/E
18.59x
P/B
2.88x
P/S
2.07x
EV/EBITDA
11.74x
PEG ratio
1.60x
Profitability
How much profit each dollar creates
Gross margin
23.7%
Operating margin
12.8%
Net margin
11.2%
ROE
16.5%
ROA
4.9%
Health
Liquidity and balance-sheet strength
Debt / equity
0.81x
Current ratio
2.10x
Quick ratio
1.62x
Total debt
$16.25B
Total cash
$17.02B
Growth
How the business has been compounding
Revenue TTM
$27.73B
Revenue 5Y CAGR
7.8%
EPS TTM
3.11
EPS 5Y CAGR
—
Cash flow
How much cash the business throws off
Operating CF TTM
$4.44B
Free CF TTM
$2.54B
FCF margin
9.2%
Dividend
Shareholder payout
Yield
1.6%
Payout ratio
29.6%
Last ex-div date
2026-08-07