Baker Hughes Co - Class A
Exchange: NASDAQSector: EnergyIndustry: Oil & Gas Equipment & Services
Baker Hughes is an energy technology company that provides solutions to energy and industrial customers worldwide. Built on a century of experience and conducting business in over 120 countries, our innovative technologies and services are taking energy forward – making it safer, cleaner and more efficient for people and the planet.
Did you know?
Pays a 1.53% dividend yield.
Current Price
$60.38
+0.07%GoodMoat Value
$103.56
71.5% undervaluedProfile
Valuation (TTM)
Market Cap$59.58B
P/E23.02
EV$64.07B
P/B3.16
Shares Out986.77M
P/Sales2.15
Revenue$27.73B
EV/EBITDA14.57
Baker Hughes Co - Class A (BKR) Stock Analysis
GoodMoat Analysis
Baker Hughes is a major energy technology company with a potential moat in complex industrial equipment and services, but its current valuation appears unfavourable. The stock trades at a significant discount to the GoodMoat target, yet the business shows weak quality indicators and minimal growth, failing the initial gate for a value investor's deeper analysis.
Read full analysis
Baker Hughes operates in the oil & gas equipment and services sector, providing technology and solutions for energy operations. Applying the GoodMoat framework, the company likely possesses a moat through a combination of high switching costs, proprietary technology, and scale privilege in complex industrial projects, which would score it above the 5-point threshold for a durable advantage. However, the Quality Indicators are largely unfavourable. Key metrics like a 0.3% YoY revenue growth and an ROE of 13.7% fall short of the framework's benchmarks for consistent double-digit growth and sustainably high returns (>15-20%). The 4.4% FCF yield and 11.2% operating margin also indicate moderate, not high, cash generation and profitability. According to the Decision Framework, a business must pass the 'Moat & Quality Gate' (Moat Score ≥5 AND predominantly Strong quality ratings) to warrant valuation analysis. Baker Hughes' weak growth and return profile suggest it fails this initial gate, making further valuation work premature despite the stock price being 40% below the GoodMoat target of $103.56. For a value investor, the lack of fundamental quality strength is a critical hurdle. Analysis based on data as of 2024-05-15.
Market Cap$59.58B
Current Price$60.38
P/E Ratio23.02
Forward P/E—
PEG Ratio-0.91
EPS$2.60
Book Value$19.09
P/B Ratio3.16
BKR Financial Charts
FCF vs CAPEX
FCFCAPEX
Forward estimates use 15.5% FCF growth (CAGR)
Cash vs Debt
Net Debt: 2.4B
Revenue
23.8B
FY19
20.7B
FY20
20.5B
FY21
21.2B
FY22
25.5B
FY23
27.8B
FY24
27.7B
FY25
Net Income
128M
FY19
—
FY20
—
FY21
—
FY22
1.9B
FY23
3.0B
FY24
2.6B
FY25
BKR 52-Week Range
$34.29
$65.26
50-Day MA: $59.86200-Day MA: $48.96
Did you know?
Price sits at 84% of its 52-week range.
Baker Hughes Co - Class A (BKR) Financial Summary
Baker Hughes Co - Class A (BKR) is a Energy company in the Oil & Gas Equipment & Services industry, listed on NASDAQ. The stock currently trades at $60.38 with a market capitalization of $59.58B.
Key valuation metrics include a P/E ratio of 23.02, price-to-book ratio of 3.16, and EPS of $2.60. The company reports a profit margin of 9.3% and return on equity of 13.7%.
BKR Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $59.58B |
| P/E Ratio | 23.02 |
| EPS | $2.60 |
| P/B Ratio | 3.16 |
| P/S Ratio | 2.15 |
| EV/EBITDA | 14.57 |
| Dividend Yield | 1.53% |
| Profit Margin | 9.3% |
| Return on Equity | 13.7% |
| Debt/Equity | 0.32 |
BKR Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY19 | $23.84B | $128.00M |
| FY20 | $20.70B | $-9.94B |
| FY21 | $20.50B | $-219.00M |
| FY22 | $21.16B | $-601.00M |
| FY23 | $25.51B | $1.94B |
| FY24 | $27.83B | $2.98B |
| FY25 | $27.73B | $2.59B |
Baker Hughes Co - Class A (BKR) Valuation
Based on GoodMoat's DCF model, Baker Hughes Co - Class A has a fair value estimate of $103.56. At the current price of $60.38, the stock appears 41.7% undervalued relative to our intrinsic value estimate.
BKR Quality Indicators
Baker Hughes Co - Class A maintains a profit margin of 9.3% and an operating margin of 11.2%. Return on equity stands at 13.7%. The current ratio is 1.36. Debt-to-equity ratio is 0.32.
About Baker Hughes Co - Class A
Baker Hughes is an energy technology company that provides solutions to energy and industrial customers worldwide. Built on a century of experience and conducting business in over 120 countries, our innovative technologies and services are taking energy forward – making it safer, cleaner and more efficient for people and the planet.
BKR Free Cash Flow
Baker Hughes Co - Class A generated $2.73B in trailing twelve-month free cash flow, representing an FCF yield of 4.59%. This moderate FCF yield indicates reasonable cash generation.
BKR Shares Outstanding
Baker Hughes Co - Class A has 0.99 billion shares outstanding at a share price of $60.38, giving it a market capitalization of $59.58B.
BKR Recent Insider Trades
Recent insider transactions at Baker Hughes Co - Class A include:
| Insider | Type | Shares | Value |
|---|---|---|---|
| BORRAS MARIA C (Chief Growth & Experience Ofcr) | SELL | 60,626 | $3.30M |
| Simonelli Lorenzo (Chairman, President and CEO) | SELL | 272,594 | $16.03M |
| Magno Maria Georgia (Chief Legal Officer) | SELL | 5,063 | $298919.52 |