Baker Hughes (BKR) Analysis

This report is auto-generated by an AI stock research platform for informational purposes only. The content is for general information and research reference, and does not constitute financial advice. Data may lag or be incomplete. Always conduct your own research and consult qualified professionals before making any financial decisions. # [Qiltrack AI] Baker Hughes Co (BKR) 3-Minute Overview > **💡 One-Sentence Summary** > > Simply put, Baker Hughes is an energy technology company that helps oil, gas, LNG, and industrial customers produce and move energy more efficiently—and right now it looks like a steadier, more profitable energy name than many people assume. > **📍 Basic Profile** > > Market Cap **$67.1 billion** · Energy Technology / Oilfield Services & Equipment · NASDAQ NMS - GLOBAL MARKET · Price **$67.67** --- > **⚡ 3 Things You Should Know** > > 1. 💰 Margin story is getting better: BKR’s net margin is **11.17%** and ROE is **16.8%**, which tells you this is not just a “cyclical oil services” story anymore—the company is converting revenue into decent shareholder returns. > > 2. 📈 Growth is solid but not explosive: 3-year revenue CAGR of **9.44%** is healthy, but recent Q1 revenue growth was only **2.5% YoY**. In other words, this is more of a “quality compounder in energy” than a hyper-growth stock. > > 3. ⚠️ The stock is already near its 52-week high: at **$67.67** versus a **$70.41** high, the market is clearly rewarding execution after multiple earnings beats—so upside likely depends on BKR continuing to deliver, not just being “less bad than peers.” --- > **🎯 Quick Health Check** > > | Dimension | Rating | Details | > |-----------|--------|---------| > | Profitability | Medium✋ | Net margin **11.17%**, solid for an energy equipment/services name | > | Growth Rate | Steady📈 | 3-year revenue growth **9.44%**; latest quarter grew **2.5%** | > | Financial Health | Healthy💚 | Debt-to-equity **0.32**, current ratio **2.13** | > | Valuation | Fair / slightly Pricey | PE **21.54x**, with shares near 52-week high | ## 📋 Layer 2: 2-Minute Deep Dive ### 📊 How Does This Company Make Money? **Business Model in One Sentence:** Baker Hughes sells equipment, services, and energy technology solutions to oil & gas, LNG, and industrial customers, making money from large equipment orders, service contracts, and installed-base support. **Revenue Breakdown:** | Business | Share | Trend | Comment | |----------|-------|-------|---------| | Oilfield Services & Equipment (OFSE) | [Data unavailable] | → | Core legacy business; more exposed to drilling activity and regional disruptions | | Industrial & Energy Technology (IET) | [Data unavailable] | ↑ | Recent news points to strong power systems and record orders, which likely helped offset softer spots elsewhere | **Profitability Metrics:** | Metric | Value | Ranking | Interpretation | |--------|-------|---------|----------------| | Gross Margin | 23.64% | Average | Decent pricing power, though not “software-like” economics | | Net Margin | 11.17% | Above Average | Shows BKR is keeping more of each revenue dollar than many traditional service peers | | ROE | 16.8% | Good 15% | Healthy return level; suggests capital is being used reasonably well | --- ### 📈 How's the Growth? **Growth Assessment:** Steady Growth | Metric | Latest | vs Last Year | Trend | |--------|--------|--------------|-------| | Revenue Growth | 2.5% | [Data unavailable] | Slowing | | Profit Growth | [Data unavailable] | [Data unavailable] | [Data unavailable] | **Growth Quality:** > What’s interesting is that recent growth seems to be supported by execution and mix, not just commodity price noise. The Q1 beat was tied to power systems and portfolio actions, which usually means the quality of growth is better than a pure short-term drilling rebound. That said, the low single-digit revenue growth also tells you BKR is not immune to geopolitical friction and uneven end-market demand. --- ### 💰 Financial Health Check **One Sentence:** This looks like a company with a stable paycheck, manageable debt, and enough liquidity to handle bumps in the road without stressing the balance sheet. | Metric | Value | Safe Zone | Assessment | |--------|-------|-----------|------------| | Debt Ratio | 32.32% | <60% safe | ✅Safe | | Current Ratio | 2.13 | >1.5 healthy | ✅Safe | | Cash Flow | Positive ($2.74/share TTM) | >0 | ✅Positive | --- ### 🏷️ Is It Expensive Now? **Price Position (based on 52-week range):** - 52-Week Low: $34.56 - 52-Week High: $70.41 - Current: $67.67, **very close to high** | Position Range | Cheap Zone | Fair Zone | Pricey Zone | |----------------|------------|-----------|-------------| | Criteria | 0-33% | 33-66% | 66-100% | | **Current** | | | ●(**92%** position) | **Valuation Comparison:** | Comparison | Current | Reference | Assessment | |------------|---------|-----------|------------| | vs Own History | PE 21.54x | [Data unavailable] | [Data unavailable] | | vs Peers | PE 21.54x | Industry avg [Data unavailable] | [Data unavailable] | **What the Current Valuation is Betting On:** > Basically, today’s price is betting that Baker Hughes can keep improving margins, keep the IET side strong, and prove it deserves to trade like a higher-quality energy industrial rather than a plain cyclical oilfield services company. --- ### 📰 Any Recent News? | Date | Event | Impact | |------|-------|--------| | 2026-04-27 | Strong Q1 results despite Middle East disruptions | Positive — shows resilience even with regional pressure on part of the business | | 2026-04-24 | Q1 2026 beat on revenue and EPS; non-GAAP EPS of $0.58 vs $0.499 estimate | Positive — another sign management is executing better than Wall Street expected | | 2026-04-24 | Earnings call highlighted strong EBITDA and record IET orders | Positive — suggests the higher-quality technology/order side is helping the story | ## 📊 Layer 3: Want More? 3-Minute Complete Analysis ### I. Detailed Financial Data **Profitability Trends:** | Metric | This Year | Last Year | Year Before | 3-Year Trend | |--------|-----------|-----------|-------------|--------------| | Gross Margin | 23.64% | [Data unavailable] | [Data unavailable] | [Data unavailable] | | Net Margin | 11.17% | [Data unavailable] | [Data unavailable] | [Data unavailable] | | ROE | 16.8% | [Data unavailable] | [Data unavailable] | [Data unavailable] | **Growth Trends:** | Metric | This Year | Last Year | Year Before | 3-Year Trend | |--------|-----------|-----------|-------------|--------------| | Revenue Growth | 2.5% (latest quarter) | [Data unavailable] | [Data unavailable] | ↑ over 3 years, but near-term slowing | | Profit Growth | [Data unavailable] | [Data unavailable] | [Data unavailable] | [Data unavailable] | | EPS Growth | [Data unavailable] | [Data unavailable] | [Data unavailable] | [Data unavailable] | --- ### II. Earnings Track Record **Last 4 Quarters vs Expectations:** | Quarter | EPS Expected | EPS Actual | Surprise | |---------|--------------|------------|----------| | 2026-03-31 | $0.50 | $0.58 | +16.2% Beat 😀 | | 2025-12-31 | $0.68 | $0.78 | +15.1% Beat 😀 | | 2025-09-30 | $0.62 | $0.68 | +9.3% Beat 😀 | | 2025-06-30 | $0.56 | $0.63 | +12.2% Beat 😀 | **Earnings Trend Interpretation:** Four straight quarterly beats is worth noting. It usually means management guidance is either disciplined or the business is executing better than expected—either way, it supports investor confidence and helps explain why the stock is trading near its highs. --- ### III. What the Market Thinks **Analyst Ratings:** | Rating | Count | Percentage | |--------|-------|------------| | Strong Buy/Buy | 22 firms | 84.6% | | Hold | 3 firms | 11.5% | | Sell | 1 firm | 3.8% | **Target Price:** [Data unavailable] ~ [Data unavailable] (Median [Data unavailable]) **vs Current Price:** [Data unavailable] **Insider Activity:** Net selling in past 3 months > Worth noting: the recent insider tape leans toward selling, including a sizable CEO-related sale after option exercise activity. That doesn’t automatically mean trouble—executives sell for many reasons—but it does mean there’s no strong insider-buying signal confirming the bull case right now. --- ### IV. Key Risk Alerts **3 Risks to Watch:** 1. **Geopolitical Risk:** Management is already dealing with Middle East disruptions → If this worsens, it could pressure the OFSE segment and delay projects or service activity. 2. **Cycle Risk:** A meaningful part of BKR is still tied to energy capex and customer spending cycles → If oil & gas customers pull back, revenue growth could flatten quickly. 3. **Valuation/Expectation Risk:** Shares are trading near the top of the 52-week range after repeated earnings beats → If future quarters are merely “fine” instead of clearly strong, the stock could lose momentum. --- ## 🎬 Summary & Next Steps > **📝 Three-Sentence Summary** > > **What it is:** Baker Hughes is a diversified energy technology company sitting between old-school oilfield services and higher-quality industrial/energy systems. > > **Key strength:** Its balance sheet is healthy, profitability is respectable, and the company has built credibility with four straight EPS beats. > > **Key risk:** The stock is no longer cheap-looking on momentum, so continued upside probably requires more order strength, margin gains, and steady execution in a still-cyclical industry. --- > **🔍 Want to Learn More?** > > • Want to know if this company has a strong moat? → Try【Buffett Mode】for deeper analysis > > • Want to check for hidden landmines? → Try【Muddy Mode】for risk screening > > • Is this a growth stock? Want to calculate if it's worth the bet? → Try【Musk Mode】for analysis