Baker Hughes Company (BKR) Stock Analysis — Fair Value, Risk & Moat Rating
NMS · Energy · Oil & Gas Equipment & Services
Is Baker Hughes Company a safe investment right now?
Baker Hughes Company's Altman Z-Score of 2.66 places it in the gray zone. Our fair value estimate is $53.04 (Overvalued). Moat rating: 3.7/5 stars.
Could Baker Hughes Company go bankrupt? Altman Z-Score analysis
Z-Score of 2.66 places the company in the gray zone (1.8-3.0), warranting closer scrutiny.
- Below 1.8 — Distress Zone (high bankruptcy risk)
- 1.8 to 3.0 — Gray Zone (elevated uncertainty)
- Above 3.0 — Safe Zone (financially healthy)
What drives BKR's Z-Score?
| Component | Formula | Value | Weight | Contribution |
|---|---|---|---|---|
| A · Working Capital / Total Assets | WC / TA | 0.1211 | 1.2 | 0.15 |
| B · Retained Earnings / Total Assets | RE / TA | -0.0795 | 1.4 | -0.11 |
| C · EBIT / Total Assets | EBIT / TA | 0.0758 | 3.3 | 0.25 |
| D · Market Cap / Total Liabilities | MCap / TL | 2.8359 | 0.6 | 1.7 |
| E · Revenue / Total Assets | Rev / TA | 0.6784 | 1.0 | 0.68 |
How has BKR's financial health changed over time?
| Year | Z-Score | Zone |
|---|---|---|
| 2022 | 2.22 | Gray |
| 2023 | 2.46 | Gray |
| 2024 | 2.69 | Gray |
| 2025 | 2.66 | Gray |
Source: Calculated from BKR's latest 10-K filing on SEC EDGAR.
What is Baker Hughes Company actually worth?
How we calculated this
| Input | Value | Source |
|---|---|---|
| Predicted EPS (α) | $2.60 | Proprietary blend of reported actuals (4Q actual) + analyst consensus, weighted by α |
| Last Year EPS | $2.98 | Annual report (SEC EDGAR) |
| Analyst Consensus EPS (This Year) | $2.39 | 21 analysts consensus |
| Trailing P/E | 24.1x | Current market pricing |
| Fair P/E (β discount) | 20.4x | Trailing PE adjusted by value discount factor β, hard-capped |
| Earnings Trend (γ) | Stable | Directional signal: predicted vs trailing EPS |
Wall Street Reference: Analyst consensus target price is $63.48 (21 analysts). This is shown for reference only and is not used in our valuation model.
Source: Earnings data from SEC EDGAR filings. Market data via Yahoo Finance.
Does Baker Hughes Company have a durable competitive advantage?
Moat rating: 3.7/5.
What makes up BKR's moat score?
ROIC Stability
ROIC variability over the past decade. Score: 4/5.
Gross Margin Trend
Gross margin trajectory over the past decade. Score: 4/5.
Switching Costs
Estimated customer lock-in based on margin level. Score: 3/5.
How stable is BKR's return on invested capital?
| Year | ROIC | Trend |
|---|---|---|
| 2022 | 1.3% | — |
| 2023 | 13.4% | Rising |
| 2024 | 15.1% | Rising |
| 2025 | 12.4% | Declining |
Source: ROIC calculated from SEC EDGAR filings.
Is Baker Hughes Company's dividend safe?
Can Baker Hughes Company afford its dividend?
Payout ratio is 35.4%. FCF covers the dividend 1.2x. 40 consecutive years of payments.
Baker Hughes Company's key financial metrics
| Metric | Latest | 1Y Ago | 3Y Ago | Trend |
|---|---|---|---|---|
| Revenue | $27.7B | $27.8B | $21.2B | Rising |
| Net Income | $2.6B | $3.0B | −$0.6B | Rising |
| Free Cash Flow | $2.5B | $2.1B | $0.9B | Rising |
| Gross Margin | 23.6% | 23.3% | 20.8% | Rising |
Recent events that affect our BKR analysis
BKR earnings report scheduled
Upcoming report. Consensus EPS estimate: $0.49. Revenue estimate: $6.33B. Our current Fair Value: $53.04 — a significant beat or miss could shift this estimate.
BKR analyst consensus: 77% bullish (17 of 22 analysts)
4 Strong Buy, 13 Buy, 4 Hold, 1 Sell, 0 Strong Sell. Consensus target: $63.48 (1.5% upside). Compare with our independent Fair Value: $53.04.
BKR filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
BKR filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
BKR paid $0.2300/share dividend
Dividend Safety Grade: A. Payout ratio: 35.4%.
BKR filed annual report (10-K)
Annual filing with full-year financials. Our Altman Z-Score, Moat, and Fair Value models are derived from this data. View on SEC EDGAR →
BKR filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
BKR beat EPS estimates by 16.9%
Reported EPS: $0.78 vs estimate $0.67. Earnings strength supports our Fair Value of $53.04 (15.2% below current price).
BKR filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
BKR paid $0.2300/share dividend
Dividend Safety Grade: A. Payout ratio: 35.4%.
BKR filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
BKR beat EPS estimates by 9.3%
Reported EPS: $0.68 vs estimate $0.62. Earnings strength supports our Fair Value of $53.04 (15.2% below current price).
BKR filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
BKR filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
BKR filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
BKR paid $0.2300/share dividend
Dividend Safety Grade: A. Payout ratio: 35.4%.
BKR filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
BKR filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
BKR beat EPS estimates by 13.6%
Reported EPS: $0.63 vs estimate $0.55. Earnings strength supports our Fair Value of $53.04 (15.2% below current price).
BKR filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
BKR filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
BKR paid $0.2300/share dividend
Dividend Safety Grade: A. Payout ratio: 35.4%.
BKR filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
BKR missed EPS estimates by 15.4%
Reported EPS: $0.40 vs estimate $0.47. Our Fair Value of $53.04 may face downward pressure if the trend continues.
BKR filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
BKR filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
BKR filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
BKR filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
BKR paid $0.2300/share dividend
Dividend Safety Grade: A. Payout ratio: 35.4%.
BKR filed annual report (10-K)
Annual filing with full-year financials. Our Altman Z-Score, Moat, and Fair Value models are derived from this data. View on SEC EDGAR →
BKR beat EPS estimates by 11.8%
Reported EPS: $0.70 vs estimate $0.63. Earnings strength supports our Fair Value of $53.04 (15.2% below current price).
BKR filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
Common questions about Baker Hughes Company
What is Baker Hughes Company stock price today?
Baker Hughes Company (BKR) stock price is $62.54 as of the latest market close, traded on the NASDAQ exchange.
What does Baker Hughes Company do?
Baker Hughes Company provides a portfolio of technologies and services to energy and industrial value chain. Its Oilfield Services & Equipment segment designs and manufactures exploration, appraisal, development, production, rejuvenation, and decommissioning products and related services for onshore and offshore oilfield operations. This segment also provides drilling services, drill bits, and drilling and completions fluids; completions, intervention, measurements, pressure pumping, and wireline services; artificial lift systems, and oilfield and industrial chemicals; subsea projects and services, flexible pipe systems, and surface pressure control systems; and integrated well services and solutions.
What is Baker Hughes Company market cap?
Baker Hughes Company has a market capitalization of $62.02B, classifying it as a large-cap stock in the Energy sector.
What sector and industry is BKR in?
Baker Hughes Company operates in the Energy sector, specifically within the Oil & Gas Equipment & Services industry. It trades on the NASDAQ under the ticker symbol BKR.
Is BKR stock overvalued or undervalued?
Based on our valuation model, Baker Hughes Company trades 17.9% above our fair value estimate — potentially overvalued.
- FairValueLabs Fair Value: $53.04
- Current Price: $62.54
- Valuation Zone: Overvalued
What is BKR stock forecast and analyst target price?
Based on 21 Wall Street analysts, the consensus price target for Baker Hughes Company is $63.48, implying upside of 1.5% from the current price.
- Analyst High Target: $70.00
- Analyst Low Target: $44.00
Note: Analyst targets are shown for reference and are not used in our valuation model.
Is Baker Hughes Company revenue and earnings growing?
Here are the analyst consensus growth estimates for Baker Hughes Company:
- Revenue growth (current year est.): -2.5%
- EPS growth (current year est.): -8.1%
- Revenue growth (next year est.): 5.5%
- EPS growth (next year est.): 17.2%
What are Baker Hughes Company's key financial metrics?
| Metric | Latest | Trend |
|---|---|---|
| Revenue | $27.7B | Rising |
| Net Income | $2.6B | Rising |
| Free Cash Flow | $2.5B | Rising |
| Gross Margin | 23.6% | Rising |
What is BKR's P/E ratio?
The price-to-earnings ratio measures how much investors pay per dollar of earnings:
- Trailing P/E (last 12 months): 24.1x
- Forward P/E (next 12 months est.): 22.0x
- FairValueLabs Fair P/E: 20.4x
How volatile is BKR stock?
Baker Hughes Company has a beta of 0.90, meaning it is less volatile than the broader market. A beta above 1.0 indicates higher price swings relative to the S&P 500, while below 1.0 suggests more stability.
How much cash and debt does Baker Hughes Company have?
Baker Hughes Company's balance sheet shows:
- Total Cash: $3.72B
- Total Debt: $6.70B
- Net Cash Position: $-2.99B
A positive net cash position means the company holds more cash than debt, reducing financial risk.
What is Baker Hughes Company's free cash flow?
Baker Hughes Company generated $1.13B in trailing twelve-month free cash flow (from $3.81B in operating cash flow). Free cash flow represents the cash available for dividends, buybacks, and debt reduction after all capital expenditures.
Does Baker Hughes Company pay a dividend, and is it safe?
Yes, Baker Hughes Company pays a regular dividend. Here are the key metrics:
- Dividend Yield: 1.5%
- Payout Ratio: 35.4%
- Consecutive Years Paid: 40
- 5-Year Dividend Growth: -20.4%
- FairValueLabs Safety Grade: A
Is Baker Hughes Company at risk of going bankrupt?
Baker Hughes Company's Altman Z-Score is 2.66, placing it in the gray zone (1.8–3.0) — some financial uncertainty. The Z-Score uses five balance sheet ratios to predict bankruptcy probability within two years.
Does Baker Hughes Company have a durable competitive advantage?
Baker Hughes Company scores 3.7/5 stars (Solid moat · eroding) in our moat analysis:
- ROIC Stability: 4/5
- Gross Margin Trend: 4/5
- Switching Costs: 3/5
A score above 3.5 suggests meaningful pricing power and a defensible market position.
What is BKR's return on equity (ROE)?
Baker Hughes Company's return on equity is 14.5%. ROE measures how efficiently a company generates profits from shareholder equity. An ROE above 15% is generally considered strong, while below 10% may signal inefficiency.
How do I buy BKR stock?
BKR shares can be purchased through any brokerage account that provides access to the NASDAQ. Common steps:
- Open an account with a broker (e.g., Fidelity, Schwab, Interactive Brokers)
- Search for ticker symbol BKR
- Place a market or limit order for your desired number of shares
This is not investment advice. Always do your own research before buying any stock.
Is BKR a value stock or speculative?
FairValueLabs classifies Baker Hughes Company as Value Investment. It exhibits consistent profitability, reasonable valuation, and financial stability — characteristics of a traditional value investment.
Who is the CEO of Baker Hughes Company?
The current CEO of Baker Hughes Company is Mr. Lorenzo Simonelli.
What is BKR's earnings per share (EPS)?
Earnings per share measures the company's profit allocated to each outstanding share:
- Trailing EPS (last 12 months): $2.60
- Forward EPS (next 12 months est.): $2.84
- Analyst consensus EPS (this year): $2.39
- Analyst consensus EPS (next year): $2.80
Other Energy companies analyzed by FairValueLabs
FairValueLabs Disclaimer
All valuations, scores, ratings, and classifications on this page are produced by the FairValueLabs internal valuation system. They do not represent actual market value, guaranteed outcomes, or professional investment advice. These are analytical estimates for educational and research purposes only.
This is not financial advice. All data is sourced from SEC EDGAR public filings. Always consult a qualified financial advisor before making investment decisions.
Last updated: Apr 22, 2026. Data sources: SEC EDGAR (financial statements), Yahoo Finance (market data, analyst consensus). Data may not reflect the most recent quarter.
BKR analysis methodology: How we calculate fair value, Z-Scores, and moat ratings