Baker Hughes Company (BKR)
NASDAQ: BKR · Real-Time Price · USD
$63.9
+0.36 (+0.6%)· Live
StockMarketAgent Research
Our analysis: BKR rated Reduce
Reduce. Valuation reflects peak cyclical expectations and largely ignores structural mid-cycle contraction risks.
Fair value (mid)
$53.3 / share
$40.1 – $67.6
Upside to FV
-20.2%
from $63.9
Confidence
82/100
Moat
6.5/10
Biggest opportunity
Bull: Global acceleration in LNG export capacity and deep-water developments act as twin super-cycles, driving protracted top-line growth and long-term multiple expansion as BKR transitions from a legacy OFS firm to a diversified energy transition play.
Biggest risk
Cyclical Downcycle
Cyclical Downcycle: Commodity prices correct sharply, halting global E&P budgets and driving OFS margins back to cyclical troughs.
Recommended action
Reduce
Reduce. The current $66.73 price implies a 20% premium over our $53.27 composite fair value, relying too heavily on peak cyclical margins and uninterrupted LNG super-cycles.
Position sizing playbook →| Market cap | $66.2B | |
|---|---|---|
| Revenue (ttm) | 27.9B | |
| Net income (ttm) | 3.1B | |
| EPS (ttm) | $3.13 | |
| Shares out | 992.1M | |
| P/E (trailing) | 20.4x | |
| P/E (forward) | 23.9x | |
| Dividend | $0.92 (1.44%) | |
| Volume | 7,859,327 | |
| Beta | 0.97 | |
| Price target | $68.0 | +6.4% |
Market data
Price
Recent price action with selectable time range.
Baker Hughes CompanyBKR
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Financial snapshot
- Revenue (ttm)
- 27.9B
- Net income (ttm)
- 3.1B
- EPS (ttm)
- $3.13
- P/E (trailing)
- 20.4x
- P/E (forward)
- 23.9x
- Market cap
- $66.2B
| Item | P1 | P2 | P3 | P4 | P5 | Trend |
|---|---|---|---|---|---|---|
| Period | 2021-12-31 | 2022-12-31 | 2023-12-31 | 2024-12-31 | 2025-12-31 | Trend |
| Revenue | — | $21.16B | $25.51B | $27.83B | $27.73B | +7.0% |
| Gross profit | — | $4.40B | $5.90B | $6.48B | $6.54B | +10.4% |
| Operating income | — | $1.89B | $2.64B | $3.38B | $3.56B | +17.1% |
| Net income | — | $-601.0M | $1.94B | $2.98B | $2.59B | — |
| EPS (diluted) | $-0.27 | $-0.61 | $1.91 | $2.98 | $2.60 | — |
| EBITDA | — | $1.34B | $3.96B | $4.60B | $4.29B | +33.9% |
| R&D | — | — | $651.0M | $643.0M | $600.0M | -2.0% |
| SG&A | — | $2.51B | $2.61B | $2.46B | $2.39B | -1.2% |
Fair-value bridge
- Fair value (low)
- $40.1
- Fair value (mid)
- $53.3
- Fair value (high)
- $67.6
- Current price
- $63.9
- Upside to mid
- -20.2%
Valuation models
| Model | Fair value (mid) | Weight |
|---|---|---|
| FCFF DCF | $59.05 | 35% |
| Forward earnings | $32.19 | 35% |
| Owner earnings | $82.82 | 15% |
| Multi stage moat fade | $59.45 | 15% |
| Reverse DCF | $0.00 | 0% |
| Peg adjusted peer | $12.49 | 0% |
Analyst consensus
Recommendation
Buy
Price target
$68.0
+6.4%
In the news
Latest news · BKR
Recent company headlines from major financial publishers.
Valuation
- Market cap
- $66.2B
- P/E (trailing)
- 20.4x
- P/E (forward)
- 23.9x
- P/S
- 2.3x
- P/B
- 3.3x
- PEG
- 2.29
- EV / EBITDA
- 13.2x
Profitability
- Gross margin
- 23.6%
- Operating margin
- 12.8%
- ROE
- 17.2%
- ROA
- 5.0%
- ROIC
- 15.0%
Balance sheet
- Debt / equity
- 0.83
- Current ratio
- 2.13
- Quick ratio
- 1.69
Trading
- Beta
- 0.97
- Volume
- 7,859,327
- Dividend yield
- 1.4%
Scenarios & expected return
Probability-weighted: -23.9% expected return to fair value
Bull15%
Price target
$67.58
+1.3% from spot
Global acceleration in LNG export capacity and deep-water developments act as twin super-cycles, driving protracted top-line growth and long-term multiple expansion as BKR transitions from a legacy OFS firm to a diversified energy transition play.
- Twin super-cycles in LNG and deep-water developments.
- Long-term multiple expansion reflecting transition to diversified energy play.
Base50%
Price target
$53.27
-20.2% from spot
Base case ties to the final fair-value midpoint and assumes the accepted model-weight synthesis remains intact.
- WACC of 7.44% and terminal growth of 2.0%.
- Terminal P/E of 14x reflects necessary cyclical conservatism.
Bear35%
Price target
$40.10
-39.9% from spot
A sustained dip in global commodity prices combined with delays in massive LNG project FIDs forces severe E&P spending cuts, crushing order backlogs, compressing margins, and contracting the valuation multiple back to historical OFS lows.
- Sustained dip in commodity prices.
- Severe E&P spending cuts and LNG deferrals.
Valuation models & bridge
Each model produces an independent fair value. Weighted average = $53.3.
| Model | Weight | FV / share | vs spot | Contribution |
|---|---|---|---|---|
| FCFF DCF | 35% | $59.0 | -7.6% | |
| Forward earnings | 35% | $32.2 | -49.6% | |
| Owner earnings | 15% | $82.8 | +29.6% | |
| Multi stage moat fade | 15% | $59.5 | -6.9% | |
| Reverse DCF | 0% | $0.00 | -100.0% | |
| Peg adjusted peer | 0% | $12.5 | -80.5% | |
| Composite FV (weighted) | 100% | $53.3 | -20.2% |
Sensitivity: Ke × terminal growth
The highlighted base cell is anchored to valuation synthesis sensitivity reference ($53.28). It is the reference value for this grid, not a separate standalone fair-value claim.
| Ke ↓ / g → | 1.0% | 1.5% | 2.0% | 2.5% | 3.0% |
|---|---|---|---|---|---|
| 5.4% | $65.3 | $73.6 | $84.3 | $93.2 | $93.2 |
| 6.4% | $53.3 | $58.7 | $65.3 | $73.6 | $84.3 |
| 7.4% | $45.0 | $48.8 | $53.3 | $58.7 | $65.3 |
| 8.4% | $39.0 | $41.8 | $45.0 | $48.8 | $53.3 |
| 9.4% | $34.3 | $36.5 | $39.0 | $41.8 | $45.0 |
Scorecard
Factor radar (left) · 9-category weighted composite (right)
Valuation5.0
Management6.4
Balance Sheet6.5
Profitability6.5
Revenue Growth4.5
Risk Assessment7.0
Competitive Moat6.5
Earnings Quality9.0
Capital Efficiency6.5
Weighted composite
6.4/10
Above average| Category | Weight | Score | Reading |
|---|---|---|---|
| Valuation | 11% | 5.0 | |
| Management | 11% | 6.4 | |
| Balance Sheet | 11% | 6.5 | |
| Profitability | 11% | 6.5 | |
| Revenue Growth | 11% | 4.5 | |
| Risk Assessment | 11% | 7.0 | |
| Competitive Moat | 11% | 6.5 | |
| Earnings Quality | 11% | 9.0 | |
| Capital Efficiency | 11% | 6.5 |
Position sizing & entry playbook
Pre-committed rules, followed irrespective of news flow.
Conviction tier
High
Confidence 82/100
Target weight
Underweight given the 20% downside to base fair value and extreme cyclicality of the legacy OFS segment.
of equity sleeve
Current / pullbacks
$63.9
Thesis break
Risk to thesis
- Trim positions on transient peak-earnings rallies approaching the $70 internal valuation cross-checks.
Calendar
Next earnings
Upcoming earnings date and setup when available.
Upcoming
DateLoading
Window—
EPS estimate—
Revenue estimate—
Sector percentile context
Refreshed 2026-05-10 22:07 UTC
Forward P/E23.9
P25 n/aP50 n/aP75 n/a
Trailing P/E0
P25 n/aP50 n/aP75 n/a
ROE17.2
P25 n/aP50 n/aP75 n/a
ROIC15
P25 n/aP50 n/aP75 n/a
Benchmarks · 1M
S&P 500n/a
Nasdaq Compositen/a
Dow Jones Industrial Averagen/a
Russell 2000n/a
All BKR indicators
Market & fundamental data
Available fields
266
Groups with data
11
Currency
USD
Showing 266 of 266 available metrics for this ticker.
Deeper analysis on BKR
14 sections in the full report · jump straight to what you need
Forecast
Bull, base, and bear cases with expected-return framing.
Valuation
Fair-value bridge, DCF, owner earnings, and peer multiples.
Sensitivity
Cost-of-equity and terminal-growth stress table.
Risks
Kill scenarios, soft-pass flags, and downside catalysts.
Earnings
Next earnings setup and beat / inline / miss thresholds.
Position sizing
Entry, exit, conviction, and quarterly monitoring rules.
Financials
Revenue, margins, cash flow, and balance-sheet context.
Peers
Relative valuation and profitability against the cohort.
Moat
Economic-profit evidence and competitive advantage risk.
Industry cycle
Sector phase, capital cycle, and secular tailwinds.
Scorecard
Six-factor overlay and 9-category weighted scorecard.
Recommendation
Final action, action steps, opportunity, and biggest risk.
Perspectives
Growth, value, and income investor reads.
Archive
Prior monthly reports and rating changes.
Frequently asked questions
About this BKR report
What is the current BKR stock rating?
Baker Hughes Company is currently shown with Reduce in the latest report. The hub links directly to the full analysis surface where the rating, fair-value bridge, risks, and scorecard are documented together.
Where can I read the full BKR analysis?
The full report lives at /stocks/BKR/analysis. The bare ticker page is a product hub that summarizes the latest read and sends readers into the relocated analysis tabs without making the analysis surface depend on the hub.
What fair-value range is used for BKR?
The latest report frames BKR around $40 to $68. Treat that range as the entry point, then check the valuation, sensitivity, and bear-case tabs before making an investment decision.
How often is the BKR page updated?
The hub updates with the latest published stock report and live backend market data. The analysis pages remain reachable under /analysis, so a hub rollback does not remove the report reader.
ReduceBKR · Fair value $53.3-20.2% · Confidence 82/100