NASDAQ · Energy

Baker Hughes Company

BKR · Oil & Gas Equipment & Services

$68.99

▼ -0.13 (-0.19%)

Data cached · refreshes every 10 min

Mr. Market is currently offering Baker Hughes Company at $68.99.

The business passes only 3 of 7 of Graham's defensive criteria — well below his required standard.

Overall Grade

Defensive

Enterprising

Profitability C

Gross Profit Margin 23.6%

Operating Margin 12.8%

Net Income Margin 9.3%

Fin. Health C

Years to Pay Off Debt 2.4 yrs

Working Capital vs Long-Term Debt -$447M

Working Capital $5.0B

Valuation F

Margin of Safety 0.0%

Price-to-Book 3.63x

Cash Flow C

Free Cash Flow $2.5B

CapEx % of Net Income 49.2%

Owner Earnings $5.0B

3/7

Graham Score

Speculative

Defensive — Graham's strict criteria (P/B, P/E, dividends, stability) · Enterprising — Profitability & cash flow focused, accepts higher valuations for quality

Market Data

Market Cap $68.4B

Enterprise Value $69.0B

P/E (TTM) 22.04

Dividend Yield 1.33%

Exchange NASDAQ

Key Margins

Gross Profit 23.6%

Operating Margin 12.8%

Net Margin 9.3%

Company Info

Sector Energy

Industry Oil & Gas Equipment & Services

Employees 53000

Country United States

Visit website

📖

Full Graham Analysis

Mr. Market is currently offering Baker Hughes Company at $68.99.

The business passes only 3 of 7 of Graham's defensive criteria — well below his required standard.

At $68.99, the stock trades at a 107% premium to its Graham Number of $33.33. Graham would consider this price speculative.

There is no margin of safety at the current price. Graham would advise patience and waiting for a better entry point.

Negative NCAV — liabilities exceed current assets. Common in capital-return businesses (buybacks, debt-funded dividends) and capital-intensive industries. Not automatically a warning sign..

Conclusion: By Graham's standards, this stock is speculative at its current price. The intelligent investor would look elsewhere or wait.

About Baker Hughes Company

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. It serves oil and natural gas companies; the United States and international independent oil and natural gas companies; national or state-owned oil companies; engineering, procurement, and construction contractors; geothermal companies; and other oilfield service companies. The company's Industrial & Energy Technology segment offers gas technology equipment, such as drivers, driven equipment, and turnkey solutions for the mechanical and electric-drive, compression, and power-generation applications; aftermarket support and uptime gas technology services; non-destructive testing technologies, software, and services; pre-commissioning and maintenance services; flow control and safety solutions; mechanical and electromechanical gear transmission systems; Cordant, a software solution to optimize assets, processes, and energy use; Bently Nevada, a sensing and protection hardware for rack-based vibrating monitoring equipment and sensors; and climate technology solutions. It serves industrial, upstream, midstream, downstream, onshore, offshore, and small-to-large scale customers. The company was formerly known as Baker Hughes, a GE company and changed its name to Baker Hughes Company in October 2019. The company was incorporated in 2016 and is based in Houston, Texas.

Showing Key Metrics

Income Highlights

Metric	2025	2024	2023	2022	2021
Gross Profit %	23.6% ▲	23.3%	23.1%	20.8%	N/A
Operating Margin %	12.8% ▲	12.2%	10.4%	8.9%	N/A
Net Income %	9.3% ▼	10.7%	7.6%	-2.8%	N/A
Diluted EPS	2.60 ▼	2.98	1.91	-0.61	N/A

Balance Sheet Highlights

Metric	2025	2024	2023	2022	2021
Total Assets	$40.9B	$38.4B	$36.9B	$34.2B	N/A
Total Debt	$6.1B ↑	$6.0B	$6.0B	$6.7B	N/A
Working Capital	$5.0B ▲	$4.2B	$3.3B	$3.5B	N/A
Years to Pay Debt	2.35	2.02	3.10	-11.08	N/A

Cash Flow Highlights

Metric	2025	2024	2023	2022	2021
Free Cash Flow	$2.5B ▲	$2.1B	$1.8B	$899M	N/A
Owner Earnings	$5.0B	$5.4B	$4.3B	$1.4B	N/A
CapEx % of Net Income	49.2%	42.9%	63.0%	N/A	N/A

Income Statement

	2025	2024	2023	2022	2021
Tax Effect Of Unusual Items	-37,400	7,979	57,534	-148,050
Tax Rate For Calcs	0	0	0	0
Normalized EBITDA	4,712,000	4,498,000	3,735,000	2,040,000
Total Unusual Items	-425,000	101,000	223,000	-705,000
Total Unusual Items Excluding Goodwill	-425,000	101,000	223,000	-705,000
Net Income From Continuing Operation Net Minority Interest	2,588,000	2,979,000	1,943,000	-601,000
Reconciled Depreciation	1,188,000	1,136,000	1,087,000	1,061,000
Reconciled Cost Of Revenue	21,189,000	21,346,000	19,604,000	16,756,000
EBITDA	4,287,000	4,599,000	3,958,000	1,335,000
EBIT	3,099,000	3,463,000	2,871,000	274,000
Net Interest Income	-222,000	-198,000	-216,000	-252,000
Interest Expense	222,000	198,000	216,000	252,000
Normalized Income	2,975,600	2,885,979	1,777,534	-44,050
Net Income From Continuing And Discontinued Operation	2,588,000	2,979,000	1,943,000	-601,000
Total Expenses	24,176,000	24,447,000	22,866,000	19,266,000
Total Operating Income As Reported		3,081,000	2,317,000	1,185,000	1,310,000
Diluted Average Shares	994,000	1,001,000	1,015,000	987,000
Basic Average Shares	988,000	994,000	1,008,000	987,000
Diluted EPS	0	0	0	0
Basic EPS	0	0	0	0
Diluted NI Availto Com Stockholders	2,588,000	2,979,000	1,943,000	-601,000
Net Income Common Stockholders	2,588,000	2,979,000	1,943,000	-601,000
Net Income	2,588,000	2,979,000	1,943,000	-601,000
Minority Interests	-36,000	-29,000	-27,000	-23,000
Net Income Including Noncontrolling Interests	2,624,000	3,008,000	1,970,000	-578,000
Net Income Continuous Operations	2,624,000	3,008,000	1,970,000	-578,000
Tax Provision	253,000	257,000	685,000	600,000
Pretax Income	2,877,000	3,265,000	2,655,000	22,000
Other Income Expense	-458,000	75,000	231,000	-1,616,000
Other Non Operating Income Expenses	-33,000	-26,000	8,000	-911,000
Special Income Charges	-322,000	-266,000	-332,000	-705,000
Other Special Charges	40,000	36,000	45,000
Impairment Of Capital Assets	53,000	77,000	-2,000	0
Restructuring And Mergern Acquisition	229,000	153,000	289,000	705,000
Gain On Sale Of Security	-103,000	367,000	555,000
Net Non Operating Interest Income Expense	-222,000	-198,000	-216,000	-252,000
Interest Expense Non Operating	222,000	198,000	216,000	252,000
Operating Income	3,557,000	3,382,000	2,640,000	1,890,000
Operating Expense	2,987,000	3,101,000	3,262,000	2,510,000
Research And Development	600,000	643,000	651,000
Selling General And Administration	2,387,000	2,458,000	2,611,000	2,510,000
Gross Profit	6,544,000	6,483,000	5,902,000	4,400,000
Cost Of Revenue	21,189,000	21,346,000	19,604,000	16,756,000
Total Revenue	27,733,000	27,829,000	25,506,000	21,156,000
Operating Revenue	27,733,000	27,829,000	25,506,000	21,156,000

Balance Sheet

	2025	2024	2023	2022	2021
Ordinary Shares Number	986,774	989,526	998,000	1,006,000
Share Issued	986,774	989,526	998,000	1,006,000
Net Debt	2,372,000	2,659,000	3,375,000	4,170,000
Total Debt	6,087,000	6,023,000	6,021,000	6,658,000
Tangible Book Value	8,669,000	6,866,000	5,138,000	4,285,000
Invested Capital	24,921,000	22,918,000	21,389,000	21,052,000
Working Capital	4,951,000	4,220,000	3,310,000	3,516,000
Net Tangible Assets	8,669,000	6,866,000	5,138,000	4,285,000
Common Stock Equity	18,834,000	16,895,000	15,368,000	14,394,000
Total Capitalization	24,232,000	22,865,000	21,241,000	20,374,000
Total Equity Gross Minority Interest	19,010,000	17,055,000	15,519,000	14,525,000
Minority Interest	176,000	160,000	151,000	131,000
Stockholders Equity	18,834,000	16,895,000	15,368,000	14,394,000
Gains Losses Not Affecting Retained Earnings	-2,652,000	-3,161,000	-2,796,000	-2,971,000
Other Equity Adjustments	-2,652,000	-3,161,000	-2,796,000	-2,971,000
Retained Earnings	-3,252,000	-5,840,000	-8,819,000	-10,761,000
Additional Paid In Capital	24,738,000	25,896,000	26,983,000	28,126,000
Total Liabilities Net Minority Interest	21,871,000	21,308,000	21,426,000	19,656,000
Total Non Current Liabilities Net Minority Interest	7,994,000	8,317,000	8,435,000	8,580,000
Other Non Current Liabilities	1,446,000	1,276,000	1,408,000	1,411,000
Employee Benefits	1,066,000	988,000	978,000	960,000
Non Current Pension And Other Postretirement Benefit Plans	1,066,000	988,000	978,000	960,000
Non Current Deferred Liabilities	84,000	83,000	176,000	229,000
Non Current Deferred Taxes Liabilities	84,000	83,000	176,000	229,000
Long Term Debt And Capital Lease Obligation	5,398,000	5,970,000	5,873,000	5,980,000
Long Term Debt	5,398,000	5,970,000	5,873,000	5,980,000
Current Liabilities	13,877,000	12,991,000	12,991,000	11,076,000
Other Current Liabilities	2,705,000	2,724,000	2,830,000	2,278,000
Current Deferred Liabilities	5,904,000	5,672,000	5,542,000	3,822,000
Current Deferred Revenue	5,904,000	5,672,000	5,542,000	3,822,000
Current Debt And Capital Lease Obligation	689,000	53,000	148,000	678,000
Current Debt	689,000	53,000	148,000	678,000
Other Current Borrowings	90,000	53,000	39,000	29,000
Current Notes Payable	599,000	0	109,000	649,000
Payables And Accrued Expenses	4,579,000	4,542,000	4,471,000	4,298,000
Payables	4,579,000	4,542,000	4,471,000	4,298,000
Accounts Payable	4,579,000	4,542,000	4,471,000	4,298,000
Total Assets	40,881,000	38,363,000	36,945,000	34,181,000
Total Non Current Assets	22,053,000	21,152,000	20,643,000	19,588,000
Other Non Current Assets	2,985,000	2,982,000	3,043,000	2,781,000
Non Current Deferred Assets	1,957,000	1,284,000	722,000	657,000
Non Current Deferred Taxes Assets	1,957,000	1,284,000	722,000	657,000
Non Current Accounts Receivable	1,620,000	1,730,000	1,756,000	1,503,000
Goodwill And Other Intangible Assets	10,165,000	10,029,000	10,230,000	10,109,000
Other Intangible Assets	4,097,000	3,951,000	4,093,000	4,179,000
Goodwill	6,068,000	6,078,000	6,137,000	5,930,000
Net PPE	5,326,000	5,127,000	4,892,000	4,538,000
Accumulated Depreciation	-6,686,000	-6,056,000	-5,678,000	-5,121,000
Gross PPE	12,012,000	11,183,000	10,570,000	9,659,000
Machinery Furniture Equipment	9,184,000	8,539,000	7,974,000	7,192,000
Buildings And Improvements	2,531,000	2,347,000	2,264,000	2,120,000
Land And Improvements	297,000	297,000	332,000	347,000
Current Assets	18,828,000	17,211,000	16,301,000	14,592,000
Other Current Assets	3,518,000	1,771,000	1,486,000	1,559,000
Inventory	4,954,000	4,954,000	5,094,000	4,587,000
Finished Goods	2,381,000	2,494,000	2,626,000	2,419,000
Work In Process	2,573,000	2,460,000	2,468,000	2,168,000
Receivables	6,641,000	7,122,000	7,075,000	5,958,000
Receivables Adjustments Allowances	-277,000	-232,000	-350,000	-341,000
Other Receivables	1,360,000	1,409,000	1,392,000	1,216,000
Duefrom Related Parties Current				0	481,000
Accounts Receivable	5,558,000	5,945,000	6,033,000	5,083,000
Cash Cash Equivalents And Short Term Investments	3,715,000	3,364,000	2,646,000	2,488,000
Cash And Cash Equivalents	3,715,000	3,364,000	2,646,000	2,488,000

Cash Flow

	2025	2024	2023	2022	2021
Free Cash Flow	2,537,000	2,054,000	1,838,000	899,000
Repurchase Of Capital Stock	-384,000	-484,000	-538,000	-828,000
Repayment Of Debt	0	-143,000	-651,000	0
Issuance Of Debt			0	0	1,250,000
Capital Expenditure	-1,273,000	-1,278,000	-1,224,000	-989,000
Interest Paid Supplemental Data	294,000	298,000	309,000	291,000
Income Tax Paid Supplemental Data	1,156,000	1,040,000	595,000	498,000
End Cash Position	3,715,000	3,364,000	2,646,000	2,488,000
Beginning Cash Position	3,364,000	2,646,000	2,488,000	3,853,000
Effect Of Exchange Rate Changes	67,000	-71,000	-59,000	-97,000
Changes In Cash	284,000	789,000	217,000	-1,268,000
Financing Cash Flow	-1,482,000	-1,527,000	-2,028,000	-1,592,000
Cash Flow From Continuing Financing Activities	-1,482,000	-1,527,000	-2,028,000	-1,592,000
Net Other Financing Charges	-188,000	-64,000	-53,000	-38,000
Cash Dividends Paid	-910,000	-836,000	-786,000	-726,000
Common Stock Dividend Paid	-910,000	-836,000	-786,000	-726,000
Net Common Stock Issuance	-384,000	-484,000	-538,000	-828,000
Common Stock Payments	-384,000	-484,000	-538,000	-828,000
Net Issuance Payments Of Debt	0	-143,000	-651,000	0
Net Short Term Debt Issuance			0	-28,000	-832,000
Short Term Debt Payments			0	-28,000	-832,000
Net Long Term Debt Issuance	0	-143,000	-651,000	0
Long Term Debt Payments	0	-143,000	-651,000	0
Long Term Debt Issuance			0	0	1,250,000
Investing Cash Flow	-2,044,000	-1,016,000	-817,000	-1,564,000
Cash Flow From Continuing Investing Activities	-2,044,000	-1,016,000	-817,000	-1,564,000
Net Other Investing Changes	58,000	170,000	43,000	166,000
Net Investment Purchase And Sale	1,000	92,000	372,000	26,000
Sale Of Investment	1,000	92,000	372,000	26,000
Net Business Purchase And Sale	-830,000	0	-8,000	-767,000
Sale Of Business	0	0	293,000	0
Purchase Of Business	-830,000	0	-301,000	-767,000
Capital Expenditure Reported	-1,273,000	-1,278,000	-1,224,000	-989,000
Operating Cash Flow	3,810,000	3,332,000	3,062,000	1,888,000
Cash Flow From Continuing Operating Activities	3,810,000	3,332,000	3,062,000	1,888,000
Change In Working Capital	394,000	24,000	462,000	211,000
Change In Other Working Capital	-377,000	290,000	2,059,000	1,192,000
Change In Other Current Liabilities					-72,000
Change In Payables And Accrued Expense	11,000	91,000	61,000	605,000
Change In Payable	11,000	91,000	61,000	605,000
Change In Account Payable	11,000	91,000	61,000	605,000
Change In Inventory	79,000	-102,000	-461,000	-885,000
Change In Receivables	681,000	-255,000	-1,197,000	-701,000
Changes In Account Receivables	358,000	-159,000	-986,000	-625,000
Stock Based Compensation	203,000	202,000	197,000	207,000
Asset Impairment Charge		77,000	34,000	166,000	7,000
Deferred Tax	-702,000	-671,000	-59,000	105,000
Deferred Income Tax	-702,000	-671,000	-59,000	105,000
Depreciation Amortization Depletion	1,188,000	1,136,000	1,087,000	1,061,000
Depreciation And Amortization	1,188,000	1,136,000	1,087,000	1,061,000
Amortization Cash Flow	250,000	266,000	257,000	222,000
Amortization Of Intangibles	250,000	266,000	257,000	222,000
Depreciation	938,000	870,000	830,000	839,000
Operating Gains Losses	103,000	-367,000	-595,000	716,000
Gain Loss On Investment Securities	103,000	-367,000	-555,000	265,000
Gain Loss On Sale Of Business	0	0	-40,000	451,000
Net Income From Continuing Operations	2,624,000	3,008,000	1,970,000	-578,000

These metrics estimate what Baker Hughes Company is worth based on its fundamentals — independent of what the market currently prices it at. Graham's Fair Value and NCAV are conservative floors rooted in 1930s–60s principles. EPV assumes zero growth. None are price targets — they are reference points for judging whether the current price offers a margin of safety.

Graham's Fair Value

$33.33

Margin of Safety

Market Cap ÷ Company Value

1.27

P/B Ratio

3.63

Warren's Owner Earnings

$5.0B

Latest fiscal year

Graham's 7 Criteria

Defensive Investor Checklist

3/7 — Speculative Investor

✅ Adequate Size

$27.7B

vs > $1.5B revenue

❌ Strong Financial Condition

1.36x

vs Current Ratio > 2.0x

❌ Earnings Stability

1 loss years (4 yrs data)

vs No negative EPS years

✅ Dividend Record

1.33%

vs Uninterrupted dividends

✅ Earnings Growth

+36.1% EPS growth

vs > 33% EPS growth

❌ Moderate P/E Ratio

22.0x

vs P/E ≤ 15.0x

❌ Moderate Price-to-Book

3.63x P/B (P/E×P/B: 80.1)

vs P/B ≤ 1.5x | P/E × P/B ≤ 22.5

Net Current Asset Value

$-3.07

Negative NCAV — liabilities exceed current assets. Common in capital-return businesses (buybacks, debt-funded dividends) and capital-intensive industries. Not automatically a warning sign.

"Buy at two-thirds of net current assets." — Graham

Earnings Power Value

$39.84

Per share, no-growth floor. Compare to current price.

Cash Flow Analysis

Metric	2025	2024	2023	2022	2021
Capital Expenditure % of Net Income	49.2%	42.9%	63.0%	N/A	N/A
Repurchase of Capital Stock	-$384M	-$484M	-$538M	-$828M	N/A
Free Cash Flow	$2.5B ▲	$2.1B ▲	$1.8B ▲	$899M •	N/A •
Warren's Owner Earnings	$5.0B	$5.4B	$4.3B	$1.4B	N/A

Peers & Industry

No auto-detected peers for Oil & Gas Equipment & Services. You can manually compare BKR against any stock using the Compare tool.

"The management of a business is its most important single factor — more important than market position, patents, or financial structure."

— Benjamin Graham

Capital Allocation & Alignment

Insider Ownership

0.15%

Low — management has little skin in the game

Return on Equity (ROE)

13.7%

Adequate — returns are moderate

Return on Assets (ROA)

6.3%

Strong — management uses assets efficiently

Share Buybacks (Latest Year)

$384M

Management is returning capital to shareholders via buybacks

Debt Trend YoY

+1.1% YoY

Debt is roughly stable

Leadership Team

Lorenzo Simonelli

Chairman, President & CEO

Age 52

Pay: $7,141,679

0.276% of net income

Ahmed Moghal

Executive VP & CFO

Age 43

Pay: $1,939,707

0.075% of net income

Amerino Gatti

Executive Vice President of Oilfield Services & Equipment

Age 53

Pay: $2,037,808

0.079% of net income

Chase Mulvehill

Vice President of Investor Relations

Adrienne . Lynch

Vice President of Brand & External Communications

Top Institutional Holders

Institution	% Owned	Shares
Vanguard Group Inc	14.67%	121,534,530
Blackrock Inc.	11.29%	93,540,519
JPMORGAN CHASE & CO	10.48%	86,829,486
State Street Corporation	7.41%	61,409,438
Capital World Investors	5.70%	47,234,954
Dodge & Cox Inc.	4.92%	40,759,438
Geode Capital Management, LLC	3.16%	26,213,363
Capital Research Global Investors	3.11%	25,757,875

Risk Analysis

Beta (Market Risk)

0.97

Low volatility — more stable than the market

Short Interest

2.7% of float

Low short interest — market is not heavily bearish

Debt-to-Equity

0.83x

Conservative balance sheet — low financial risk

Current Ratio

2.13x

Strong liquidity — Graham approved

52-Week Price Range

Low: $35.83 Current: $68.99 High: $70.41

Currently at 96% of 52-week range

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