NASDAQ · Energy

Baker Hughes Company

BKR · Oil & Gas Equipment & Services

$58.41

▼ -1.66 (-2.76%)

Cached · 10 min

Overall Grade

Defensive

Enterprising

Profitability

B⤢

Gross Profit Margin 22.8%

Operating Margin 12.3%

Net Income Margin 14.1%

Fin. Health

D⤢

Years to Pay Off Debt 17.4 yrs

Working Capital vs Long-Term Debt -$233M

Working Capital $15.2B

Valuation

F⤢

Margin of Safety 0.0%

Price-to-Book 3.00x

Cash Flow

B⤢

Free Cash Flow $164M

CapEx % of Net Income 36.1%

Owner Earnings $1.6B

Profitability

Gross Profit Margin 22.8%

Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.

Operating Margin 12.3%

Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.

Net Income Margin 14.1%

Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.

Financial Health

Years to Pay Off Debt 17.4 yrs

Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.

Working Capital vs Long-Term Debt -$233M

Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.

Working Capital $15.2B

Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.

Cash Flow

Free Cash Flow $164M

Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.

CapEx % of Net Income 36.1%

Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.

Owner Earnings $1.6B

Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.

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

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.

Market Data

Market Cap $57.9B

Enterprise Value $61.4B

P/E (TTM) 18.66

Dividend Yield 1.53%

Exchange NASDAQ

Key Margins

Gross Profit 22.8%

Operating Margin 12.3%

Net Margin 14.1%

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 $58.41.

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

At $58.41, the stock trades at a 189% premium to its Graham Number of $20.18. 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.

Showing Key Metrics

Income Highlights

Metric	Q1 2026	Q4 2025	Q4 2024
Gross Profit %	22.8%▼	23.7%•	N/A
Operating Margin %	12.3%▼	13.1%•	N/A
Net Income %	14.1%▲	11.9%•	N/A
Diluted EPS	0.93▲	0.88•	N/A

Balance Sheet Highlights

Metric	Q1 2026	Q4 2025	Q4 2024
Total Assets	$50.9B	$40.9B	N/A
Total Debt	$16.2B▲	$6.1B•	N/A
Working Capital	$15.2B▲	$5.0B•	N/A
Years to Pay Debt	17.38	6.95	N/A

Cash Flow Highlights

Metric	Q1 2026	Q4 2025	Q4 2024
Free Cash Flow	$164M▼	$1.3B•	N/A
Owner Earnings	$1.6B	$1.6B	N/A
CapEx % of Net Income	36.1%	43.0%	N/A

Income Statement

	2026	2025	2024
Tax Effect Of Unusual Items	159,824	0
Tax Rate For Calcs	0	0
Normalized EBITDA	1,108,000	916,000
Total Unusual Items	606,000		-280,000
Total Unusual Items Excluding Goodwill	606,000		-280,000
Net Income From Continuing Operation Net Minority Interest	930,000	876,000
Reconciled Depreciation	354,000	327,000
Reconciled Cost Of Revenue	5,083,000	5,633,000
EBITDA	1,714,000	916,000
EBIT	1,360,000	589,000
Net Interest Income	-86,000	-61,000
Interest Expense	86,000	61,000
Normalized Income	483,824	876,000
Net Income From Continuing And Discontinued Operation	930,000	876,000
Total Expenses	5,778,000	6,416,000
Total Operating Income As Reported			665,000
Diluted Average Shares	996,000	994,000
Basic Average Shares	990,000	987,000
Diluted EPS	0	0
Basic EPS	0	0
Diluted NI Availto Com Stockholders	930,000	876,000
Net Income Common Stockholders	930,000	876,000
Net Income	930,000	876,000
Minority Interests	-8,000	-11,000
Net Income Including Noncontrolling Interests	938,000	887,000
Net Income Continuous Operations	938,000	887,000
Tax Provision	336,000	-359,000
Pretax Income	1,274,000	528,000
Other Income Expense	551,000	-381,000
Other Non Operating Income Expenses	-55,000	44,000
Special Income Charges	656,000		-280,000
Gain On Sale Of Business	721,000
Restructuring And Mergern Acquisition	65,000
Gain On Sale Of Security	-50,000
Net Non Operating Interest Income Expense	-86,000	-61,000
Interest Expense Non Operating	86,000	61,000
Operating Income	809,000	970,000
Operating Expense	695,000	783,000
Research And Development	133,000	147,000
Selling General And Administration	562,000	636,000
Gross Profit	1,504,000	1,753,000
Cost Of Revenue	5,083,000	5,633,000
Total Revenue	6,587,000	7,386,000
Operating Revenue	6,587,000	7,386,000

Balance Sheet

	2026	2025	2024
Ordinary Shares Number	991,773	986,774
Share Issued	991,773	986,774
Net Debt	1,400,000	2,372,000
Total Debt	16,164,000	6,087,000
Tangible Book Value	9,209,000	8,669,000
Invested Capital	35,478,000	24,921,000
Working Capital	15,178,000	4,951,000
Net Tangible Assets	9,209,000	8,669,000
Common Stock Equity	19,314,000	18,834,000
Total Capitalization	34,725,000	24,232,000
Total Equity Gross Minority Interest	19,490,000	19,010,000
Minority Interest	176,000	176,000
Stockholders Equity	19,314,000	18,834,000
Gains Losses Not Affecting Retained Earnings	-2,844,000	-2,652,000
Other Equity Adjustments	-2,844,000	-2,652,000
Retained Earnings	-2,322,000	-3,252,000
Additional Paid In Capital	24,480,000	24,738,000
Total Liabilities Net Minority Interest	31,406,000	21,871,000
Total Non Current Liabilities Net Minority Interest	17,993,000	7,994,000
Other Non Current Liabilities	1,447,000	1,446,000
Employee Benefits	1,041,000	1,066,000
Non Current Pension And Other Postretirement Benefit Plans	1,041,000	1,066,000
Non Current Deferred Liabilities	94,000	84,000
Non Current Deferred Taxes Liabilities	94,000	84,000
Long Term Debt And Capital Lease Obligation	15,411,000	5,398,000
Long Term Debt	15,411,000	5,398,000
Current Liabilities	13,413,000	13,877,000
Other Current Liabilities	2,404,000	2,705,000
Current Deferred Liabilities	5,999,000	5,904,000
Current Deferred Revenue	5,999,000	5,904,000
Current Debt And Capital Lease Obligation	753,000	689,000
Current Debt	753,000	689,000
Other Current Borrowings	153,000	90,000
Current Notes Payable	600,000	599,000	0
Payables And Accrued Expenses	4,257,000	4,579,000
Payables	4,257,000	4,579,000
Accounts Payable	4,257,000	4,579,000
Total Assets	50,896,000	40,881,000
Total Non Current Assets	22,305,000	22,053,000
Other Non Current Assets	3,184,000	2,985,000
Non Current Deferred Assets	1,729,000	1,957,000
Non Current Deferred Taxes Assets	1,729,000	1,957,000
Non Current Accounts Receivable	1,747,000	1,620,000
Goodwill And Other Intangible Assets	10,105,000	10,165,000
Other Intangible Assets	4,073,000	4,097,000
Goodwill	6,032,000	6,068,000
Net PPE	5,540,000	5,326,000
Accumulated Depreciation	-6,833,000	-6,686,000
Gross PPE	12,373,000	12,012,000
Machinery Furniture Equipment		9,184,000	8,539,000
Buildings And Improvements		2,531,000	2,347,000
Land And Improvements		297,000	297,000
Current Assets	28,591,000	18,828,000
Other Current Assets	2,263,000	3,518,000
Inventory	4,868,000	4,954,000
Finished Goods	2,361,000	2,381,000
Work In Process	2,507,000	2,573,000
Receivables	6,696,000	6,641,000
Receivables Adjustments Allowances	-290,000	-277,000
Other Receivables	1,479,000	1,360,000
Accounts Receivable	5,507,000	5,558,000
Cash Cash Equivalents And Short Term Investments	14,764,000	3,715,000
Cash And Cash Equivalents	14,764,000	3,715,000

Cash Flow

	2026	2025	2024
Free Cash Flow	164,000	1,285,000
Repurchase Of Capital Stock	0	0
Repayment Of Debt		0	-9,000
Issuance Of Debt	9,885,000
Capital Expenditure	-336,000	-377,000
Interest Paid Supplemental Data	56,000	97,000
Income Tax Paid Supplemental Data	188,000	402,000
End Cash Position	14,764,000	3,715,000
Beginning Cash Position	3,715,000	2,693,000
Effect Of Exchange Rate Changes	-12,000	11,000
Changes In Cash	11,061,000	1,011,000
Financing Cash Flow	9,523,000	-258,000
Cash Flow From Continuing Financing Activities	9,523,000	-258,000
Net Other Financing Charges	-134,000	-31,000
Cash Dividends Paid	-228,000	-227,000
Common Stock Dividend Paid	-228,000	-227,000
Net Common Stock Issuance	0	0
Common Stock Payments	0	0
Net Issuance Payments Of Debt	9,885,000	0
Net Long Term Debt Issuance	9,885,000	0
Long Term Debt Payments		0	-9,000
Long Term Debt Issuance	9,885,000
Investing Cash Flow	1,038,000	-393,000
Cash Flow From Continuing Investing Activities	1,038,000	-393,000
Net Other Investing Changes	-7,000	14,000
Net Investment Purchase And Sale		0	71,000
Sale Of Investment		0	71,000
Net Business Purchase And Sale	1,381,000	-30,000	0
Sale Of Business	1,381,000		0
Purchase Of Business		-30,000	0
Capital Expenditure Reported	-336,000	-377,000
Operating Cash Flow	500,000	1,662,000
Cash Flow From Continuing Operating Activities	500,000	1,662,000
Change In Working Capital	-390,000	982,000
Change In Other Working Capital	-22,000	663,000
Change In Payables And Accrued Expense	-248,000	346,000
Change In Payable	-248,000	346,000
Change In Account Payable	-248,000	346,000
Change In Inventory	35,000	42,000
Change In Receivables	-155,000	-69,000
Changes In Account Receivables	20,000	-155,000
Stock Based Compensation	45,000	50,000
Unrealized Gain Loss On Investment Securities	50,000
Asset Impairment Charge			77,000
Deferred Tax	224,000	-658,000
Deferred Income Tax	224,000	-658,000
Depreciation Amortization Depletion	354,000	327,000
Depreciation And Amortization	354,000	327,000
Operating Gains Losses	-721,000		-196,000
Gain Loss On Investment Securities			-196,000
Gain Loss On Sale Of Business	-721,000
Net Income From Continuing Operations	938,000	887,000

📊 Quarterly mode — Graham Fair Value & 7 Criteria require annual data. Switch to Annual for full analysis.

Quarter vs Same Quarter Last Year

YoY strips seasonality

Revenue Growth (YoY)

Prior year: $6.4B ▲ $6.6B +2.5%

Revenue growth vs same quarter last year strips seasonality. Consistent double-digit growth is a Buffett hallmark.

Gross Margin

Prior year: 23.0% ▲ 22.8% -0.1pp

Buffett: consistent gross margin above 40% signals durable pricing power and competitive moat.

Operating Margin

Prior year: 12.6% ▲ 12.3% -0.3pp

Graham: operating margin reflects true business economics before financing. Trend matters as much as level.

Net Margin

Prior year: 6.3% ▲ 14.1% +7.9pp

Net margin can be distorted by one-time items, tax timing, or interest costs — compare to operating margin for signal quality.

Quarterly Health Checks

3 Graham/Buffett criteria that are valid and reliable on quarterly data

✅ Adequate Size

Graham required scale for resilience. Quarterly revenue × 4 gives an annualised proxy.

$6.6B/qtr (≈$26.3B ann.)

vs > $1.5B annualised revenue

✅ Financial Condition

Current assets vs current liabilities — a real-time liquidity snapshot. Valid and reliable on quarterly data.

2.13x current ratio

vs ≥ 2.0x

✅ Free Cash Flow

Buffett's most important single metric. A positive FCF quarter means the business generated real cash for owners after maintaining its asset base.

$164M

vs Positive

Operating Cash Flow

$500M

Latest quarter · Buffett's cash reality check

ROIC

1.7%

Based on latest annual operating income

Return on Invested Capital — Buffett's preferred measure for asset-light businesses. ROIC > 15% consistently signals a durable competitive advantage (moat). More meaningful than P/B for software, pharma, and consumer brand companies where most value is intangible and off-balance-sheet.

Market Cap / Net Assets

3.0x

Net Assets: $19.5B

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)

4.8%

Weak — poor returns on equity

Return on Assets (ROA)

1.8%

Poor — assets are not generating adequate returns

Share Buybacks (Latest Year)

$384M

Management is returning capital to shareholders via buybacks

Debt Trend YoY

+165.5% YoY

Debt is growing — management is leveraging up

Leadership Team

Lorenzo Simonelli

Chairman, President & CEO

Age 52

Pay: $7,141,679

0.768% of net income

Ahmed Moghal

Executive VP & CFO

Age 43

Pay: $1,939,707

0.209% of net income

Amerino Gatti

Executive Vice President of Oilfield Services & Equipment

Age 53

Pay: $2,037,808

0.219% of net income

Chase Mulvehill

Vice President of Investor Relations

Adrienne . Lynch

Vice President of Brand & External Communications

Top Institutional Holders

Institution	% Owned	Shares
Blackrock Inc.	11.77%	97,530,729
State Street Corporation	7.84%	64,952,530
Vanguard Capital Management LLC	7.75%	64,226,792
JPMORGAN CHASE & CO	7.02%	58,196,567
Vanguard Portfolio Management LLC	5.89%	48,783,931
Capital World Investors	5.85%	48,433,252
Dodge & Cox Inc.	4.33%	35,871,558
Geode Capital Management, LLC	3.24%	26,847,011

Risk Analysis

Beta (Market Risk)

0.94

Low volatility — more stable than the market

Short Interest

2.9% 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: $37.38 Current: $58.41 High: $70.41

Currently at 64% of 52-week range

Baker Hughes Company

Metric Explanations

Full Graham Analysis

Income Highlights

Balance Sheet Highlights

Cash Flow Highlights

Quarter vs Same Quarter Last Year

Quarterly Health Checks

Operating Cash Flow

ROIC

Market Cap / Net Assets

Peers & Industry

Capital Allocation & Alignment

Leadership Team

Top Institutional Holders

Risk Analysis