Baker Hughes Company (BKR)

FairStock Score: 51/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for businesses that earn good returns on capital, produce cash, and can be bought at a sensible price. Baker Hughes fits only part of that. It serves the energy and industrial chain with oilfield equipment and services. In fiscal 2025, the year ended 2025-12-31, revenue was $27.7B and net income was $2.6B, down from $27.8B revenue and $3.0B net income in fiscal 2024, the year ended 2024-12-31. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $6.7B and net income was $681M, versus $6.9B revenue and $701M net income in fiscal Q2 2025, the quarter ended 2025-06-30. The trend is modestly negative, not a growing franchise. I do not see a wide moat in oilfield services because demand is tied to energy spending cycles. The balance sheet is adequate but not fortress-like: D/E is 0.81, Altman Z is 1.53, and FairStock's Piotroski score is 5/9. Cash generation is better: trailing free cash flow is $3.1B and the FCF yield is 5.6%. FairStock's ROE is 16.46%, but ROCE is only 4.85%, so returns on total capital are thin. At the 2026-10-26 close of $56.01, FairStock shows a P/E of 18.01, P/B of 2.79, EV/EBITDA of 11.02, and a Graham Number of $37.47, so the price is well above that conservative reference. FairStock's Lynch category is TURNAROUND because it returned to profit after a loss within the last three years, but current profit is below fiscal 2024. I would want evidence that revenue and net income stabilize before calling this a bargain. The price looks full for a cyclical, modest-return business; cash flow is the main support.

In plain English: Baker Hughes sells equipment and services used by oil and gas companies and industrial customers. The business earns a profit and generates cash, but sales and profit have slipped recently. At the recent $56.01 close, the price looks expensive compared with both the value of its assets and a conservative earnings-based estimate.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-26 close · note generated 2026-10-28 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer