📊 BKR Key Takeaways
Is Baker Hughes Co (BKR) a Good Investment?
Baker Hughes demonstrates financial stability with strong gross margins (67.3%) and adequate liquidity, but fundamental health is undermined by concerning earnings quality and cash flow metrics. The extreme revenue increase (+12,593% YoY) coupled with declining net income suggests acquisition-driven growth that has not translated into operational improvement, while free cash flow margin of only 2.5% against net margin of 14.1% indicates significant cash conversion challenges.
Baker Hughes shows solid underlying fundamentals with double-digit operating profitability, healthy free cash flow generation, and a conservative balance sheet supported by modest leverage and adequate liquidity. Returns on equity and assets indicate efficient capital use for an industrial business, while cash generation appears strong relative to revenue. Confidence is tempered by clear data-quality anomalies, so the core view depends on confirming whether reported growth and liability figures are presentation issues rather than fundamental deterioration.
Why Buy Baker Hughes Co Stock? BKR Key Strengths
- Excellent gross margins of 67.3% demonstrate pricing power and product differentiation
- Strong liquidity position with current ratio of 2.13x and substantial cash reserves of $14.8B
- Reasonable debt-to-equity ratio of 0.80x provides financial flexibility
- Healthy profitability profile with 16.0% gross margin, 10.4% operating margin, and 9.3% net margin
- Strong cash generation with $3.81B operating cash flow and $2.54B free cash flow, supporting reinvestment and financial flexibility
- Balance sheet appears manageable with $3.71B cash, 1.36x current ratio, and low 0.29x debt-to-equity
BKR Stock Risks: Baker Hughes Co Investment Risks
- Quality of earnings concern: revenue surged 12,593% YoY while net income declined 1.4%, indicating value destruction from acquisition or restructuring
- Severely depressed free cash flow margin of 2.5% relative to net margin of 14.1% suggests poor cash conversion despite high nominal profitability
- Weak return metrics with ROE of 4.8% and ROA of 1.8% indicate inefficient capital deployment despite $50.9B in assets
- Revenue growth of +12592.3% YoY is not credible as presented and raises concerns about comparability or data normalization
- Net income declined 1.4% YoY despite reported revenue surge, which could indicate weaker earnings quality or distorted period data
- Total liabilities shown as $0.00 is clearly unrealistic, limiting confidence in leverage and balance-sheet analysis until verified
Key Metrics to Watch
- Free cash flow generation and FCF margin trend to confirm cash conversion improvement
- Organic revenue growth rate excluding M&A impact to assess underlying business momentum
- Return on equity trajectory to determine if capital is being deployed efficiently
- Order growth and revenue conversion across operating segments
- Free cash flow consistency versus net income and capital spending
Baker Hughes Co (BKR) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 2.5% FCF margin may limit capital allocation flexibility. Strong liquidity with a 2.13x current ratio provides a solid financial cushion.
BKR Profit Margin, ROE & Profitability Analysis
BKR vs Industrial Sector: How Baker Hughes Co Compares
How Baker Hughes Co compares to Industrial sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Baker Hughes Co Stock Overvalued? BKR Valuation Analysis 2026
Based on fundamental analysis, Baker Hughes Co has mixed fundamental signals relative to the Industrial sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Baker Hughes Co Balance Sheet: BKR Debt, Cash & Liquidity
BKR Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Baker Hughes Co's revenue has grown significantly by 17% over the 5-year period, indicating strong business expansion. The most recent EPS of $-0.61 indicates the company is currently unprofitable.
BKR Revenue Growth, EPS Growth & YoY Performance
BKR Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $6.4B | $402.0M | N/A |
| Q3 2025 | $6.9B | $609.0M | N/A |
| Q2 2025 | $6.9B | $579.0M | N/A |
| Q1 2025 | $6.4B | $402.0M | N/A |
| Q3 2024 | $6.6B | $518.0M | N/A |
| Q2 2024 | $6.3B | $410.0M | N/A |
| Q1 2024 | $5.7B | $455.0M | N/A |
| Q3 2023 | $5.4B | -$17.0M | N/A |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Baker Hughes Co Dividends, Buybacks & Capital Allocation
BKR SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Baker Hughes Co (CIK: 0001701605)
📋 Recent SEC Filings
❓ Frequently Asked Questions about BKR
What is the AI rating for BKR?
Baker Hughes Co (BKR) has a Combined AI Rating of BUY from Claude (HOLD) and ChatGPT (BUY) with 73% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are BKR's key strengths?
Claude: Excellent gross margins of 67.3% demonstrate pricing power and product differentiation. Strong liquidity position with current ratio of 2.13x and substantial cash reserves of $14.8B. ChatGPT: Healthy profitability profile with 16.0% gross margin, 10.4% operating margin, and 9.3% net margin. Strong cash generation with $3.81B operating cash flow and $2.54B free cash flow, supporting reinvestment and financial flexibility.
What are the risks of investing in BKR?
Claude: Quality of earnings concern: revenue surged 12,593% YoY while net income declined 1.4%, indicating value destruction from acquisition or restructuring. Severely depressed free cash flow margin of 2.5% relative to net margin of 14.1% suggests poor cash conversion despite high nominal profitability. ChatGPT: Revenue growth of +12592.3% YoY is not credible as presented and raises concerns about comparability or data normalization. Net income declined 1.4% YoY despite reported revenue surge, which could indicate weaker earnings quality or distorted period data.
What is BKR's revenue and growth?
Baker Hughes Co reported revenue of $6.6B.
Does BKR pay dividends?
Baker Hughes Co pays dividends, with $228.0M distributed to shareholders in the trailing twelve months.
Where can I find BKR SEC filings?
Official SEC filings for Baker Hughes Co (CIK: 0001701605) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is BKR's EPS?
Baker Hughes Co has a diluted EPS of $2.98.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is BKR a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, Baker Hughes Co has a BUY rating with 73% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is BKR stock overvalued or undervalued?
Valuation metrics for BKR: ROE of 4.8% (sector avg: 15%), net margin of 14.1% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
Should I buy BKR stock in 2026?
Our dual AI analysis gives Baker Hughes Co a combined BUY rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is BKR's free cash flow?
Baker Hughes Co's operating cash flow is $500.0M, with capital expenditures of $336.0M. FCF margin is 2.5%.
How does BKR compare to other Industrial stocks?
Vs Industrial sector averages: Net margin 14.1% (avg: 10%), ROE 4.8% (avg: 15%), current ratio 2.13 (avg: 1.8).