BKR logo

Baker Hughes Co

BKR

Build a strategy around BKR

Accountable AI Logo

Baker Hughes Co AI Insights

Informational only. Not investment advice.
As of 2025-12-08

Snapshot

  • ROIC of 12.5% TTM vs industry median 3.4% - 3.6x capital efficiency advantage in capital-intensive sector[Return on Invested Capital]
  • EPS 5Y CAGR of 126% vs industry 15% - margin expansion driving 8x faster earnings growth than peers[EPS Growth 5 Year]
  • Goodwill of 6.1B is 33% of equity vs 26% tangible book - 1.3B impairment risk if energy cycle turns[Goodwill]

Watch Triggers

  • Operating Margin: Falls below 10%Would signal cost advantage erosion and compress 60% bull case thesis
  • Goodwill: Impairment charge >500MWould reduce equity 3%+ and signal acquisition strategy failure
  • Free Cash Flow: Drops below 1.5B TTMWould pressure dividend coverage and force capital allocation tradeoffs

Bull Case

Operating margin 12.8% TTM vs industry median 8.8% with net margin 10.4% vs 5.5% - structural cost advantage translating to 2x peer profitability

Operating MarginNet MarginROIC

Revenue 27.7B at 8.5x industry median scale with asset turnover 0.72 vs 0.52 median - operational leverage amplifies margin gains

Total RevenueAsset Turnover

Bear Case

P/B of 5.9x vs tangible book 7.9B implies 39B of intangible value at risk - goodwill 6.1B vulnerable to energy downturn

P/B RatioGoodwillTangible Book Value

Dividend payout ratio 5Y avg 151% unsustainable - 0.90/share dividend consumes 43% of 2.1B FCF, limiting reinvestment

Dividend Payout Ratio Avg 5 YearFree Cash FlowDividends Paid Per Share

Bull vs Bear Balance

AI-generated sentiment analysis based on fundamental metrics and market conditions.

BearBull
62%

Leverage BKR's top insights and create a custom strategy based on them in seconds. Our AI editor does it all — in one click.

Take Me to The Editor

Forward Thesis

FCF margin expansion from 7.5% to 10%+ as capex intensity normalizes post-investment cycle

1-3ymed
  • Capex at 4.5% of revenue vs 14% industry median
  • Operating margin 12.8% with room to expand
  • Working capital positive at 5.1B
FCF TTM 2.1B on 27.7B revenue (7.5%)Operating cash flow 3.3B (12% of revenue)Debt/equity 0.33 provides flexibility

Valuation Context

Caveats

Data Partners
Morningstar Logo

Fundamental company data provided by Morningstar, updated daily.

Accountable Finance, Inc. Disclaimer
accountable.finance is not operated by a broker or a dealer. Under no circumstances does any information posted on accountable.finance represent a recommendation to buy or sell a security. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute investment advice or recommendations. In no event shall accountable.finance be liable to any member, guest or third party for any damages of any kind arising out of the use of any content or other material published or available on accountable.finance, or relating to the use of, or inability to use, accountable.finance or any content, including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages. Past performance is a poor indicator of future performance. The information on this site is in no way guaranteed for completeness, accuracy or in any other way. Stock quotes and fundamental company data provided by Morningstar, updated daily.

Accountable Logo
© 2026 Accountable Finance, Inc. All rights reserved.