Baker Hughes BKR
Baker Hughes is an energy technology company that provides equipment and services for oil and gas exploration, production, and processing, including gas turbines, drilling systems, and software. Baker Hughes shows solid financial health (DN/EBITDA -0.16, liquidity 2.10) and robust cash generation (conversion 91.24%), but its growth is negative (-2.40% revenue) and valuation is not particularly attractive (PER 18.59). The oil rally and guidance raise offer a tailwind, though the market reaction suggests caution.
Detailed metrics
Market and fundamental data as of the analysis date.
Full AI report
Generated automatically from the metrics, the macro context and the company's news.
Baker Hughes is an energy technology company that provides equipment and services for oil and gas exploration, production, and processing, including gas turbines, drilling systems, and software. Baker Hughes shows solid financial health (DN/EBITDA -0.16, liquidity 2.10) and robust cash generation (conversion 91.24%), but its growth is negative (-2.40% revenue) and valuation is not particularly attractive (PER 18.59). The oil rally and guidance raise offer a tailwind, though the market reaction suggests caution.
Score by category
| Category | Score |
|---|---|
| Financial health | 7.8 |
| Quality / Moat | 5.7 |
| Valuation | 6.3 |
| Growth | 3.8 |
| Dividend | 5.7 |
| Momentum | 4.3 |
| Risk & Context | 7.0 |
OVERALL SCORE: 6.2/10
Context and risks
The oil rally and increased US drilling activity directly benefit demand for BKR's oilfield services. However, the escalation in Ormuz introduces a geopolitical risk premium that could reverse sharply if a deal is reached, affecting E&P activity.
News considered in the analysis
- Baker Hughes (BKR) Raises 2026 Guidance. But Investors Aren’t Impressed — La mejora de guidance es un hecho material que ya ocurrió, pero la reacción negativa del mercado sugiere que parte ya estaba descontada o que las expectativas eran más altas.
- US rig count up four as prices decline — El aumento de la actividad de perforación en EE. UU. es positivo para la demanda de servicios, aunque la caída de precios del crudo podría moderar el impulso.
- U.S. Oil, Gas Drilling Perks Up As Pressure Mounts — La recuperación de la actividad de perforación apoya los ingresos de BKR, pero la presión sobre los precios del crudo podría limitar la sostenibilidad.
- Cactus (WHD) Tests Its Baker Hughes Narrative On A Valuation That Looks Nearly Fair — Artículo de análisis comparativo sin información nueva material para BKR.
- NeoVolta, Inc. (NEOV) Reports Q4 Loss, Lags Revenue Estimates — Noticia sobre otra empresa sin relevancia para BKR.
Verdict: Hold; the oil rally and guidance raise support the business, but lack of growth and average valuation limit upside potential.
Main risk: Exposure to oil price volatility and drilling activity: a drop in oil prices or a geopolitical resolution in Ormuz could reduce demand for services and stall the expected recovery.
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