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Baker Hughes Co Class A BKR

Morningstar Rating
$29.43 −0.53 (1.77%)
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Company Report

Baker Hughes' 2024 Strategy Centers on Gas Technology Equipment and Services

Baker Hughes represents one of the “big three” oilfield service firms, in league with industry heavyweights Schlumberger and Halliburton. It maintains sizable share in several end markets, including specialty chemicals and directional drilling, and it’s maintained the lead in specialty chemicals since at least 2008. The majority of Baker Hughes’ revenue comes from international (non-U.S.) markets, which tend to be less volatile, but challenges associated with the inherent cyclicality of oil and gas markets are ever-present. We expect demand for oil and gas will remain high over the next few years, presenting ample growth opportunities in Baker Hughes’ core market.

Price vs Fair Value

BKR is trading at a 25% discount.
Price
$29.43
Fair Value
$31.00
Uncertainty
High
1-Star Price
$56.61
5-Star Price
$93.90
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Baker Hughes will realize a more profitable product mix as gas technology equipment orders yield higher service orders over time.

Bears

Exploration and production firms’ persistently stringent capital budgeting will prevent Baker Hughes from maximizing its potential benefits from high oil and gas demand.

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News

Trading Information

Previous Close Price
$29.96
Day Range
$29.3630.03
52-Week Range
$26.1237.58
Bid/Ask
$29.25 / $29.69
Market Cap
$29.46 Bil
Volume/Avg
6.2 Mil / 8.0 Mil

Key Statistics

Price/Earnings (Normalized)
18.39
Price/Sales
1.17
Dividend Yield (Trailing)
2.72%
Dividend Yield (Forward)
2.85%
Total Yield
4.54%

Company Profile

Baker Hughes is a global leader in oilfield services and oilfield equipment, with particularly strong presences in the artificial lift, specialty chemicals, and completions markets. It maintains modest exposure to offshore oil and gas production. The other half of its business focuses on industrial power generation, process solutions, and industrial asset management, with high exposure to the liquid natural gas market specifically, as well as broader industrials end markets.
Sector
Energy
Industry
Oil & Gas Equipment & Services
Stock Style Box
Mid Value
Total Number of Employees
58,000

Competitors

Valuation

Metric
BKR
HAL
SLB
Price/Earnings (Normalized)
18.3911.2016.53
Price/Book Value
1.913.333.49
Price/Sales
1.171.382.15
Price/Cash Flow
11.348.0010.41
Price/Earnings
BKR
HAL
SLB

Financial Strength

Metric
BKR
HAL
SLB
Quick Ratio
0.751.270.88
Current Ratio
1.252.061.32
Interest Coverage
13.296.6811.30
Quick Ratio
BKR
HAL
SLB

Profitability

Metric
BKR
HAL
SLB
Return on Assets (Normalized)
4.54%11.77%9.54%
Return on Equity (Normalized)
10.83%32.42%22.91%
Return on Invested Capital (Normalized)
8.24%18.20%14.48%
Return on Assets
BKR
HAL
SLB
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Oil & Gas Equipment & Services Industry Comparables

Ticker
Name
Morningstar Rating for Stocks
Economic Moat
Market Cap
SLB
Schlumberger LtdFpmhvd$70.8 Bil
HAL
Halliburton CoQwcxmc$31.3 Bil
TS
Tenaris SA ADRRtpwp$20.7 Bil
FTI
TechnipFMC PLCLdwq$9.4 Bil
WFRD
Weatherford International PLC Ordinary Shares - NewRvvv$7.6 Bil
NOV
NOV IncTjg$6.6 Bil
CHX
ChampionX CorpZbp$6.0 Bil
LBRT
Liberty Energy Inc Class AZmlhx$3.6 Bil
XPRO
Expro Group Holdings NVFdfv$2.0 Bil

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