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PREMIUM RESEARCH REPORT
Outlook: Bullish

Baker Hughes (BKR) In-Depth Stock Report

An energy technology company spanning oilfield services and industrial and LNG equipment, priced on LNG equipment orders and margin expansion.

Published 2026-09-21·Updated 2026-09-21·EnergyOil & Gas Equipment & Services

Investment Summary

Every headline number this report produces, collected in one place before the analysis that derives them. All figures are computed live at page load, so this block reflects the market as of the moment you opened the page.

Current Price
$57.83
Outlook
Bullish
(directional lean, see note below)
Valuation Verdict
Above fair value
(vs. our relevance-weighted range)
Fair Value Range
$20 – $58
12-Month Price Target
$65.02
(model + consensus blend)
Expected Return to Target
+12.4%
AI Score
42 / 100
(vs. our covered universe)
Risk Rating
Moderate
(risk factor 55/100, lower is riskier)
Target Confidence
High
Horizon
12 months
(target and scenarios)
Why we hold this view
  • LNG orders continue.
  • Margins expand.
  • Gas power demand grows.
  • Service revenue rises.
"Outlook" is a plain-language summary of our expected return to the 12-month price target (Bullish ≥ 8% upside, Bearish ≤ 8% downside, Neutral in between; falls back to the fair-value comparison when no target is available) — it is a restatement of the figures above, not a new signal, and like them is not a buy or sell recommendation. "Valuation Verdict" compares the live price to our relevance-weighted fair-value range and is a statement about our own model's output, not a buy or sell recommendation — see the Investor Decision Framework near the end of this report. The risk rating is derived from AI Score risk factor rather than assigned by hand. Expected return measures the gap to the 12-month blended target only; it is not a forecast of total return and excludes any dividend.
BKR in 60 Seconds
  • Baker Hughes combines oilfield services with industrial and LNG equipment.
  • LNG orders and margin gains drive the story.
  • Oil price and project timing are the main risks.
  • Orders and EBITDA margin are the key numbers.
What's inside this report
  • Baker Hughes has two segments: Oilfield Services & Equipment and Industrial & Energy Technology.
  • The industrial segment supplies gas turbines, compressors, and equipment for LNG projects.
  • Order backlog in LNG and gas technology gives it visibility.
  • The company also has a growing presence in power generation and data center-related equipment.
  • The equity debate is how LNG and power demand offset cyclical oilfield exposure.

Executive Summary

Baker Hughes has shifted its mix toward longer-cycle, higher-margin industrial and gas technology products.

LNG projects require compressors and turbines, and Baker Hughes has a leading position in that equipment.

Oilfield services are cyclical but benefit from international and offshore activity.

Margin improvement from cost programs and mix has lifted returns.

The realistic thesis: a diversified energy technology firm with LNG and gas equipment tailwinds, where orders and margins drive performance.

Industry & Market Backdrop

The broader competitive and macro environment BKR operates in — context a pure valuation table can't convey on its own.

LNG project sanctioning has increased demand for equipment.

Gas power demand is rising from electricity needs and data centers.

Offshore and international drilling activity has been resilient.

North American onshore activity is cyclical.

Tariffs and supply chain costs affect equipment margins.

Live Key Statistics

Pulled live from BriMindInvest's market-data pipeline at page load — the same feed that powers /analysis/BKR. Fields the pipeline doesn't return this load are omitted rather than shown blank.

Current Price
$57.83
Market Cap
$57.41B
Trailing P/E
18.59
Forward P/E
18.59
52-Week High
$70.41
52-Week Low
$43.92
Beta
0.96
Revenue Growth (YoY)
-2.4%
Operating Margin
+12.8%
Return on Equity
+16.5%
Debt / Equity
80.92
Dividend Yield
+1.61%

Business Overview

Oilfield services including drilling, completions, and production.

Oilfield equipment such as subsea systems.

Gas technology equipment including turbines and compressors.

Industrial technology such as digital and asset monitoring.

Segment Deep Dive

A closer look at each reporting segment individually, rather than treating the business as a single undifferentiated revenue line.

Oilfield services and equipment

Provides drilling, completion, and production technologies. Results follow global upstream spending.

Industrial and energy technology

Supplies LNG, gas turbines, and industrial equipment. It has longer cycles and strong backlogs.

Digital and aftermarket

Services and digital tools generate recurring revenue. They support margins over the equipment life.

Capital Allocation & Balance Sheet Philosophy

How management has historically chosen to deploy cash — buybacks, dividends, R&D, and acquisitions — and what that reveals about capital discipline.

The company pays a dividend and repurchases shares.

Capital expenditure is moderate.

Balance sheet is solid with investment-grade credit.

Acquisitions are selective and technology-focused.

Management & Governance

Leadership, incentive alignment, and governance structure — factors that shape execution risk independent of the underlying business model.

Leadership has repositioned the portfolio toward gas and industrial technologies.

Management sets targets for margin and free cash flow conversion.

Governance is conventional; review the proxy for details.

Delivering on backlog while controlling costs is the main test.

See exactly how we get BKR's fair-value range

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Table: Method, Relevance, Implied Value
MethodRelevanceImplied Value
Our DCF ModelHigh
Our P/E BasedMedium
Our Book Value BasedMedium
Graham NumberMedium
ROIC BasedMedium
FCF Yield BasedHigh

Forecast Revenue and Free Cash Flow

5-Year Monte Carlo Simulation

Included with a subscription or a one-time purchase of this Baker Hughes report:

  • Fair value from 7 methods, weighted by relevance to this business
  • 5-year financial forecast and DCF/earnings sensitivity grids
  • Decomposed AI Score, Monte Carlo simulation, and institutional/analyst data

$3.99 is less than one bad options trade — see the model before you commit real money. And it goes straight to the small team building this, not a hedge fund's marketing budget.

Bull Case vs. Bear Case

Bull Case
  • LNG orders continue.
  • Margins expand.
  • Gas power demand grows.
  • Service revenue rises.
  • Free cash flow supports returns.
Bear Case
  • Oil prices fall and cut services demand.
  • LNG projects are delayed.
  • Supply chain and tariff costs rise.
  • Competition intensifies.
  • Backlog conversion disappoints.

Related Reports

In-depth reports for other names in Baker Hughes's comparable set.

SLB
SLB In-Depth Report
Halliburton
HAL In-Depth Report
GE Vernova
GEV In-Depth Report
Emerson Electric
EMR In-Depth Report
Cheniere Energy
LNG In-Depth Report

4 catalysts and 4 risks we're tracking for BKR

Unlock the premium content below
Table: Catalyst, Expected Impact, Timeframe
CatalystExpected ImpactTimeframe

Included with a subscription or a one-time purchase of this Baker Hughes report:

  • Catalyst list, each tagged with expected impact and timing
  • Risk register scored by probability and severity
  • 4 key metrics to watch before the next earnings report

$3.99 is less than one bad options trade — see the model before you commit real money. And it goes straight to the small team building this, not a hedge fund's marketing budget.

What Would Change Our Mind?

Specific, falsifiable triggers — not vague sentiment — that would move us toward or away from the bull case above.

Would Turn Us More Bullish
  • Orders keep exceeding sales
  • Margins expand
  • Cash flow rises
Would Turn Us More Cautious
  • Oil weakness hurts services
  • LNG projects slip
  • Costs squeeze margins

Competitive Positioning

Baker Hughes's moat is technology, installed base, and a leading role in LNG equipment.

Schlumberger, Halliburton, GE Vernova, and Siemens Energy compete in parts.

Backlog and service revenue give visibility.

The vulnerability is oilfield cyclicality and project timing.

Investor Decision Framework

A process for using this report, not a recommendation — how to weigh valuation, scenario spread, and your own risk tolerance.

  • Own it if you want energy technology with LNG exposure.
  • Skip it if you want pure oilfield leverage.
  • Track orders and margins.

The BriMindInvest Edge

Why this report is different from asking a general-purpose AI chatbot about the stock.

  • Every valuation number on this page is computed live from current market data through our own DCF, scoring, and Monte Carlo engines — not summarized or paraphrased from other analysts' reports the way a general chatbot would.
  • The relevance-weighted fair value, reverse-DCF market-implied growth, fundamentals-based Monte Carlo, and scenario tables above are proprietary calculations you cannot get by asking a general-purpose AI for "BKR fair value" — those answers come from web summaries of other people's price targets, not a live, disclosed-assumption model.
  • Our 1-year price-target model has a real, published backtest (see Model Track Record above where covered) — we show our work and our error rate rather than asserting accuracy.
  • Numbers here are refreshed every time you load the page, not cached from a training cutoff months or years in the past.

Data Sources & Methodology

Valuation, price, and financial-statistics data in this report are fetched live from our production market-data pipeline (Yahoo Finance and Finnhub) at the time you loaded this page. The AI Score is a percentile ranking against our full covered stock universe, recomputed nightly. The fundamentals-based Monte Carlo and Bull/Base/Bear scenarios randomize growth rate, discount rate, and terminal growth around the same disclosed DCF assumptions used in the valuation table — they are not derived from resampled historical stock returns. The secondary historical-volatility simulation (2,000 bootstrap paths, seeded for reproducibility) uses the stock's own historical monthly returns and is shown separately because it measures a different thing (volatility) than the fundamentals-based model (intrinsic value).

This report is for informational and educational purposes only and does not constitute financial, investment, or tax advice, or a recommendation to buy or sell any security. All valuation models, price targets, and simulations are estimates based on historical and current data; actual results will differ, potentially substantially. Investing involves risk, including loss of principal. See our full Methodology and Disclaimer.

Free vs. Premium: What You're Getting

Free Article
  • Narrative overview and general bull/bear framing
  • Headline price and basic company facts
  • No live valuation model, AI Score, or forecast table
This Premium Report
  • Relevance-weighted fair value range and reverse-DCF market-implied growth
  • 5-year financial forecast, DCF sensitivity grid, and Bull/Base/Bear scenario table
  • Fundamentals-based Monte Carlo and decomposed AI Score with sub-factor components
  • Real, published backtested accuracy where BKR is in our coverage set

Glossary of Key Terms

Plain-English definitions for the terms used throughout this report, for readers newer to equity valuation.

Backlog
Contracted orders not yet delivered or recognized as revenue.
Subsea
Equipment used on the seafloor for offshore production.
Aftermarket
Services and parts sold after the equipment is installed.

Frequently Asked Questions

What does Baker Hughes do?
It supplies oilfield services, industrial technology, and LNG equipment.
Why is LNG important?
LNG projects need Baker Hughes compressors and turbines.
Does Baker Hughes pay a dividend?
Yes.
What is the main risk?
Oil price cycles and project timing.
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Data sources & disclosures: Financial data and metrics cited in this article are sourced from company SEC filings, earnings releases, and investor relations materials. Market prices and fundamental data are provided by financial market data providers. Market size estimates and industry projections are sourced from industry research and analyst reports. Figures reflect information available at the time of writing and may have changed. AI scores and price targets are proprietary estimates — see our Methodology. This article is for informational and educational purposes only and does not constitute financial advice or a recommendation to buy or sell any security. Investing involves risk, including the possible loss of principal. Please read our full Disclaimer and consult a licensed financial adviser before making investment decisions.