BKR
Baker Hughes · Energy · Oil & Gas Equipment & Services
$56.18
52w 43.92 – 70.41
20y monthly, adjusted
Mkt cap
$55.8B
P/E
21.9
P/FCF
22.4
FCF yield
4.5%
ROE
13.7%
Shldr yield
2.3%
div 1.6% + bb 0.7%
What today's price assumes
At $55.8B, the market is pricing in 9.2% annual free-cash-flow growth for the next decade (10% discount rate, 2.5% terminal growth). Over the last ten years, FCF actually grew 14.2% per year — expectations look undemanding relative to history.
Simple DCF per-share range: $39 · $83 · $103 (4% / base / optimistic growth). An estimate, not a target.
Growth record
Compound annual growth rates from as-filed 10-K data, split-adjusted
Rev 3y
+9.4%
Rev 5y
+6.0%
Rev 10y
+5.2%
EPS 5y
+66.9%
EPS 10y
—
FCF 5y
+50.4%
FCF 10y
+14.2%
Fundamentals
Fiscal 2015–2025, from SEC filings
Revenue
Net income
Free cash flow
Margins
Capital returned (dividends + buybacks)
Cash vs long-term debt
Quarterly
Discrete quarters from 10-Q filings; Q4 derived as fiscal year minus Q1–Q3. OCF is unwound from the year-to-date figures 10-Qs report. Compare to the same quarter a year ago — most businesses are seasonal.
Revenue by quarter
Net income by quarter
| Quarter | Revenue | YoY | Net income | YoY | EPS | OCF |
|---|---|---|---|---|---|---|
| Q2'26 | $6.7B | −2.4% | $681.0M | −2.9% | — | $1.3B |
| Q1'26 | $6.6B | +2.5% | $930.0M | +131.3% | — | $500.0M |
| Q4'25 * | $7.4B | +0.3% | $876.0M | −25.7% | — | $1.7B |
| Q3'25 | $7.0B | +1.5% | $609.0M | −20.5% | — | $929.0M |
| Q2'25 | $6.9B | −3.2% | $701.0M | +21.1% | — | $510.0M |
| Q1'25 | $6.4B | +0.1% | $402.0M | −11.6% | — | $709.0M |
| Q4'24 * | $7.4B | +7.8% | $1.2B | +168.6% | — | $1.2B |
| Q3'24 | $6.9B | +4.0% | $766.0M | +47.9% | — | $1.0B |
| Q2'24 | $7.1B | +13.0% | $579.0M | +41.2% | — | $348.0M |
| Q1'24 | $6.4B | +12.3% | $455.0M | −21.0% | — | $784.0M |
| Q4'23 * | $6.8B | +15.7% | $439.0M | +139.9% | — | $932.0M |
| Q3'23 | $6.6B | +23.7% | $518.0M | — | — | $810.0M |
| Q2'23 | $6.3B | +25.1% | $410.0M | — | — | $859.0M |
Track record
Compound annual growth by period. For debt and share count, negative is the good direction.
| Series | 3y | 5y | 10y | 15y |
|---|---|---|---|---|
| Revenue | +9.4% | +6.0% | +5.2% | — |
| Operating cash flow | +26.4% | +23.9% | +11.6% | — |
| Free cash flow | +41.3% | +50.4% | +14.2% | — |
| EPS (diluted) | +66.9% | +66.9% | — | — |
| Equity | +9.4% | +7.9% | +2.6% | — |
| LT debt | −3.4% | −4.4% | — | — |
| Diluted shares | — | — | — | — |
| Stock price | +20.1% | +20.1% | +6.5% | +4.4% |
$100, 3 years ago
$173vs $192 in SPY
20.1% vs 24.4%/yr
$100, 5 years ago
$250vs $181 in SPY
20.1% vs 12.6%/yr
$100, 10 years ago
$187vs $428 in SPY
6.5% vs 15.6%/yr
$100, 15 years ago
$190vs $803 in SPY
4.4% vs 14.9%/yr
Quality & capital discipline
Cash-based returns and how management deploys capital
Cash ROIC
15.7%
OCF ÷ (equity + debt)
OCF / EV yield
6.5%
MC vs 10× OCF
1.49
≤1 = priced under 10× OCF
Debt / FCF
2.1y
SBC / FCF
8.0%
Owner earnings
$2.3B
OCF − capex − SBC
OE yield
4.1%
Share count 5y
—
per year; negative = buybacks
Growth engine (5y): reinvested 34.6% of operating cash flow at an incremental return of 50.0% — an organically fundable growth rate of about 17.3% per year (growth ≈ reinvestment rate × incremental ROIC).
Checklist
21 of 23 checks pass · 91%. Checks with structurally missing inputs are excluded.
Growth & Consistency
5/7
- pass
Revenue growth
6.0% · 5y CAGR ≥ 5%
- pass
EPS growth
66.9% · 5y CAGR ≥ 5%
- pass
FCF growth
50.4% · 5y CAGR ≥ 5%
- fail
Revenue rises consistently
6 of 9 · up in ≥ 7 of last 10 years
- pass
FCF consistently positive
8 of 10 · positive in ≥ 8 of last 10 years
- fail
Profitable every year
5 of 10 · net income > 0 in ≥ 8 of last 10
- pass
Cash flow keeps up with sales
23.9% vs 6.0% · OCF CAGR ≥ 0.9× revenue CAGR
Profitability
5/5
- pass
Net margin
9.3% · ≥ 8%
- na
Operating margin
— · ≥ 10%
- na
Gross margin stable or rising
— · no drop > 2 pts over 3y
- pass
Return on equity
13.7% · ≥ 12%
- pass
Cash ROIC
15.7% · ≥ 12%
- pass
FCF margin
9.1% · ≥ 5%
- pass
Earnings back their cash
OCF $3.8B vs NI $2.6B · OCF ≥ net income (latest FY)
Balance Sheet
4/4
- pass
Debt payable from cash flow
2.1y · LT debt ≤ 3× FCF
- pass
Cash cushion
69% · cash ≥ 50% of LT debt
- pass
Leverage
0.29 · LT debt ≤ 1.5× equity
- pass
Equity positive and compounding
$18.8B · equity > 0 and grew over ~5y
- na
Interest burden
— · interest ≤ 15% of operating income
Capital Allocation
3/3
- na
Share count flat or shrinking
— · ≤ +0.5%/yr over ~5y
- pass
Stock comp restrained
8% · SBC ≤ 15% of FCF
- pass
Distributions funded by FCF
51% · dividends + buybacks ≤ 100% of FCF
- pass
Repurchases are a habit
7 of 10 · buybacks in ≥ 5 of last 10 years
Valuation Discipline
4/4
- pass
FCF yield
4.5% · ≥ 3%
- pass
Earnings multiple
21.9 · P/E ≤ 25
- pass
Price asks less than history delivered
9.2% vs 14.2% · implied FCF growth ≤ historical FCF CAGR
- pass
Shareholder yield
2.3% · dividends + buybacks ≥ 2% of market cap
Financial data
As filed in 10-Ks; per-share figures split-adjusted. $ in millions.
| FY | Revenue | Gross profit | Op income | Net income | EPS | OCF | CapEx | FCF | Dividends | Buybacks | SBC | Cash | LT debt | Equity | Shares |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2025 | 27,733 | — | — | 2,588 | — | 3,810 | 1,273 | 2,537 | 910 | 384 | 203 | 3,715 | 5,398 | 18,834 | — |
| 2024 | 27,829 | — | 3,081 | 2,979 | 2.98 | 3,332 | 1,278 | 2,054 | 836 | 484 | 202 | 3,364 | 5,970 | 16,895 | — |
| 2023 | 25,506 | — | 2,317 | 1,943 | 1.91 | 3,062 | 1,224 | 1,838 | 786 | 538 | 197 | 2,646 | 5,872 | 15,368 | — |
| 2022 | 21,156 | — | 1,185 | -601 | -0.61 | 1,888 | 989 | 899 | 726 | 828 | 207 | 2,488 | 5,980 | 14,394 | — |
| 2021 | 20,502 | — | 1,310 | -219 | -0.27 | 2,374 | 856 | 1,518 | 592 | 434 | 205 | 3,853 | 6,687 | 14,830 | — |
| 2020 | 20,705 | — | -15,978 | -9,940 | -14.73 | 1,304 | 974 | 330 | 488 | 0 | 210 | 4,132 | 6,744 | 12,893 | — |
| 2019 | 23,838 | 4,432 | 1,074 | 128 | 0.23 | 2,126 | 1,240 | 886 | 395 | 0 | — | 3,249 | 6,301 | 21,929 | — |
| 2018 | 22,877 | 3,986 | 701 | 195 | 0.45 | 1,762 | 995 | 767 | 315 | 387 | — | 3,723 | 6,285 | 17,465 | — |
| 2017 | 17,179 | 3,036 | -284 | -103 | -0.24 | -799 | 665 | -1,464 | 155 | 174 | — | 7,023 | 6,312 | 14,277 | — |
| 2016 | 13,082 | 3,146 | 457 | 0 | — | 262 | 424 | -162 | 0 | 0 | — | 981 | 38 | 14,688 | — |
| 2015 | 16,688 | — | -138 | 0 | — | 1,277 | 607 | 670 | 0 | 0 | — | 1,432 | — | 14,545 | — |
Some concepts are structurally absent for certain industries (banks report no gross profit or capex). Missing ≠ zero.