Energy · NYSE/NASDAQ: BKR

Baker Hughes Co

Oil & Gas Equipment & Services
Market Cap $61.96B
Verdict: High

Quality Scores

Multi-Bagger
74/100
Compounder Quality
85/100
Management Credibility
88/100
Governance
92/100
Cash Flow Quality
92/100

AI Summary

Baker Hughes has undergone a massive transformation from a GE-controlled subsidiary to a lean, independent energy technology leader. Following a catastrophic 2020 which saw substantial impairment charges of 9.94B USD, the company successfully pivoted toward LNG and industrial decarbonization. Revenue has recovered strongly reaching over 27B USD, with a notable shift in the margin profile as the company exits lower-margin service contracts. The balance sheet has been significantly de-risked with total assets stabilizing around 40B USD. Current performance reflects a 'New Baker' characterized…

Top Opportunities

  • Consistent positive Cash Flow from Operations
  • Revenue growth exceeding 30% over 5-year period
  • Strong pivot to New Energy/Carbon Capture technology

Top Risks

  • Significant net losses in 4 out of last 9 years
  • Massive $15B+ asset impairment in 2020
  • Total assets halved since 2017 baseline

Latest report: Read the annual report summary →

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