Why is Baker Hughes Co. ?
1
Strong ability to service debt as the company has a low Debt to EBITDA ratio of 0.80 times
2
Healthy long term growth as Operating profit has grown by an annual rate 26.34%
3
The company has declared Positive results for the last 9 consecutive quarters
- OPERATING CASH FLOW(Y) Highest at USD 3,419 MM
- RAW MATERIAL COST(Y) Fallen by -12.58% (YoY)
- NET PROFIT(9M) Higher at USD 2,381.57 MM
4
With ROCE of 18.66%, it has a fair valuation with a 2.10 Enterprise value to Capital Employed
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 13.50%, its profits have risen by 52% ; the PEG ratio of the company is 0.2
5
High Institutional Holdings at 100%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
- Their stake has increased by 1.92% over the previous quarter.
6
Market Beating performance in long term as well as near term
- Along with generating 13.50% returns in the last 1 year, the stock has outperformed S&P 500 in the last 3 years, 1 year and 3 months
How much should you hold?
- Overall Portfolio exposure to Baker Hughes Co. should be less than 10%
- Overall Portfolio exposure to Construction should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Construction)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Baker Hughes Co. for you?
Medium Risk, High Return
Absolute
Risk Adjusted
Volatility
Baker Hughes Co.
15.89%
2.70
35.75%
S&P 500
13.22%
0.61
20.17%
Quality key factors
Factor
Value
Sales Growth (5y)
4.28%
EBIT Growth (5y)
26.34%
EBIT to Interest (avg)
9.64
Debt to EBITDA (avg)
0.80
Net Debt to Equity (avg)
0.09
Sales to Capital Employed (avg)
1.17
Tax Ratio
7.28%
Dividend Payout Ratio
28.23%
Pledged Shares
0
Institutional Holding
100.00%
ROCE (avg)
12.16%
ROE (avg)
7.89%
Valuation Key Factors 
Factor
Value
P/E Ratio
12
Industry P/E
Price to Book Value
2.20
EV to EBIT
11.26
EV to EBITDA
8.48
EV to Capital Employed
2.10
EV to Sales
1.41
PEG Ratio
0.23
Dividend Yield
2.35%
ROCE (Latest)
18.66%
ROE (Latest)
17.96%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Mildly Bearish
Mildly Bearish
Dow Theory
No Trend
No Trend
OBV
Bullish
Bullish
Technical Movement
10What is working for the Company
OPERATING CASH FLOW(Y)
Highest at USD 3,419 MM
RAW MATERIAL COST(Y)
Fallen by -12.58% (YoY
NET PROFIT(9M)
Higher at USD 2,381.57 MM
DEBT-EQUITY RATIO
(HY)
Lowest at 9.35 %
DEBTORS TURNOVER RATIO(HY)
Highest at 4.07 times
DIVIDEND PER SHARE(HY)
Highest at USD 4.07
0What is not working for the Company
NO KEY NEGATIVE TRIGGERS
Here's what is working for Baker Hughes Co.
Operating Cash Flow
Highest at USD 3,419 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (USD MM)
Net Profit
At USD 2,381.57 MM has Grown at 44.35%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is positive
Net Profit (USD MM)
Debt-Equity Ratio
Lowest at 9.35 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Debtors Turnover Ratio
Highest at 4.07 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Dividend per share
Highest at USD 4.07
in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (USD)
Net Profit
Higher at USD 2,381.57 MM
than preceding 12 month period ended Jun 2025MOJO Watch
In the nine month period the company has already crossed sales of the previous twelve months
Net Profit (USD MM)
Raw Material Cost
Fallen by -12.58% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Depreciation
Highest at USD 293 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (USD MM)






