Baker Hughes Co. Shows Strong Ratings Under Peter Lynch Model

A recent report highlights Baker Hughes Co. (BKR) achieving a 74% rating under the Peter Lynch P/E/Growth Investor model, indicating strong fundamentals and overall valuation, despite a shortfall in EPS growth.

Date: 07-10-2024

AI Rating: 6

Stock Ratings and Performance:

Baker Hughes Co (BKR) has received a rating of 74% based on the P/E/Growth Investor model by Peter Lynch. This score is positive, as scores above 80% indicate a higher level of interest in the stock.

Key Performance Indicators:

Criteria	Result
P/E/Growth Ratio	PASS
Sales and P/E Ratio	PASS
Inventory to Sales	PASS
EPS Growth Rate	FAIL
Total Debt/Equity Ratio	PASS
Free Cash Flow	NEUTRAL
Net Cash Position	NEUTRAL

The report indicates a positive outlook for BKR with regards to its P/E/Growth ratio, sales ratios, and inventory management. However, the failure in the EPS growth rate can be a concern for investors as it signals a lack of growth in earnings per share, affecting overall profitability.

Debt Management:

The total debt to equity ratio passing is a strong indicator of financial health, suggesting that Baker Hughes has a manageable level of debt compared to its equity. This bodes well for sustaining operations without risking solvency, which is a positive aspect for potential investors.

Future Considerations:

While there are some positive indicators for BKR's valuation and balance sheet health, the negative EPS growth could lead to concerns among investors regarding future earnings potential. Overall, this report suggests that BKR is worth watching, but caution may be warranted before making any investment decisions, especially in a competitive industry.

Stocks: BKR