Baker Hughes CoXSWX:BKR -0.84%49 Gross Margin % is 22.83% as of Mar. 2026, which is 13% above its 10-year median of 20.28. GuruFocus rates XSWX:BKR with a GF Score™ of 49/100 and a GF Value™ of CHF34.18 (Significantly Overvalued). The stock has 3 warning signs investors should review. Among 872 Oil & Gas companies, Baker Hughes Co ranks worse than 53.33% on this metric.
The historical rank and industry rank for Baker Hughes Co's Gross Margin % or its related term are showing as below:
XSWX:BKR'
s Gross Margin % Range Over the Past 10 Years
Min: 15.45 Med: 20.28 Max: 23.6
Current: 23.57
During the past 11 years, the highestGross Margin % of Baker Hughes Co was 23.60%. The lowest was 15.45%. And the median was 20.28%.
XSWX:BKR's Gross Margin % is ranked worse than 53.33% of 872
companies
in the Oil & Gas industry
Industry Median: 25.535
vs XSWX:BKR: 23.57
Baker Hughes Co had a gross margin of 22.83% for the quarter that ended in Mar. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Baker Hughes Co was 8.10% per year.
Baker Hughes Co (XSWX:BKR) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Baker Hughes Co had a gross margin of 22.83% for the quarter that ended in Mar. 2026 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Baker Hughes Co Gross Margin % Related Terms
Baker Hughes Co Gross Margin % Historical Data
* Premium members only.
The historical data trend for Baker Hughes Co's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
XSWX:BKR vs SLB, HAL, FTI: Gross Margin % Comparison
For the Oil & Gas Equipment & Services subindustry, Baker Hughes Co's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Baker Hughes Co Gross Margin % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Baker Hughes Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Baker Hughes Co's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Baker Hughes Co (XSWX:BKR) has a Gross Margin % of 22.83% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Baker Hughes Co and its competitors. This is 13% above median its historical median of 20.28. Over the past decade, Baker Hughes Co's Gross Margin % has ranged from 15.45 to 23.60. According to the industry distribution chart, Baker Hughes Co ranks #465 out of 872 companies in the Oil & Gas industry, placing it in the top 53.3%.
Is Baker Hughes Co's Gross Margin % too high?
Baker Hughes Co's current Gross Margin % of 22.83% is 13% above median its 10-year median of 20.28. Over the past 10 years, this metric has ranged from a low of 15.45 to a high of 23.60. The Oil & Gas industry median Gross Margin % is 25.54. Baker Hughes Co's value of 22.83% is 10.6% below this industry median. Based on the distribution chart, Baker Hughes Co ranks #465 out of 872 companies in the Oil & Gas industry, which is below the industry midpoint. Overall, Baker Hughes Co has a GF Score™ of 49/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Baker Hughes Co's Gross Margin % compare to SLB and HAL?
According to the Oil & Gas industry distribution chart, Baker Hughes Co ranks #465 out of 872 companies for Gross Margin %. This places Baker Hughes Co in the lower half of its industry. The industry median Gross Margin % is 25.54. Baker Hughes Co's value of 22.83% is 10.6% below this benchmark. Historically, Baker Hughes Co's own Gross Margin % has ranged from 15.45 to 23.60 over the past decade. While the company's 10-year median is 20.28 vs. the industry median of 25.54, Baker Hughes Co has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for an Oil & Gas company?
The median Gross Margin % among Oil & Gas companies is 25.54, based on 872 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Baker Hughes Co's current Gross Margin % of 22.83% is 10.6% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Baker Hughes Co and its competitors. For the Oil & Gas industry, the median Gross Margin % is 25.54 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Baker Hughes Co's current Gross Margin % is 22.83%, which is 13% above median its own 10-year median of 20.28. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Baker Hughes Co stock overvalued right now?
Based on GuruFocus' analysis, Baker Hughes Co (XSWX:BKR) is currently considered Significantly Overvalued. The stock's GF Value™ is CHF34.18, compared to a current price of CHF45.81 — trading 34% above its estimated fair value. The current Gross Margin % is 22.83%, which is 13% above median its 10-year median of 20.28 and 10.6% below the Oil & Gas industry median of 25.54. Baker Hughes Co's overall GF Score™ is 49/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Baker Hughes Co (XSWX:BKR), the current Gross Margin % is 22.83% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Baker Hughes Co (XSWX:BKR) Overvalued in 2026?
Based on GuruFocus' analysis, Baker Hughes Co stock appears to be overvalued.
The current stock price of CHF45.81 is trading 34% above its estimated GF Value™ of CHF34.18.
GuruFocus considers Baker Hughes Co to be Significantly Overvalued.
Key valuation signals for XSWX:BKR:
Gross Margin %: 22.83% (13% above median its 10-year median of 20.28)
GF Value™: CHF34.18 vs. price of CHF45.81 (34% above fair value)
Industry Position: 10.6% below the Oil & Gas median (#465 of 872)
No single metric tells the full story. See the XSWX:BKR stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Following a 2022 reorganization, Baker Hughes operates in two segments: oilfield services and equipment, and industrial and energy technology. The firm's oilfield services and equipment segment is one of the Big Three oilfield-services players, along with SLB and Halliburton, and mostly supplies to hydrocarbon developers and producers, including national oil companies, major integrated firms, and independents. Markets outside of North America buy roughly three-fourths of the segment's offerings. Baker Hughes' industrial and energy technology segment manufactures and sells turbines, compressors, pumps, valves, and related testing and monitoring services for various energy and industrial applications.
49GF Score
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