Baker Hughes CoFRA:68V -4.99%71 Operating Margin % is 12.28% as of Mar. 2026, which is 59% above its 10-year median of 7.70. GuruFocus rates FRA:68V with a GF Score™ of 71/100 and a GF Value™ of €36.61 (Significantly Overvalued). The stock has 3 warning signs investors should review. Among 916 Oil & Gas companies, Baker Hughes Co ranks better than 64.63% on this metric.
Baker Hughes Co (FRA:68V) Operating Margin % Explanation
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Baker Hughes Co Operating Margin % Related Terms
Baker Hughes Co Operating Margin % Historical Data
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The historical data trend for Baker Hughes Co's Operating 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.
FRA:68V vs SLB, HAL, FTI: Operating Margin % Comparison
For the Oil & Gas Equipment & Services subindustry, Baker Hughes Co's Operating Margin %, along with its competitors' market caps and Operating 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 Operating Margin % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Baker Hughes Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Baker Hughes Co's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Baker Hughes Co's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as
* 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.
Baker Hughes Co (FRA:68V) has a Operating Margin % of 12.28% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Baker Hughes Co and its competitors. This is 59% above median its historical median of 7.70. Over the past decade, Baker Hughes Co's Operating Margin % has ranged from 2.92 to 12.96. According to the industry distribution chart, Baker Hughes Co ranks #324 out of 916 companies in the Oil & Gas industry, placing it in the top 35.4%.
Is Baker Hughes Co's Operating Margin % too high?
Baker Hughes Co's current Operating Margin % of 12.28% is 59% above median its 10-year median of 7.70. Over the past 10 years, this metric has ranged from a low of 2.92 to a high of 12.96. The Oil & Gas industry median Operating Margin % is 6.86. Baker Hughes Co's value of 12.28% is 79% above this industry median. Based on the distribution chart, Baker Hughes Co ranks #324 out of 916 companies in the Oil & Gas industry, which is above the industry midpoint. Overall, Baker Hughes Co has a GF Score™ of 71/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Baker Hughes Co's Operating Margin % compare to SLB and HAL?
According to the Oil & Gas industry distribution chart, Baker Hughes Co ranks #324 out of 916 companies for Operating Margin %. This puts Baker Hughes Co in the upper half of its industry. The industry median Operating Margin % is 6.86. Baker Hughes Co's value of 12.28% is 79% above this benchmark. Historically, Baker Hughes Co's own Operating Margin % has ranged from 2.92 to 12.96 over the past decade. While the company's 10-year median is 7.70 vs. the industry median of 6.86, Baker Hughes Co has consistently been above 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 Operating Margin % for an Oil & Gas company?
The median Operating Margin % among Oil & Gas companies is 6.86, based on 916 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Baker Hughes Co's current Operating Margin % of 12.28% is 79% above 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 Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Baker Hughes Co and its competitors. For the Oil & Gas industry, the median Operating Margin % is 6.86 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Baker Hughes Co's current Operating Margin % is 12.28%, which is 59% above median its own 10-year median of 7.70. 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 (FRA:68V) is currently considered Significantly Overvalued. The stock's GF Value™ is €36.61, compared to a current price of €48.90 — trading 33.6% above its estimated fair value. The current Operating Margin % is 12.28%, which is 59% above median its 10-year median of 7.70 and 79% above the Oil & Gas industry median of 6.86. Baker Hughes Co's overall GF Score™ is 71/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Baker Hughes Co (FRA:68V), the current Operating Margin % is 12.28% 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 (FRA:68V) Overvalued in 2026?
Based on GuruFocus' analysis, Baker Hughes Co stock appears to be overvalued.
The current stock price of €48.90 is trading 33.6% above its estimated GF Value™ of €36.61.
GuruFocus considers Baker Hughes Co to be Significantly Overvalued.
Key valuation signals for FRA:68V:
Operating Margin %: 12.28% (59% above median its 10-year median of 7.70)
GF Value™: €36.61 vs. price of €48.90 (33.6% above fair value)
Industry Position: 79% above the Oil & Gas median (#324 of 916)
No single metric tells the full story. See the FRA:68V 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.
71GF Score
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