Baker Hughes CoXSWX:BKR +4.77%49 Return-on-Tangible-Equity is 41.37% as of Mar. 2026, which is 118% above its 10-year median of 18.95. GuruFocus rates XSWX:BKR with a GF Score™ of 49/100 and a GF Value™ of CHF31.87 (Significantly Overvalued). The stock has 3 warning signs investors should review. Among 944 Oil & Gas companies, Baker Hughes Co ranks better than 91.1% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Baker Hughes Co's annualized net income for the quarter that ended in Mar. 2026 was CHF2,929 Mil. Baker Hughes Co's average shareholder tangible equity for the quarter that ended in Mar. 2026 was CHF7,079 Mil. Therefore, Baker Hughes Co's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 41.37%.
The historical rank and industry rank for Baker Hughes Co's Return-on-Tangible-Equity or its related term are showing as below:
XSWX:BKR'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -13.32 Med: 18.95 Max: 49.63
Current: 38.21
During the past 11 years, Baker Hughes Co's highest Return-on-Tangible-Equity was 49.63%. The lowest was -13.32%. And the median was 18.95%.
XSWX:BKR's Return-on-Tangible-Equity is ranked better than 91.1% of 944
companies
in the Oil & Gas industry
Industry Median: 6.73
vs XSWX:BKR: 38.21
Baker Hughes Co (XSWX:BKR) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Baker Hughes Co Return-on-Tangible-Equity Related Terms
Baker Hughes Co Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Baker Hughes Co's Return-on-Tangible-Equity 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: Return-on-Tangible-Equity Comparison
For the Oil & Gas Equipment & Services subindustry, Baker Hughes Co's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Baker Hughes Co's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Baker Hughes Co's Return-on-Tangible-Equity 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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 41.37% mean?
Baker Hughes Co (XSWX:BKR) has a Return-on-Tangible-Equity of 41.37% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Baker Hughes Co and its competitors. This is 118% above median its historical median of 18.95. According to the industry distribution chart, Baker Hughes Co ranks #84 out of 944 companies in the Oil & Gas industry, placing it in the top 8.9%.
Is Baker Hughes Co's Return-on-Tangible-Equity too high?
Baker Hughes Co's current Return-on-Tangible-Equity of 41.37% is 118% above median its 10-year median of 18.95. The Oil & Gas industry median Return-on-Tangible-Equity is 6.73. Baker Hughes Co's value of 41.37% is 514.7% above this industry median. Based on the distribution chart, Baker Hughes Co ranks #84 out of 944 companies in the Oil & Gas industry, which is in the top quartile — a strong position relative to peers. 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 Return-on-Tangible-Equity compare to SLB and HAL?
According to the Oil & Gas industry distribution chart, Baker Hughes Co ranks #84 out of 944 companies for Return-on-Tangible-Equity. This places Baker Hughes Co in the top 9% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 6.73. Baker Hughes Co's value of 41.37% is 514.7% above this benchmark. While the company's 10-year median is 18.95 vs. the industry median of 6.73, 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 Return-on-Tangible-Equity for an Oil & Gas company?
The median Return-on-Tangible-Equity among Oil & Gas companies is 6.73, based on 944 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Baker Hughes Co's current Return-on-Tangible-Equity of 41.37% is 514.7% 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 Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Baker Hughes Co and its competitors. For the Oil & Gas industry, the median Return-on-Tangible-Equity is 6.73 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Baker Hughes Co's current Return-on-Tangible-Equity is 41.37%, which is 118% above median its own 10-year median of 18.95. 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 CHF31.87, compared to a current price of CHF45.62 — trading 43.1% above its estimated fair value. The current Return-on-Tangible-Equity is 41.37%, which is 118% above median its 10-year median of 18.95 and 514.7% above the Oil & Gas industry median of 6.73. 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 Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Baker Hughes Co (XSWX:BKR), the current Return-on-Tangible-Equity is 41.37% 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 CHF45.62 is trading 43.1% above its estimated GF Value™ of CHF31.87.
GuruFocus considers Baker Hughes Co to be Significantly Overvalued.
Key valuation signals for XSWX:BKR:
Return-on-Tangible-Equity: 41.37% (118% above median its 10-year median of 18.95)
GF Value™: CHF31.87 vs. price of CHF45.62 (43.1% above fair value)
Industry Position: 514.7% above the Oil & Gas median (#84 of 944)
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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