Baker Hughes CoXSWX:BKR 49 Altman Z-Score is 2.20 as of Jun. 30, 2026, which is 91% above its 10-year median of 1.15. GuruFocus rates XSWX:BKR with a GF Score™ of 49/100 and a GF Value™ of CHF34.33 (Significantly Overvalued). The stock has 3 warning signs investors should review. Among 900 Oil & Gas companies, Baker Hughes Co ranks better than 56% on this metric.
The Altman Z-Score is a model designed to predict the likelihood of a company going bankrupt within the next two years. Created by American finance professor Edward Altman in 1968, the model is specifically designed for publicly traded manufacturing companies with assets greater than $1 million.
Warning Sign:
Altman Z-score of 2.16 is in the grey area. This implies that the company is under some kind of financial stress. If it is below 1.8, the company may face bankruptcy risk.
Baker Hughes Co has a Altman Z-Score of 2.20, indicating it is in Grey Zones. This implies that Baker Hughes Co is in some kind of financial stress. If it is below 1.81, the company may face bankrupcy risk.
The zones of discrimination were as such:
When Altman Z-Score <= 1.8, it is in Distress Zones.
When Altman Z-Score >= 3, it is in Safe Zones.
When Altman Z-Score is between 1.8 and 3, it is in Grey Zones.
The historical rank and industry rank for Baker Hughes Co's Altman Z-Score or its related term are showing as below:
XSWX:BKR'
s Altman Z-Score Range Over the Past 10 Years
Min: -0.83 Med: 1.15 Max: 2.38
Current: 2.16
During the past 11 years, Baker Hughes Co's highest Altman Z-Score was 2.38. The lowest was -0.83. And the median was 1.15.
Baker Hughes Co (XSWX:BKR) Altman Z-Score Explanation
X1: The Working Capital/Total Assets (WC/TA) ratio is a measure of the net liquid assets of the firm relative to the total capitalization. Working capital is defined as the difference between current assets and current liabilities. Ordinarily, a firm experiencing consistent operating losses will have shrinking current assets in relation to total assets. Altman found this one proved to be the most valuable liquidity ratio comparing with the current ratio and the quick ratio. This is however the least significant of the five factors.
X2: Retained Earnings/Total Assets: the RE/TA ratio measures the leverage of a firm. Retained earnings is the account which reports the total amount of reinvested earnings and/or losses of a firm over its entire life. Those firms with high RE, relative to TA, have financed their assets through retention of profits and have not utilized as much debt.
X3, Earnings Before Interest and Taxes/Total Assets (EBIT/TA): This ratio is a measure of the true productivity of the firm's assets, independent of any tax or leverage factors. Since a firm's ultimate existence is based on the earning power of its assets, this ratio appears to be particularly appropriate for studies dealing with corporate failure. This ratio continually outperforms other profitability measures, including cash flow.
X4, Market Value of Equity/Book Value of Total Liabilities (MVE/TL): The measure shows how much the firm's assets can decline in value (measured by market value of equity plus debt) before the liabilities exceed the assets and the firm becomes insolvent.
X5, Revenue/Total Assets (S/TA): The capital-turnover ratio is a standard financial ratio illustrating the sales generating ability of the firm's assets.
Altman Z-Score does not apply to financial companies.
Baker Hughes Co Altman Z-Score Related Terms
Baker Hughes Co Altman Z-Score Historical Data
* Premium members only.
The historical data trend for Baker Hughes Co's Altman Z-Score 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: Altman Z-Score Comparison
For the Oil & Gas Equipment & Services subindustry, Baker Hughes Co's Altman Z-Score, along with its competitors' market caps and Altman Z-Score 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 Altman Z-Score vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Baker Hughes Co's Altman Z-Score distribution charts can be found below:
* The bar in red indicates where Baker Hughes Co's Altman Z-Score falls into.
Altman Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
Baker Hughes Co's Altman Z-Score for today is calculated with this formula:
Z
=
1.2
*
X1
+
1.4
*
X2
+
3.3
*
X3
+
0.6
*
X4
+
1.0
*
X5
=
1.2
*
0.2982
+
1.4
*
-0.0456
+
3.3
*
0.0766
+
0.6
*
1.8283
+
1.0
*
0.5558
=
2.20
* 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. GuruFocus does not calculate Altman Z-Score when X4 or X5 value is 0.
Baker Hughes Co (XSWX:BKR) has a Altman Z-Score of 2.20 as of Jun. 30, 2026. The Altman Z-score measures a company's bankruptcy risk. View historical data on Baker Hughes Co and its competitors. This is 91% above median its historical median of 1.15. According to the industry distribution chart, Baker Hughes Co ranks #396 out of 900 companies in the Oil & Gas industry, placing it in the top 44%.
Is Baker Hughes Co's Altman Z-Score too high?
Baker Hughes Co's current Altman Z-Score of 2.20 is 91% above median its 10-year median of 1.15. The Oil & Gas industry median Altman Z-Score is 1.90. Baker Hughes Co's value of 2.20 is 16.1% above this industry median. Based on the distribution chart, Baker Hughes Co ranks #396 out of 900 companies in the Oil & Gas industry, which is above 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 Altman Z-Score compare to SLB and HAL?
According to the Oil & Gas industry distribution chart, Baker Hughes Co ranks #396 out of 900 companies for Altman Z-Score. This puts Baker Hughes Co in the upper half of its industry. The industry median Altman Z-Score is 1.90. Baker Hughes Co's value of 2.20 is 16.1% above this benchmark. While the company's 10-year median is 1.15 vs. the industry median of 1.90, 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 Altman Z-Score for an Oil & Gas company?
The median Altman Z-Score among Oil & Gas companies is 1.90, based on 900 companies in the industry. Companies in the top quartile (top 25%) have a Altman Z-Score significantly above this median, while those in the bottom quartile fall well below. However, Altman Z-Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Baker Hughes Co's current Altman Z-Score of 2.20 is 16.1% 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 Altman Z-Score mean?
A high Altman Z-Score can signal that a stock is expensive relative to its fundamentals. The Altman Z-score measures a company's bankruptcy risk. View historical data on Baker Hughes Co and its competitors. For the Oil & Gas industry, the median Altman Z-Score is 1.90 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Baker Hughes Co's current Altman Z-Score is 2.20, which is 91% above median its own 10-year median of 1.15. 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 CHF34.33, compared to a current price of CHF45.81 — trading 33.4% above its estimated fair value. The current Altman Z-Score is 2.20, which is 91% above median its 10-year median of 1.15 and 16.1% above the Oil & Gas industry median of 1.90. 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 Altman Z-Score calculated?
Altman Z-Score is calculated from a company's financial statements. For Baker Hughes Co (XSWX:BKR), the current Altman Z-Score is 2.20 as of Jun. 30, 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 33.4% above its estimated GF Value™ of CHF34.33.
GuruFocus considers Baker Hughes Co to be Significantly Overvalued.
Key valuation signals for XSWX:BKR:
Altman Z-Score: 2.20 (91% above median its 10-year median of 1.15)
GF Value™: CHF34.33 vs. price of CHF45.81 (33.4% above fair value)
Industry Position: 16.1% above the Oil & Gas median (#396 of 900)
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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