When you look at NYSE:HAL, it's hard to ignore the strong fundamentals, especially considering its likely undervaluation.

Last update: Dec 12, 2023

Our stock screener has singled out HALLIBURTON CO (NYSE:HAL) as a stellar value proposition. NYSE:HAL not only scores well in profitability, solvency, and liquidity but also maintains a very reasonable price point. We'll explore this further.

A Closer Look at Valuation for NYSE:HAL

ChartMill assigns a Valuation Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing different valuation elements, such as price to earnings and free cash flow, both in absolute terms and relative to the market and industry. In the case of NYSE:HAL, the assigned 7 reflects its valuation:

HAL is valuated reasonably with a Price/Earnings ratio of 11.59.
Based on the Price/Earnings ratio, HAL is valued a bit cheaper than 72.31% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 24.79, HAL is valued rather cheaply.
With a Price/Forward Earnings ratio of 9.93, the valuation of HAL can be described as very reasonable.
Based on the Price/Forward Earnings ratio, HAL is valued a bit cheaper than 63.08% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.41. HAL is valued rather cheaply when compared to this.
HAL's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. HAL is cheaper than 63.08% of the companies in the same industry.
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
HAL has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as HAL's earnings are expected to grow with 23.33% in the coming years.

How do we evaluate the Profitability for NYSE:HAL?

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NYSE:HAL, the assigned 7 is a significant indicator of profitability:

HAL has a Return On Assets of 10.77%. This is amongst the best in the industry. HAL outperforms 90.77% of its industry peers.
HAL has a Return On Equity of 28.78%. This is amongst the best in the industry. HAL outperforms 90.77% of its industry peers.
HAL has a Return On Invested Capital of 15.90%. This is amongst the best in the industry. HAL outperforms 89.23% of its industry peers.
The 3 year average ROIC (8.97%) for HAL is below the current ROIC(15.90%), indicating increased profibility in the last year.
HAL has a Profit Margin of 11.52%. This is amongst the best in the industry. HAL outperforms 83.08% of its industry peers.
The Operating Margin of HAL (17.50%) is better than 81.54% of its industry peers.
In the last couple of years the Operating Margin of HAL has grown nicely.
In the last couple of years the Gross Margin of HAL has grown nicely.

Health Assessment of NYSE:HAL

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NYSE:HAL scores a 5 out of 10:

HAL has an Altman-Z score of 3.69. This indicates that HAL is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of HAL (3.69) is better than 86.15% of its industry peers.
A Current Ratio of 2.14 indicates that HAL has no problem at all paying its short term obligations.
HAL has a Current ratio of 2.14. This is in the better half of the industry: HAL outperforms 67.69% of its industry peers.

Growth Examination for NYSE:HAL

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NYSE:HAL scores a 5 out of 10:

HAL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 66.67%, which is quite impressive.
Measured over the past years, HAL shows a quite strong growth in Earnings Per Share. The EPS has been growing by 11.38% on average per year.
HAL shows a strong growth in Revenue. In the last year, the Revenue has grown by 20.37%.
The Earnings Per Share is expected to grow by 12.62% on average over the next years. This is quite good.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

Our Decent Value screener lists more Decent Value stocks and is updated daily.

Check the latest full fundamental report of HAL for a complete fundamental analysis.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.