Discover HALLIBURTON CO (NYSE:HAL), an undervalued stock highlighted by our stock screener. NYSE:HAL showcases solid financial health and profitability while maintaining an appealing valuation. We'll explore the details.
ChartMill's Evaluation of Valuation
To assess a stock's valuation, ChartMill utilizes a Valuation Rating on a scale of 0 to 10. This comprehensive assessment considers various valuation aspects, comparing price to earnings and cash flows, while factoring in profitability and growth. NYSE:HAL has achieved a 7 out of 10:
- With a Price/Earnings ratio of 11.48, the valuation of HAL can be described as very reasonable.
- HAL's Price/Earnings ratio is a bit cheaper when compared to the industry. HAL is cheaper than 72.31% of the companies in the same industry.
- When comparing the Price/Earnings ratio of HAL to the average of the S&P500 Index (25.97), we can say HAL is valued rather cheaply.
- Based on the Price/Forward Earnings ratio of 9.83, the valuation of HAL can be described as reasonable.
- 64.62% of the companies in the same industry are more expensive than HAL, based on the Price/Forward Earnings ratio.
- Compared to an average S&P500 Price/Forward Earnings ratio of 20.90, HAL is valued rather cheaply.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of HAL indicates a somewhat cheap valuation: HAL is cheaper than 64.62% of the companies listed in the same industry.
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- The decent profitability rating of HAL may justify a higher PE ratio.
- HAL's earnings are expected to grow with 23.33% in the coming years. This may justify a more expensive valuation.
What does the Profitability looks like for NYSE:HAL
ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NYSE:HAL scores a 7 out of 10:
- HAL has a better Return On Assets (10.77%) than 90.77% of its industry peers.
- Looking at the Return On Equity, with a value of 28.78%, HAL belongs to the top of the industry, outperforming 90.77% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 15.90%, HAL belongs to the top of the industry, outperforming 89.23% of the companies in the same industry.
- The 3 year average ROIC (8.97%) for HAL is below the current ROIC(15.90%), indicating increased profibility in the last year.
- The Profit Margin of HAL (11.52%) is better than 83.08% of its industry peers.
- HAL has a Operating Margin of 17.50%. This is amongst the best in the industry. HAL outperforms 81.54% of its industry peers.
- In the last couple of years the Operating Margin of HAL has grown nicely.
- HAL's Gross Margin has improved in the last couple of years.
ChartMill's Evaluation of Health
ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NYSE:HAL has earned a 5 out of 10:
- An Altman-Z score of 3.68 indicates that HAL is not in any danger for bankruptcy at the moment.
- The Altman-Z score of HAL (3.68) is better than 84.62% of its industry peers.
- HAL has a Current Ratio of 2.14. This indicates that HAL is financially healthy and has no problem in meeting its short term obligations.
- Looking at the Current ratio, with a value of 2.14, HAL is in the better half of the industry, outperforming 64.62% of the companies in the same industry.
Evaluating Growth: NYSE:HAL
To evaluate a stock's growth potential, ChartMill utilizes a Growth Rating on a scale of 0 to 10. This comprehensive assessment considers various growth aspects, including historical and estimated EPS and revenue growth. NYSE:HAL has achieved 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.
- The Earnings Per Share has been growing by 11.38% on average over the past years. This is quite good.
- The Revenue has grown by 20.37% in the past year. This is a very strong growth!
- HAL is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.62% yearly.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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For an up to date full fundamental analysis you can check the fundamental report of HAL
Keep in mind
This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.