NYSE:HAL stands out as a stock that provides good value for the fundamentals it showcases.

Last update: Jul 1, 2024

HALLIBURTON CO (NYSE:HAL) has caught the attention of our stock screener as a great value stock. NYSE:HAL excels in profitability, solvency, and liquidity, all while being very reasonably priced. Let's delve into the details.

Understanding NYSE:HAL's Valuation

ChartMill provides a Valuation Rating to every stock, ranging from 0 to 10. This rating assesses various valuation aspects, comparing price to earnings and cash flows, while considering factors like profitability and growth. NYSE:HAL boasts a 7 out of 10:

Based on the Price/Earnings ratio of 10.62, the valuation of HAL can be described as reasonable.
Based on the Price/Earnings ratio, HAL is valued cheaper than 83.08% of the companies in the same industry.
When comparing the Price/Earnings ratio of HAL to the average of the S&P500 Index (28.36), we can say HAL is valued rather cheaply.
The Price/Forward Earnings ratio is 8.51, which indicates a very decent valuation of HAL.
67.69% of the companies in the same industry are more expensive than HAL, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 20.16. 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 66.15% of the companies in the same industry.
HAL has an outstanding profitability rating, which may justify a higher PE ratio.

How do we evaluate the Profitability for NYSE:HAL?

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NYSE:HAL has earned a 8 out of 10:

Looking at the Return On Assets, with a value of 10.52%, HAL belongs to the top of the industry, outperforming 89.23% of the companies in the same industry.
Looking at the Return On Equity, with a value of 26.91%, HAL belongs to the top of the industry, outperforming 92.31% of the companies in the same industry.
HAL has a better Return On Invested Capital (16.43%) than 93.85% of its industry peers.
The Average Return On Invested Capital over the past 3 years for HAL is above the industry average of 8.02%.
The 3 year average ROIC (12.54%) for HAL is below the current ROIC(16.43%), indicating increased profibility in the last year.
HAL's Profit Margin of 11.20% is fine compared to the rest of the industry. HAL outperforms 76.92% of its industry peers.
In the last couple of years the Profit Margin of HAL has grown nicely.
HAL's Operating Margin of 17.68% is amongst the best of the industry. HAL outperforms 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.

ChartMill's Evaluation of Health

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:HAL has achieved a 7 out of 10:

HAL has an Altman-Z score of 3.71. This indicates that HAL is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of HAL (3.71) is better than 84.62% of its industry peers.
The Debt to FCF ratio of HAL is 3.21, which is a good value as it means it would take HAL, 3.21 years of fcf income to pay off all of its debts.
HAL has a better Debt to FCF ratio (3.21) than 63.08% of its industry peers.
HAL has a Current Ratio of 2.12. This indicates that HAL is financially healthy and has no problem in meeting its short term obligations.
With a decent Current ratio value of 2.12, HAL is doing good in the industry, outperforming 61.54% of the companies in the same industry.

How We Gauge Growth for NYSE:HAL

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. NYSE:HAL boasts a 4 out of 10:

HAL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 25.69%, which is quite impressive.
The Earnings Per Share has been growing by 10.57% on average over the past years. This is quite good.
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.

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

Our latest full fundamental report of HAL contains the most current fundamental analsysis.

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.