NYSE:HAL, an undervalued stock with good fundamentals.

Consider HALLIBURTON CO (NYSE:HAL) as a top value stock, identified by our stock screening tool. NYSE:HAL shines in terms of profitability, solvency, and liquidity, all while remaining very reasonably priced. Let's dive deeper into the analysis.

Valuation Assessment of NYSE:HAL

ChartMill assigns a proprietary Valuation Rating to each stock. The score is computed by evaluating various valuation aspects, like price to earnings and free cash flow, both absolutely as relative to the market and industry. NYSE:HAL was assigned a score of 7 for valuation:

• HAL is valuated reasonably with a Price/Earnings ratio of 10.40.
• Based on the Price/Earnings ratio, HAL is valued cheaply inside the industry as 86.15% of the companies are valued more expensively.
• HAL is valuated cheaply when we compare the Price/Earnings ratio to 29.08, which is the current average of the S&P500 Index.
• A Price/Forward Earnings ratio of 8.41 indicates a reasonable valuation of HAL.
• 69.23% of the companies in the same industry are more expensive than HAL, based on the Price/Forward Earnings ratio.
• HAL's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 20.74.
• 70.77% of the companies in the same industry are more expensive than HAL, based on the Price/Free Cash Flow ratio.
• HAL has an outstanding profitability rating, which may justify a higher PE ratio.

Profitability Examination 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 8 out of 10:

• The Return On Assets of HAL (10.70%) is better than 89.23% of its industry peers.
• Looking at the Return On Equity, with a value of 26.92%, HAL belongs to the top of the industry, outperforming 92.31% of the companies in the same industry.
• Looking at the Return On Invested Capital, with a value of 16.26%, HAL belongs to the top of the industry, outperforming 92.31% of the companies in the same industry.
• The Average Return On Invested Capital over the past 3 years for HAL is above the industry average of 7.69%.
• The last Return On Invested Capital (16.26%) for HAL is above the 3 year average (12.54%), which is a sign of increasing profitability.
• Looking at the Profit Margin, with a value of 11.61%, HAL is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
• HAL's Profit Margin has improved in the last couple of years.
• HAL has a better Operating Margin (17.75%) than 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.

Understanding NYSE:HAL's Health

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. NYSE:HAL has earned a 5 out of 10:

• HAL has a debt to FCF ratio of 3.23. This is a good value and a sign of high solvency as HAL would need 3.23 years to pay back of all of its debts.
• With a decent Debt to FCF ratio value of 3.23, HAL is doing good in the industry, outperforming 63.08% of the companies in the same industry.
• HAL has a Current Ratio of 2.13. This indicates that HAL is financially healthy and has no problem in meeting its short term obligations.
• With a decent Current ratio value of 2.13, HAL is doing good in the industry, outperforming 61.54% of the companies in the same industry.

A Closer Look at Growth for NYSE:HAL

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. NYSE:HAL has earned a 4 for growth:

• The Earnings Per Share has grown by an nice 14.23% over the past year.
• HAL shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.57% yearly.
• The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

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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.