HALLIBURTON CO (HAL.DE) Stock Fundamental Analysis
FRA:HAL - Deutsche Boerse Ag - US4062161017 - Common Stock - Currency: EUR
Taking everything into account, HAL scores 5 out of 10 in our fundamental rating. HAL was compared to 35 industry peers in the Energy Equipment & Services industry. While HAL has a great profitability rating, there are some minor concerns on its financial health. HAL has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year HAL was profitable.
HAL had a positive operating cash flow in the past year.
Of the past 5 years HAL 4 years were profitable.
HAL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 9.77%, HAL belongs to the top of the industry, outperforming 82.35% of the companies in the same industry.
Looking at the Return On Equity, with a value of 23.81%, HAL belongs to the top of the industry, outperforming 82.35% of the companies in the same industry.
HAL has a better Return On Invested Capital (15.82%) than 88.24% of its industry peers.
The Average Return On Invested Capital over the past 3 years for HAL is above the industry average of 12.83%.
The 3 year average ROIC (15.36%) for HAL is below the current ROIC(15.82%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.77% | ||
| ROE | 23.81% | ||
| ROIC | 15.82% |
ROA(3y)9.07%
ROA(5y)3.9%
ROE(3y)23.89%
ROE(5y)6.83%
ROIC(3y)15.36%
ROIC(5y)12.11%
1.3 Margins
HAL's Profit Margin of 10.90% is fine compared to the rest of the industry. HAL outperforms 76.47% of its industry peers.
HAL's Profit Margin has improved in the last couple of years.
HAL has a better Operating Margin (17.16%) than 61.76% of its industry peers.
In the last couple of years the Operating Margin of HAL has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.16% | ||
| PM (TTM) | 10.9% | ||
| GM | N/A |
OM growth 3Y13.15%
OM growth 5Y13.32%
PM growth 3Y4.6%
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so HAL is creating value.
The number of shares outstanding for HAL has been reduced compared to 1 year ago.
Compared to 5 years ago, HAL has about the same amount of shares outstanding.
Compared to 1 year ago, HAL has an improved debt to assets ratio.
2.2 Solvency
The Debt to FCF ratio of HAL is 3.11, which is a good value as it means it would take HAL, 3.11 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.11, HAL is in the better half of the industry, outperforming 73.53% of the companies in the same industry.
A Debt/Equity ratio of 0.68 indicates that HAL is somewhat dependend on debt financing.
HAL has a Debt to Equity ratio (0.68) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 3.11 | ||
| Altman-Z | N/A |
ROIC/WACC1.87
WACC8.46%
2.3 Liquidity
A Current Ratio of 2.05 indicates that HAL has no problem at all paying its short term obligations.
HAL's Current ratio of 2.05 is fine compared to the rest of the industry. HAL outperforms 73.53% of its industry peers.
HAL has a Quick Ratio of 1.54. This is a normal value and indicates that HAL is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.54, HAL perfoms like the industry average, outperforming 58.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.05 | ||
| Quick Ratio | 1.54 |
3. Growth
3.1 Past
HAL shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -4.78%.
HAL shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 19.25% yearly.
HAL shows a decrease in Revenue. In the last year, the revenue decreased by -0.32%.
Measured over the past years, HAL shows a small growth in Revenue. The Revenue has been growing by 0.47% on average per year.
EPS 1Y (TTM)-4.78%
EPS 3Y39.99%
EPS 5Y19.25%
EPS Q2Q%-18.6%
Revenue 1Y (TTM)-0.32%
Revenue growth 3Y14.47%
Revenue growth 5Y0.47%
Sales Q2Q%-2.25%
3.2 Future
The Earnings Per Share is expected to grow by 4.33% on average over the next years.
Based on estimates for the next years, HAL will show a small growth in Revenue. The Revenue will grow by 2.46% on average per year.
EPS Next Y-9.77%
EPS Next 2Y1.83%
EPS Next 3Y5.17%
EPS Next 5Y4.33%
Revenue Next Year-0.21%
Revenue Next 2Y1.61%
Revenue Next 3Y2.8%
Revenue Next 5Y2.46%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 8.72, 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 73.53% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.47. HAL is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 9.65, the valuation of HAL can be described as reasonable.
61.76% of the companies in the same industry are cheaper 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 92.74.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.72 | ||
| Fwd PE | 9.65 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as HAL.
HAL's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.44 | ||
| EV/EBITDA | 5.54 |
4.3 Compensation for Growth
HAL has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.45
EPS Next 2Y1.83%
EPS Next 3Y5.17%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.56%, HAL has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 5.50, HAL pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.28, HAL has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.56% |
5.2 History
The dividend of HAL decreases each year by -1.18%.
Dividend Growth(5Y)-1.18%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
23.99% of the earnings are spent on dividend by HAL. This is a low number and sustainable payout ratio.
DP23.99%
EPS Next 2Y1.83%
EPS Next 3Y5.17%
HALLIBURTON CO
FRA:HAL (2/4/2025, 7:00:00 PM)
25.19
+0.17 (+0.66%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners89.71%
Inst Owner ChangeN/A
Ins Owners0.37%
Ins Owner ChangeN/A
Market Cap22.13B
Analysts81.21
Price Target34.53 (37.08%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.56% |
Yearly Dividend0.68
Dividend Growth(5Y)-1.18%
DP23.99%
Div Incr Years3
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-2.13%
Min EPS beat(2)-4.16%
Max EPS beat(2)-0.1%
EPS beat(4)1
Avg EPS beat(4)-1.02%
Min EPS beat(4)-4.16%
Max EPS beat(4)1.17%
EPS beat(8)5
Avg EPS beat(8)1.59%
EPS beat(12)9
Avg EPS beat(12)2.88%
EPS beat(16)13
Avg EPS beat(16)4.11%
Revenue beat(2)0
Avg Revenue beat(2)-2.24%
Min Revenue beat(2)-3.21%
Max Revenue beat(2)-1.27%
Revenue beat(4)1
Avg Revenue beat(4)-1.51%
Min Revenue beat(4)-3.21%
Max Revenue beat(4)1.38%
Revenue beat(8)2
Avg Revenue beat(8)-1.17%
Revenue beat(12)4
Avg Revenue beat(12)-0.28%
Revenue beat(16)6
Avg Revenue beat(16)-0.13%
PT rev (1m)-6.37%
PT rev (3m)-11.19%
EPS NQ rev (1m)-15.47%
EPS NQ rev (3m)-33.3%
EPS NY rev (1m)-15.27%
EPS NY rev (3m)-22.01%
Revenue NQ rev (1m)-6.31%
Revenue NQ rev (3m)-15.8%
Revenue NY rev (1m)-1.84%
Revenue NY rev (3m)-5.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.72 | ||
| Fwd PE | 9.65 | ||
| P/S | 1 | ||
| P/FCF | 9.44 | ||
| P/OCF | 5.92 | ||
| P/B | 2.18 | ||
| P/tB | 2.98 | ||
| EV/EBITDA | 5.54 |
EPS(TTM)2.89
EY11.47%
EPS(NY)2.61
Fwd EY10.36%
FCF(TTM)2.67
FCFY10.59%
OCF(TTM)4.26
OCFY16.9%
SpS25.27
BVpS11.57
TBVpS8.45
PEG (NY)N/A
PEG (5Y)0.45
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.77% | ||
| ROE | 23.81% | ||
| ROCE | 20.16% | ||
| ROIC | 15.82% | ||
| ROICexc | 18.27% | ||
| ROICexgc | 21.95% | ||
| OM | 17.16% | ||
| PM (TTM) | 10.9% | ||
| GM | N/A | ||
| FCFM | 10.56% |
ROA(3y)9.07%
ROA(5y)3.9%
ROE(3y)23.89%
ROE(5y)6.83%
ROIC(3y)15.36%
ROIC(5y)12.11%
ROICexc(3y)17.61%
ROICexc(5y)14.03%
ROICexgc(3y)21.28%
ROICexgc(5y)17.08%
ROCE(3y)19.57%
ROCE(5y)15.43%
ROICexcg growth 3Y23.24%
ROICexcg growth 5Y15.94%
ROICexc growth 3Y24.36%
ROICexc growth 5Y15.57%
OM growth 3Y13.15%
OM growth 5Y13.32%
PM growth 3Y4.6%
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
F-Score5
Asset Turnover0.9
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 3.11 | ||
| Debt/EBITDA | 1.43 | ||
| Cap/Depr | 133.64% | ||
| Cap/Sales | 6.28% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 77.04% | ||
| Profit Quality | 96.88% | ||
| Current Ratio | 2.05 | ||
| Quick Ratio | 1.54 | ||
| Altman-Z | N/A |
F-Score5
WACC8.46%
ROIC/WACC1.87
Cap/Depr(3y)126.46%
Cap/Depr(5y)107.31%
Cap/Sales(3y)5.75%
Cap/Sales(5y)5.5%
Profit Quality(3y)84.67%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-4.78%
EPS 3Y39.99%
EPS 5Y19.25%
EPS Q2Q%-18.6%
EPS Next Y-9.77%
EPS Next 2Y1.83%
EPS Next 3Y5.17%
EPS Next 5Y4.33%
Revenue 1Y (TTM)-0.32%
Revenue growth 3Y14.47%
Revenue growth 5Y0.47%
Sales Q2Q%-2.25%
Revenue Next Year-0.21%
Revenue Next 2Y1.61%
Revenue Next 3Y2.8%
Revenue Next 5Y2.46%
EBIT growth 1Y-3.55%
EBIT growth 3Y29.53%
EBIT growth 5Y13.86%
EBIT Next Year26.47%
EBIT Next 3Y9.68%
EBIT Next 5Y7.08%
FCF growth 1Y16.55%
FCF growth 3Y29.64%
FCF growth 5Y21.5%
OCF growth 1Y11.77%
OCF growth 3Y26.46%
OCF growth 5Y9.59%