HALLIBURTON CO (HAL) Stock Fundamental Analysis
NYSE:HAL - New York Stock Exchange, Inc. - US4062161017 - Common Stock - Currency: USD
Overall HAL gets a fundamental rating of 6 out of 10. We evaluated HAL against 59 industry peers in the Energy Equipment & Services industry. HAL has an excellent profitability rating, but there are some minor concerns on its financial health. HAL is valued correctly, 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
HAL's Return On Assets of 9.77% is amongst the best of the industry. HAL outperforms 82.76% of its industry peers.
Looking at the Return On Equity, with a value of 23.81%, HAL belongs to the top of the industry, outperforming 89.66% of the companies in the same industry.
HAL's Return On Invested Capital of 15.82% is amongst the best of the industry. HAL outperforms 93.10% of its industry peers.
HAL had an Average Return On Invested Capital over the past 3 years of 15.36%. This is significantly above the industry average of 8.19%.
The last Return On Invested Capital (15.82%) for HAL is above the 3 year average (15.36%), which is a sign of increasing profitability.
| 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
Looking at the Profit Margin, with a value of 10.90%, HAL is in the better half of the industry, outperforming 77.59% of the companies in the same industry.
In the last couple of years the Profit Margin of HAL has grown nicely.
The Operating Margin of HAL (17.16%) is better than 77.59% of its industry peers.
HAL's Operating Margin has improved in the last couple of years.
| 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 just above the Cost of Capital (WACC), so HAL is still creating some value.
Compared to 1 year ago, HAL has less shares outstanding
The number of shares outstanding for HAL remains at a similar level compared to 5 years ago.
HAL has a better debt/assets ratio than last year.
2.2 Solvency
HAL has a debt to FCF ratio of 3.11. This is a good value and a sign of high solvency as HAL would need 3.11 years to pay back of 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 62.07% of the companies in the same industry.
A Debt/Equity ratio of 0.68 indicates that HAL is somewhat dependend on debt financing.
HAL's Debt to Equity ratio of 0.68 is on the low side compared to the rest of the industry. HAL is outperformed by 70.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 3.11 | ||
| Altman-Z | N/A |
ROIC/WACC1.78
WACC8.88%
2.3 Liquidity
A Current Ratio of 2.05 indicates that HAL has no problem at all paying its short term obligations.
HAL has a better Current ratio (2.05) than 60.34% of its industry peers.
A Quick Ratio of 1.54 indicates that HAL should not have too much problems paying its short term obligations.
HAL has a Quick ratio of 1.54. This is comparable to the rest of the industry: HAL outperforms 55.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.05 | ||
| Quick Ratio | 1.54 |
3. Growth
3.1 Past
The earnings per share for HAL have decreased by -4.78% in the last year.
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-9.83%
EPS Next 2Y1.64%
EPS Next 3Y5.17%
EPS Next 5Y4.33%
Revenue Next Year-2.78%
Revenue Next 2Y0.66%
Revenue Next 3Y1.78%
Revenue Next 5Y2.46%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 8.78, the valuation of HAL can be described as very reasonable.
93.10% of the companies in the same industry are more expensive than HAL, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of HAL to the average of the S&P500 Index (29.63), we can say HAL is valued rather cheaply.
A Price/Forward Earnings ratio of 9.74 indicates a reasonable valuation of HAL.
86.21% of the companies in the same industry are more expensive than HAL, based on the Price/Forward Earnings ratio.
HAL is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.68, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.78 | ||
| Fwd PE | 9.74 |
4.2 Price Multiples
HAL's Enterprise Value to EBITDA is on the same level as the industry average.
75.86% of the companies in the same industry are more expensive than HAL, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.52 | ||
| EV/EBITDA | 5.71 |
4.3 Compensation for Growth
HAL has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.46
EPS Next 2Y1.64%
EPS Next 3Y5.17%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.59%, HAL has a reasonable but not impressive dividend return.
HAL's Dividend Yield is a higher than the industry average which is at 3.47.
Compared to an average S&P500 Dividend Yield of 2.29, HAL has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.59% |
5.2 History
The dividend of HAL decreases each year by -1.18%.
HAL has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of HAL decreased in the last 3 years.
Dividend Growth(5Y)-1.18%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
HAL pays out 23.99% of its income as dividend. This is a sustainable payout ratio.
DP23.99%
EPS Next 2Y1.64%
EPS Next 3Y5.17%
26.26
-0.73 (-2.7%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners89.71%
Inst Owner Change-0.27%
Ins Owners0.37%
Ins Owner Change-4.31%
Market Cap23.07B
Analysts78.24
Price Target36.01 (37.13%)
Short Float %3.18%
Short Ratio2.72
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.59% |
Yearly Dividend0.68
Dividend Growth(5Y)-1.18%
DP23.99%
Div Incr Years2
Div Non Decr Years2
Ex-Date
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)-5.44%
PT rev (3m)-14.74%
EPS NQ rev (1m)-15.54%
EPS NQ rev (3m)-33.36%
EPS NY rev (1m)-15.33%
EPS NY rev (3m)-20.51%
Revenue NQ rev (1m)-6.35%
Revenue NQ rev (3m)-15.83%
Revenue NY rev (1m)-3.24%
Revenue NY rev (3m)-6.75%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.78 | ||
| Fwd PE | 9.74 | ||
| P/S | 1.01 | ||
| P/FCF | 9.52 | ||
| P/OCF | 5.97 | ||
| P/B | 2.2 | ||
| P/tB | 3.01 | ||
| EV/EBITDA | 5.71 |
EPS(TTM)2.99
EY11.39%
EPS(NY)2.7
Fwd EY10.27%
FCF(TTM)2.76
FCFY10.5%
OCF(TTM)4.4
OCFY16.75%
SpS26.12
BVpS11.96
TBVpS8.73
PEG (NY)N/A
PEG (5Y)0.46
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
WACC8.88%
ROIC/WACC1.78
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-9.83%
EPS Next 2Y1.64%
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-2.78%
Revenue Next 2Y0.66%
Revenue Next 3Y1.78%
Revenue Next 5Y2.46%
EBIT growth 1Y-3.55%
EBIT growth 3Y29.53%
EBIT growth 5Y13.86%
EBIT Next Year19.15%
EBIT Next 3Y10.66%
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%