HALLIBURTON CO (HAL) Stock Fundamental Analysis
NYSE:HAL - New York Stock Exchange, Inc. - US4062161017 - Common Stock - Currency: USD
HAL gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 62 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 is valued quite cheap, but it does not seem to be growing. With these ratings, HAL could be worth investigating further for value investing!.
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
With an excellent Return On Assets value of 9.77%, HAL belongs to the best of the industry, outperforming 82.26% of the companies in the same industry.
HAL has a better Return On Equity (23.81%) than 88.71% of its industry peers.
The Return On Invested Capital of HAL (15.82%) is better than 93.55% 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 8.16%.
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
HAL has a better Profit Margin (10.90%) than 74.19% of its industry peers.
HAL's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 17.16%, HAL is doing good in the industry, outperforming 77.42% of the companies in the same industry.
In the last couple of years the Operating Margin of HAL has grown nicely.
With a Gross Margin value of 18.75%, HAL is not doing good in the industry: 72.58% of the companies in the same industry are doing better.
HAL's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.16% | ||
| PM (TTM) | 10.9% | ||
| GM | 18.75% |
OM growth 3Y13.15%
OM growth 5Y13.32%
PM growth 3Y4.6%
PM growth 5YN/A
GM growth 3Y12.46%
GM growth 5Y12.95%
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.
HAL has less shares outstanding than it did 1 year ago.
HAL has less shares outstanding than it did 5 years ago.
The debt/assets ratio for HAL has been reduced compared to a year ago.
2.2 Solvency
HAL has an Altman-Z score of 3.26. This indicates that HAL is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 3.26, HAL is doing good in the industry, outperforming 79.03% of the companies in the same industry.
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 line with its industry, outperforming 58.06% 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 70.97% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 3.11 | ||
| Altman-Z | 3.26 |
ROIC/WACC1.76
WACC8.98%
2.3 Liquidity
HAL has a Current Ratio of 2.05. This indicates that HAL is financially healthy and has no problem in meeting its short term obligations.
HAL has a Current ratio of 2.05. This is comparable to the rest of the industry: HAL outperforms 56.45% 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.
HAL has a Quick ratio of 1.54. This is comparable to the rest of the industry: HAL outperforms 54.84% 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.
Measured over the past years, HAL shows a quite strong growth in Earnings Per Share. The EPS has been growing by 19.25% on average per year.
Looking at the last year, HAL shows a decrease in Revenue. The Revenue has decreased by -0.32% in the last year.
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
Based on estimates for the next years, HAL will show a decrease in Earnings Per Share. The EPS will decrease by -0.41% on average per year.
The Revenue is expected to decrease by -0.73% on average over the next years.
EPS Next Y-11.66%
EPS Next 2Y-0.5%
EPS Next 3Y2.86%
EPS Next 5Y-0.41%
Revenue Next Year-3.57%
Revenue Next 2Y-0.09%
Revenue Next 3Y0.99%
Revenue Next 5Y-0.73%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 7.54, the valuation of HAL can be described as very cheap.
HAL's Price/Earnings ratio is rather cheap when compared to the industry. HAL is cheaper than 87.10% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.29. HAL is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 8.53, the valuation of HAL can be described as very reasonable.
Based on the Price/Forward Earnings ratio, HAL is valued cheaper than 83.87% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of HAL to the average of the S&P500 Index (21.08), we can say HAL is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.54 | ||
| Fwd PE | 8.53 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HAL is on the same level as its industry peers.
74.19% 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 | 8.02 | ||
| EV/EBITDA | 4.85 |
4.3 Compensation for Growth
The excellent profitability rating of HAL may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.39
EPS Next 2Y-0.5%
EPS Next 3Y2.86%
5. Dividend
5.1 Amount
HAL has a Yearly Dividend Yield of 3.02%.
In the last 3 months the price of HAL has falen by -24.65%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
HAL's Dividend Yield is a higher than the industry average which is at 4.21.
Compared to an average S&P500 Dividend Yield of 2.52, HAL has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.02% |
5.2 History
The dividend of HAL decreases each year by -1.06%.
HAL has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of HAL decreased in the last 3 years.
Dividend Growth(5Y)-1.06%
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.
The Dividend Rate of HAL has been decling, while earnings will also be declining. This means the current dividend is most likely not sustainable.
DP23.99%
EPS Next 2Y-0.5%
EPS Next 3Y2.86%
22.53
+1.1 (+5.13%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners86.49%
Inst Owner Change0.25%
Ins Owners0.39%
Ins Owner Change1.78%
Market Cap19.42B
Analysts78.75
Price Target35.34 (56.86%)
Short Float %2.38%
Short Ratio1.88
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.02% |
Yearly Dividend0.68
Dividend Growth(5Y)-1.06%
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)-0.82%
PT rev (3m)-7.2%
EPS NQ rev (1m)-0.56%
EPS NQ rev (3m)-16.02%
EPS NY rev (1m)-2.03%
EPS NY rev (3m)-17.04%
Revenue NQ rev (1m)-0.13%
Revenue NQ rev (3m)-6.47%
Revenue NY rev (1m)-0.75%
Revenue NY rev (3m)-4.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.54 | ||
| Fwd PE | 8.53 | ||
| P/S | 0.85 | ||
| P/FCF | 8.02 | ||
| P/OCF | 5.02 | ||
| P/B | 1.85 | ||
| P/tB | 2.53 | ||
| EV/EBITDA | 4.85 |
EPS(TTM)2.99
EY13.27%
EPS(NY)2.64
Fwd EY11.72%
FCF(TTM)2.81
FCFY12.48%
OCF(TTM)4.48
OCFY19.9%
SpS26.62
BVpS12.19
TBVpS8.9
PEG (NY)N/A
PEG (5Y)0.39
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 | 18.75% | ||
| 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 3Y12.46%
GM growth 5Y12.95%
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 | 8.93 | ||
| Cash Conversion | 77.04% | ||
| Profit Quality | 96.88% | ||
| Current Ratio | 2.05 | ||
| Quick Ratio | 1.54 | ||
| Altman-Z | 3.26 |
F-Score5
WACC8.98%
ROIC/WACC1.76
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-11.66%
EPS Next 2Y-0.5%
EPS Next 3Y2.86%
EPS Next 5Y-0.41%
Revenue 1Y (TTM)-0.32%
Revenue growth 3Y14.47%
Revenue growth 5Y0.47%
Sales Q2Q%-2.25%
Revenue Next Year-3.57%
Revenue Next 2Y-0.09%
Revenue Next 3Y0.99%
Revenue Next 5Y-0.73%
EBIT growth 1Y-3.55%
EBIT growth 3Y29.53%
EBIT growth 5Y13.86%
EBIT Next Year18.42%
EBIT Next 3Y10.03%
EBIT Next 5Y2.98%
FCF growth 1Y16.55%
FCF growth 3Y29.64%
FCF growth 5Y21.5%
OCF growth 1Y11.77%
OCF growth 3Y26.46%
OCF growth 5Y9.59%