HALLIBURTON CO (HAL)
US4062161017 - Common Stock
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 quite cheap, but it does not seem to be growing. This makes HAL very considerable for value investing!
1. Profitability
1.1 Basic Checks
In the past year HAL was profitable.
In the past year HAL had a positive cash flow from operations.
In multiple years HAL reported negative net income over the last 5 years.
HAL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of HAL (10.05%) is better than 79.66% of its industry peers.
Looking at the Return On Equity, with a value of 24.74%, HAL belongs to the top of the industry, outperforming 89.83% 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 93.22% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for HAL is above the industry average of 8.50%.
The last Return On Invested Capital (15.82%) for HAL is above the 3 year average (12.54%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.05% | ||
| ROE | 24.74% | ||
| ROIC | 15.82% |
ROA(3y)7.99%
ROA(5y)1.06%
ROE(3y)23.19%
ROE(5y)-0.75%
ROIC(3y)12.54%
ROIC(5y)10.37%
1.3 Margins
HAL's Profit Margin of 11.04% is fine compared to the rest of the industry. HAL outperforms 72.88% of its industry peers.
In the last couple of years the Profit Margin of HAL has grown nicely.
With an excellent Operating Margin value of 17.61%, HAL belongs to the best of the industry, outperforming 81.36% of the companies in the same industry.
In the last couple of years the Operating Margin of HAL has grown nicely.
Looking at the Gross Margin, with a value of 19.10%, HAL is doing worse than 72.88% of the companies in the same industry.
In the last couple of years the Gross Margin of HAL has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.61% | ||
| PM (TTM) | 11.04% | ||
| GM | 19.1% |
OM growth 3Y23.42%
OM growth 5Y9.27%
PM growth 3YN/A
PM growth 5Y10.68%
GM growth 3Y20.99%
GM growth 5Y8.77%
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.
HAL has less shares outstanding than it did 1 year ago.
The number of shares outstanding for HAL has been increased compared to 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 3.42. This indicates that HAL is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.42, HAL is in the better half of the industry, outperforming 76.27% of the companies in the same industry.
HAL has a debt to FCF ratio of 3.18. This is a good value and a sign of high solvency as HAL would need 3.18 years to pay back of all of its debts.
The Debt to FCF ratio of HAL (3.18) is comparable to the rest of the industry.
HAL has a Debt/Equity ratio of 0.74. This is a neutral value indicating HAL is somewhat dependend on debt financing.
HAL has a worse Debt to Equity ratio (0.74) than 76.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | 3.18 | ||
| Altman-Z | 3.42 |
ROIC/WACC1.98
WACC8.01%
2.3 Liquidity
A Current Ratio of 2.21 indicates that HAL has no problem at all paying its short term obligations.
The Current ratio of HAL (2.21) is better than 61.02% of its industry peers.
A Quick Ratio of 1.62 indicates that HAL should not have too much problems paying its short term obligations.
The Quick ratio of HAL (1.62) is better than 62.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.21 | ||
| Quick Ratio | 1.62 |
3. Growth
3.1 Past
HAL shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.00%.
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 has been growing slightly by 0.93% in the past year.
Measured over the past years, HAL shows a decrease in Revenue. The Revenue has been decreasing by -0.83% on average per year.
EPS 1Y (TTM)5%
EPS 3Y69.05%
EPS 5Y10.57%
EPS Q2Q%-7.59%
Revenue 1Y (TTM)0.93%
Revenue growth 3Y16.8%
Revenue growth 5Y-0.83%
Sales Q2Q%-1.84%
3.2 Future
HAL is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 2.92% yearly.
HAL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.29% yearly.
EPS Next Y-3.1%
EPS Next 2Y1.13%
EPS Next 3Y4.48%
EPS Next 5Y2.92%
Revenue Next Year-0.25%
Revenue Next 2Y0.74%
Revenue Next 3Y1.95%
Revenue Next 5Y2.29%
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
HAL is valuated reasonably with a Price/Earnings ratio of 8.24.
91.53% 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 (27.73), we can say HAL is valued rather cheaply.
HAL is valuated reasonably with a Price/Forward Earnings ratio of 8.09.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HAL indicates a rather cheap valuation: HAL is cheaper than 93.22% of the companies listed in the same industry.
HAL is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.83, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.24 | ||
| Fwd PE | 8.09 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HAL indicates a somewhat cheap valuation: HAL is cheaper than 61.02% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of HAL indicates a somewhat cheap valuation: HAL is cheaper than 69.49% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.49 | ||
| EV/EBITDA | 5.48 |
4.3 Compensation for Growth
HAL has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.78
EPS Next 2Y1.13%
EPS Next 3Y4.48%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.64%, HAL has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.64, HAL pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.34, HAL has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.64% |
5.2 History
The dividend of HAL decreases each year by -2.30%.
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)-2.3%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
HAL pays out 23.36% of its income as dividend. This is a sustainable payout ratio.
DP23.36%
EPS Next 2Y1.13%
EPS Next 3Y4.48%
HALLIBURTON CO
NYSE:HAL (12/20/2024, 8:16:09 PM)
After market: 25.98 +0.01 (+0.04%)25.97
+0.2 (+0.78%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners89.71%
Inst Owner Change-5.09%
Ins Owners0.37%
Ins Owner Change-1.13%
Market Cap22.81B
Analysts82.5
Price Target39.52 (52.18%)
Short Float %2.65%
Short Ratio2.56
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.64% |
Dividend Growth(5Y)-2.3%
DP23.36%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-2.57%
Min EPS beat(2)-4.16%
Max EPS beat(2)-0.98%
EPS beat(4)2
Avg EPS beat(4)0.76%
Min EPS beat(4)-4.16%
Max EPS beat(4)7.01%
EPS beat(8)6
Avg EPS beat(8)2.45%
EPS beat(12)10
Avg EPS beat(12)3.28%
EPS beat(16)14
Avg EPS beat(16)5.42%
Revenue beat(2)0
Avg Revenue beat(2)-3.07%
Min Revenue beat(2)-3.21%
Max Revenue beat(2)-2.93%
Revenue beat(4)1
Avg Revenue beat(4)-1.61%
Min Revenue beat(4)-3.21%
Max Revenue beat(4)1.38%
Revenue beat(8)2
Avg Revenue beat(8)-1.12%
Revenue beat(12)5
Avg Revenue beat(12)0.13%
Revenue beat(16)6
Avg Revenue beat(16)-0.06%
PT rev (1m)-6.42%
PT rev (3m)-12.11%
EPS NQ rev (1m)-9.46%
EPS NQ rev (3m)-24.86%
EPS NY rev (1m)-3.15%
EPS NY rev (3m)-4.85%
Revenue NQ rev (1m)-2.69%
Revenue NQ rev (3m)-10.82%
Revenue NY rev (1m)-1.01%
Revenue NY rev (3m)-2.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.24 | ||
| Fwd PE | 8.09 | ||
| P/S | 0.99 | ||
| P/FCF | 9.49 | ||
| P/OCF | 5.97 | ||
| P/B | 2.22 | ||
| P/tB | 3.06 | ||
| EV/EBITDA | 5.48 |
EPS(TTM)3.15
EY12.13%
EPS(NY)3.21
Fwd EY12.36%
FCF(TTM)2.74
FCFY10.54%
OCF(TTM)4.35
OCFY16.74%
SpS26.26
BVpS11.72
TBVpS8.49
PEG (NY)N/A
PEG (5Y)0.78
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.05% | ||
| ROE | 24.74% | ||
| ROCE | 20.45% | ||
| ROIC | 15.82% | ||
| ROICexc | 17.77% | ||
| ROICexgc | 21.17% | ||
| OM | 17.61% | ||
| PM (TTM) | 11.04% | ||
| GM | 19.1% | ||
| FCFM | 10.42% |
ROA(3y)7.99%
ROA(5y)1.06%
ROE(3y)23.19%
ROE(5y)-0.75%
ROIC(3y)12.54%
ROIC(5y)10.37%
ROICexc(3y)14.48%
ROICexc(5y)11.97%
ROICexgc(3y)17.62%
ROICexgc(5y)14.57%
ROCE(3y)16.21%
ROCE(5y)13.41%
ROICexcg growth 3Y32.71%
ROICexcg growth 5Y11.84%
ROICexc growth 3Y34.64%
ROICexc growth 5Y11.25%
OM growth 3Y23.42%
OM growth 5Y9.27%
PM growth 3YN/A
PM growth 5Y10.68%
GM growth 3Y20.99%
GM growth 5Y8.77%
F-Score7
Asset Turnover0.91
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | 3.18 | ||
| Debt/EBITDA | 1.49 | ||
| Cap/Depr | 133.49% | ||
| Cap/Sales | 6.13% | ||
| Interest Coverage | 9.22 | ||
| Cash Conversion | 74.53% | ||
| Profit Quality | 94.39% | ||
| Current Ratio | 2.21 | ||
| Quick Ratio | 1.62 | ||
| Altman-Z | 3.42 |
F-Score7
WACC8.01%
ROIC/WACC1.98
Cap/Depr(3y)111.37%
Cap/Depr(5y)99.42%
Cap/Sales(3y)5.4%
Cap/Sales(5y)5.61%
Profit Quality(3y)77.81%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)5%
EPS 3Y69.05%
EPS 5Y10.57%
EPS Q2Q%-7.59%
EPS Next Y-3.1%
EPS Next 2Y1.13%
EPS Next 3Y4.48%
EPS Next 5Y2.92%
Revenue 1Y (TTM)0.93%
Revenue growth 3Y16.8%
Revenue growth 5Y-0.83%
Sales Q2Q%-1.84%
Revenue Next Year-0.25%
Revenue Next 2Y0.74%
Revenue Next 3Y1.95%
Revenue Next 5Y2.29%
EBIT growth 1Y1.57%
EBIT growth 3Y44.15%
EBIT growth 5Y8.37%
EBIT Next Year22.77%
EBIT Next 3Y10.2%
EBIT Next 5Y5.38%
FCF growth 1Y206.63%
FCF growth 3Y21.71%
FCF growth 5Y12.95%
OCF growth 1Y116.87%
OCF growth 3Y22.5%
OCF growth 5Y1.84%