HALLIBURTON CO (HAL) Stock Fundamental Analysis
NYSE:HAL - New York Stock Exchange, Inc. - US4062161017 - Common Stock
Taking everything into account, HAL scores 6 out of 10 in our fundamental rating. HAL was compared to 58 industry peers in the Energy Equipment & Services industry. HAL scores excellent points on both the profitability and health parts. This is a solid base for a good stock. HAL has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
HAL had positive earnings in the past year.
In the past year HAL had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: HAL reported negative net income in multiple years.
HAL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
HAL has a better Return On Assets (10.05%) than 81.03% of its industry peers.
HAL has a better Return On Equity (24.74%) than 89.66% of its industry peers.
The Return On Invested Capital of HAL (15.82%) is better than 93.10% of its industry peers.
The Average Return On Invested Capital over the past 3 years for HAL is above the industry average of 8.32%.
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 74.14% of its industry peers.
In the last couple of years the Profit Margin of HAL has grown nicely.
Looking at the Operating Margin, with a value of 17.61%, HAL belongs to the top of the industry, outperforming 81.03% of the companies in the same industry.
HAL's Operating Margin has improved in the last couple of years.
HAL's Gross Margin of 19.10% is on the low side compared to the rest of the industry. HAL is outperformed by 74.14% of its industry peers.
HAL's Gross Margin has improved in the last couple of years.
| 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.
Compared to 1 year ago, HAL has less shares outstanding
The number of shares outstanding for HAL has been increased compared to 5 years ago.
Compared to 1 year ago, HAL has an improved debt to assets ratio.
2.2 Solvency
HAL has an Altman-Z score of 3.55. This indicates that HAL is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 3.55, HAL is doing good in the industry, outperforming 79.31% 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 better than 62.07% of its industry peers.
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 74.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | 3.18 | ||
| Altman-Z | 3.55 |
ROIC/WACC1.86
WACC8.5%
2.3 Liquidity
A Current Ratio of 2.21 indicates that HAL has no problem at all paying its short term obligations.
HAL has a better Current ratio (2.21) than 60.34% of its industry peers.
HAL has a Quick Ratio of 1.62. This is a normal value and indicates that HAL is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.62, HAL is in the better half of the industry, outperforming 62.07% of the companies in the same industry.
| 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%.
Measured over the past years, HAL shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.57% on average per year.
Looking at the last year, HAL shows a small growth in Revenue. The Revenue has grown by 0.93% in the last year.
HAL shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.83% yearly.
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 2.88% yearly.
The Revenue is expected to grow by 1.93% on average over the next years.
EPS Next Y-3.1%
EPS Next 2Y0.7%
EPS Next 3Y3.79%
EPS Next 5Y2.88%
Revenue Next Year-0.42%
Revenue Next 2Y0.02%
Revenue Next 3Y1.21%
Revenue Next 5Y1.93%
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
A Price/Earnings ratio of 9.37 indicates a reasonable valuation of HAL.
Based on the Price/Earnings ratio, HAL is valued cheaply inside the industry as 91.38% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of HAL to the average of the S&P500 Index (28.29), we can say HAL is valued rather cheaply.
The Price/Forward Earnings ratio is 9.27, which indicates a very decent valuation of HAL.
Based on the Price/Forward Earnings ratio, HAL is valued cheaply inside the industry as 91.38% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of HAL to the average of the S&P500 Index (24.44), we can say HAL is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.37 | ||
| Fwd PE | 9.27 |
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.
HAL's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. HAL is cheaper than 70.69% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.79 | ||
| EV/EBITDA | 6.13 |
4.3 Compensation for Growth
HAL has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.89
EPS Next 2Y0.7%
EPS Next 3Y3.79%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.32%, HAL has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.28, HAL pays a bit more dividend than its industry peers.
HAL's Dividend Yield is comparable with the S&P500 average which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.32% |
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.
HAL has decreased its dividend 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 2Y0.7%
EPS Next 3Y3.79%
HALLIBURTON CO
NYSE:HAL (1/21/2025, 8:04:57 PM)
Premarket: 30.12 +0.59 (+2%)29.53
-0.37 (-1.24%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners89.71%
Inst Owner Change-0.08%
Ins Owners0.37%
Ins Owner Change-1.71%
Market Cap25.94B
Analysts81.21
Price Target38.08 (28.95%)
Short Float %3.37%
Short Ratio3.09
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.32% |
Yearly Dividend0.64
Dividend Growth(5Y)-2.3%
DP23.36%
Div Incr Years2
Div Non Decr Years2
Ex-DateN/A
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)-3.65%
PT rev (3m)-13.51%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-24.86%
EPS NY rev (1m)0%
EPS NY rev (3m)-4.85%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-10.82%
Revenue NY rev (1m)-0.16%
Revenue NY rev (3m)-2.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.37 | ||
| Fwd PE | 9.27 | ||
| P/S | 1.12 | ||
| P/FCF | 10.79 | ||
| P/OCF | 6.79 | ||
| P/B | 2.52 | ||
| P/tB | 3.48 | ||
| EV/EBITDA | 6.13 |
EPS(TTM)3.15
EY10.67%
EPS(NY)3.18
Fwd EY10.78%
FCF(TTM)2.74
FCFY9.27%
OCF(TTM)4.35
OCFY14.72%
SpS26.26
BVpS11.72
TBVpS8.49
PEG (NY)N/A
PEG (5Y)0.89
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 | 3.55 |
F-Score7
WACC8.5%
ROIC/WACC1.86
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 2Y0.7%
EPS Next 3Y3.79%
EPS Next 5Y2.88%
Revenue 1Y (TTM)0.93%
Revenue growth 3Y16.8%
Revenue growth 5Y-0.83%
Sales Q2Q%-1.84%
Revenue Next Year-0.42%
Revenue Next 2Y0.02%
Revenue Next 3Y1.21%
Revenue Next 5Y1.93%
EBIT growth 1Y1.57%
EBIT growth 3Y44.15%
EBIT growth 5Y8.37%
EBIT Next Year22.62%
EBIT Next 3Y9.24%
EBIT Next 5Y5.51%
FCF growth 1Y206.63%
FCF growth 3Y21.71%
FCF growth 5Y12.95%
OCF growth 1Y116.87%
OCF growth 3Y22.5%
OCF growth 5Y1.84%