HALLIBURTON CO (HAL)
US4062161017 - Common Stock
We assign a fundamental rating of 6 out of 10 to HAL. HAL was compared to 60 industry peers in the Energy Equipment & Services industry. While HAL belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. 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
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.
Each year in the past 5 years HAL had a positive operating cash flow.
1.2 Ratios
HAL has a Return On Assets of 10.05%. This is amongst the best in the industry. HAL outperforms 81.67% of its industry peers.
HAL has a better Return On Equity (24.74%) than 91.67% of its industry peers.
HAL has a better Return On Invested Capital (15.82%) than 95.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for HAL is above the industry average of 8.29%.
The 3 year average ROIC (12.54%) for HAL is below the current ROIC(15.82%), indicating increased profibility in the last year.
| 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 has a better Profit Margin (11.04%) than 76.67% of its industry peers.
HAL's Profit Margin has improved in the last couple of years.
The Operating Margin of HAL (17.61%) is better than 81.67% of its industry peers.
HAL's Operating Margin has improved in the last couple of years.
HAL has a worse Gross Margin (19.10%) than 71.67% of its industry peers.
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
HAL has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it 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.
Compared to 1 year ago, HAL has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.61 indicates that HAL is not in any danger for bankruptcy at the moment.
HAL has a better Altman-Z score (3.61) than 76.67% of its industry peers.
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 Debt to Equity ratio of 0.74. This is in the lower half of the industry: HAL underperforms 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | 3.18 | ||
| Altman-Z | 3.61 |
ROIC/WACC1.97
WACC8.04%
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 61.67% 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.
HAL has a better Quick ratio (1.62) than 65.00% 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%.
The Earnings Per Share has been growing by 10.57% on average over the past years. This is quite good.
HAL shows a small growth in Revenue. In the last year, the Revenue has grown by 0.93%.
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
Based on estimates for the next years, HAL will show a small growth in Earnings Per Share. The EPS will grow by 6.10% on average per year.
The Revenue is expected to grow by 4.25% on average over the next years.
EPS Next Y0.06%
EPS Next 2Y3.93%
EPS Next 3Y5.59%
EPS Next 5Y6.1%
Revenue Next Year0.77%
Revenue Next 2Y1.88%
Revenue Next 3Y2.81%
Revenue Next 5Y4.25%
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
HAL is valuated reasonably with a Price/Earnings ratio of 10.12.
Based on the Price/Earnings ratio, HAL is valued cheaper than 86.67% of the companies in the same industry.
HAL's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.96.
A Price/Forward Earnings ratio of 9.40 indicates a reasonable valuation of HAL.
80.00% of the companies in the same industry are more expensive than HAL, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.82, HAL is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.12 | ||
| Fwd PE | 9.4 |
4.2 Price Multiples
HAL's Enterprise Value to EBITDA is on the same level as the industry average.
HAL's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. HAL is cheaper than 65.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.65 | ||
| EV/EBITDA | 6.41 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates HAL does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of HAL may justify a higher PE ratio.
PEG (NY)170.11
PEG (5Y)0.96
EPS Next 2Y3.93%
EPS Next 3Y5.59%
5. Dividend
5.1 Amount
HAL has a Yearly Dividend Yield of 2.26%.
Compared to an average industry Dividend Yield of 3.50, HAL pays a bit more dividend than its industry peers.
HAL's Dividend Yield is comparable with the S&P500 average which is at 2.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.26% |
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 2Y3.93%
EPS Next 3Y5.59%
HALLIBURTON CO
NYSE:HAL (11/21/2024, 6:40:00 PM)
After market: 32.19 +0.32 (+1%)31.87
+0.69 (+2.21%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap28.00B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.26% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.12 | ||
| Fwd PE | 9.4 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)170.11
PEG (5Y)0.96
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.05% | ||
| ROE | 24.74% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 17.61% | ||
| PM (TTM) | 11.04% | ||
| GM | 19.1% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.91
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.21 | ||
| Quick Ratio | 1.62 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)5%
EPS 3Y69.05%
EPS 5Y
EPS Q2Q%
EPS Next Y0.06%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)0.93%
Revenue growth 3Y16.8%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y