HALLIBURTON CO (1HAL.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1HAL - US4062161017 - Common Stock
28.22 EUR
+0.88 (+3.22%)
Taking everything into account, 1HAL scores 4 out of 10 in our fundamental rating. 1HAL was compared to 38 industry peers in the Energy Equipment & Services industry. Both the profitability and the financial health of 1HAL get a neutral evaluation. Nothing too spectacular is happening here. 1HAL has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
- 1HAL had positive earnings in the past year.
- 1HAL had a positive operating cash flow in the past year.
- 1HAL had positive earnings in 4 of the past 5 years.
- Each year in the past 5 years 1HAL had a positive operating cash flow.
1.2 Ratios
- The Return On Assets of 1HAL (5.20%) is comparable to the rest of the industry.
- 1HAL has a better Return On Equity (12.83%) than 68.42% of its industry peers.
- The Return On Invested Capital of 1HAL (13.05%) is better than 81.58% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for 1HAL is above the industry average of 10.43%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.2% | ||
| ROE | 12.83% | ||
| ROIC | 13.05% |
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
- 1HAL has a Profit Margin of 5.91%. This is comparable to the rest of the industry: 1HAL outperforms 44.74% of its industry peers.
- 1HAL's Profit Margin has improved in the last couple of years.
- The Operating Margin of 1HAL (14.43%) is comparable to the rest of the industry.
- In the last couple of years the Operating Margin of 1HAL has grown nicely.
- The Gross Margin of 1HAL (16.17%) is comparable to the rest of the industry.
- 1HAL's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.43% | ||
| PM (TTM) | 5.91% | ||
| GM | 16.17% |
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
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 1HAL is creating value.
- The number of shares outstanding for 1HAL has been reduced compared to 1 year ago.
- Compared to 5 years ago, 1HAL has less shares outstanding
- 1HAL has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 3.50 indicates that 1HAL is not in any danger for bankruptcy at the moment.
- 1HAL has a better Altman-Z score (3.50) than 86.84% of its industry peers.
- 1HAL has a debt to FCF ratio of 4.02. This is a neutral value as 1HAL would need 4.02 years to pay back of all of its debts.
- Looking at the Debt to FCF ratio, with a value of 4.02, 1HAL is in line with its industry, outperforming 57.89% of the companies in the same industry.
- A Debt/Equity ratio of 0.70 indicates that 1HAL is somewhat dependend on debt financing.
- 1HAL has a Debt to Equity ratio (0.70) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.7 | ||
| Debt/FCF | 4.02 | ||
| Altman-Z | 3.5 |
ROIC/WACC1.56
WACC8.36%
2.3 Liquidity
- A Current Ratio of 1.95 indicates that 1HAL should not have too much problems paying its short term obligations.
- 1HAL's Current ratio of 1.95 is fine compared to the rest of the industry. 1HAL outperforms 68.42% of its industry peers.
- 1HAL has a Quick Ratio of 1.43. This is a normal value and indicates that 1HAL is financially healthy and should not expect problems in meeting its short term obligations.
- The Quick ratio of 1HAL (1.43) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.95 | ||
| Quick Ratio | 1.43 |
3. Growth
3.1 Past
- The earnings per share for 1HAL have decreased strongly by -22.86% in the last year.
- 1HAL shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 19.25% yearly.
- The Revenue has decreased by -4.06% in the past year.
- The Revenue has been growing slightly by 0.47% on average over the past years.
EPS 1Y (TTM)-22.86%
EPS 3Y39.99%
EPS 5Y19.25%
EPS Q2Q%-20.55%
Revenue 1Y (TTM)-4.06%
Revenue growth 3Y14.47%
Revenue growth 5Y0.47%
Sales Q2Q%-1.7%
3.2 Future
- The Earnings Per Share is expected to decrease by -1.18% on average over the next years.
- The Revenue is expected to decrease by -0.26% on average over the next years.
EPS Next Y-23.49%
EPS Next 2Y-13.67%
EPS Next 3Y-3.55%
EPS Next 5Y-1.18%
Revenue Next Year-4.6%
Revenue Next 2Y-3.06%
Revenue Next 3Y-0.77%
Revenue Next 5Y-0.26%
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
- Based on the Price/Earnings ratio of 13.57, the valuation of 1HAL can be described as correct.
- Based on the Price/Earnings ratio, 1HAL is valued a bit cheaper than the industry average as 60.53% of the companies are valued more expensively.
- 1HAL's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.21.
- Based on the Price/Forward Earnings ratio of 14.82, the valuation of 1HAL can be described as correct.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of 1HAL indicates a slightly more expensive valuation: 1HAL is more expensive than 60.53% of the companies listed in the same industry.
- When comparing the Price/Forward Earnings ratio of 1HAL to the average of the S&P500 Index (24.26), we can say 1HAL is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.57 | ||
| Fwd PE | 14.82 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 1HAL is on the same level as its industry peers.
- The rest of the industry has a similar Price/Free Cash Flow ratio as 1HAL.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.84 | ||
| EV/EBITDA | 7.72 |
4.3 Compensation for Growth
- 1HAL has a very decent profitability rating, which may justify a higher PE ratio.
- A cheap valuation may be justified as 1HAL's earnings are expected to decrease with -3.55% in the coming years.
PEG (NY)N/A
PEG (5Y)0.7
EPS Next 2Y-13.67%
EPS Next 3Y-3.55%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 2.07%, 1HAL has a reasonable but not impressive dividend return.
- 1HAL's Dividend Yield is comparable with the industry average which is at 3.61.
- Compared to an average S&P500 Dividend Yield of 1.82, 1HAL has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.07% |
5.2 History
- The dividend of 1HAL decreases each year by -1.06%.
Dividend Growth(5Y)-1.06%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 44.61% of the earnings are spent on dividend by 1HAL. This is a bit on the high side, but may be sustainable.
- The Dividend Rate of 1HAL has been decling, while earnings will also be declining. This means the current dividend is most likely not sustainable.
DP44.61%
EPS Next 2Y-13.67%
EPS Next 3Y-3.55%
HALLIBURTON CO / 1HAL.MI FAQ
What is the fundamental rating for 1HAL stock?
ChartMill assigns a fundamental rating of 4 / 10 to 1HAL.MI.
What is the valuation status of HALLIBURTON CO (1HAL.MI) stock?
ChartMill assigns a valuation rating of 4 / 10 to HALLIBURTON CO (1HAL.MI). This can be considered as Fairly Valued.
Can you provide the profitability details for HALLIBURTON CO?
HALLIBURTON CO (1HAL.MI) has a profitability rating of 6 / 10.
What are the PE and PB ratios of HALLIBURTON CO (1HAL.MI) stock?
The Price/Earnings (PE) ratio for HALLIBURTON CO (1HAL.MI) is 13.57 and the Price/Book (PB) ratio is 2.72.
Can you provide the financial health for 1HAL stock?
The financial health rating of HALLIBURTON CO (1HAL.MI) is 6 / 10.