HALLIBURTON CO (HAL.DE) Stock Fundamental Analysis
FRA:HAL - Deutsche Boerse Ag - US4062161017 - Common Stock - Currency: EUR
Overall HAL gets a fundamental rating of 5 out of 10. We evaluated HAL against 35 industry peers in the Energy Equipment & Services industry. Both the health and profitability get an excellent rating, making HAL a very profitable company, without any liquidiy or solvency issues. HAL has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
HAL had positive earnings in the past year.
HAL had a positive operating cash flow in the past year.
HAL had positive earnings in 4 of the past 5 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 (8.34%) than 77.14% of its industry peers.
With a decent Return On Equity value of 20.25%, HAL is doing good in the industry, outperforming 74.29% of the companies in the same industry.
The Return On Invested Capital of HAL (15.16%) is better than 85.71% of its industry peers.
The Average Return On Invested Capital over the past 3 years for HAL is above the industry average of 10.50%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.34% | ||
| ROE | 20.25% | ||
| ROIC | 15.16% |
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
The Profit Margin of HAL (9.31%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of HAL has grown nicely.
Looking at the Operating Margin, with a value of 16.57%, HAL is in the better half of the industry, outperforming 68.57% 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 18.17%, HAL is in line with its industry, outperforming 48.57% 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 | 16.57% | ||
| PM (TTM) | 9.31% | ||
| GM | 18.17% |
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
HAL has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for HAL has been reduced compared to 1 year ago.
The number of shares outstanding for HAL has been reduced compared to 5 years ago.
HAL has a better debt/assets ratio than last year.
2.2 Solvency
HAL has an Altman-Z score of 3.14. This indicates that HAL is financially healthy and has little risk of bankruptcy at the moment.
HAL's Altman-Z score of 3.14 is amongst the best of the industry. HAL outperforms 88.57% of its industry peers.
The Debt to FCF ratio of HAL is 3.22, which is a good value as it means it would take HAL, 3.22 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.22, HAL is in the better half of the industry, outperforming 68.57% of the companies in the same industry.
HAL has a Debt/Equity ratio of 0.69. This is a neutral value indicating HAL is somewhat dependend on debt financing.
The Debt to Equity ratio of HAL (0.69) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 3.22 | ||
| Altman-Z | 3.14 |
ROIC/WACC1.7
WACC8.94%
2.3 Liquidity
A Current Ratio of 1.98 indicates that HAL should not have too much problems paying its short term obligations.
HAL has a Current ratio of 1.98. This is in the better half of the industry: HAL outperforms 68.57% of its industry peers.
HAL has a Quick Ratio of 1.46. 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 (1.46) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.98 | ||
| Quick Ratio | 1.46 |
3. Growth
3.1 Past
HAL shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -11.01%.
The Earnings Per Share has been growing by 19.25% on average over the past years. This is quite good.
HAL shows a decrease in Revenue. In the last year, the revenue decreased by -2.54%.
HAL shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.47% yearly.
EPS 1Y (TTM)-11.01%
EPS 3Y39.99%
EPS 5Y19.25%
EPS Q2Q%-21.05%
Revenue 1Y (TTM)-2.54%
Revenue growth 3Y14.47%
Revenue growth 5Y0.47%
Sales Q2Q%-6.67%
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.
Based on estimates for the next years, HAL will show a decrease in Revenue. The Revenue will decrease by -0.73% on average per year.
EPS Next Y-19.67%
EPS Next 2Y-5.58%
EPS Next 3Y-0.22%
EPS Next 5Y-0.41%
Revenue Next Year-5%
Revenue Next 2Y-2.02%
Revenue Next 3Y-0.41%
Revenue Next 5Y-0.73%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 6.92, the valuation of HAL can be described as very cheap.
Based on the Price/Earnings ratio, HAL is valued a bit cheaper than the industry average as 80.00% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.25, HAL is valued rather cheaply.
HAL is valuated cheaply with a Price/Forward Earnings ratio of 7.36.
HAL's Price/Forward Earnings ratio is in line with the industry average.
HAL is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.15, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.92 | ||
| Fwd PE | 7.36 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HAL is valued a bit cheaper than the industry average as 62.86% of the companies are valued more expensively.
HAL's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.2 | ||
| EV/EBITDA | 4.68 |
4.3 Compensation for Growth
The decent profitability rating of HAL may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.36
EPS Next 2Y-5.58%
EPS Next 3Y-0.22%
5. Dividend
5.1 Amount
HAL has a Yearly Dividend Yield of 3.39%.
In the last 3 months the price of HAL has falen by -31.01%. 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 comparable with the industry average which is at 7.09.
Compared to an average S&P500 Dividend Yield of 2.38, HAL pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.39% |
5.2 History
The dividend of HAL decreases each year by -1.06%.
Dividend Growth(5Y)-1.06%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
HAL pays out 28.39% of its income as dividend. This is a sustainable payout ratio.
HAL's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP28.39%
EPS Next 2Y-5.58%
EPS Next 3Y-0.22%
FRA:HAL (5/30/2025, 7:00:00 PM)
17.296
-0.15 (-0.88%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners86.49%
Inst Owner ChangeN/A
Ins Owners0.39%
Ins Owner ChangeN/A
Market Cap14.87B
Analysts78.75
Price Target27.39 (58.36%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.39% |
Yearly Dividend0.6
Dividend Growth(5Y)-1.06%
DP28.39%
Div Incr Years3
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-0.74%
Min EPS beat(2)-1.38%
Max EPS beat(2)-0.1%
EPS beat(4)0
Avg EPS beat(4)-1.65%
Min EPS beat(4)-4.16%
Max EPS beat(4)-0.1%
EPS beat(8)4
Avg EPS beat(8)0.65%
EPS beat(12)8
Avg EPS beat(12)2.7%
EPS beat(16)12
Avg EPS beat(16)3.23%
Revenue beat(2)1
Avg Revenue beat(2)0.13%
Min Revenue beat(2)-1.27%
Max Revenue beat(2)1.52%
Revenue beat(4)1
Avg Revenue beat(4)-1.47%
Min Revenue beat(4)-3.21%
Max Revenue beat(4)1.52%
Revenue beat(8)2
Avg Revenue beat(8)-1.26%
Revenue beat(12)4
Avg Revenue beat(12)-0.22%
Revenue beat(16)6
Avg Revenue beat(16)-0.14%
PT rev (1m)0.34%
PT rev (3m)-20.68%
EPS NQ rev (1m)-0.05%
EPS NQ rev (3m)-12.75%
EPS NY rev (1m)-9.07%
EPS NY rev (3m)-10.91%
Revenue NQ rev (1m)-0.09%
Revenue NQ rev (3m)-0.96%
Revenue NY rev (1m)-0.67%
Revenue NY rev (3m)-2.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.92 | ||
| Fwd PE | 7.36 | ||
| P/S | 0.75 | ||
| P/FCF | 7.2 | ||
| P/OCF | 4.49 | ||
| P/B | 1.63 | ||
| P/tB | 2.26 | ||
| EV/EBITDA | 4.68 |
EPS(TTM)2.5
EY14.45%
EPS(NY)2.35
Fwd EY13.59%
FCF(TTM)2.4
FCFY13.88%
OCF(TTM)3.85
OCFY22.27%
SpS23.14
BVpS10.63
TBVpS7.67
PEG (NY)N/A
PEG (5Y)0.36
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.34% | ||
| ROE | 20.25% | ||
| ROCE | 19.31% | ||
| ROIC | 15.16% | ||
| ROICexc | 16.71% | ||
| ROICexgc | 20.01% | ||
| OM | 16.57% | ||
| PM (TTM) | 9.31% | ||
| GM | 18.17% | ||
| FCFM | 10.38% |
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 | 0.69 | ||
| Debt/FCF | 3.22 | ||
| Debt/EBITDA | 1.48 | ||
| Cap/Depr | 129.37% | ||
| Cap/Sales | 6.27% | ||
| Interest Coverage | 8.51 | ||
| Cash Conversion | 77.73% | ||
| Profit Quality | 111.53% | ||
| Current Ratio | 1.98 | ||
| Quick Ratio | 1.46 | ||
| Altman-Z | 3.14 |
F-Score5
WACC8.94%
ROIC/WACC1.7
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)-11.01%
EPS 3Y39.99%
EPS 5Y19.25%
EPS Q2Q%-21.05%
EPS Next Y-19.67%
EPS Next 2Y-5.58%
EPS Next 3Y-0.22%
EPS Next 5Y-0.41%
Revenue 1Y (TTM)-2.54%
Revenue growth 3Y14.47%
Revenue growth 5Y0.47%
Sales Q2Q%-6.67%
Revenue Next Year-5%
Revenue Next 2Y-2.02%
Revenue Next 3Y-0.41%
Revenue Next 5Y-0.73%
EBIT growth 1Y-8.67%
EBIT growth 3Y29.53%
EBIT growth 5Y13.86%
EBIT Next Year8.85%
EBIT Next 3Y6.61%
EBIT Next 5Y2.98%
FCF growth 1Y76.81%
FCF growth 3Y29.64%
FCF growth 5Y21.5%
OCF growth 1Y55.55%
OCF growth 3Y26.46%
OCF growth 5Y9.59%