HALLIBURTON CO (HAL)
US4062161017 - Common Stock
We assign a fundamental rating of 6 out of 10 to HAL. HAL was compared to 59 industry peers in the Energy Equipment & Services industry. HAL has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. HAL has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year HAL was profitable.
HAL had a positive operating cash flow in the past year.
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
Looking at the Return On Assets, with a value of 10.70%, HAL belongs to the top of the industry, outperforming 84.75% of the companies in the same industry.
HAL's Return On Equity of 26.92% is amongst the best of the industry. HAL outperforms 91.53% of its industry peers.
With an excellent Return On Invested Capital value of 16.26%, HAL belongs to the best of the industry, outperforming 93.22% of the companies in the same industry.
HAL had an Average Return On Invested Capital over the past 3 years of 12.54%. This is above the industry average of 8.15%.
The last Return On Invested Capital (16.26%) for HAL is above the 3 year average (12.54%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.7% | ||
| ROE | 26.92% | ||
| ROIC | 16.26% |
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
Looking at the Profit Margin, with a value of 11.61%, HAL is in the better half of the industry, outperforming 76.27% of the companies in the same industry.
HAL's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 17.75%, HAL belongs to the top 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.
With a Gross Margin value of 19.22%, HAL is not doing good in the industry: 67.80% of the companies in the same industry are doing better.
HAL's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.75% | ||
| PM (TTM) | 11.61% | ||
| GM | 19.22% |
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 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.
HAL has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.50 indicates that HAL is not in any danger for bankruptcy at the moment.
HAL has a Altman-Z score of 3.50. This is amongst the best in the industry. HAL outperforms 83.05% of its industry peers.
The Debt to FCF ratio of HAL is 3.23, which is a good value as it means it would take HAL, 3.23 years of fcf income to pay off all of its debts.
HAL has a Debt to FCF ratio of 3.23. This is in the better half of the industry: HAL outperforms 61.02% of its industry peers.
A Debt/Equity ratio of 0.76 indicates that HAL is somewhat dependend on debt financing.
HAL's Debt to Equity ratio of 0.76 is on the low side compared to the rest of the industry. HAL is outperformed by 72.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 3.23 | ||
| Altman-Z | 3.5 |
ROIC/WACC2.11
WACC7.7%
2.3 Liquidity
HAL has a Current Ratio of 2.13. This indicates that HAL is financially healthy and has no problem in meeting its short term obligations.
HAL has a Current ratio of 2.13. This is in the better half of the industry: HAL outperforms 64.41% of its industry peers.
A Quick Ratio of 1.54 indicates that HAL should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.54, HAL perfoms like the industry average, outperforming 50.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.13 | ||
| Quick Ratio | 1.54 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 14.23% over the past year.
HAL shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.57% yearly.
HAL shows a small growth in Revenue. In the last year, the Revenue has grown by 3.42%.
The Revenue has been decreasing by -0.83% on average over the past years.
EPS 1Y (TTM)14.23%
EPS 3Y69.05%
EPS 5Y10.57%
EPS Q2Q%3.9%
Revenue 1Y (TTM)3.42%
Revenue growth 3Y16.8%
Revenue growth 5Y-0.83%
Sales Q2Q%0.6%
3.2 Future
HAL is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.10% yearly.
The Revenue is expected to grow by 4.25% on average over the next years.
EPS Next Y1.84%
EPS Next 2Y6.96%
EPS Next 3Y8.77%
EPS Next 5Y6.1%
Revenue Next Year1.87%
Revenue Next 2Y3.63%
Revenue Next 3Y4.15%
Revenue Next 5Y4.25%
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
Based on the Price/Earnings ratio of 8.82, the valuation of HAL can be described as reasonable.
Based on the Price/Earnings ratio, HAL is valued cheaply inside the industry as 91.53% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 31.46, HAL is valued rather cheaply.
A Price/Forward Earnings ratio of 7.88 indicates a rather cheap valuation of HAL.
Based on the Price/Forward Earnings ratio, HAL is valued a bit cheaper than 74.58% of the companies in the same industry.
HAL's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.63.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.82 | ||
| Fwd PE | 7.88 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as HAL.
Based on the Price/Free Cash Flow ratio, HAL is valued a bit cheaper than the industry average as 64.41% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.56 | ||
| EV/EBITDA | 5.9 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of HAL may justify a higher PE ratio.
PEG (NY)4.79
PEG (5Y)0.83
EPS Next 2Y6.96%
EPS Next 3Y8.77%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.35%, HAL has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.45, HAL pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.18, HAL has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.35% |
5.2 History
The dividend of HAL decreases each year by -2.30%.
HAL has been paying a dividend for at least 10 years, so it has 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
21.88% of the earnings are spent on dividend by HAL. This is a low number and sustainable payout ratio.
DP21.88%
EPS Next 2Y6.96%
EPS Next 3Y8.77%
HALLIBURTON CO
NYSE:HAL (10/22/2024, 1:28:05 PM)
28.305
+0.04 (+0.16%)
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 Cap24.99B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.35% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
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 | 8.82 | ||
| Fwd PE | 7.88 | ||
| 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)4.79
PEG (5Y)0.83
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.7% | ||
| ROE | 26.92% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 17.75% | ||
| PM (TTM) | 11.61% | ||
| GM | 19.22% | ||
| 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 Turnover0.92
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.13 | ||
| Quick Ratio | 1.54 | ||
| 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)14.23%
EPS 3Y69.05%
EPS 5Y
EPS Q2Q%
EPS Next Y1.84%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)3.42%
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