HALLIBURTON CO (HAL) Stock Fundamental Analysis
NYSE:HAL - New York Stock Exchange, Inc. - US4062161017 - Common Stock - Currency: USD
Taking everything into account, HAL scores 5 out of 10 in our fundamental rating. HAL was compared to 61 industry peers in the Energy Equipment & Services industry. HAL has an excellent profitability rating, but there are some minor concerns on its financial health. HAL is valued quite cheap, but it does not seem to be growing. With these ratings, HAL could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
In the past year HAL was profitable.
HAL had a positive operating cash flow in the past year.
Of the past 5 years HAL 4 years were profitable.
Each year in the past 5 years HAL had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 8.34%, HAL is doing good in the industry, outperforming 73.77% of the companies in the same industry.
With an excellent Return On Equity value of 20.25%, HAL belongs to the best of the industry, outperforming 86.89% of the companies in the same industry.
HAL's Return On Invested Capital of 15.16% is amongst the best of the industry. HAL outperforms 93.44% of its industry peers.
The Average Return On Invested Capital over the past 3 years for HAL is significantly above the industry average of 8.08%.
| 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
With a decent Profit Margin value of 9.31%, HAL is doing good in the industry, outperforming 68.85% of the companies in the same industry.
HAL's Profit Margin has improved in the last couple of years.
HAL's Operating Margin of 16.57% is fine compared to the rest of the industry. HAL outperforms 77.05% of its industry peers.
HAL's Operating Margin has improved in the last couple of years.
The Gross Margin of HAL (18.17%) is worse than 73.77% of its industry peers.
HAL's Gross Margin has improved in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), HAL is creating 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.
Compared to 1 year ago, HAL has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.18 indicates that HAL is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.18, HAL belongs to the top of the industry, outperforming 80.33% of the companies in the same industry.
HAL has a debt to FCF ratio of 3.22. This is a good value and a sign of high solvency as HAL would need 3.22 years to pay back of 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 60.66% of the companies in the same industry.
A Debt/Equity ratio of 0.69 indicates that HAL is somewhat dependend on debt financing.
The Debt to Equity ratio of HAL (0.69) is worse than 68.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 3.22 | ||
| Altman-Z | 3.18 |
ROIC/WACC1.78
WACC8.52%
2.3 Liquidity
HAL has a Current Ratio of 1.98. 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 Current ratio, with a value of 1.98, HAL is in line with its industry, outperforming 57.38% of the companies in the same industry.
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.
The Quick ratio of HAL (1.46) is comparable to the rest of the industry.
| 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 -19.63%.
Measured over the past years, HAL shows a quite strong growth in Earnings Per Share. The EPS has been growing by 19.25% on average per year.
Looking at the last year, HAL shows a decrease in Revenue. The Revenue has decreased by -0.32% in the last year.
The Revenue has been growing slightly by 0.47% on average over the past years.
EPS 1Y (TTM)-19.63%
EPS 3Y39.99%
EPS 5Y19.25%
EPS Q2Q%-31.25%
Revenue 1Y (TTM)-0.32%
Revenue growth 3Y14.47%
Revenue growth 5Y0.47%
Sales Q2Q%-5.54%
3.2 Future
The Earnings Per Share is expected to decrease by -0.55% on average over the next years.
Based on estimates for the next years, HAL will show a decrease in Revenue. The Revenue will decrease by -0.61% on average per year.
EPS Next Y-20.07%
EPS Next 2Y-7.12%
EPS Next 3Y-0.39%
EPS Next 5Y-0.55%
Revenue Next Year-6.43%
Revenue Next 2Y-3.83%
Revenue Next 3Y-1.31%
Revenue Next 5Y-0.61%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 8.10 indicates a reasonable valuation of HAL.
Based on the Price/Earnings ratio, HAL is valued cheaply inside the industry as 93.44% of the companies are valued more expensively.
HAL's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.48.
A Price/Forward Earnings ratio of 8.10 indicates a reasonable valuation of HAL.
HAL's Price/Forward Earnings ratio is rather cheap when compared to the industry. HAL is cheaper than 90.16% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.04, HAL is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.1 | ||
| Fwd PE | 8.1 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as HAL.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of HAL indicates a rather cheap valuation: HAL is cheaper than 81.97% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.61 | ||
| EV/EBITDA | 4.87 |
4.3 Compensation for Growth
HAL has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.42
EPS Next 2Y-7.12%
EPS Next 3Y-0.39%
5. Dividend
5.1 Amount
HAL has a Yearly Dividend Yield of 3.04%.
HAL's Dividend Yield is a higher than the industry average which is at 3.81.
HAL's Dividend Yield is a higher than the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.04% |
5.2 History
The dividend of HAL decreases each year by -1.06%.
HAL has paid a dividend for at least 10 years, which is a reliable track record.
HAL has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-1.06%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
28.39% of the earnings are spent on dividend by HAL. This is a low number and sustainable payout ratio.
The Dividend Rate of HAL has been decling, while earnings will also be declining. This means the current dividend is most likely not sustainable.
DP28.39%
EPS Next 2Y-7.12%
EPS Next 3Y-0.39%
20.9
+0.02 (+0.1%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners85.77%
Inst Owner Change0.89%
Ins Owners0.43%
Ins Owner Change3.41%
Market Cap17.82B
Analysts78.75
Price Target29.95 (43.3%)
Short Float %4.2%
Short Ratio2.31
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.04% |
Yearly Dividend0.68
Dividend Growth(5Y)-1.06%
DP28.39%
Div Incr Years3
Div Non Decr Years3
Ex-Date
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)-0.14%
PT rev (3m)-5.06%
EPS NQ rev (1m)-0.85%
EPS NQ rev (3m)-1.28%
EPS NY rev (1m)0.15%
EPS NY rev (3m)-9.52%
Revenue NQ rev (1m)-0.35%
Revenue NQ rev (3m)-0.6%
Revenue NY rev (1m)-1.3%
Revenue NY rev (3m)-2.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.1 | ||
| Fwd PE | 8.1 | ||
| P/S | 0.79 | ||
| P/FCF | 7.61 | ||
| P/OCF | 4.75 | ||
| P/B | 1.72 | ||
| P/tB | 2.38 | ||
| EV/EBITDA | 4.87 |
EPS(TTM)2.58
EY12.34%
EPS(NY)2.58
Fwd EY12.34%
FCF(TTM)2.75
FCFY13.14%
OCF(TTM)4.4
OCFY21.07%
SpS26.46
BVpS12.16
TBVpS8.77
PEG (NY)N/A
PEG (5Y)0.42
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 | 3.18 |
F-Score5
WACC8.52%
ROIC/WACC1.78
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)-19.63%
EPS 3Y39.99%
EPS 5Y19.25%
EPS Q2Q%-31.25%
EPS Next Y-20.07%
EPS Next 2Y-7.12%
EPS Next 3Y-0.39%
EPS Next 5Y-0.55%
Revenue 1Y (TTM)-0.32%
Revenue growth 3Y14.47%
Revenue growth 5Y0.47%
Sales Q2Q%-5.54%
Revenue Next Year-6.43%
Revenue Next 2Y-3.83%
Revenue Next 3Y-1.31%
Revenue Next 5Y-0.61%
EBIT growth 1Y-8.67%
EBIT growth 3Y29.53%
EBIT growth 5Y13.86%
EBIT Next Year8.85%
EBIT Next 3Y6.61%
EBIT Next 5Y2.88%
FCF growth 1Y76.81%
FCF growth 3Y29.64%
FCF growth 5Y21.5%
OCF growth 1Y55.55%
OCF growth 3Y26.46%
OCF growth 5Y9.59%