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 has a great profitability rating, 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.
HAL had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: HAL reported negative net income in multiple years.
Each year in the past 5 years HAL had a positive operating cash flow.
1.2 Ratios
HAL has a better Return On Assets (10.05%) than 81.67% of its industry peers.
HAL's Return On Equity of 24.74% is amongst the best of the industry. HAL outperforms 91.67% of its industry peers.
HAL has a Return On Invested Capital of 15.82%. This is amongst the best in the industry. HAL outperforms 95.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for HAL is above the industry average of 8.31%.
The last Return On Invested Capital (15.82%) for HAL is above the 3 year average (12.54%), which is a sign of increasing profitability.
| 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
With a decent Profit Margin value of 11.04%, HAL is doing good in the industry, outperforming 75.00% of the companies in the same industry.
In the last couple of years the Profit Margin of HAL has grown nicely.
The Operating Margin of HAL (17.61%) is better than 81.67% of its industry peers.
In the last couple of years the Operating Margin of HAL has grown nicely.
HAL has a Gross Margin of 19.10%. This is in the lower half of the industry: HAL underperforms 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so HAL is creating value.
The number of shares outstanding for HAL has been reduced compared to 1 year ago.
HAL has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, HAL has an improved debt to assets ratio.
2.2 Solvency
HAL has an Altman-Z score of 3.57. This indicates that HAL is financially healthy and has little risk of bankruptcy at the moment.
HAL has a better Altman-Z score (3.57) 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.
With a Debt to FCF ratio value of 3.18, HAL perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
HAL has a Debt/Equity ratio of 0.74. This is a neutral value indicating HAL is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.74, HAL is not doing good in the industry: 75.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | 3.18 | ||
| Altman-Z | 3.57 |
ROIC/WACC2.01
WACC7.87%
2.3 Liquidity
HAL has a Current Ratio of 2.21. This indicates that HAL is financially healthy and has no problem in meeting its short term obligations.
HAL's Current ratio of 2.21 is fine compared to the rest of the industry. HAL outperforms 61.67% of its industry peers.
A Quick Ratio of 1.62 indicates that HAL should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.62, HAL is in the better half of the industry, outperforming 61.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.21 | ||
| Quick Ratio | 1.62 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 5.00% 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.
Looking at the last year, HAL shows a small growth in Revenue. The Revenue has grown by 0.93% in the last year.
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.
Based on estimates for the next years, HAL will show a small growth in Revenue. The Revenue will grow by 4.25% on average per year.
EPS Next Y-3.1%
EPS Next 2Y1.13%
EPS Next 3Y4.48%
EPS Next 5Y6.1%
Revenue Next Year-0.25%
Revenue Next 2Y0.74%
Revenue Next 3Y1.95%
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.
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
A Price/Earnings ratio of 9.14 indicates a reasonable valuation of HAL.
90.00% of the companies in the same industry are more expensive than HAL, based on the Price/Earnings ratio.
HAL is valuated cheaply when we compare the Price/Earnings ratio to 29.48, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 8.96, the valuation of HAL can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HAL indicates a rather cheap valuation: HAL is cheaper than 85.00% of the companies listed in the same industry.
HAL is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.95, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.14 | ||
| Fwd PE | 8.96 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HAL is on the same level as its industry peers.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of HAL indicates a somewhat cheap valuation: HAL is cheaper than 70.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.52 | ||
| EV/EBITDA | 6.21 |
4.3 Compensation for Growth
The excellent profitability rating of HAL may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.86
EPS Next 2Y1.13%
EPS Next 3Y4.48%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.27%, HAL has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.40, HAL pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.16, HAL has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.27% |
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.
HAL has decreased its dividend in the last 3 years.
Dividend Growth(5Y)-2.3%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
23.36% of the earnings are spent on dividend by HAL. This is a low number and sustainable payout ratio.
DP23.36%
EPS Next 2Y1.13%
EPS Next 3Y4.48%
HALLIBURTON CO
NYSE:HAL (12/6/2024, 8:04:00 PM)
After market: 28.81 +0.03 (+0.1%)28.78
-1.24 (-4.13%)
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 Cap25.28B
Analysts
Price Target
Short Float %
Short Ratio
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.27% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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Revenue beat(2)
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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)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.14 | ||
| Fwd PE | 8.96 | ||
| 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)N/A
PEG (5Y)0.86
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 Y-3.1%
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