HALLIBURTON CO (HAL) Stock Fundamental Analysis
NYSE:HAL - US4062161017 - Common Stock
22.73 USD
+0.1 (+0.44%)
22.75 USD
+0.02 (+0.09%)
HAL gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 61 industry peers in the Energy Equipment & Services industry. HAL scores excellent on profitability, but 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.
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
Looking at the Return On Assets, with a value of 7.34%, HAL is in the better half of the industry, outperforming 73.77% of the companies in the same industry.
HAL's Return On Equity of 17.72% is amongst the best of the industry. HAL outperforms 85.25% of its industry peers.
HAL has a Return On Invested Capital of 13.79%. This is amongst the best in the industry. HAL outperforms 90.16% of its industry peers.
HAL had an Average Return On Invested Capital over the past 3 years of 15.36%. This is significantly above the industry average of 8.01%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.34% | ||
| ROE | 17.72% | ||
| ROIC | 13.79% |
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
HAL has a Profit Margin of 8.37%. This is in the better half of the industry: HAL outperforms 70.49% of its industry peers.
HAL's Profit Margin has improved in the last couple of years.
HAL's Operating Margin of 15.44% is fine compared to the rest of the industry. HAL outperforms 73.77% of its industry peers.
In the last couple of years the Operating Margin of HAL has grown nicely.
HAL has a worse Gross Margin (17.06%) than 77.05% of its industry peers.
In the last couple of years the Gross Margin of HAL has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.44% | ||
| PM (TTM) | 8.37% | ||
| GM | 17.06% |
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) just above the Cost of Capital (WACC), HAL is creating some value.
The number of shares outstanding for HAL has been reduced compared to 1 year ago.
HAL has less shares outstanding than it did 5 years ago.
HAL has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.19 indicates that HAL is not in any danger for bankruptcy at the moment.
The Altman-Z score of HAL (3.19) is better than 81.97% of its industry peers.
HAL has a debt to FCF ratio of 3.51. This is a good value and a sign of high solvency as HAL would need 3.51 years to pay back of all of its debts.
HAL's Debt to FCF ratio of 3.51 is in line compared to the rest of the industry. HAL outperforms 57.38% of its industry peers.
A Debt/Equity ratio of 0.68 indicates that HAL is somewhat dependend on debt financing.
HAL has a Debt to Equity ratio of 0.68. This is in the lower half of the industry: HAL underperforms 67.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 3.51 | ||
| Altman-Z | 3.19 |
ROIC/WACC1.57
WACC8.78%
2.3 Liquidity
HAL has a Current Ratio of 2.00. 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 Current ratio (2.00) which is comparable to the rest of the industry.
HAL has a Quick Ratio of 1.47. 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 (1.47) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2 | ||
| Quick Ratio | 1.47 |
3. Growth
3.1 Past
The earnings per share for HAL have decreased strongly by -19.63% in the last year.
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 -4.08%.
Measured over the past years, HAL shows a small growth in Revenue. The Revenue has been growing by 0.47% on average per year.
EPS 1Y (TTM)-19.63%
EPS 3Y39.99%
EPS 5Y19.25%
EPS Q2Q%-31.25%
Revenue 1Y (TTM)-4.08%
Revenue growth 3Y14.47%
Revenue growth 5Y0.47%
Sales Q2Q%-5.54%
3.2 Future
The Earnings Per Share is expected to decrease by -1.72% on average over the next years.
The Revenue is expected to decrease by -0.28% on average over the next years.
EPS Next Y-28.21%
EPS Next 2Y-15.46%
EPS Next 3Y-4.54%
EPS Next 5Y-1.72%
Revenue Next Year-6.49%
Revenue Next 2Y-3.94%
Revenue Next 3Y-1.32%
Revenue Next 5Y-0.28%
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
HAL is valuated reasonably with a Price/Earnings ratio of 8.81.
Based on the Price/Earnings ratio, HAL is valued cheaper than 91.80% of the companies in the same industry.
When comparing the Price/Earnings ratio of HAL to the average of the S&P500 Index (27.08), we can say HAL is valued rather cheaply.
With a Price/Forward Earnings ratio of 10.64, the valuation of HAL can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HAL indicates a rather cheap valuation: HAL is cheaper than 85.25% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.72. HAL is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.81 | ||
| Fwd PE | 10.64 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as HAL.
HAL's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. HAL is cheaper than 77.05% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.02 | ||
| EV/EBITDA | 5.46 |
4.3 Compensation for Growth
HAL has a very decent profitability rating, which may justify a higher PE ratio.
HAL's earnings are expected to decrease with -4.54% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.46
EPS Next 2Y-15.46%
EPS Next 3Y-4.54%
5. Dividend
5.1 Amount
HAL has a Yearly Dividend Yield of 3.00%.
Compared to an average industry Dividend Yield of 3.44, HAL pays a better dividend. On top of this HAL pays more dividend than 81.97% of the companies listed in the same industry.
HAL's Dividend Yield is a higher than the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3% |
5.2 History
The dividend of HAL decreases each year by -1.06%.
HAL has been paying a dividend for at least 10 years, so it has 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
31.69% 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.
DP31.69%
EPS Next 2Y-15.46%
EPS Next 3Y-4.54%
22.73
+0.1 (+0.44%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners87.23%
Inst Owner Change2.23%
Ins Owners0.44%
Ins Owner Change5.72%
Market Cap19.38B
Analysts78.06
Price Target26.96 (18.61%)
Short Float %3.45%
Short Ratio1.97
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3% |
Yearly Dividend0.68
Dividend Growth(5Y)-1.06%
DP31.69%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-1.15%
Min EPS beat(2)-1.38%
Max EPS beat(2)-0.93%
EPS beat(4)0
Avg EPS beat(4)-1.64%
Min EPS beat(4)-4.16%
Max EPS beat(4)-0.1%
EPS beat(8)3
Avg EPS beat(8)0.28%
EPS beat(12)7
Avg EPS beat(12)1.91%
EPS beat(16)11
Avg EPS beat(16)2.35%
Revenue beat(2)2
Avg Revenue beat(2)1.15%
Min Revenue beat(2)0.79%
Max Revenue beat(2)1.52%
Revenue beat(4)2
Avg Revenue beat(4)-0.54%
Min Revenue beat(4)-3.21%
Max Revenue beat(4)1.52%
Revenue beat(8)3
Avg Revenue beat(8)-0.91%
Revenue beat(12)4
Avg Revenue beat(12)-0.72%
Revenue beat(16)7
Avg Revenue beat(16)0.02%
PT rev (1m)-9.97%
PT rev (3m)-11.54%
EPS NQ rev (1m)-5.21%
EPS NQ rev (3m)-26.79%
EPS NY rev (1m)-10.19%
EPS NY rev (3m)-10.64%
Revenue NQ rev (1m)0.13%
Revenue NQ rev (3m)-5.37%
Revenue NY rev (1m)-0.86%
Revenue NY rev (3m)-1.57%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.81 | ||
| Fwd PE | 10.64 | ||
| P/S | 0.87 | ||
| P/FCF | 9.02 | ||
| P/OCF | 5.43 | ||
| P/B | 1.84 | ||
| P/tB | 2.57 | ||
| EV/EBITDA | 5.46 |
EPS(TTM)2.58
EY11.35%
EPS(NY)2.14
Fwd EY9.4%
FCF(TTM)2.52
FCFY11.09%
OCF(TTM)4.19
OCFY18.42%
SpS26.08
BVpS12.32
TBVpS8.84
PEG (NY)N/A
PEG (5Y)0.46
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.34% | ||
| ROE | 17.72% | ||
| ROCE | 17.58% | ||
| ROIC | 13.79% | ||
| ROICexc | 15.4% | ||
| ROICexgc | 18.54% | ||
| OM | 15.44% | ||
| PM (TTM) | 8.37% | ||
| GM | 17.06% | ||
| FCFM | 9.67% |
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 Turnover0.88
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 3.51 | ||
| Debt/EBITDA | 1.58 | ||
| Cap/Depr | 128.48% | ||
| Cap/Sales | 6.39% | ||
| Interest Coverage | 7.86 | ||
| Cash Conversion | 78.65% | ||
| Profit Quality | 115.41% | ||
| Current Ratio | 2 | ||
| Quick Ratio | 1.47 | ||
| Altman-Z | 3.19 |
F-Score5
WACC8.78%
ROIC/WACC1.57
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-28.21%
EPS Next 2Y-15.46%
EPS Next 3Y-4.54%
EPS Next 5Y-1.72%
Revenue 1Y (TTM)-4.08%
Revenue growth 3Y14.47%
Revenue growth 5Y0.47%
Sales Q2Q%-5.54%
Revenue Next Year-6.49%
Revenue Next 2Y-3.94%
Revenue Next 3Y-1.32%
Revenue Next 5Y-0.28%
EBIT growth 1Y-16.55%
EBIT growth 3Y29.53%
EBIT growth 5Y13.86%
EBIT Next Year1.35%
EBIT Next 3Y3.23%
EBIT Next 5Y2.12%
FCF growth 1Y12.04%
FCF growth 3Y29.64%
FCF growth 5Y21.5%
OCF growth 1Y15.53%
OCF growth 3Y26.46%
OCF growth 5Y9.59%