HALLIBURTON CO (HAL) Stock Fundamental Analysis
USA - NYSE:HAL - US4062161017 - Common Stock
22.27 USD
+0.45 (+2.06%)
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. While HAL belongs to the best of the industry regarding profitability, 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.
HAL had positive earnings in 4 of the past 5 years.
Each year in the past 5 years HAL had a positive operating cash flow.
1.2 Ratios
HAL's Return On Assets of 7.34% is fine compared to the rest of the industry. HAL outperforms 73.77% of its industry peers.
With an excellent Return On Equity value of 17.72%, HAL belongs to the best of the industry, outperforming 85.25% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 13.79%, HAL belongs to the top of the industry, outperforming 90.16% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for HAL is significantly above the industry average of 8.04%.
| 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's Profit Margin of 8.37% is fine compared to the rest of the industry. HAL outperforms 72.13% of its industry peers.
In the last couple of years the Profit Margin of HAL has grown nicely.
The Operating Margin of HAL (15.44%) is better than 73.77% of its industry peers.
In the last couple of years the Operating Margin of HAL has grown nicely.
HAL has a Gross Margin of 17.06%. This is in the lower half of the industry: HAL underperforms 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
HAL has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, HAL has less shares outstanding
Compared to 5 years ago, HAL has less shares outstanding
HAL has a better debt/assets ratio than last year.
2.2 Solvency
HAL has an Altman-Z score of 3.16. This indicates that HAL is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 3.16, HAL belongs to the best of the industry, outperforming 81.97% of the companies in the same industry.
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 has a Debt to FCF ratio (3.51) which is in line with its industry peers.
HAL has a Debt/Equity ratio of 0.68. This is a neutral value indicating HAL is somewhat dependend on debt financing.
HAL has a worse Debt to Equity ratio (0.68) than 67.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 3.51 | ||
| Altman-Z | 3.16 |
ROIC/WACC1.68
WACC8.19%
2.3 Liquidity
A Current Ratio of 2.00 indicates that HAL should not have too much problems paying its short term obligations.
HAL's Current ratio of 2.00 is in line compared to the rest of the industry. HAL outperforms 55.74% of its industry peers.
A Quick Ratio of 1.47 indicates that HAL should not have too much problems paying its short term obligations.
HAL has a Quick ratio of 1.47. This is comparable to the rest of the industry: HAL outperforms 49.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2 | ||
| Quick Ratio | 1.47 |
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%.
HAL shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 19.25% yearly.
The Revenue has decreased by -4.08% in the past year.
HAL shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.47% yearly.
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 -2.12% on average over the next years.
HAL is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.69% yearly.
EPS Next Y-28.34%
EPS Next 2Y-15.75%
EPS Next 3Y-4.76%
EPS Next 5Y-2.12%
Revenue Next Year-6.48%
Revenue Next 2Y-4.06%
Revenue Next 3Y-1.45%
Revenue Next 5Y-0.69%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
HAL is valuated reasonably with a Price/Earnings ratio of 8.63.
HAL's Price/Earnings ratio is rather cheap when compared to the industry. HAL is cheaper than 91.80% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.29. HAL is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 10.49 indicates a reasonable valuation of HAL.
Based on the Price/Forward Earnings ratio, HAL is valued cheaper than 86.89% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of HAL to the average of the S&P500 Index (22.85), we can say HAL is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.63 | ||
| Fwd PE | 10.49 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HAL indicates a somewhat cheap valuation: HAL is cheaper than 60.66% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, HAL is valued a bit cheaper than the industry average as 77.05% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.84 | ||
| EV/EBITDA | 5.31 |
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 -4.76% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.45
EPS Next 2Y-15.75%
EPS Next 3Y-4.76%
5. Dividend
5.1 Amount
HAL has a Yearly Dividend Yield of 2.91%.
Compared to an average industry Dividend Yield of 3.33, HAL pays a better dividend. On top of this HAL pays more dividend than 80.33% of the companies listed in the same industry.
HAL's Dividend Yield is a higher than the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.91% |
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-15.75%
EPS Next 3Y-4.76%
NYSE:HAL (10/17/2025, 3:25:09 PM)
22.27
+0.45 (+2.06%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners92.72%
Inst Owner Change-0.3%
Ins Owners0.45%
Ins Owner Change-0.04%
Market Cap18.99B
Analysts78.67
Price Target27.03 (21.37%)
Short Float %3.14%
Short Ratio2
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.91% |
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)0.25%
PT rev (3m)-9.87%
EPS NQ rev (1m)-0.3%
EPS NQ rev (3m)-14.35%
EPS NY rev (1m)-0.18%
EPS NY rev (3m)-10.35%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.46%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.85%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.63 | ||
| Fwd PE | 10.49 | ||
| P/S | 0.85 | ||
| P/FCF | 8.84 | ||
| P/OCF | 5.32 | ||
| P/B | 1.81 | ||
| P/tB | 2.52 | ||
| EV/EBITDA | 5.31 |
EPS(TTM)2.58
EY11.59%
EPS(NY)2.12
Fwd EY9.53%
FCF(TTM)2.52
FCFY11.32%
OCF(TTM)4.19
OCFY18.8%
SpS26.08
BVpS12.32
TBVpS8.84
PEG (NY)N/A
PEG (5Y)0.45
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 | 3.16 |
F-Score5
WACC8.19%
ROIC/WACC1.68
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-28.34%
EPS Next 2Y-15.75%
EPS Next 3Y-4.76%
EPS Next 5Y-2.12%
Revenue 1Y (TTM)-4.08%
Revenue growth 3Y14.47%
Revenue growth 5Y0.47%
Sales Q2Q%-5.54%
Revenue Next Year-6.48%
Revenue Next 2Y-4.06%
Revenue Next 3Y-1.45%
Revenue Next 5Y-0.69%
EBIT growth 1Y-16.55%
EBIT growth 3Y29.53%
EBIT growth 5Y13.86%
EBIT Next Year1.25%
EBIT Next 3Y3.23%
EBIT Next 5Y1.76%
FCF growth 1Y12.04%
FCF growth 3Y29.64%
FCF growth 5Y21.5%
OCF growth 1Y15.53%
OCF growth 3Y26.46%
OCF growth 5Y9.59%