HALLIBURTON CO (HAL)

US4062161017 - Common Stock

33.49  +0.1 (+0.3%)

Premarket: 33.43 -0.06 (-0.18%)

Fundamental Rating

6

HAL gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 65 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 is valued quite cheap, while showing a decent growth score. This is a good combination! With these ratings, HAL could be worth investigating further for value investing!.



8

1. Profitability

1.1 Basic Checks

In the past year HAL was profitable.
In the past year HAL had a positive cash flow from operations.
In multiple years HAL reported negative net income over the last 5 years.
In the past 5 years HAL always reported a positive cash flow from operatings.

1.2 Ratios

HAL's Return On Assets of 10.70% is amongst the best of the industry. HAL outperforms 89.23% of its industry peers.
HAL has a better Return On Equity (26.92%) than 92.31% of its industry peers.
HAL's Return On Invested Capital of 16.26% is amongst the best of the industry. HAL outperforms 92.31% of its industry peers.
HAL had an Average Return On Invested Capital over the past 3 years of 12.54%. This is above the industry average of 7.69%.
The 3 year average ROIC (12.54%) for HAL is below the current ROIC(16.26%), indicating increased profibility in the last year.
Industry RankSector 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

HAL has a Profit Margin of 11.61%. This is in the better half of the industry: HAL outperforms 80.00% of its industry peers.
HAL's Profit Margin has improved in the last couple of years.
HAL's Operating Margin of 17.75% is amongst the best of the industry. HAL outperforms 81.54% of its industry peers.
HAL's Operating Margin has improved in the last couple of years.
HAL has a Gross Margin of 18.81%. This is in the lower half of the industry: HAL underperforms 69.23% of its industry peers.
HAL's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 17.75%
PM (TTM) 11.61%
GM 18.81%
OM growth 3Y23.42%
OM growth 5Y9.27%
PM growth 3YN/A
PM growth 5Y10.68%
GM growth 3Y20.99%
GM growth 5Y8.77%

5

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.
The number of shares outstanding for HAL has been increased compared to 5 years ago.
The debt/assets ratio for HAL has been reduced compared to a year ago.

2.2 Solvency

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.
The Debt to FCF ratio of HAL (3.23) is better than 63.08% of its industry peers.
A Debt/Equity ratio of 0.76 indicates that HAL is somewhat dependend on debt financing.
HAL has a Debt to Equity ratio of 0.76. This is in the lower half of the industry: HAL underperforms 69.23% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.76
Debt/FCF 3.23
Altman-Z N/A
ROIC/WACC2.04
WACC7.97%

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 better Current ratio (2.13) than 61.54% of its industry peers.
HAL has a Quick Ratio of 1.54. 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 (1.54) is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 2.13
Quick Ratio 1.54

4

3. Growth

3.1 Past

The Earnings Per Share has grown by an nice 14.23% over the past year.
Measured over the past years, HAL shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.57% on average per year.
HAL shows a small growth in Revenue. In the last year, the Revenue has grown by 3.42%.
Measured over the past years, HAL shows a decrease in Revenue. The Revenue has been decreasing by -0.83% on average per year.
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.
HAL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.25% yearly.
EPS Next Y8.89%
EPS Next 2Y12.45%
EPS Next 3Y11.81%
EPS Next 5Y6.1%
Revenue Next Year5.29%
Revenue Next 2Y6.39%
Revenue Next 3Y6.06%
Revenue Next 5Y4.25%

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 accelerating.

7

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 10.43, which indicates a very decent valuation of HAL.
Based on the Price/Earnings ratio, HAL is valued cheaper than 86.15% of the companies in the same industry.
HAL's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.86.
Based on the Price/Forward Earnings ratio of 8.43, the valuation of HAL can be described as reasonable.
HAL's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. HAL is cheaper than 70.77% of the companies in the same industry.
HAL is valuated cheaply when we compare the Price/Forward Earnings ratio to 20.69, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 10.43
Fwd PE 8.43

4.2 Price Multiples

61.54% of the companies in the same industry are more expensive than HAL, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, HAL is valued a bit cheaper than the industry average as 70.77% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 12.53
EV/EBITDA 6.81

4.3 Compensation for Growth

HAL's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
HAL has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.17
PEG (5Y)0.99
EPS Next 2Y12.45%
EPS Next 3Y11.81%

4

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 2.04%, HAL has a reasonable but not impressive dividend return.
HAL's Dividend Yield is a higher than the industry average which is at 3.08.
HAL's Dividend Yield is comparable with the S&P500 average which is at 2.29.
Industry RankSector Rank
Dividend Yield 2.04%

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

HAL pays out 21.88% of its income as dividend. This is a sustainable payout ratio.
DP21.88%
EPS Next 2Y12.45%
EPS Next 3Y11.81%

HALLIBURTON CO

NYSE:HAL (7/23/2024, 9:11:57 PM)

Premarket: 33.43 -0.06 (-0.18%)

33.49

+0.1 (+0.3%)

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 Cap29.65B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 2.04%
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)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
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Min Revenue beat(2)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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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)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 10.43
Fwd PE 8.43
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)1.17
PEG (5Y)0.99
Profitability
Industry RankSector Rank
ROA 10.7%
ROE 26.92%
ROCE
ROIC
ROICexc
ROICexgc
OM 17.75%
PM (TTM) 11.61%
GM 18.81%
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 RankSector 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 Y8.89%
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