HALLIBURTON CO (HAL) Stock Fundamental Analysis
NYSE:HAL - New York Stock Exchange, Inc. - US4062161017 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to HAL. HAL was compared to 62 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 is valued quite cheap, but it does not seem to be growing. These ratings would make HAL suitable for value investing!
1. Profitability
1.1 Basic Checks
HAL had positive earnings in the past year.
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 8.34% is fine compared to the rest of the industry. HAL outperforms 75.81% of its industry peers.
HAL has a better Return On Equity (20.25%) than 85.48% of its industry peers.
The Return On Invested Capital of HAL (15.16%) is better than 93.55% 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 8.42%.
| 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 72.58% of the companies in the same industry.
In the last couple of years the Profit Margin of HAL has grown nicely.
HAL has a Operating Margin of 16.57%. This is in the better half of the industry: HAL outperforms 75.81% of its industry peers.
In the last couple of years the Operating Margin of HAL has grown nicely.
HAL's Gross Margin of 18.17% is on the low side compared to the rest of the industry. HAL is outperformed by 74.19% of its industry peers.
In the last couple of years the Gross Margin of HAL has grown nicely.
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so HAL is still creating some value.
Compared to 1 year ago, HAL has less shares outstanding
HAL has less 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 3.21. This indicates that HAL is financially healthy and has little risk of bankruptcy at the moment.
HAL's Altman-Z score of 3.21 is fine compared to the rest of the industry. HAL outperforms 79.03% of its industry peers.
The Debt to FCF ratio of HAL is 3.22, which is a good value as it means it would take HAL, 3.22 years of fcf income to pay off all of its debts.
HAL has a Debt to FCF ratio (3.22) which is comparable to the rest of the industry.
A Debt/Equity ratio of 0.69 indicates that HAL is somewhat dependend on debt financing.
HAL has a worse Debt to Equity ratio (0.69) than 69.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 3.22 | ||
| Altman-Z | 3.21 |
ROIC/WACC1.69
WACC8.99%
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.
The Current ratio of HAL (1.98) is comparable to the rest of the 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.
HAL's Quick ratio of 1.46 is in line compared to the rest of the industry. HAL outperforms 46.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.98 | ||
| Quick Ratio | 1.46 |
3. Growth
3.1 Past
The earnings per share for HAL have decreased strongly by -11.01% in the last year.
HAL shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 19.25% yearly.
Looking at the last year, HAL shows a decrease in Revenue. The Revenue has decreased by -2.54% in the last 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)-11.01%
EPS 3Y39.99%
EPS 5Y19.25%
EPS Q2Q%-21.05%
Revenue 1Y (TTM)-2.54%
Revenue growth 3Y14.47%
Revenue growth 5Y0.47%
Sales Q2Q%-6.67%
3.2 Future
Based on estimates for the next years, HAL will show a decrease in Earnings Per Share. The EPS will decrease by -0.55% on average per year.
The Revenue is expected to decrease by -0.61% on average over the next years.
EPS Next Y-20.07%
EPS Next 2Y-7.12%
EPS Next 3Y-0.39%
EPS Next 5Y-0.55%
Revenue Next Year-5.68%
Revenue Next 2Y-2.62%
Revenue Next 3Y-0.4%
Revenue Next 5Y-0.61%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
HAL is valuated cheaply with a Price/Earnings ratio of 7.50.
HAL's Price/Earnings ratio is rather cheap when compared to the industry. HAL is cheaper than 93.55% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.50, HAL is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 8.23, 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 88.71% of the companies listed in the same industry.
HAL is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.44, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.5 | ||
| Fwd PE | 8.23 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HAL is valued a bit cheaper than 61.29% of the companies in the same industry.
HAL's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. HAL is cheaper than 77.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.79 | ||
| EV/EBITDA | 5.02 |
4.3 Compensation for Growth
The decent profitability rating of HAL may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.39
EPS Next 2Y-7.12%
EPS Next 3Y-0.39%
5. Dividend
5.1 Amount
HAL has a Yearly Dividend Yield of 3.07%.
Compared to an average industry Dividend Yield of 3.52, HAL pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.35, HAL pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.07% |
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%
21.22
-0.32 (-1.49%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners85.77%
Inst Owner Change0.01%
Ins Owners0.43%
Ins Owner Change3.38%
Market Cap18.24B
Analysts78.75
Price Target29.99 (41.33%)
Short Float %4.29%
Short Ratio2.37
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.07% |
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)-0.68%
PT rev (3m)-15.13%
EPS NQ rev (1m)-0.5%
EPS NQ rev (3m)-12.69%
EPS NY rev (1m)-0.5%
EPS NY rev (3m)-11.45%
Revenue NQ rev (1m)-0.22%
Revenue NQ rev (3m)-0.54%
Revenue NY rev (1m)-0.77%
Revenue NY rev (3m)-2.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.5 | ||
| Fwd PE | 8.23 | ||
| P/S | 0.81 | ||
| P/FCF | 7.79 | ||
| P/OCF | 4.86 | ||
| P/B | 1.76 | ||
| P/tB | 2.44 | ||
| EV/EBITDA | 5.02 |
EPS(TTM)2.83
EY13.34%
EPS(NY)2.58
Fwd EY12.15%
FCF(TTM)2.72
FCFY12.83%
OCF(TTM)4.37
OCFY20.58%
SpS26.24
BVpS12.06
TBVpS8.7
PEG (NY)N/A
PEG (5Y)0.39
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 | 3.21 |
F-Score5
WACC8.99%
ROIC/WACC1.69
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)-11.01%
EPS 3Y39.99%
EPS 5Y19.25%
EPS Q2Q%-21.05%
EPS Next Y-20.07%
EPS Next 2Y-7.12%
EPS Next 3Y-0.39%
EPS Next 5Y-0.55%
Revenue 1Y (TTM)-2.54%
Revenue growth 3Y14.47%
Revenue growth 5Y0.47%
Sales Q2Q%-6.67%
Revenue Next Year-5.68%
Revenue Next 2Y-2.62%
Revenue Next 3Y-0.4%
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%