HALLIBURTON CO (HAL) Stock Fundamental Analysis
USA - NYSE:HAL - US4062161017 - Common Stock
22.51 USD
+0.15 (+0.67%)
22.5 USD
-0.01 (-0.04%)
Overall HAL gets a fundamental rating of 5 out of 10. We evaluated HAL against 61 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.
In the past year HAL had a positive cash flow from operations.
Of the past 5 years HAL 4 years were profitable.
HAL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
HAL has a Return On Assets of 7.34%. This is in the better half of the industry: HAL outperforms 73.77% of its industry peers.
HAL has a Return On Equity of 17.72%. This is amongst the best in 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.
The Average Return On Invested Capital over the past 3 years for HAL 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
With a decent Profit Margin value of 8.37%, HAL is doing good in the industry, outperforming 70.49% of the companies in the same industry.
HAL's Profit Margin has improved in the last couple of years.
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.
HAL's Gross Margin has improved in the last couple of years.
| 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 just above the Cost of Capital (WACC), which means it is creating some value.
HAL has less shares outstanding than it did 1 year ago.
HAL has less shares outstanding than it did 5 years ago.
The debt/assets ratio for HAL has been reduced compared to a year ago.
2.2 Solvency
HAL has an Altman-Z score of 3.18. This indicates that HAL is financially healthy and has little risk of bankruptcy at the moment.
HAL's Altman-Z score of 3.18 is amongst the best of the industry. HAL outperforms 83.61% of its industry peers.
The Debt to FCF ratio of HAL is 3.51, which is a good value as it means it would take HAL, 3.51 years of fcf income to pay off all of its debts.
HAL has a Debt to FCF ratio of 3.51. This is comparable 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 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 | 3.18 |
ROIC/WACC1.61
WACC8.57%
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 in line with 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
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.
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
Based on estimates for the next years, HAL will show a decrease in Earnings Per Share. The EPS will decrease by -1.72% on average per year.
Based on estimates for the next years, HAL will show a decrease in Revenue. The Revenue will decrease by -0.28% on average per year.
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.
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
The Price/Earnings ratio is 8.72, which indicates a very decent valuation of HAL.
Compared to the rest of the industry, the Price/Earnings ratio of HAL indicates a rather cheap valuation: HAL is cheaper than 93.44% of the companies listed in the same industry.
HAL is valuated cheaply when we compare the Price/Earnings ratio to 27.38, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 10.53, which indicates a very decent valuation of HAL.
Based on the Price/Forward Earnings ratio, HAL is valued cheaply inside the industry as 91.80% of the companies are valued more expensively.
HAL's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.86.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.72 | ||
| Fwd PE | 10.53 |
4.2 Price Multiples
HAL's Enterprise Value to EBITDA ratio is in line with the industry average.
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 | 8.93 | ||
| EV/EBITDA | 5.41 |
4.3 Compensation for Growth
The decent profitability rating of HAL 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)0.45
EPS Next 2Y-15.46%
EPS Next 3Y-4.54%
5. Dividend
5.1 Amount
HAL has a Yearly Dividend Yield of 3.05%. Purely for dividend investing, there may be better candidates out there.
HAL's Dividend Yield is rather good when compared to the industry average which is at 3.34. HAL pays more dividend than 80.33% of the companies 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 | 3.05% |
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
31.69% of the earnings are spent on dividend by HAL. This is a low number and sustainable payout ratio.
HAL's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP31.69%
EPS Next 2Y-15.46%
EPS Next 3Y-4.54%
22.51
+0.15 (+0.67%)
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 Change-0.04%
Market Cap19.19B
Analysts78.06
Price Target26.96 (19.77%)
Short Float %3.66%
Short Ratio2.41
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.05% |
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)-0.16%
PT rev (3m)-10.7%
EPS NQ rev (1m)-0.38%
EPS NQ rev (3m)-16.24%
EPS NY rev (1m)-10.19%
EPS NY rev (3m)-10.64%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.4%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)-1.62%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.72 | ||
| Fwd PE | 10.53 | ||
| P/S | 0.86 | ||
| P/FCF | 8.93 | ||
| P/OCF | 5.38 | ||
| P/B | 1.83 | ||
| P/tB | 2.55 | ||
| EV/EBITDA | 5.41 |
EPS(TTM)2.58
EY11.46%
EPS(NY)2.14
Fwd EY9.49%
FCF(TTM)2.52
FCFY11.2%
OCF(TTM)4.19
OCFY18.6%
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 | 3.18 |
F-Score5
WACC8.57%
ROIC/WACC1.61
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%