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 belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. HAL has a bad growth rate and is valued cheaply. With these ratings, HAL could be worth investigating further for value investing!.
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
The Return On Assets of HAL (8.34%) is better than 75.81% of its industry peers.
HAL has a Return On Equity of 20.25%. This is amongst the best in the industry. HAL outperforms 85.48% of its industry peers.
With an excellent Return On Invested Capital value of 15.16%, HAL belongs to the best of the industry, outperforming 93.55% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for HAL is significantly above the industry average of 8.69%.
| 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
The Profit Margin of HAL (9.31%) is better than 72.58% of its industry peers.
HAL's Profit Margin has improved in the last couple of years.
The Operating Margin of HAL (16.57%) is better than 75.81% of its industry peers.
In the last couple of years the Operating Margin of HAL has grown nicely.
Looking at the Gross Margin, with a value of 18.17%, HAL is doing worse than 74.19% of the companies in the same industry.
HAL's Gross Margin has improved in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), HAL is creating some value.
HAL has less shares outstanding than it did 1 year ago.
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 3.18. This indicates that HAL is financially healthy and has little risk of bankruptcy at the moment.
HAL has a Altman-Z score of 3.18. This is amongst the best in the industry. HAL outperforms 80.65% 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.
The Debt to FCF ratio of HAL (3.22) is better than 61.29% of its industry peers.
HAL has a Debt/Equity ratio of 0.69. This is a neutral value indicating HAL is somewhat dependend on debt financing.
The Debt to Equity ratio of HAL (0.69) is worse than 69.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 3.22 | ||
| Altman-Z | 3.18 |
ROIC/WACC1.71
WACC8.88%
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.
HAL's Current ratio of 1.98 is in line compared to the rest of the industry. HAL outperforms 53.23% of its industry peers.
A Quick Ratio of 1.46 indicates that HAL should not have too much problems paying its short term obligations.
HAL has a Quick ratio of 1.46. This is comparable to the rest of the industry: HAL outperforms 45.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.98 | ||
| Quick Ratio | 1.46 |
3. Growth
3.1 Past
HAL shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -11.01%.
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 -2.54% in the past year.
The Revenue has been growing slightly by 0.47% on average over the past years.
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
The Earnings Per Share is expected to decrease by -0.41% on average over the next years.
HAL is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.73% yearly.
EPS Next Y-19.67%
EPS Next 2Y-5.58%
EPS Next 3Y-0.22%
EPS Next 5Y-0.41%
Revenue Next Year-5%
Revenue Next 2Y-2.02%
Revenue Next 3Y-0.41%
Revenue Next 5Y-0.73%
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
A Price/Earnings ratio of 7.24 indicates a rather cheap valuation of HAL.
Based on the Price/Earnings ratio, HAL is valued cheaper than 90.32% of the companies in the same industry.
HAL is valuated cheaply when we compare the Price/Earnings ratio to 26.60, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 7.68, the valuation of HAL can be described as very cheap.
Based on the Price/Forward Earnings ratio, HAL is valued cheaper than 83.87% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.43, HAL is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.24 | ||
| Fwd PE | 7.68 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as HAL.
72.58% of the companies in the same industry are more expensive than HAL, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.52 | ||
| EV/EBITDA | 4.9 |
4.3 Compensation for Growth
HAL has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.38
EPS Next 2Y-5.58%
EPS Next 3Y-0.22%
5. Dividend
5.1 Amount
HAL has a Yearly Dividend Yield of 3.23%.
The stock price of HAL dropped by -22.01% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
HAL's Dividend Yield is rather good when compared to the industry average which is at 3.93. HAL pays more dividend than 82.26% of the companies in the same industry.
HAL's Dividend Yield is a higher than the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.23% |
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.
The dividend of HAL decreased in the last 3 years.
Dividend Growth(5Y)-1.06%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
HAL pays out 28.39% of its income as dividend. This is a sustainable payout ratio.
HAL's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP28.39%
EPS Next 2Y-5.58%
EPS Next 3Y-0.22%
20.48
-0.39 (-1.87%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners86.49%
Inst Owner Change-1.92%
Ins Owners0.39%
Ins Owner Change1.63%
Market Cap17.61B
Analysts78.75
Price Target30.48 (48.83%)
Short Float %2.74%
Short Ratio1.57
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.23% |
Yearly Dividend0.68
Dividend Growth(5Y)-1.06%
DP28.39%
Div Incr Years2
Div Non Decr Years2
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)-13.75%
PT rev (3m)-15.35%
EPS NQ rev (1m)-11.98%
EPS NQ rev (3m)-12.69%
EPS NY rev (1m)-9.07%
EPS NY rev (3m)-10.91%
Revenue NQ rev (1m)-0.2%
Revenue NQ rev (3m)-0.96%
Revenue NY rev (1m)-1.48%
Revenue NY rev (3m)-2.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.24 | ||
| Fwd PE | 7.68 | ||
| P/S | 0.78 | ||
| P/FCF | 7.52 | ||
| P/OCF | 4.69 | ||
| P/B | 1.7 | ||
| P/tB | 2.36 | ||
| EV/EBITDA | 4.9 |
EPS(TTM)2.83
EY13.82%
EPS(NY)2.67
Fwd EY13.02%
FCF(TTM)2.72
FCFY13.3%
OCF(TTM)4.37
OCFY21.33%
SpS26.24
BVpS12.06
TBVpS8.7
PEG (NY)N/A
PEG (5Y)0.38
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 | 3.18 |
F-Score5
WACC8.88%
ROIC/WACC1.71
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-19.67%
EPS Next 2Y-5.58%
EPS Next 3Y-0.22%
EPS Next 5Y-0.41%
Revenue 1Y (TTM)-2.54%
Revenue growth 3Y14.47%
Revenue growth 5Y0.47%
Sales Q2Q%-6.67%
Revenue Next Year-5%
Revenue Next 2Y-2.02%
Revenue Next 3Y-0.41%
Revenue Next 5Y-0.73%
EBIT growth 1Y-8.67%
EBIT growth 3Y29.53%
EBIT growth 5Y13.86%
EBIT Next Year18.42%
EBIT Next 3Y10.03%
EBIT Next 5Y2.98%
FCF growth 1Y76.81%
FCF growth 3Y29.64%
FCF growth 5Y21.5%
OCF growth 1Y55.55%
OCF growth 3Y26.46%
OCF growth 5Y9.59%