HALLIBURTON CO (HAL) Stock Fundamental Analysis
USA - NYSE:HAL - US4062161017 - Common Stock
27.57 USD
+0.24 (+0.88%)
27.55 USD
-0.02 (-0.07%)
Overall HAL gets a fundamental rating of 5 out of 10. We evaluated HAL against 60 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 correctly, but it does not seem to be growing.
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.
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's Return On Assets of 5.20% is fine compared to the rest of the industry. HAL outperforms 63.33% of its industry peers.
HAL has a better Return On Equity (12.83%) than 75.00% of its industry peers.
The Return On Invested Capital of HAL (13.05%) is better than 91.67% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for HAL is significantly above the industry average of 7.79%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.2% | ||
| ROE | 12.83% | ||
| ROIC | 13.05% |
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 (5.91%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of HAL has grown nicely.
HAL has a better Operating Margin (14.43%) than 73.33% of its industry peers.
HAL's Operating Margin has improved in the last couple of years.
HAL has a Gross Margin of 16.17%. This is in the lower half of the industry: HAL underperforms 76.67% of its industry peers.
HAL's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.43% | ||
| PM (TTM) | 5.91% | ||
| GM | 16.17% |
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
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
HAL has less shares outstanding than it did 5 years ago.
HAL has a better debt/assets ratio than last year.
2.2 Solvency
HAL has an Altman-Z score of 3.32. This indicates that HAL is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 3.32, HAL belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
The Debt to FCF ratio of HAL is 4.02, which is a neutral value as it means it would take HAL, 4.02 years of fcf income to pay off all of its debts.
HAL has a Debt to FCF ratio of 4.02. This is comparable to the rest of the industry: HAL outperforms 55.00% of its industry peers.
HAL has a Debt/Equity ratio of 0.70. This is a neutral value indicating HAL is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.70, HAL is doing worse than 71.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.7 | ||
| Debt/FCF | 4.02 | ||
| Altman-Z | 3.32 |
ROIC/WACC1.55
WACC8.43%
2.3 Liquidity
HAL has a Current Ratio of 1.95. 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 (1.95) which is in line with its industry peers.
HAL has a Quick Ratio of 1.43. This is a normal value and indicates that HAL is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.43, HAL is in line with its industry, outperforming 46.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.95 | ||
| Quick Ratio | 1.43 |
3. Growth
3.1 Past
HAL shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -22.86%.
HAL shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 19.25% yearly.
HAL shows a decrease in Revenue. In the last year, the revenue decreased by -4.06%.
The Revenue has been growing slightly by 0.47% on average over the past years.
EPS 1Y (TTM)-22.86%
EPS 3Y39.99%
EPS 5Y19.25%
EPS Q2Q%-20.55%
Revenue 1Y (TTM)-4.06%
Revenue growth 3Y14.47%
Revenue growth 5Y0.47%
Sales Q2Q%-1.7%
3.2 Future
Based on estimates for the next years, HAL will show a decrease in Earnings Per Share. The EPS will decrease by -1.18% on average per year.
The Revenue is expected to decrease by -0.26% on average over the next years.
EPS Next Y-23.64%
EPS Next 2Y-13.32%
EPS Next 3Y-4.14%
EPS Next 5Y-1.18%
Revenue Next Year-4.69%
Revenue Next 2Y-3.07%
Revenue Next 3Y-1.07%
Revenue Next 5Y-0.26%
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
The Price/Earnings ratio is 11.35, which indicates a very decent valuation of HAL.
HAL's Price/Earnings ratio is rather cheap when compared to the industry. HAL is cheaper than 86.67% of the companies in the same industry.
HAL is valuated cheaply when we compare the Price/Earnings ratio to 26.06, which is the current average of the S&P500 Index.
HAL is valuated correctly with a Price/Forward Earnings ratio of 12.27.
80.00% of the companies in the same industry are more expensive than HAL, based on the Price/Forward Earnings ratio.
HAL is valuated cheaply when we compare the Price/Forward Earnings ratio to 32.73, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.35 | ||
| Fwd PE | 12.27 |
4.2 Price Multiples
HAL's Enterprise Value to EBITDA is on the same level as the industry average.
HAL's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.54 | ||
| EV/EBITDA | 6.73 |
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 -4.14% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.59
EPS Next 2Y-13.32%
EPS Next 3Y-4.14%
5. Dividend
5.1 Amount
HAL has a Yearly Dividend Yield of 2.49%.
HAL's Dividend Yield is rather good when compared to the industry average which is at 2.89. HAL pays more dividend than 81.67% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.37, HAL has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.49% |
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
HAL pays out 44.61% of its income as dividend. This is a bit on the high side, but may be sustainable.
HAL's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP44.61%
EPS Next 2Y-13.32%
EPS Next 3Y-4.14%
27.57
+0.24 (+0.88%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners92.72%
Inst Owner Change-0.55%
Ins Owners0.45%
Ins Owner Change0.14%
Market Cap23.51B
Revenue(TTM)22.14B
Net Income(TTM)1.31B
Analysts79.35
Price Target29.45 (6.82%)
Short Float %3.13%
Short Ratio1.96
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.49% |
Yearly Dividend0.68
Dividend Growth(5Y)-1.06%
DP44.61%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)7%
Min EPS beat(2)-0.93%
Max EPS beat(2)14.93%
EPS beat(4)1
Avg EPS beat(4)3.13%
Min EPS beat(4)-1.38%
Max EPS beat(4)14.93%
EPS beat(8)3
Avg EPS beat(8)1.95%
EPS beat(12)7
Avg EPS beat(12)2.68%
EPS beat(16)11
Avg EPS beat(16)3.24%
Revenue beat(2)2
Avg Revenue beat(2)1.83%
Min Revenue beat(2)0.79%
Max Revenue beat(2)2.87%
Revenue beat(4)3
Avg Revenue beat(4)0.98%
Min Revenue beat(4)-1.27%
Max Revenue beat(4)2.87%
Revenue beat(8)4
Avg Revenue beat(8)-0.32%
Revenue beat(12)5
Avg Revenue beat(12)-0.42%
Revenue beat(16)8
Avg Revenue beat(16)0.34%
PT rev (1m)8.94%
PT rev (3m)9.03%
EPS NQ rev (1m)17.21%
EPS NQ rev (3m)15.99%
EPS NY rev (1m)6.56%
EPS NY rev (3m)-4.47%
Revenue NQ rev (1m)4.33%
Revenue NQ rev (3m)4.27%
Revenue NY rev (1m)1.91%
Revenue NY rev (3m)1.86%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.35 | ||
| Fwd PE | 12.27 | ||
| P/S | 1.06 | ||
| P/FCF | 12.54 | ||
| P/OCF | 7.31 | ||
| P/B | 2.3 | ||
| P/tB | 3.24 | ||
| EV/EBITDA | 6.73 |
EPS(TTM)2.43
EY8.81%
EPS(NY)2.25
Fwd EY8.15%
FCF(TTM)2.2
FCFY7.97%
OCF(TTM)3.77
OCFY13.69%
SpS25.96
BVpS11.97
TBVpS8.52
PEG (NY)N/A
PEG (5Y)0.59
Graham Number25.58
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.2% | ||
| ROE | 12.83% | ||
| ROCE | 16.63% | ||
| ROIC | 13.05% | ||
| ROICexc | 14.59% | ||
| ROICexgc | 17.59% | ||
| OM | 14.43% | ||
| PM (TTM) | 5.91% | ||
| GM | 16.17% | ||
| FCFM | 8.47% |
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%
ROICexgc growth 3Y23.24%
ROICexgc 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 | 0.7 | ||
| Debt/FCF | 4.02 | ||
| Debt/EBITDA | 1.66 | ||
| Cap/Depr | 119.8% | ||
| Cap/Sales | 6.07% | ||
| Interest Coverage | 7.34 | ||
| Cash Conversion | 74.55% | ||
| Profit Quality | 143.16% | ||
| Current Ratio | 1.95 | ||
| Quick Ratio | 1.43 | ||
| Altman-Z | 3.32 |
F-Score5
WACC8.43%
ROIC/WACC1.55
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)-22.86%
EPS 3Y39.99%
EPS 5Y19.25%
EPS Q2Q%-20.55%
EPS Next Y-23.64%
EPS Next 2Y-13.32%
EPS Next 3Y-4.14%
EPS Next 5Y-1.18%
Revenue 1Y (TTM)-4.06%
Revenue growth 3Y14.47%
Revenue growth 5Y0.47%
Sales Q2Q%-1.7%
Revenue Next Year-4.69%
Revenue Next 2Y-3.07%
Revenue Next 3Y-1.07%
Revenue Next 5Y-0.26%
EBIT growth 1Y-21.41%
EBIT growth 3Y29.53%
EBIT growth 5Y13.86%
EBIT Next Year1.25%
EBIT Next 3Y3.23%
EBIT Next 5Y2.46%
FCF growth 1Y-0.37%
FCF growth 3Y29.64%
FCF growth 5Y21.5%
OCF growth 1Y0.19%
OCF growth 3Y26.46%
OCF growth 5Y9.59%
HALLIBURTON CO / HAL FAQ
Can you provide the ChartMill fundamental rating for HALLIBURTON CO?
ChartMill assigns a fundamental rating of 4 / 10 to HAL.
What is the valuation status for HAL stock?
ChartMill assigns a valuation rating of 5 / 10 to HALLIBURTON CO (HAL). This can be considered as Fairly Valued.
What is the profitability of HAL stock?
HALLIBURTON CO (HAL) has a profitability rating of 7 / 10.
Can you provide the financial health for HAL stock?
The financial health rating of HALLIBURTON CO (HAL) is 4 / 10.
Can you provide the expected EPS growth for HAL stock?
The Earnings per Share (EPS) of HALLIBURTON CO (HAL) is expected to decline by -23.64% in the next year.