HALLIBURTON CO (HAL)
US4062161017 - Common Stock
We assign a fundamental rating of 6 out of 10 to HAL. HAL was compared to 65 industry peers in the Energy Equipment & Services industry. HAL has an excellent profitability rating, but there are some minor concerns on its financial health. HAL has a decent growth rate and is not valued too expensively.
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 has a better Return On Assets (10.69%) than 87.69% of its industry peers.
HAL has a Return On Equity of 28.09%. This is amongst the best in the industry. HAL outperforms 93.85% of its industry peers.
HAL has a better Return On Invested Capital (16.56%) than 93.85% 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 8.51%.
The last Return On Invested Capital (16.56%) for HAL is above the 3 year average (12.54%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.69% | ||
| ROE | 28.09% | ||
| ROIC | 16.56% |
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 better Profit Margin (11.46%) than 78.46% of its industry peers.
In the last couple of years the Profit Margin of HAL has grown nicely.
HAL's Operating Margin of 17.74% 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.
Looking at the Gross Margin, with a value of 18.94%, HAL is doing worse than 72.31% of the companies in the same industry.
In the last couple of years the Gross Margin of HAL has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.74% | ||
| PM (TTM) | 11.46% | ||
| GM | 18.94% |
OM growth 3Y23.42%
OM growth 5Y9.27%
PM growth 3YN/A
PM growth 5Y10.68%
GM growth 3Y20.99%
GM growth 5Y8.77%
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.
The number of shares outstanding for HAL has been reduced compared to 1 year ago.
HAL has more 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 3.82. This indicates that HAL is financially healthy and has little risk of bankruptcy at the moment.
HAL's Altman-Z score of 3.82 is amongst the best of the industry. HAL outperforms 87.69% of its industry peers.
HAL has a debt to FCF ratio of 3.67. This is a good value and a sign of high solvency as HAL would need 3.67 years to pay back of all of its debts.
With a Debt to FCF ratio value of 3.67, HAL perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
A Debt/Equity ratio of 0.81 indicates that HAL is somewhat dependend on debt financing.
HAL's Debt to Equity ratio of 0.81 is on the low side compared to the rest of the industry. HAL is outperformed by 72.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.81 | ||
| Debt/FCF | 3.67 | ||
| Altman-Z | 3.82 |
ROIC/WACC1.97
WACC8.39%
2.3 Liquidity
A Current Ratio of 2.06 indicates that HAL has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.06, HAL is in line with its industry, outperforming 55.38% of the companies in the same industry.
A Quick Ratio of 1.48 indicates that HAL should not have too much problems paying its short term obligations.
HAL has a Quick ratio (1.48) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.06 | ||
| Quick Ratio | 1.48 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 45.37% 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.
Looking at the last year, HAL shows a quite strong growth in Revenue. The Revenue has grown by 13.41% in the last year.
HAL shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.83% yearly.
EPS 1Y (TTM)45.37%
EPS 3Y69.05%
EPS 5Y10.57%
EPS growth Q2Q19.44%
Revenue 1Y (TTM)13.41%
Revenue growth 3Y16.8%
Revenue growth 5Y-0.83%
Revenue growth Q2Q2.81%
3.2 Future
The Earnings Per Share is expected to grow by 7.48% on average over the next years.
The Revenue is expected to grow by 5.25% on average over the next years.
EPS Next Y9.66%
EPS Next 2Y12.33%
EPS Next 3Y11.52%
EPS Next 5Y7.48%
Revenue Next Year5.27%
Revenue Next 2Y6.47%
Revenue Next 3Y5.85%
Revenue Next 5Y5.25%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 12.33, which indicates a correct valuation of HAL.
Based on the Price/Earnings ratio, HAL is valued a bit cheaper than 73.85% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.20, HAL is valued rather cheaply.
HAL is valuated reasonably with a Price/Forward Earnings ratio of 11.25.
HAL's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. HAL is cheaper than 69.23% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.63. HAL is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.33 | ||
| Fwd PE | 11.25 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HAL is on the same level as its industry peers.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of HAL is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.51 | ||
| EV/EBITDA | 7.81 |
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)1.28
PEG (5Y)1.17
EPS Next 2Y12.33%
EPS Next 3Y11.52%
5. Dividend
5.1 Amount
HAL has a Yearly Dividend Yield of 1.76%. Purely for dividend investing, there may be better candidates out there.
HAL's Dividend Yield is a higher than the industry average which is at 3.25.
Compared to the average S&P500 Dividend Yield of 2.44, HAL is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.76% |
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
21.83% of the earnings are spent on dividend by HAL. This is a low number and sustainable payout ratio.
DP21.83%
EPS Next 2Y12.33%
EPS Next 3Y11.52%
HALLIBURTON CO
NYSE:HAL (4/25/2024, 7:04:00 PM)
After market: 38.65 -0.07 (-0.18%)38.72
0 (0%)
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 Cap34.32B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.76% |
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)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.33 | ||
| Fwd PE | 11.25 | ||
| 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)1.28
PEG (5Y)1.17
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.69% | ||
| ROE | 28.09% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 17.74% | ||
| PM (TTM) | 11.46% | ||
| GM | 18.94% | ||
| 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 Turnover0.93
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.81 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.06 | ||
| Quick Ratio | 1.48 | ||
| 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)
Growth
EPS 1Y (TTM)45.37%
EPS 3Y69.05%
EPS 5Y
EPS growth Q2Q
EPS Next Y9.66%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)13.41%
Revenue growth 3Y16.8%
Revenue growth 5Y
Revenue growth 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