Halliburton Company
Halliburton Company Fundamental Analysis
Halliburton Company (HAL) shows weak financial fundamentals with a PE ratio of 22.90, profit margin of 5.78%, and ROE of 12.36%. The company generates $22.3B in annual revenue with weak year-over-year growth of -0.32%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 41.6/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze HAL's fundamental strength across five key dimensions:
Efficiency Score
WeakHAL struggles to generate sufficient returns from assets.
Valuation Score
ExcellentHAL trades at attractive valuation levels.
Growth Score
WeakHAL faces weak or negative growth trends.
Financial Health Score
ExcellentHAL maintains a strong and stable balance sheet.
Profitability Score
WeakHAL struggles to sustain strong margins.
Key Financial Metrics
Is HAL Expensive or Cheap?
P/E Ratio
HAL trades at 22.90 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, HAL's PEG of 0.23 indicates potential undervaluation.
Price to Book
The market values Halliburton Company at 2.81 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 7.13 times EBITDA. This is generally considered low.
How Well Does HAL Make Money?
Net Profit Margin
For every $100 in sales, Halliburton Company keeps $5.78 as profit after all expenses.
Operating Margin
Core operations generate 12.33 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $12.36 in profit for every $100 of shareholder equity.
ROA
Halliburton Company generates $5.13 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Halliburton Company produces operating cash flow of $2.94B, showing steady but balanced cash generation.
Free Cash Flow
Halliburton Company produces free cash flow of $1.68B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $1.99 in free cash annually.
FCF Yield
HAL converts 5.66% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
22.90
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.23
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.81
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.33
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.78
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.04
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.12
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.14
vs 25 benchmark
How HAL Stacks Against Its Sector Peers
| Metric | HAL Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 22.90 | 20.19 | Worse (Expensive) |
| ROE | 12.36% | 1019.00% | Weak |
| Net Margin | 5.78% | -44017.00% (disorted) | Weak |
| Debt/Equity | 0.78 | -0.65 (disorted) | Distorted |
| Current Ratio | 2.04 | 4.60 | Strong Liquidity |
| ROA | 5.13% | -11655350.00% (disorted) | Weak |
HAL outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Halliburton Company's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
1.58%
Industry Style: Cyclical, Value, Commodity
GrowingEPS CAGR
319.77%
Industry Style: Cyclical, Value, Commodity
High GrowthFCF CAGR
56.82%
Industry Style: Cyclical, Value, Commodity
High Growth