10Y annualized return is
negative
at -8.3% per year
HAL has met or exceeded earnings expectations in
the majority of
recent quarters (7/10)
Low Price-to-Earnings Ratio
Strong Price-to-Sales Ratio
High Return on Equity
Strong Operating Profit Margin
Strong Current Ratio
Healthy Interest Coverage Ratio
🏆 Strong Financial Performance
🌍 International Growth
🔧 Innovative Technology Portfolio
🚀 Promising Growth Engines
🤝 Strong Customer Alliances
Moderate Price-to-Book Ratio
Net Profit Margin
Moderate Debt Levels
📉 Decline in North America Revenue
🔮 Uncertainty in Mexico Market
Overall, Halliburton demonstrates a strong business model with significant competitive advantages, especially in international markets, supported by a solid financial performance. However, challenges in the North American market and uncertainty in Mexico present potential risks. The company is well-positioned for future growth through innovative technology and strategic alliances.
Analysis Date: January 22, 2025
Last Updated: March 12, 2025
Past performance does not guarantee future results. The data presented is indicative and may not be updated in real-time.
Halliburton Company is a major player in the energy industry, helping companies find and produce oil and gas. They offer a variety of services, such as helping to drill wells and making sure they work well over time. This includes providing tools and support to enhance oil production and keeping wells safe. Founded in 1919 and based in Houston, Texas, Halliburton plays a key role in making sure energy resources are accessed and managed effectively.
Streams of revenue
Geographic Distribution
Core Products
Business Type
Business to Business
Competitive Advantages
Key Business Risks
Latest News
Shares of Halliburton (HAL) fell Tuesday after the oilfield services company reported first-quarter profit that came in well short of analysts' estima...
Halliburton (HAL -5.68%), a prominent oilfield services company, released its earnings for the first quarter on April 22. The results reflect a mixed ...
Halliburton Company (NYSE:HAL ) Q1 2025 Earnings Call April 22, 2025 9:00 AM ET Company Participants David Coleman - Senior Director, IR Jeff Miller -...
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Benjamin Graham's value investing approach focuses on finding stocks with a significant margin of safety between their intrinsic value and market price.
Intrinsic Value
Estimated fair value based on Graham's formula
$110.04
Current Market Price: $19.68
IV/P Ratio: 5.59x (>1.0 indicates undervalued)
Margin of Safety
Gap between intrinsic value and market price
82.0%
Graham recommended a minimum of 20-30% margin of safety
Higher values indicate a greater potential discount to fair value
Graham Criteria Checklist
Benjamin Graham's value investing checklist for HAL
Positive earnings (5+ years)
Dividend history (5+ years)
P/E ratio ≤ 20 (6.99)
P/B ratio ≤ 1.5 (1.66)
Current ratio ≥ 2.0 (2.05x)
Long-term debt < Net current assets (1.26x)
Margin of safety (82.0%)
HAL does not meet all Graham criteria
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Profitability metrics measure a company's ability to generate earnings relative to its revenue, operating costs, and other relevant metrics. Higher values generally indicate better performance.
Return on Equity (ROE)
Measures how efficiently a company uses its equity to generate profits
20.35%
Higher values indicate better returns for shareholders
TTM (as of 2025-04-30)
Gross Profit Margin
Percentage of revenue retained after accounting for cost of goods sold
18.75%
Higher values indicate better efficiency in production
TTM (as of 2025-04-30)
Net Profit Margin
Percentage of revenue retained after accounting for all expenses
10.90%
Higher values indicate better overall profitability
TTM (as of 2025-04-30)
HAL has a return on equity of 24.71%, indicating that the company is effective in generating profits from its equity base.
An operating profit margin of 16.66% shows that HAL maintains a solid profit after covering operating expenses, which is a positive indicator of operational efficiency.
A net profit margin of 10.90% is decent but could be improved, suggesting that there are challenges in converting revenue into actual profit.
Financial health metrics assess a company's ability to meet its financial obligations and its overall financial stability.
Debt to Equity Ratio
Total debt divided by total equity
0.81x
Lower values indicate less financial leverage and risk
Less than 1.0 is conservative, 1.0-2.0 is moderate, >2.0 indicates high risk
Q4 2024
Current Ratio
Current assets divided by current liabilities
2.05x
Higher values indicate better short-term liquidity
Less than 1.0 is concerning, 1.0-2.0 is adequate, greater than 2.0 is good
Q4 2024
With a current ratio of 2.05, HAL demonstrates strong liquidity and the ability to cover short-term obligations comfortably.
An interest coverage ratio of 8.49 indicates that HAL can easily meet its interest payments, reflecting strong financial stability.
A debt-to-equity ratio of 0.82 suggests that HAL has a moderate amount of leverage, which could pose risks if not managed carefully.
Meeting Expectations
Higher values indicate better execution and credibility
Recent Results
EPS
Halliburton reported full year total revenue of $22.9 billion, generating $3.9 billion of cash from operations and $2.6 billion of free cash flow, which represents a 60% return of free cash flow to shareholders through stock repurchases and dividends.
Halliburton's international business grew for the fourth consecutive year with a 6% year-over-year revenue increase, particularly led by the Middle East/Asia region with an 8% increase, indicating a strong market position and competitive advantage internationally.
Halliburton has a robust technology portfolio that includes advancements in drilling technology, completion technologies, and automation, which positions the company to lead in the global services marketplace.
Despite strong international growth, North America revenue declined by 8% year-over-year due to lower negotiated prices and decreased activity, indicating potential vulnerabilities in the domestic market.
Halliburton identified four key growth engines: drilling technologies, unconventionals, well intervention, and artificial lift, which are expected to generate an additional $2.5 billion to $3 billion in annual revenue over the next three to five years.
The company is experiencing deepening customer alliances, indicating that its value proposition is being embraced by operators, which is essential for long-term growth and collaborative work.
The anticipated decline in revenue from Mexico due to a new administration and activity reset presents uncertainty for the international outlook, potentially impacting overall growth.