HAL  Halliburton Company

Exchange

NYSE

Sector

Energy

Industry

Oilfield Services/Equipment

Market Cap.

39.82B

Vuru Grade

17.50/100

Current Price

$45.89
+0.475 (+1.046%)

Company Metrics

  • P/E 95.83
  • P/S 2.468
  • P/B 4.398
  • EPS -3.922
  • Cash ROIC 0.15%
  • Cash Ratio 1.00
  • Dividend 0.72 / 1.51%
  • Avg. Vol. 8.88M
  • Shares 867.82M
  • Market Cap. 39.82B

Company Description

Halliburton Company provides various products and services to the energy industry for the exploration, development, and production of oil and natural gas worldwide. It operates in two segments, Completion and Production, and Drilling and Evaluation. The Completion and Production segment offers production enhancement services, completion tools and services, cementing services, and Boots & Coots. It... more


Download 10 Years of Financial Statements:
Income Statement   Balance Sheet   Cash Flow

News

Halliburton's CEO Exits Stage Left
Seeking Alpha - May 24, 2017
Halliburton Co said on Wednesday that Chief Executive Officer Dave Lesar will retire on June 1 and be replaced by Jeff Miller, Lesar's longtime deputy and fellow board member.
Halliburton's incoming CEO sees significant price hike
Reuters - May 18, 2017
HOUSTON Halliburton Co (HAL.N), the No. 2 oilfield service provider, expects to raise prices at least 10 percent and in some cases 20 percent or more this year, higher increases than many customers expect but ones that company executives said were ...
Halliburton shares inch higher after company names new CEO - MarketWatch
Halliburton elects Jeff Miller as president and CEO - WorldOil (subscription)
Halliburton: The Best Choice To Profit From A 2017-18 Oil Price Upswing?
Seeking Alpha - May 25, 2017
Oil prices appear to have plenty of upside, barring a major recession in demand globally. Halliburton sells the leading fracking and refracturing technologies oil drillers will use in the next upcycle.
Halliburton Elects Miller as CEO, Chalks Out Recovery Plans
Zacks.com - May 19, 2017
Miller will replace Dave Lesar, who will continue to serve as the executive chairman of the company till Dec 2018, when he reaches Halliburton's mandatory retirement age of 65. As the executive chairman, Lesar will mainly focus on the strategic ...
Jeff Miller, named Halliburton CEO, has experience taking the reins - Houston Chronicle
Halliburton Announces New CEO - Oil & Gas 360
Halliburton Company (HAL) Moves Lower on Volume Spike for May 25
Equities.com - May 25, 2017
Halliburton Company (HAL) traded on unusually high volume on May. 25, as the stock lost 4.82% to close at $45.41. On the day, Halliburton Company saw 18.23 million shares trade hands on 91,820 trades. Considering that the stock averages only a daily ...
Just the Facts on Halliburton Company (HAL) - StockNewsJournal
Halliburton Company (NYSE:HAL) Value Score in Focus - Lenox Ledger
Halliburton: 'The Market Is A Tale Of 2 Cycles'
Seeking Alpha - Apr 27, 2017
Being the leading oilfield service provider in U.S. Land, Halliburton has strong leverage to the upcycle currently underway in North America Unconventionals.
Trade of the Day: Halliburton Company (NYSE:HAL) - Investorplace.com
Checking the Overall Picture for Halliburton Company (HAL) - StockNewsJournal
Animal Spirits Will Not Save Halliburton
Seeking Alpha - May 6, 2017
HAL's North America revenue was up 24% sequentially in Q1, but international markets stymied the company. EBITDA grew 14% sequentially due to higher volume and improved pricing.
Halliburton's (HAL) CEO Jeff Miller Presents at UBS Oil and Gas Conference ...
Seeking Alpha - May 23, 2017
Okay. So well first, congratulations Jeff. Maybe you can talk about strategies, technologies, roles that you've done in Halliburton over the years and give us a perspective of what you've done within Halliburton, just to your influence in the company ...
Oil & Gas Stock Roundup: Halliburton's New CEO, National Oilwell's Saudi JV & More - Nasdaq
Breaking Down: Halliburton Company (NYSE:HAL) Stock Drop Below Support ...
CML News - 12 hours ago
Halliburton Company has a one bull (extreme weakness) technical rating because it's trading below the 10 day, 50 day and 200 day simple moving averages while the 10-day moving average is below the 50-day moving average and the 50-day moving ...
Halliburton Company (HAL) Given a $69.00 Price Target at Jefferies Group LLC
The Cerbat Gem - 2 hours ago
Halliburton Company logo Jefferies Group LLC set a $69.00 target price on Halliburton Company (NYSE:HAL) in a research report sent to investors on Monday, April 24th.
Under Analysts Radar: Halliburton Company (NYSE:HAL) - ExpertGazette
Growth Rate Assumed by Market

We did a reverse valuation to calculate the growth rate the market is assuming for HAL to be considered fairly valued at its current market price. It's useful to compare this to the growth rate we're assuming for the Growth Price.

Future Free Cash Flow Growth Rate

This is the annual growth rate we've applied to calculate HAL's Free Cash Flow for the next 10 years. To calculate it, we looked at several time periods of the last 10 years. Feel free to adjust it, but we limit the initial growth rate to 20% and slow it down over the years. Otherwise, long-term sustainability issues come into play.

Discount Rate

The discount rate is the annual rate of return an investor requires to take the risk of investing in a single stock. To account for that risk, this should be above 8-10%, as this is the avg. annual rate of return for the S&P500 over the past 100 years.

$45.89 Current Price

$-10.67 Growth Price (DCF)

Why is this negative?


Show Free Cash Flow numbers

$34.26 Book Price

Overvalued by 25.33%


Poor Cash Return on Invested Capital over the past 5 years

HAL has been unable to consistently generate sufficient returns from its investments in buildings, projects and equipment. This could be due to poor management, lack of an economic moat or the capital intensive nature of the business.

HAL has only created $0.15 of cash for every $100 invested.
Figures in USD. Fiscal year ends in December
20122013201420152016
Free Cash Flow 88.00M 1.51B 779.00M 722.00M -2.50B
divided by
Invested Capital 20.17B 21.84B 24.07B 21.51B 18.97B
Cash ROIC 0.44% 6.93% 3.24% 3.36% -13.19%

Very Poor Return on Equity over the past 5 years

HAL has shown an inability to deliver results for shareholders. This could be due to poor management, HAL operating in a highly competitive industry, or having a weak business in general.

HAL has generated a $2.32 loss for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in December
20122013201420152016
Net Income 2.65B 2.14B 3.50B -667.00M -5.77B
divided by
Stockholders' Equity 15.77B 13.58B 16.27B 15.46B 9.41B
Return on Equity 16.78% 15.72% 21.52% -4.31% -61.31%

Excellent Business Performance over the past 10 years

HAL has been able to maintain profitability in good times and bad. This could mean HAL has an extremely strong business or has the ability to scale down costs when needed. This should be a fairly resilient business, but double check for future sustainability by looking at its Risk Factors in the Annual Report.

HAL has created positive free cash flow for 9 or more of the past 10 years.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Free Cash Flow 1.14B 198.00M 542.00M 143.00M 731.00M 88.00M 1.51B 779.00M 722.00M -2.50B

Weak Balance Sheet

HAL's financial position is not ideal. The key is to check whether HAL is using debt to fuel its growth and the sustainability of that tendency. Highly capital intensive businesses (see Economic Moat) follow this route, which can deeply impact the future prospects of the business.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Cash 2.24B 1.12B 3.39B 2.05B 2.85B 2.48B 2.36B 2.29B 10.08B 4.01B
Current Assets 7.57B 7.41B 8.64B 8.89B 11.58B 13.09B 13.70B 15.07B 21.61B 11.68B
Total Assets 13.14B 14.39B 16.54B 18.30B 23.68B 27.41B 29.22B 32.24B 36.94B 27.00B
Current Liabilities 2.41B 2.78B 2.89B 2.76B 4.12B 4.75B 5.03B 5.88B 5.36B 4.02B
Total Liabilities 6.27B 6.66B 7.81B 7.92B 10.48B 11.65B 15.64B 15.97B 21.48B 17.59B
Stockholder' Equity 6.87B 7.73B 8.73B 10.37B 13.20B 15.77B 13.58B 16.27B 15.46B 9.41B
Current Ratio 3.14 2.66 2.99 3.22 2.81 2.75 2.73 2.56 4.03 2.90
TL-to-TA 0.48 0.46 0.47 0.43 0.44 0.42 0.54 0.50 0.58 0.65

Consistent Reinvestment of Profits over the past 10 years

HAL has consistently retained profits. This may put HAL in a strong position to invest for the future, by buying new machinery, investing in R&D or a number of other options. By effectively using these earnings, HAL can greatly improve their long-term economic picture.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Retained Earnings 8.20B 9.41B 10.86B 12.37B 14.88B 17.18B 18.84B 21.81B 20.52B 14.14B
Retained Earnings Growth - 14.74% 15.43% 13.88% 20.28% 15.47% 9.66% 15.75% -5.89% -31.10%

Highly Competitive Industry over the past 10 years

It's likely that HAL is in an industry with low barriers to entry, spurring high competition. If Gross Margins are at least satisfactory, it's likely HAL invests heavily in R&D and Sales, General & Administrative expenses.

Only $4.90 of every $100 of Revenue have been profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Net Income 3.50B 1.54B 1.16B 1.84B 2.84B 2.65B 2.14B 3.50B -667.00M -5.77B
divided by
Revenue 15.26B 18.28B 14.68B 17.97B 24.83B 28.50B 29.40B 32.87B 23.63B 15.89B
Net Profit Margin 22.92% 8.41% 7.87% 10.25% 11.45% 9.28% 7.26% 10.65% -2.82% -36.31%

Inconsistent Gross Profit Margins over the past 10 years

HAL has good gross profit margins, however inconsistency of these margins is a cause for concern. Look at reasons for this inconsistency to determine the likelihood of future sustainability.

$24.33 of every $100 worth of sales have been Gross Profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Gross Profit 3.74B 4.23B 2.20B 3.23B 24.83B 4.43B 4.47B 5.21B 2.52B 864.00M
divided by
Revenue 15.26B 18.28B 14.68B 17.97B 24.83B 28.50B 29.40B 32.87B 23.63B 15.89B
Gross Margin 24.50% 23.14% 14.96% 17.96% 100.00% 15.56% 15.21% 15.85% 10.66% 5.44%

High Capital Intensity over the past 10 years

HAL spends large amounts of capital buying new equipment or investing in new facilities to stay competitive. Over the long term, those costs may have to be fuelled by debt. Look at the growth of Shareholders' Equity to see if this strategy is having a positive or negative impact.

118.72% of Profits are being spent on Capital Expenditures, like Property, Plant, & Equipment, required to run the business.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Capital Expenditure 1.58B 2.48B 1.86B 2.07B 2.95B 3.57B 2.93B 3.28B 2.18B 798.00M
divided by
Net Income 3.50B 1.54B 1.16B 1.84B 2.84B 2.65B 2.14B 3.50B -667.00M -5.77B
Capital Expenditure Ratio 45.24% 160.99% 161.39% 112.32% 103.83% 134.82% 137.42% 93.77% -327.44% -13.83%

Very Strong Dividend History over the past 10 years

HAL has consistently distributed a dividend for at least the past 10 years. Such a long dividend history suggests HAL is very established in its market and that its dividend distribution is likely to continue for a significant period of time.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Dividend Paid 314.00M 319.00M 324.00M 327.00M 330.00M 333.00M 465.00M 533.00M 614.00M 620.00M
divided by
Shares Outstanding 950.00M 904.00M 902.00M 911.00M 922.00M 928.00M 902.00M 852.00M 853.00M 861.00M
Dividend Paid Per Share 0.33 0.35 0.36 0.36 0.36 0.36 0.52 0.63 0.72 0.72
Price at Year End 36.24 17.09 29.36 40.66 34.51 34.01 50.40 39.53 34.13 54.09
Dividend Yield 0.91% 2.06% 1.22% 0.88% 1.04% 1.06% 1.02% 1.58% 2.11% 1.33%

History of Stock Buybacks over the past 10 years

HAL has some history of delivering increased value for shareholders in the form of stock buybacks. These have helped improve financial metrics and increase each shareholders' relative ownership stake in the company, due to fewer shares outstanding and holding the same number of shares.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Shares Outstanding 950.00M 904.00M 902.00M 911.00M 922.00M 928.00M 902.00M 852.00M 853.00M 861.00M
Stock Bought Back - 5.09% 0.22% -0.99% -1.19% -0.65% 2.88% 5.87% -0.12% -0.93%
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