NYSE:HAL

Stock Analysis Report

Executive Summary

Halliburton Company provides a range of services and products to oil and natural gas companies worldwide.

Rewards

Trading at 13.7% below its fair value

Earnings are forecast to grow 26.93% per year

Earnings grew by 534.2% over the past year

Pays a high and reliable dividend of 3.16%

Risk Analysis

Has a high level of debt



Snowflake Analysis

Solid track record established dividend payer.


Similar Companies

Share Price & News

How has Halliburton's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: HAL has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

9.6%

HAL

5.4%

US Energy Services

1.1%

US Market


1 Year Return

-20.9%

HAL

-19.2%

US Energy Services

17.8%

US Market

Return vs Industry: HAL matched the US Energy Services industry which returned -19.2% over the past year.

Return vs Market: HAL underperformed the US Market which returned 17.8% over the past year.


Shareholder returns

HALIndustryMarket
7 Day9.6%5.4%1.1%
30 Day7.1%1.7%1.4%
90 Day13.7%-3.6%3.9%
1 Year-18.3%-20.9%-16.7%-19.2%20.3%17.8%
3 Year-55.6%-58.5%-54.1%-60.2%44.8%35.4%
5 Year-33.8%-40.2%-52.0%-59.7%71.3%52.4%

Price Volatility Vs. Market

How volatile is Halliburton's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Halliburton undervalued compared to its fair value and its price relative to the market?

13.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HAL ($22.79) is trading below our estimate of fair value ($26.42)

Significantly Below Fair Value: HAL is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: HAL is poor value based on its PE Ratio (16.8x) compared to the Energy Services industry average (15.9x).

PE vs Market: HAL is good value based on its PE Ratio (16.8x) compared to the US market (18.4x).


Price to Earnings Growth Ratio

PEG Ratio: HAL is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: HAL is overvalued based on its PB Ratio (2x) compared to the US Energy Services industry average (0.7x).


Next Steps

Future Growth

How is Halliburton forecast to perform in the next 1 to 3 years based on estimates from 27 analysts?

26.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HAL's forecast earnings growth (26.9% per year) is above the savings rate (1.7%).

Earnings vs Market: HAL's earnings (26.9% per year) are forecast to grow faster than the US market (14.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: HAL's revenue (0.4% per year) is forecast to grow slower than the US market (7.4% per year).

High Growth Revenue: HAL's revenue (0.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: HAL's Return on Equity is forecast to be low in 3 years time (12.4%).


Next Steps

Past Performance

How has Halliburton performed over the past 5 years?

0.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HAL has high quality earnings.

Growing Profit Margin: HAL's current net profit margins (5.1%) are higher than last year (0.8%).


Past Earnings Growth Analysis

Earnings Trend: HAL's earnings have grown by 0.7% per year over the past 5 years.

Accelerating Growth: HAL's earnings growth over the past year (534.2%) exceeds its 5-year average (0.7% per year).

Earnings vs Industry: HAL earnings growth over the past year (534.2%) exceeded the Energy Services industry -16.6%.


Return on Equity

High ROE: HAL's Return on Equity (12.2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Halliburton's financial position?


Financial Position Analysis

Short Term Liabilities: HAL's short term assets ($11.2B) exceed its short term liabilities ($4.7B).

Long Term Liabilities: HAL's short term assets ($11.2B) do not cover its long term liabilities ($12.3B).


Debt to Equity History and Analysis

Debt Level: HAL's debt to equity ratio (105.8%) is considered high.

Reducing Debt: HAL's debt to equity ratio has increased from 50.3% to 105.8% over the past 5 years.

Debt Coverage: HAL's debt is well covered by operating cash flow (20.6%).

Interest Coverage: HAL's interest payments on its debt are well covered by EBIT (3.6x coverage).


Balance Sheet

Inventory Level: HAL has a high level of physical assets or inventory.

Debt Coverage by Assets: HAL's debt is covered by short term assets (assets are 1.1x debt).


Next Steps

Dividend

What is Halliburton's current dividend yield, its reliability and sustainability?

3.16%

Current Dividend Yield


Dividend Yield vs Market

company3.2%marketbottom25%1.4%markettop25%3.7%industryaverage4.0%forecastin3Years3.2%

Current dividend yield vs market & industry

Notable Dividend: HAL's dividend (3.16%) is higher than the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: HAL's dividend (3.16%) is low compared to the top 25% of dividend payers in the US market (3.67%).


Stability and Growth of Payments

Stable Dividend: HAL's dividends per share have been stable in the past 10 years.

Growing Dividend: HAL's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (53%), HAL's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: HAL's dividends in 3 years are forecast to be well covered by earnings (47% payout ratio).


Next Steps

Management

What is the CEO of Halliburton's salary, the management and board of directors tenure and is there insider trading?

2.8yrs

Average management tenure


CEO

Jeff Miller (55yo)

2.5yrs

Tenure

US$23,078,364

Compensation

Mr. Jeffrey Allen Miller, also known as Jeff, has been the President of Halliburton Company since August 1, 2014 and its Chief Executive Officer since June 1, 2017. Mr. Miller serves as Chairman of the boa ...


CEO Compensation Analysis

Compensation vs Market: Jeff's total compensation ($USD0.00) is below average for companies of similar size in the US market ($USD10.90M).

Compensation vs Earnings: Jeff's compensation has increased by more than 20% in the past year.


Management Age and Tenure

2.8yrs

Average Tenure

56yo

Average Age

Experienced Management: HAL's management team is considered experienced (2.8 years average tenure).


Board Age and Tenure

5.0yrs

Average Tenure

66.5yo

Average Age

Experienced Board: HAL's board of directors are considered experienced (5 years average tenure).


Insider Trading

Insider Buying: HAL insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$154,80012 Sep 19
William Albrecht
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares8,000
Max PriceUS$19.35

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Lawrence Pope (51yo)

    Executive VP of Administration & Chief Human Resources Officer

    • Tenure: 11.9yrs
    • Compensation: US$8.84m
  • Jeff Miller (55yo)

    President

    • Tenure: 2.5yrs
    • Compensation: US$23.08m
  • Myrtle Jones (59yo)

    Senior Vice President of Tax

    • Tenure: 6.8yrs
  • Robb Voyles (61yo)

    Executive VP

    • Tenure: 5.9yrs
    • Compensation: US$8.85m
  • Eric Carre (52yo)

    Executive Vice President of Global Business Lines

    • Tenure: 3.6yrs
  • Jeffery Spalding

    Senior VP & Deputy General Counsel

    • Tenure: 0.8yrs
  • Lance Loeffler (42yo)

    Executive VP & CFO

    • Tenure: 1.1yrs
    • Compensation: US$2.60m
  • Anne Beaty (62yo)

    Senior Vice President of Finance

    • Tenure: 2.8yrs
  • Abu Zeya

    Senior Director of Investor Relations

    • Tenure: 0yrs
  • Mark Richard (57yo)

    President of Western Hemisphere

    • Tenure: 0.8yrs

Board Members

  • Murry Gerber (65yo)

    Independent Director

    • Tenure: 7.9yrs
    • Compensation: US$417.54k
  • Milton Carroll (69yo)

    Independent Director

    • Tenure: 13yrs
    • Compensation: US$346.28k
  • Alan Bennett (69yo)

    Independent Director

    • Tenure: 13.6yrs
    • Compensation: US$483.83k
  • Nance Dicciani (71yo)

    Independent Director

    • Tenure: 10.4yrs
    • Compensation: US$446.09k
  • Pat Hemingway Hall (66yo)

    Independent Director

    • Tenure: 0.8yrs
  • Bob Malone (67yo)

    Lead Independent Director

    • Tenure: 0yrs
    • Compensation: US$441.79k
  • Bill Albrecht (67yo)

    Independent Director

    • Tenure: 3.4yrs
    • Compensation: US$301.27k
  • Abdulaziz Alkhayyal (65yo)

    Independent Director

    • Tenure: 5yrs
    • Compensation: US$308.40k
  • Jeff Miller (55yo)

    President

    • Tenure: 2.5yrs
    • Compensation: US$23.08m
  • Kathy Banks (59yo)

    Independent Director

    • Tenure: 0.8yrs

Company Information

Halliburton Company's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Halliburton Company
  • Ticker: HAL
  • Exchange: NYSE
  • Founded: 1919
  • Industry: Oil and Gas Equipment and Services
  • Sector: Energy
  • Market Cap: US$20.005b
  • Shares outstanding: 877.80m
  • Website: https://www.halliburton.com

Number of Employees


Location

  • Halliburton Company
  • 3000 North Sam Houston Parkway East
  • Houston
  • Texas
  • 77032
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HALNYSE (New York Stock Exchange)YesCommon SharesUSUSDJan 1968
HALSWX (SIX Swiss Exchange)YesCommon SharesCHCHFJan 1968
HALXTRA (XETRA Trading Platform)YesCommon SharesDEEURJan 1968
HALDB (Deutsche Boerse AG)YesCommon SharesDEEURJan 1968
HALSNSE (Santiago Stock Exchange)YesCommon SharesCLUSDJan 1968
HAL *BMV (Bolsa Mexicana de Valores)YesCommon SharesMXMXNJan 1968
0R23LSE (London Stock Exchange)YesCommon SharesGBUSDJan 1968
HALWBAG (Wiener Boerse AG)YesCommon SharesATEURJan 1968
HALETLX (Eurotlx)YesCommon SharesITEURJan 1968
HALI34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH REPR 1 COM SHSBRBRLAug 2012

Biography

Halliburton Company provides a range of services and products to oil and natural gas companies worldwide. The company’s Completion and Production segment offers production enhancement services, including s ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/10 23:54
End of Day Share Price2019/12/10 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.