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
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.
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.
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
24.71%
Higher values indicate better returns for shareholders
TTM (as of 2025-04-16)
Return on Assets (ROA)
Measures how efficiently a company uses its assets to generate profits
2.40%
Higher values indicate better asset utilization
TTM (as of 2025-04-16)
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 2025-04-16)
Net Profit Margin
Percentage of revenue retained after accounting for all expenses
10.90%
Higher values indicate better overall profitability
TTM (as of 2025-04-16)
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.
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
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.