Halliburton (HAL) AI Stock Analysis

• Market Cap: $21.71B
• Dividend Yield: 2.72%
• Average Volume (3M): 11.32M
• Price to Earnings (P/E): 8.8
• Beta (1Y): 0.85
• Revenue Growth: -0.32%
• EPS Growth: -3.41%
• Country: US
• Employees: 48,000
• Sector: Energy
• Sector Strength: 57
• Industry: Fossil Fuels
• EPS (TTM): 2.83
• Shares Outstanding: 868,091,600
• 10 Day Avg. Volume: 11,092,323
• 30 Day Avg. Volume: 11,317,695
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.95
• Price to Cash Flow (P/CF): 3.70
• P/FCF Ratio: 3.70
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $34.28
• Price Target Upside: 41.95% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 19

Halliburton demonstrates strong financial performance with efficient cash flow management and attractive valuation metrics. While technical indicators present mixed signals, the company's strategic focus on technology and growth engines offers long-term potential. Regional challenges pose some risk, but overall, Halliburton maintains a stable outlook.

Positive Factors

International Revenue Growth

HAL highlighted its 4 key growth engines for INTL, backed by strong customer alliances, that are expected to deliver an additional $2.5-$3.0bn of annual revenue over 3-5 years.

Technological Advancements

Company expects new technologies in Directional Drilling, Well Intervention, and Artificial Lift and market growth for unconventionals to boost revenues $2.5-3bn above its base line run rate over the next 3-5 years.

Negative Factors

North America Revenue Decline

Management expects a sequential drop in North America revenue in 2025, which is generally in line with expectations.

Halliburton Business Overview & Revenue Model

Company Description

Halliburton (HAL) is a leading global provider of products and services to the energy industry. It operates in two main segments: Completion and Production, and Drilling and Evaluation. The company offers a comprehensive range of services and solutions aimed at optimizing the extraction and production of oil and natural gas, including cementing, stimulation, intervention, pressure control, and completion services, as well as drilling and formation evaluation.

How the Company Makes Money

Halliburton makes money primarily through the provision of oilfield services and products to oil and gas exploration and production companies. Revenue is generated by offering a wide range of services that support the entire lifecycle of the oil and gas well, from locating hydrocarbons to managing geological data, and optimizing production. Key revenue streams include drilling services, well completion, and production optimization. The company often enters into long-term contracts with major oil and gas producers, which helps to stabilize its income. Additionally, strategic partnerships and innovations in technology contribute to Halliburton's earnings by enhancing service efficiency and effectiveness.

Halliburton Financial Statement Overview

Summary

Halliburton exhibits strong profitability with healthy margins and efficient cash flow management. Despite a slight revenue decline, the company maintains a solid financial position with moderate leverage and effective capital utilization.

Income Statement

The company exhibits strong profitability with a TTM gross profit margin of approximately 38.7% and net profit margin of 10.9%. Revenue growth from 2022 to 2023 is modest at -0.3%, but the EBIT and EBITDA margins remain healthy at 16.7% and 19.7% respectively, indicating efficient operations. However, the slight revenue decline and previously negative net income in 2020 suggest some volatility.

Balance Sheet

Halliburton's financial leverage is moderate with a debt-to-equity ratio of 0.82. The return on equity is strong at 23.7%, reflecting effective use of equity capital. An equity ratio of 41.2% suggests a balanced capital structure, although the industry’s cyclical nature can impact long-term stability.

Cash Flow

The company demonstrates robust cash flow management with a free cash flow growth rate of 16.5% from 2022 to 2023. The operating cash flow to net income ratio of 1.55 indicates healthy cash generation relative to earnings. Additionally, the free cash flow to net income ratio of 0.97 highlights strong cash flow conversion efficiency.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
22.94B	23.02B	20.30B	15.29B	14.45B
	Gross Profit
4.30B	4.36B	3.31B	2.04B	1.54B
	EBIT
3.82B	4.08B	2.71B	1.80B	1.36B
	EBITDA
5.00B	4.84B	3.54B	2.69B	-1.62B
	Net Income Common Stockholders
2.50B	2.64B	1.57B	1.46B	-2.94B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.62B	2.26B	2.35B	3.04B	2.56B
	Total Assets
25.59B	24.68B	23.25B	22.32B	20.68B
	Total Debt
8.60B	8.81B	8.94B	10.22B	10.84B
	Net Debt
5.98B	6.54B	6.60B	7.17B	8.27B
	Total Liabilities
15.04B	15.25B	15.28B	15.59B	15.70B
	Stockholders Equity
10.51B	9.39B	7.95B	6.71B	4.97B
Cash Flow		Free Cash Flow
2.42B	2.08B	1.23B	1.11B	1.15B
	Operating Cash Flow
3.87B	3.46B	2.24B	1.91B	1.88B
	Investing Cash Flow
-1.65B	-1.66B	-967.00M	-534.00M	-486.00M
	Financing Cash Flow
-1.73B	-1.67B	-1.80B	-838.00M	-1.01B

Halliburton Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 24.15
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HAL, the sentiment is Negative. The current price of 24.15 is below the 20-day moving average (MA) of 26.07, below the 50-day MA of 26.82, and below the 200-day MA of 30.18, indicating a bearish trend. The MACD of -0.48 indicates Positive momentum. The RSI at 33.11 is Neutral, neither overbought nor oversold. The STOCH value of 20.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HAL.

Halliburton Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BKR	79 Outperform	$42.44B	14.40	17.47%	1.97%	9.10%	55.56%
FTI	77 Outperform	$11.35B	14.10	27.24%	0.71%	16.23%	1403.29%
HAL	75 Outperform	$21.71B	8.83	23.81%	2.72%	-0.32%	-3.41%
NOV	75 Outperform	$5.39B	8.83	9.96%	1.93%	3.42%	-35.98%
SLB	72 Outperform	$54.15B	12.82	26.64%	2.79%	9.58%	6.53%
Sector *	57 Neutral	$8.34B	5.35	-5.98%	7.29%	0.20%	-69.45%
OIS	56 Neutral	$335.98M	―	-1.65%	―	-11.47%	-187.17%

Halliburton Corporate Events

Halliburton Reports Strong Q4 2024 Financial Results

On January 22, 2025, Halliburton announced its financial results for the fourth quarter of 2024, reporting a net income of $615 million and revenue of $5.6 billion. While there was a slight decrease in revenue compared to the previous quarter, the company maintained strong cash flow and continued to return value to shareholders through share repurchases and dividends. The company highlighted its technological advancements and expansion into new markets, including opening new facilities in Namibia. The announcement reflects Halliburton’s strategic focus on enhancing its technological portfolio and operational capacity, reinforcing its market position despite regional challenges.

Halliburton Director Bob Patel Announces Early Retirement

Bhavesh (Bob) V. Patel has announced his decision to retire early from his role as a Director of Halliburton Company to pursue other opportunities. His departure is not due to any disagreements with the company, and he will remain in his position until the annual meeting of shareholders in May 2025.