Halliburton Co (HAL) stock analysis

P/E above its 5-year median

Halliburton's P/E of 13.8 is above its own 5-year median of 8.3.

P/E below the industry

Halliburton's P/E of 13.8 is below the Oil and Gas Field Services median of 18.9.

EV/EBITDA below its 5-year median

Halliburton's EV/EBITDA of 6.4 is below its 5-year median of 7.9.

P/B above the industry

Halliburton's price-to-book of 2.45 is above the Oil and Gas Field Services median of 1.29.

Trading below fair value

The share price of $32.93 is below our fair value estimate of $34.65.

Margin of safety under 20%

The price is 5.0% below fair value, less than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew 3.0% a year over the last three fiscal years, short of the 10% we look for.

EPS growth over 3 years

Needs positive EPS three years ago and today.

Earnings acceleration

Needs positive net income now, a year ago and five years ago.

Growing slower than the industry

Revenue grew 1.5% over the last twelve months; the Oil and Gas Field Services median is 4.6%.

Guidance issued

The latest outlook (2027 operating margins, Oct 20, 2026) was issued for the first time, so it neither adds nor takes away points.

Gross margin trend

This company does not report gross profit.

Return on equity over 15%

Return on equity was 18.8% over the last twelve months and averaged 22.8% over five years.

Return on capital over 10%

Return on invested capital was 26.6%, above the 10% that usually covers the cost of capital.

Return on equity above the industry

Halliburton's return on equity of 18.8% is above the Oil and Gas Field Services median of 1.2%.

Earnings over 5 years

Needs positive net income five years ago and in the latest year.

Net margin below its 5-year average

Net margin was 8.9% over the last twelve months, against a 5-year average of 9.1%.

Net margin above the industry

Halliburton's net margin of 8.9% is above the Oil and Gas Field Services median of 0.9%.

Low debt

Debt is 0.8% of shareholders' equity, under the 40% we consider low.

Debt falling against equity

Debt to equity fell from 198% five years ago to 0.8%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 2922% of total debt.

Interest coverage

Interest expense is not reported separately.

Short-term assets cover short-term debts

Current assets are 2.02 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 3.46; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Halliburton paid dividends worth 2.1% of the share price over the last twelve months.

Yield below Treasuries

The 2.1% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Halliburton yields 2.1%.

Dividend was cut

The dividend per share fell by more than 10% at least once in the last 9 fiscal years.

Covered by earnings

Dividends take 28.4% of net income.

Covered by free cash flow

Dividends take 35.6% of free cash flow.