Over the last year, Halliburton Company logged a negative performance of -16.3%, with a high of $43.99 and a low of $23.3. During this time, the stock trailed the S&P 500 index by -10.0%. As of April 2023, the company's 50-day average price was $35.49. Halliburton Company provides products and services to the energy industry worldwide. Based in Houston, TX, the large-cap Energy company has 45,000 full time employees. Halliburton Company has provided a 1.5% dividend yield over the last 12 months.
Weak Revenue Growth With Decreasing Reinvestment in the Business:
| 2019-12-31 | 2020-12-31 | 2021-12-31 | 2022-12-31 | |
|---|---|---|---|---|
| Revenue | $22,408,000 | $14,445,000 | $15,295,000 | $20,297,000 |
| Gross Margins | 10.2% | 10.7% | 13.2% | 16.3% |
| Operating Margins | 9.2% | 9.4% | 11.6% | 15.1% |
| Net Income | -$1,131,000 | -$2,945,000 | $1,457,000 | $1,572,000 |
| Net Margins | -5.05% | -20.39% | 9.53% | 7.74% |
| Earnings Per Share | -$1.29 | -$3.34 | $1.63 | $1.73 |
| Diluted Shares | 875,000 | 881,000 | 892,000 | 904,120 |
| Free Cash Flow | $915,000 | $1,153,000 | $1,112,000 | $1,231,000 |
| Capital Expenditures | -$1,530,000 | -$728,000 | -$799,000 | -$1,011,000 |
| Net Current Assets | -$6,140,000 | -$6,222,000 | -$5,650,000 | -$4,326,000 |
| Current Ratio | 2.3 | 2.14 | 2.31 | 2.05 |
| Long Term Debt | $10,316,000 | $9,132,000 | $9,127,000 | $7,928,000 |
| Net Debt / EBITDA | 2.44 | 3.58 | 2.37 | 1.46 |
Halliburton Company Has Elevated P/B and P/E Ratios:
Halliburton Company has a trailing twelve month P/E ratio of 20.5, compared to an average of 7.54 for the Energy sector. Based on its EPS guidance of $3.62, the company has a forward P/E ratio of 9.8. The compound average growth rate of the company's historical and projected earnings per share is 39.7%. On this basis, the company's PEG ratio is 0.52. Alternatively, we can use the weighted average of Halliburton Company and the broader market's estimated 5-year EPS growth rate. This normalized growth rate of 17.2% gives us a PEG ratio of 1.19, which shows that Halliburton Company is fairly priced. Halliburton Company is overpriced compared to its book value, however, since its P/B ratio of 3.8 is higher than the sector average of 1.68. The company's shares are currently 80.7% above their Graham number. Ultimately, Halliburton Company's inflated valuation in terms of earnings and book value is balanced by a strong record of cash flows and a balance sheet that shows sustainable levels of debt.
There's an Analyst Consensus of Strong Upside Potential for Halliburton Company:
There are 25 analysts covering Halliburton Company, with target prices ranging from $34.0 to $58.0 per share, for an average of $48.64. As of April 2023, the company is trading -27.0% away from its average target price, implying there is an analyst consensus of strong upside potential. The average rating for Halliburton Company is buy.
With a 3.1% short interest, Halliburton Company has an average amount of shares sold short. Institutions own 85.1% of the company's shares, and it has a small amount of insider investors because 0.38% are owned by corporate insiders. Overall, the company's top shareholder is the Vanguard Group, Inc., whose 11% stake in the company is worth $3,333,663,574.
