Halliburton Co (NYSE: HAL)

Sector: Energy Industry: Oil & Gas Equipment & Services CIK: 0000045012
Market Cap 28.83 Bn
P/B 2.76
P/E 22.47
P/S 1.30
ROIC (Qtr) 11.22
Div Yield % 2.02
Rev 1y % (Qtr) 0.84
Total Debt (Qtr) 8.13 Bn
Debt/Equity (Qtr) 0.78
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About

Investment thesis

Bull case

  • Healthy cash reserves of 2.21B provide 8.39x coverage of short-term debt 263M, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 22.07B provides 2.71x coverage of total debt 8.13B, indicating robust asset backing and low credit risk.
  • Operating cash flow of 2.93B provides exceptional 325.11x coverage of minority interest expenses 9M, showing strong core operations.
  • Robust free cash flow of 1.86B exceeds capital expenditure of 1.07B by 1.74x, indicating strong organic growth funding capability.
  • Strong operating cash flow of 2.93B provides 12.24x coverage of SG&A expenses 239M, showing efficient operational cost management.

Bear case

  • Operating cash flow of 2.93B barely covers its investment activities of (1.32B), with a coverage ratio of -2.21, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 2.93B provides thin coverage of dividend payments of (579M) with a -5.05 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Cash reserves of 2.21B provide limited coverage of acquisition spending of (185M), which is -11.92x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Operating earnings of 2.11B show weak coverage of depreciation charges of 1.14B, with a 1.86 ratio indicating high capital intensity and potential reinvestment needs.
  • Free cash flow of 1.86B represents just -4.77x of debt issuance (389M), suggesting concerning reliance on leverage rather than internal cash generation for growth.

Geographical Breakdown of Revenue (2025)

Segments Breakdown of Revenue (2025)

Peer comparison

Companies in the Oil & Gas Equipment & Services
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 SLB Slb Limited/Nv 59.56 Bn 20.77 2.67 11.64 Bn
2 BKR Baker Hughes Co 59.13 Bn 22.85 2.13 6.09 Bn
3 FTI TechnipFMC plc 28.99 Bn 127.65 1.96 1.34 Bn
4 HAL Halliburton Co 28.83 Bn 22.47 1.30 8.13 Bn
5 WFRD Weatherford International plc 7.39 Bn 17.15 1.50 1.64 Bn
6 NOV NOV Inc. 7.09 Bn 48.90 0.81 2.34 Bn
7 VAL Valaris Ltd 6.32 Bn 15.83 2.61 1.09 Bn
8 KGS Kodiak Gas Services, Inc. 4.56 Bn 91.00 3.58 2.66 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.41 1.17
EV to Cash from Ops. EV/CFO 12.09 -3.30
EV to Debt EV to Debt 4.35 10.99
EV to EBIT EV/EBIT 16.73 4.49
EV to EBITDA EV/EBITDA 10.42 6.54
EV to Free Cash Flow [EV/FCF] EV/FCF 19.05 31.31
EV to Market Cap EV to Market Cap 1.23 1.36
EV to Revenue EV/Rev 1.59 2.02
Price to Book Value [P/B] P/B 2.76 1.73
Price to Earnings [P/E] P/E 22.47 20.20
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 2.22 0.42
Dividend Payout Ratio % Div Payout % (Qtr) 45.30 5.49
Dividend per Basic Share Div per Share (Qtr) 0.68 0.26
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 31.24 6.68
Interest Coverage Int. cover (Qtr) 6.01 -10.19
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 12.31 -37.90
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -15.74 1,334.16
Dividend Growth (1y) % Div 1y % (Qtr) 0.00 4.06
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -44.53 -12.71
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -30.71 19.66
EBIT Growth (1y) % EBIT 1y % (Qtr) -40.82 -26.68
EBT Growth (1y) % EBT 1y % (Qtr) -45.26 39.97
EPS Growth (1y) % EPS 1y % (Qtr) -47.18 27.30
FCF Growth (1y) % FCF 1y % (Qtr) -29.82 -867.31
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -19.00 5.49
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.89 0.74
Cash Payout Ratio Cash Payout (Qtr) 0.14 0.10
Cash Ratio Cash Ratio (Qtr) 0.39 0.62
Current Ratio Curr Ratio (Qtr) 2.04 2.25
Debt to Equity Ratio Debt/Equity (Qtr) 0.78 0.88
Interest Cover Ratio Int Coverage (Qtr) 6.01 -10.19
Times Interest Earned Times Interest Earned (Qtr) 6.01 -10.19
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 14.70 16.47
EBIT Margin % EBIT Margin % (Qtr) 9.53 -0.62
EBT Margin % EBT Margin % (Qtr) 7.94 4.39
Gross Margin % Gross Margin % (Qtr) 15.70 30.41
Net Profit Margin % Net Margin % (Qtr) 5.80 2.67