Halliburton (HAL)
Energy · $26.1B market cap · SEC CIK 0000045012
ahead of 28% of the S&P 500 · #16 of 21 in Energy
Next reports on Jan 19, 2027, after the close, with analysts expecting $0.64 in earnings per share.
52-week range $24.92 to $43.59. 27% below its 52-week high and 28% above its low.
The case for HAL
- Cheap for its growth: 10.6× mid-cycle earnings, where 6%+ a year of growth plus a 1.7% dividend would justify about 20×.
- Return on equity of 18%.
- Moves less than the market (beta 0.78).
- Current assets cover the near-term bills 2.0 times over.
- Pays a modest 1.7% dividend.
- Price/sales of 1.2× is lower than 85% of Energy companies.
The case against
- Stability is weak (40/100): beta 0.78, 2.4 years of cash flow to clear its debt, a 43% swing over the year.
- Revenue grew only 1.5%, roughly the pace of inflation.
What the score is made of
Each factor is half a curve over reported figures and half a rank among the other Energy companies (momentum is judged against fixed thresholds only), and the five are blended by weight. The score is where that blend places it in the S&P 500. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings and cash, against the growth you get | 65 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 38 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 45 |
| Momentumhow the price has behaved lately | 47 |
| Stabilityhow violently it moves, what it owes and what it pays you | 40 |
- Its profits follow commodity prices, so its earnings and margin are read as half the latest year and half the average of the years on file (5), and last year's change in earnings per share is not counted as growth.
- Each factor except momentum is half fixed thresholds, half rank among the 21 Energy companies.
The financials
Revenue growth
Is the business growing? Slowly
| Last 12 months | +1.5% |
|---|---|
| Over 5 years | +9.0% a year |
| FY2025 revenue | $22.2B (−3%) |
Free cash flow
Is it generating real cash? Yes
| FY2025 free cash flow | $1.7B |
|---|---|
| Of revenue | 8% |
| Of profit | 130% |
Profit margins
Is profitability improving? No, slipping
| Gross margin | 33% |
|---|---|
| Operating margin | 13% |
| Net margin, FY24 → FY25 → now | 10.9% → 5.8% → 8.9% |
Debt vs. cash
Is the balance sheet healthy? Yes, the debt is manageable
| Cash | $2.2B |
|---|---|
| Long-term debt | $7.2B |
| Net debt | $5.0B |
| Years to repay | 2.4 yrs |
Valuation
Is the stock price reasonable? Yes, it looks cheap
| P/E | 13.1× |
|---|---|
| P/E on mid-cycle earnings | 10.6× |
| Fair P/E for its growth | 20× |
| P/FCF | 15.6× |
| Forward P/E | 12.9× |
| EV / EBITDA | 7.9× |
Its profits follow commodity prices, so they are taken as half the latest year and half the average of recent years. At 10.6× those mid-cycle earnings (13.1× the latest year's) it trades well below the 20× that 6%+ a year of growth plus a 1.7% dividend would justify. At 15.6× free cash flow it trades below that same mark.
The financials, five years deep
Pulled from Halliburton's XBRL filings on SEC EDGAR. Italic rows are worked out from the others.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Revenue growth | |||||
| Revenue | $22.2B | $22.9B | $23.0B | $20.3B | $15.3B |
| Change on the year | −3% | 0% | +13% | +33% | — |
| Free cash flow | |||||
| Free cash flow | $1.7B | $2.4B | $2.1B | $1.2B | $1.1B |
| Of revenue | 8% | 11% | 9% | 6% | 7% |
| Profit margins | |||||
| Operating margin | 10.2% | 16.7% | 17.7% | 13.3% | 11.8% |
| Net margin | 5.8% | 10.9% | 11.5% | 7.7% | 9.5% |
| Debt vs. cash | |||||
| Cash | $2.2B | $2.6B | $2.3B | $2.3B | $3.0B |
| Long-term debt | $7.2B | $7.2B | $7.6B | $7.9B | $9.1B |
| Net cash (debt) | −$5.0B | −$4.5B | −$5.4B | −$5.6B | −$6.1B |
What Halliburton says it does
Description of business and strategy Halliburton Company (Halliburton) is one of the world's largest providers of products and services to the energy industry. Its predecessor was established in 1919 and incorporated under the laws of the State of Delaware in 1924. Inspired by the past and leading into the future, what started with a single product from a single location is now a global enterprise. Our value proposition is to collaborate and engineer solutions to maximize asset value for our customers. We strive to achieve strong cash flows and returns for our shareholders by delivering technology and services that improve efficiency, increase recovery, and maximize production for our customers. Halliburton has fostered a culture of unparalleled service to the world's major, national, and independent oil and natural gas producers. With over 46,000 employees, representing 146 nationalities in more than 70 countries, we help our…