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Halliburton Company (HAL)
NYSE:HAL

Halliburton (HAL) AI Stock Analysis

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HA

Halliburton

(NYSE:HAL)

70Outperform
Halliburton's strong financial performance and undervaluation highlight its potential as a solid investment within the oil & gas equipment and services industry. However, caution is advised due to technical indicators pointing to downward momentum and regional challenges affecting revenue, particularly in North America. The company's technological advancements and international market successes offer promising growth prospects, but these must be balanced against current market pressures and trade uncertainties.
Positive Factors
International Market Exposure
HAL's exposure to more resilient international markets has increased, shifting its GeoMkt mix to ~60/40 Int'l/NAm.
Portfolio Positioning
HAL's portfolio is better positioned from both a Geo & end-market mix perspective relative to past downcycles.
Shareholder Returns
HAL expects to return at least $1.6B of cash to shareholders which implies a continued $250MM/q pace of share repurchase.
Negative Factors
OPEC+ Oil Output Decision
Recent headlines surrounding the OPEC+ decision to speed up oil output hikes have put further pressure on the oil macro outlook, with North America activity most at-risk.
Revenue and Margin Uncertainty
There is continued uncertainty around activity in Mexico, impacting the revenue and margins guide for 1Q.
Tariffs and Costs Impact
HAL sees tariffs and mobilization costs as factors weighing on 2Q Drilling & Evaluation margins.

Halliburton (HAL) vs. S&P 500 (SPY)

Halliburton Business Overview & Revenue Model

Company DescriptionHalliburton Company provides products and services to the energy industry worldwide. It operates in two segments, Completion and Production, and Drilling and Evaluation. The Completion and Production segment offers production enhancement services that include stimulation and sand control services; cementing services, such as well bonding and casing, and casing equipment; completion tools that offer downhole solutions and services, including well completion products and services, intelligent well completions, and service tools, as well as liner hanger, sand control, and multilateral systems; production solutions comprising coiled tubing, hydraulic workover units, downhole tools, and pumping and nitrogen services; and pipeline and process services, such as pre-commissioning, commissioning, maintenance, and decommissioning. This segment also provides electrical submersible pumps, as well as artificial lift services. The Drilling and Evaluation segment offers drilling fluid systems, performance additives, completion fluids, solids control, specialized testing equipment, and waste management services; oilfield completion, production, and downstream water and process treatment chemicals and services; drilling systems and services; wireline and perforating services consists of open-hole logging, and cased-hole and slickline; and drill bits and services comprising roller cone rock bits, fixed cutter bits, hole enlargement, and related downhole tools and services, as well as coring equipment and services. This segment also provides cloud based digital services and artificial intelligence solutions on an open architecture for subsurface insights, integrated well construction, and reservoir and production management; testing and subsea services, such as acquisition and analysis of reservoir information and optimization solutions; and project management and integrated asset management services. Halliburton Company was founded in 1919 and is based in Houston, Texas.
How the Company Makes MoneyHalliburton 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
Overall, Halliburton demonstrates a strong financial position with robust profitability, stable balance sheet metrics, and effective cash flow management. The company is positioned well within the oil & gas equipment and services industry, benefiting from operational efficiencies and market demand. However, maintaining the balance between debt management and growth opportunities remains crucial.
Income Statement
82
Very Positive
Halliburton shows strong profitability with a consistent gross profit margin around 18-19% and an impressive net profit margin improving from negative in 2020 to about 10% in TTM (Trailing-Twelve-Months). Revenue has grown steadily, reflecting robust industry demand. EBIT and EBITDA margins are healthy, indicating effective cost management and operational efficiency.
Balance Sheet
76
Positive
The balance sheet is stable with a manageable debt-to-equity ratio decreasing over time, currently around 0.82 in TTM. Return on equity is strong at approximately 22%, showcasing efficient use of equity. Equity ratio is improving, indicating a solid equity base against total assets.
Cash Flow
79
Positive
Cash flow performance is solid with increasing operating cash flow and a strong free cash flow generation, growing consistently over the years. The operating cash flow to net income ratio near 1.6 in TTM highlights effective cash management. Free cash flow to net income ratio supports ongoing investments and debt servicing capabilities.
Breakdown
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
22.56B22.94B23.02B20.30B15.29B14.45B
Gross Profit
4.10B4.30B4.36B3.31B2.04B1.54B
EBIT
3.27B3.82B4.08B2.71B1.80B1.36B
EBITDA
4.32B4.76B4.84B3.54B2.69B-1.62B
Net Income Common Stockholders
2.10B2.50B2.64B1.57B1.46B-2.94B
Balance SheetCash, Cash Equivalents and Short-Term Investments
1.80B2.62B2.26B2.35B3.04B2.56B
Total Assets
25.18B25.59B24.68B23.25B22.32B20.68B
Total Debt
8.57B8.60B8.81B8.94B10.22B10.84B
Net Debt
6.77B5.98B6.54B6.60B7.17B8.27B
Total Liabilities
14.77B15.04B15.25B15.28B15.59B15.70B
Stockholders Equity
10.37B10.51B9.39B7.95B6.71B4.97B
Cash FlowFree Cash Flow
2.34B2.42B2.08B1.23B1.11B1.15B
Operating Cash Flow
3.75B3.87B3.46B2.24B1.91B1.88B
Investing Cash Flow
-2.06B-1.65B-1.66B-967.00M-534.00M-486.00M
Financing Cash Flow
-1.71B-1.73B-1.67B-1.80B-838.00M-1.01B

Halliburton Technical Analysis

Technical Analysis Sentiment
Negative
Last Price20.87
Price Trends
50DMA
22.34
Negative
100DMA
24.45
Negative
200DMA
26.92
Negative
Market Momentum
MACD
-0.31
Negative
RSI
47.48
Neutral
STOCH
61.62
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 20.87 is above the 20-day moving average (MA) of 20.55, below the 50-day MA of 22.34, and below the 200-day MA of 26.92, indicating a neutral trend. The MACD of -0.31 indicates Negative momentum. The RSI at 47.48 is Neutral, neither overbought nor oversold. The STOCH value of 61.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HAL.

Halliburton Peers Comparison

Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
FTFTI
77
Outperform
$13.12B20.5827.24%0.64%
TSTS
76
Outperform
$20.10B10.4110.45%3.93%-15.28%-45.42%
BKBKR
74
Outperform
$37.44B12.9118.04%2.27%6.22%62.58%
SLSLB
72
Outperform
$48.65B12.1420.82%3.10%5.83%-2.03%
NONOV
71
Outperform
$4.82B8.569.29%2.34%0.54%-39.88%
HAHAL
70
Outperform
$17.94B8.9020.99%3.20%-2.54%-17.53%
57
Neutral
$7.18B3.26-3.67%5.68%0.47%-50.25%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HAL
Halliburton
20.87
-16.22
-43.73%
BKR
Baker Hughes Company
37.91
5.55
17.15%
FTI
TechnipFMC
31.19
4.41
16.47%
NOV
NOV
12.57
-6.05
-32.49%
SLB
Schlumberger
35.11
-11.87
-25.27%
TS
Tenaris SA
34.11
0.03
0.09%

Halliburton Earnings Call Summary

Earnings Call Date:Apr 22, 2025
(Q1-2025)
|
% Change Since: -4.79%|
Next Earnings Date:Jul 17, 2025
Earnings Call Sentiment Neutral
The earnings call highlights Halliburton's strong international contract wins and technological advancements, particularly in the Zeus IQ platform. However, these are offset by significant challenges in North America, particularly in Mexico, and the impact of the global trade environment and tariffs. The company remains committed to returning value to shareholders despite these challenges.
Q1-2025 Updates
Positive Updates
Solid International Contract Wins
Halliburton secured significant contracts in international markets, including work with Shell in Brazil, Suriname, and West Africa. These contracts highlight the company's technological capabilities and collaborative approach.
Strong Performance in Growth Engines
Halliburton's growth engines, including unconventional, artificial lift, intervention, and directional drilling, showed promising results. Notable achievements include the mobilization of Zeus equipment to the Middle East and the acquisition of Optime Subsea.
Zeus IQ Technological Advancement
The successful deployment of the Zeus IQ closed-loop autonomous fracturing operation marks a significant milestone in technology, enhancing productivity and asset performance.
Commitment to Shareholder Returns
Halliburton is on track to return at least $1.6 billion to shareholders through buybacks and dividends in 2025.
Negative Updates
Decline in North America Revenue
North America revenue decreased by 12% year-over-year, impacted by lower stimulation activity and decreased completion tool sales.
Significant Challenges in Mexico
International revenue decreased by 2% year-over-year, primarily due to a 19% decline in Latin America revenue driven by lower activity in Mexico.
Impact of Trade Environment and Tariffs
The dynamic trade environment and tariffs have introduced uncertainty into markets, impacting commodity prices and projected a $0.02 to $0.03 per share impact in the second quarter.
Decrease in Completion and Production Division Revenue
The Completion and Production division saw an 8% decrease in revenue and a 23% decrease in operating income compared to Q1 2024.
Company Guidance
During the first quarter of 2025, Halliburton reported a total company revenue of $5.4 billion and an adjusted operating margin of 14.5%. International revenue was $3.2 billion, a 2% decrease year-over-year, primarily due to reduced activity in Mexico, although excluding Mexico, international revenues grew by mid-single digits. North American revenue was $2.2 billion, down 12% compared to the first quarter of 2024. The company generated $377 million in cash flow from operations and $124 million in free cash flow, while repurchasing approximately $250 million of common stock. Halliburton anticipates flat to slightly down year-over-year international revenue, with Q1 international tender activity remaining robust, leading to significant contract awards extending through 2026. The company expects solid free cash flow in 2025, with plans to return at least $1.6 billion to shareholders through buybacks and dividends.

Halliburton Corporate Events

Business Operations and StrategyFinancial Disclosures
Halliburton Reports Q1 2025 Income Decline
Negative
Apr 22, 2025

In the first quarter of 2025, Halliburton reported a net income of $204 million, a decrease from $606 million in the same period in 2024, with revenues falling to $5.4 billion from $5.8 billion. Despite these declines, the company highlighted strong international tender activity and technological advancements, such as the world’s first closed-loop autonomous fracturing operation, which are expected to drive long-term success.

Spark’s Take on HAL Stock

According to Spark, TipRanks’ AI Analyst, HAL is a Outperform.

Halliburton demonstrates strong financial performance with efficient cash flow management and moderate leverage typical for its industry. The stock’s technical indicators suggest caution due to downward price momentum. Despite regional revenue challenges, particularly in North America, the company’s low P/E ratio and attractive dividend yield indicate potential undervaluation. The earnings call reflects a balanced outlook with growth opportunities in technology and international markets, although tempered by regional pricing pressures.

To see Spark’s full report on HAL stock, click here.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.