Halliburton (HAL) AI Stock Analysis

• Market Cap: $17.94B
• Dividend Yield: 3.2%
• Average Volume (3M): 15.46M
• Price to Earnings (P/E): 8.9
• Beta (1Y): 0.85
• Revenue Growth: -2.54%
• EPS Growth: -17.53%
• Country: US
• Employees: 48,000
• Sector: Energy
• Sector Strength: 45
• Industry: Oil & Gas Equipment & Services
• EPS (TTM): 0.60
• Shares Outstanding: 859,715,000
• 10 Day Avg. Volume: 14,709,231
• 30 Day Avg. Volume: 15,464,759
• PEG Ratio: -0.55
• Price to Book (P/B): 1.72
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 7.57
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $29.00
• Price Target Upside: 41.60% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 16

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 Business Overview & Revenue Model

Company Description

Halliburton 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 Money

Halliburton 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

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

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

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
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
22.56B	22.94B	23.02B	20.30B	15.29B	14.45B
	Gross Profit
4.10B	4.30B	4.36B	3.31B	2.04B	1.54B
	EBIT
3.27B	3.82B	4.08B	2.71B	1.80B	1.36B
	EBITDA
4.32B	4.76B	4.84B	3.54B	2.69B	-1.62B
	Net Income Common Stockholders
2.10B	2.50B	2.64B	1.57B	1.46B	-2.94B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.80B	2.62B	2.26B	2.35B	3.04B	2.56B
	Total Assets
25.18B	25.59B	24.68B	23.25B	22.32B	20.68B
	Total Debt
8.57B	8.60B	8.81B	8.94B	10.22B	10.84B
	Net Debt
6.77B	5.98B	6.54B	6.60B	7.17B	8.27B
	Total Liabilities
14.77B	15.04B	15.25B	15.28B	15.59B	15.70B
	Stockholders Equity
10.37B	10.51B	9.39B	7.95B	6.71B	4.97B
Cash Flow		Free Cash Flow
2.34B	2.42B	2.08B	1.23B	1.11B	1.15B
	Operating Cash Flow
3.75B	3.87B	3.46B	2.24B	1.91B	1.88B
	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 Price: 20.48
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 20.48 is below the 20-day moving average (MA) of 20.54, below the 50-day MA of 22.26, and below the 200-day MA of 26.86, indicating a bearish trend. The MACD of -0.31 indicates Negative momentum. The RSI at 44.50 is Neutral, neither overbought nor oversold. The STOCH value of 52.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HAL.

Halliburton Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FTI	77 Outperform	$13.08B	66.09	27.24%	0.64%	―	―
TS	76 Outperform	$19.46B	10.41	10.45%	3.93%	-15.28%	-45.42%
BKR	74 Outperform	$37.56B	12.91	18.04%	2.27%	6.22%	62.58%
SLB	72 Outperform	$47.76B	11.91	20.82%	3.16%	5.83%	-2.03%
NOV	71 Outperform	$4.72B	8.38	9.29%	2.39%	0.54%	-39.88%
HAL	70 Outperform	$17.94B	8.90	20.99%	3.20%	-2.54%	-17.53%
Sector *	57 Neutral	$7.13B	3.45	-3.67%	5.68%	0.46%	-50.35%

Halliburton Corporate Events

Halliburton Reports Q1 2025 Income Decline

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.