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Halliburton Co
HAL : NYSE : Basic Materials
$41.04 0.00 | 0.00%
Today's Range: 40.41 - 41.65
Avg. Daily Volume: 11,140,200
04/28/16 - 4:00 PM ET

Financial Analysis


HALLIBURTON CO's gross profit margin for the fourth quarter of its fiscal year 2015 has decreased when compared to the same period a year ago. Sales and net income fell significantly, but still managed to outperform when compared to the average company in its industry. HALLIBURTON CO is extremely liquid. Currently, the Quick Ratio is 2.88 which clearly shows the ability to cover any short-term cash needs. The company's liquidity has increased from the same period last year.

During the same period, stockholders' equity ("net worth") has remained virtually unchanged only decreasing by 4.94% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is very unlikely to face financial difficulties in the near future.

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Income Statement Q4 FY15 Q4 FY14
Net Sales ($mil)5082.08770.0
EBITDA ($mil)875.01873.0
EBIT ($mil)473.01316.0
Net Income ($mil)-28.0901.0


Balance Sheet Q4 FY15 Q4 FY14
Cash & Equiv. ($mil)10140.02347.0
Total Assets ($mil)36942.032240.0
Total Debt ($mil)15346.07854.0
Equity ($mil)15462.016267.0


Profitability Q4 FY15 Q4 FY14
Gross Profit Margin18.2621.97
EBITDA Margin17.2121.35
Operating Margin9.3115.01
Sales Turnover0.641.02
Return on Assets-1.8110.85
Return on Equity-4.321.12
Debt Q4 FY15 Q4 FY14
Current Ratio4.032.56
Debt/Capital0.50.33
Interest Expense142.0103.0
Interest Coverage3.3312.78


Share Data Q4 FY15 Q4 FY14
Shares outstanding (mil)856.0848.0
Div / share0.180.18
EPS-0.031.06
Book value / share18.0619.18
Institutional Own % n/a n/a
Avg Daily Volume1.1725484E71.2243759E7

Valuation


HOLD. The current P/E ratio is negative, which has no meaningful value in the assessment of premium or discount valuation, it simply displays that the company has negative earnings. Conducting a second comparison, its price-to-book ratio of 2.23 indicates a discount versus the S&P 500 average of 2.76 and a premium versus the industry average of 2.00. The price-to-sales ratio is below the S&P 500 average and is well below the industry average, indicating a discount. After reviewing these and other key valuation criteria, HALLIBURTON CO proves to trade at a premium to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
HAL NM Peers 54.42   HAL 11.88 Peers 8.69

Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings.

HAL's P/E is negative making this valuation measure meaningless.

 

Premium. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

HAL is trading at a significant premium to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
HAL 38.41 Peers 142.75   HAL NA Peers 0.12

Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.

HAL is trading at a significant premium to its peers.

 

Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

Ratio not available.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
HAL 2.23 Peers 2.00   HAL -119.35 Peers -109.92

Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

HAL is trading at a premium to its peers.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, HAL is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
HAL 1.46 Peers 2.18   HAL -28.11 Peers -28.64

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

HAL is trading at a significant discount to its industry on this measurement.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

HAL significantly trails its peers on the basis of sales growth

 

 

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