Halliburton Co

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HAL : NYSE : Basic Materials
$42.53 -1.30 | -3.00%
Today's Range: 42.57 - 43.48
Avg. Daily Volume: 10,199,100
07/25/16 - 12:25 PM ET

Financial Analysis


Sales and net income fell significantly; although net income growth outperformed the average competitor in its industry, revenue growth did not. HALLIBURTON CO has strong liquidity. Currently, the Quick Ratio is 1.75 which shows the ability to cover short-term cash needs. The company's liquidity has increased from the same period last year.

At the same time, stockholders' equity ("net worth") has significantly decreased by 37.94% from the same quarter last year. The key liquidity measurements indicate that the company is unlikely to face financial difficulties in the near future.

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Income Statement Q2 FY16 Q2 FY15
Net Sales ($mil)3835.05919.0
EBITDA ($mil)0.01099.0
EBIT ($mil)0.0643.0
Net Income ($mil)-3208.054.0


Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)3108.02818.0
Total Assets ($mil)27737.030606.0
Total Debt ($mil)12921.07838.0
Equity ($mil)9734.015685.0


Profitability Q2 FY16 Q2 FY15
Gross Profit Margin0.019.29
EBITDA Margin0.018.56
Operating Margin0.010.86
Sales Turnover0.670.99
Return on Assets-20.554.95
Return on Equity-58.559.26
Debt Q2 FY16 Q2 FY15
Current Ratio2.813.04
Debt/Capital0.570.33
Interest Expense0.0110.0
Interest Coverage0.05.85


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)858.0854.0
Div / share0.180.18
EPS-3.730.06
Book value / share11.3518.37
Institutional Own % n/a n/a
Avg Daily Volume1.0205958E71.1611467E7

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. For additional comparison, its price-to-book ratio of 3.84 indicates a premium versus the S&P 500 average of 2.81 and a premium versus the industry average of 2.65. The price-to-sales ratio is similar to the S&P 500 average, but it is significantly 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 36.58   HAL NM Peers 11.48

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.

 

Neutral. 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's P/CF is negative making the measure meaningless.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
HAL 51.22 Peers 78.27   HAL NA Peers 0.17

Neutral. The absence of a valid price-to-projected earnings ratio happens when a stock can not be valued on the basis of a negative expected future earnings.

HAL's ratio is negative making this valuation measure meaningless.

 

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 3.84 Peers 2.65   HAL -490.00 Peers -202.07

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 significant 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 2.00 Peers 2.57   HAL -38.58 Peers -33.46

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 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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