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RISK CONCERN
Investment Strategy, Risk Analysis, and Insights by Chartered Professionals
Halliburton Company (XNYS:HAL) In-Depth Stock/Fundamental/Options Analysis Today
Primary Facts
HAL
Name:
HALLIBURTON COMPANY (XNYS:HAL)
Sector:
- 239000.00K
Industry:
Oil & Gas Equipment & Services
CEO:
Mr. Jeffrey Miller
Total Employees:
40,000
Our Technological Advancement Rating
Our Rating:
A
Technological advancement compared to industry is 358.35% higher
ANALYSIS OF ALL CRITICAL FACTORS & RISKS RELATED TO THE STOCK & FUNDAMENTAL/LONG-TERM ANALYSIS OF HALLIBURTON COMPANY(HAL) AS PER DATA ANALYSIS OF LAST 3 YEARS AND COMPARISON WITH COMPETITORS/PEERS, AND OIL & GAS EQUIPMENT & SERVICES INDUSTRY. DATE: 07/09/2022
Primary Targets/Price Insights
Previous Close ($) :
29.89
One Month Price Target:
$30.24
Six Month Price Target :
$32.
Likely Price in One Year's Time:
Ticker:
$34.12
Likely Trading Range Today Under (Normal Volatility)
$29.71
Price Upper limit ($) :
$30.14
Price Lower limit ($) :
Crash Risk Prep/Key Price Levels (High Volatility/Risk)
Price, as per data analysis, isn't likely to fall below:
Today:
$27.32
This week:
$24.15
This month :
$18.41
Other Primary facts
Market Cap:
27.22B
Market Cap Classification:
Large Cap
Number of Shares
IPO Date:
906.94M
Best/Worst Daily Performance (Last 3+ Years)
Highest Daily Appreciation:
26.53%
-37.64%
Worst Daily Decline:
Our Options Trading Entry Points
Iron Condor entry points for options expiring in 1 week's time
Low risk (<2%) entry points
Buy Call:
Sell Call:
Buy Put:
Sell Put:
$41.80
$36.30
$17.98
$23.48
Medium risk (<10%) entry points
Buy Call
Sell Call
$34.51
Buy Put:
Sell Put:
$33.33
$25.26
$26.45
These entry points can be used for other strategies, such as butterflies, straddles, etc.
Risk-Adjusted returns (Sharpe Ratio) of
HAL
Sharpe Ratio:
2.86%
Comparison:
HAL, is amongst the top 40% stocks with highest risk-adjusted returns
Sharpe ratio is 89.01% higher than the industry
& ratio is 25.29% higher than the market/S&P 500 average
Average Returns/Yield of
HAL
Daily returns:
0.13%
Weekly returns:
0.65%
Monthly returns:
2.60%
Yearly returns:
19.19%
Comparison of returns:
Average annual returns/yield (last 3 years) is 62.74% above industry average
Classification:
HAL, is amongst the top 20% highest yielding stocks in terms of daily returns
Results of T-Test of Returns:
0.79
Statistical test of Returns:
HAL has not yielded statistically significant higher returns when compared to the market
Volatility (measured by Standard Deviation)
Daily Volatility:
4.25%
Weekly Volatility:
9.49%
Monthly Volatility:
18.99%
Yearly Volatility:
65.78%
Volitlilty of last five days (Measured by Standard Deviation)
Average Volatility of this Week:
3.87%
Volatility in last five trading days has been -8.90% below long-term volatility
Value at Risk Analysis (VaR)
Daily VaR:
-8.59%
Weekly VaR:
-19.21%
Monthly VaR:
-38.42%
How Much Can the price of
HAL
Decline in a Recession?
Likely price decline in a recession:
Base case (decline):
-32%
Worst case (decline):
>85%
This translates to price declining to:
$20.18
This translates to price declining to:
$4.48
Severe Crash Probability
Risk of crash in next 6/12 months: Very high (>70%)
What is Value at Risk (VaR)?
Risk Fundamentals
HAL is a 171.14% riskier investment compared to the market/S&P 500 & is 132.29% riskier than Nasdaq (IXIC)
Risk (measured by volatility) is -1.03% below industry average
Overall, it is amongst the top 50% most risky stocks
Beta Examination of
HAL
Beta in relation to market/S&P 500--2.11
Expected beta in 1 year's time:
1.199
Expected beta in 3 year's time:
1.696
Unlevered (debt free) Beta:
0.833
Beta in relation to Nasdaq (XNAS):
1.027
Beta in relation to all global stocks::
1.249
Beta Comparison & Analysis
Beta of competitors/peers::
1.523
Beta is 38.30% higher than peers
Average Industry Beta:
23.957
Beta is -91.21% below industry average
Sustainable Growth Rate Analysis
Sustainable growth rate for this stock/firm:
22.55%
Sustainable growth rate is 151.86% above industry average
Alpha provided | Alpha Analysis
Alpha provided:
0.137
Alpha is -109.22% below industry average alpha yield
Alpha is 869% higher than market/& is unsustainably high
Analysis of Cost of Capital of
HAL
Equity cost of capital:
0.176
Equity cost of capital is -89.49% below industry mean WACC
Unlevered (without debt) cost of capital:
6.95%
Before-tax cost of debt:
5.21%
After-tax cost of debt:
4.11%
Overall debt rating:
Lower BB medium grade (Fifth highest grade)
Weighted average cost of capital (WACC):
4.11%
WACC is -87.01% below industry mean WACC
Key Per-Share Metrics & Analysis
Revenue per share:
$17.78
Revenue growth rate per share of (3Y):
3.85
Annual revenue growth rate is -135.61% below industry average
EPS:
$1.73
Expected Annual growth rate of EPS (3Y):
0.00%
-
Free cash flow (FCF) per share:
$0.86
Balance sheet equity growth per share: -74.99%
Equity growth rate per share is 22.84% higher than the industry
Debt per share
$10.30
EBITDA per share
$3.04
Valuation Analysis Today of
HAL
P/E Ratio:
18.73
P/E Ratio of Competitors/Peers:
21.6
P/E ratio is -13.30% lower than main peers & is -26.30% lower than the industry
Stock price/value with industry average P/E ratio: $43.96
HAL is -32.01% undervalued if valued using industry average P/E ratio
Share value as per dividend discount (DDM) model: $19.36
Present value of the expected future dividends only: $4.29
P/S (Price to Sales ratio):
1.68
Price to sales ratio is 10.41% above the industry mean
P/B (Price to book value ratio):
3.85
Price to free cash flow: 34.79
Price to free cash flow ratio is 4.33% higher than the industry
Net income growth rate (3Y):
-13.89%
Net income growth rate is -116.60% lower than the industry average net income growth rate
Dividend Analysis
Dividend payout rate: 6.97%
Dividend yeild: 1.10%
Previous Dividend: $0.12
Previous adjusted dividend: $0.12
Previous Dividend: $0.33
Expected next dividend best case: $0.17
Expected next dividend worst case: $0.07
Average dividend payment (long-term): $0.08
Average dividend increase/decrease (growth rate) % per period: 9.17%
Expected next dividend payment date: 20/09/2022
Expected next dividend record date: 30/08/2022
-
Previous dividend payment date: 22/06/2022
Previous dividend record date: 06/01/2022
-
Dividend History:
2022-05-31--$0.12
2021-12-08--$0.05
2021-06-01--$0.05
2022-03-01--$0.12
2021-08-31--$0.05
2021-03-02--$0.05
Dividend growth rate is -127.81% lower than the industry average
In-depth Debt & Leverage Analysis
Debt to equity ratio:
133.18%
Net debt to equity ratio:
105.86%
Debt to assets ratio:
42.34%
Net debt to assets ratio:
33.65%
Debt-to-asset ratio is -23.47% below industry average
Ability to repay debt:
Interest coverage ratio:
5.53
Interest coverage ratio is 83.41% more than industry average
Looking forward:
Debt growth rate:
-5.69%
Annual debt growth is -107% lower than industry average debt growth rate
Debt repayment rate in last quarter: 6.41%
Analysis of Key Statistics
Correlation of price movement with the market:
0.577
Statistical significance of correlation:
HAL has a statistically significant correlation with the market
Average Correlation of the industry with the market:
0.416
Stock price is 38.63% more correlated with the market, compared to the industry average correlation
R Squared (percentage of price movement explained by movement of the market):
0.416
Correlation of price movement with Nasdaq (^IXIC):
0.041
Covariance of price movement with the market:
0.1
Kurtosis
14.094
Returns have severe fat-tails (leptokurtic), i.e., returns considerably higher or lower than the mean returns are considerably more likely, compared to assets with normally distributed returns
Skewness of returns:
-0.871
Returns are left (negative) skewed; mean returns are lower than median and mode returns
Fundamental Analysis & Dupont Analysis of
HAL
Gross Profit Margin Ratio:
54%
Operating Profit Margin Ratio:
12.03%
Operating profit margin is -586.09% lower than the industry
Net Profit Margin Ratio:
54%
Effective Tax Rate:
-14.70%
Effective tax rate is -131.37% lower than the industry
Dupont Method
Net Profit Margin
Return on Equity Ratio (ROE):
×
ROA
=
×
22.09%
Return on equity (ROE) is -161.74% lower than the industry
Financial Leverage
Asset Turnover Ratio (ROA):
7.02%
Return on assets (ROA) is -252.65% lower than the industry
Financial Leverage:
1.7x
Current Ratio:
2.19
Current ratio is -5.56% below industry average
Cash Conversion Cycle (days):
38.8
Cash conversion cycle is -39.62% below industry average
The remaining useful life of property plant & equipment is: 11.0 years
Stock based compensation to net income ratio:
-
In-depth Efficiency Analysis
Revenue generated per employee:
403.2K
Each employee generates 52% more revenue than industry average revenue per employee
EBITDA generated per employee:
69.0K
Each employee generates 100% more EBITDA than industry average revenue per employee
Profit generated per employee:
38.8K
Each employee generates 652% more net income/profit than industry average revenue per employee
Free cash flow (FCF) generated per employee:
- 6.0K
Each employee generates 36% more free cash flow than industry average revenue per employee
Assets/Capital per employee
308.9K
Each employee generates 36% more free cash flow than industry average revenue per employee
Research & Development (R&D) Analysis
-
-
Competitors/Peer firms of
HAL
BAKER HUGHES COMPANY (XNAS:BKR)
HESS CORPORATION (XNYS:HES)
Ecopetrol SA (XNYS:EC)
ONEOK, INC. (XNYS:OKE)
CONTINENTAL RESOURCES, INC. (XNYS:CLR)
Coterra Energy Inc. (XNYS:CTRA)
PEMBINA PIPELINE CORPORATION (XNYS:PBA)
ENERGY TRANSFER UNT (XNYS:ET)
OCCIDENTAL PETROLEUM CORPORATION (XNYS:OXY)
Current Analyst Ratings
Strong buy�46%
Buy�96%
Hold�13%
Sell�4%
Strong sell�0%
Overall analyst sentiment is: Buy
Income Statement
Period:
TTM
Date:
3/31/22
Revenue:
16.13B
Cost of Revenue:
Gross Profit:
R&D Expense
General & Admin Expenses:
Selling, General & Admin Expenses
Sales and Marketing Expenses
Other Expenses :
Operating Expenses :
Cost & Expenses :
Interest Income:
Interest Expenses:
Depreciation & Amortization:
EBITDA:
Operating Income:
Other Income Expenses:
Income Before Tax:
Income Tax Expense:
Net Income:
Balance Sheet
Date:
Calendar Year:
Period:
Cash & Cash Equivalents:
Short Term Investments:
Cash & Short Term Investments:
Net Receivables:
Inventory:
Other Current Assets:
Total Current Assets:
PP&E:
Goodwill:
Intangible Assets:
Long Term Investments:
Tax Assets:
Other Non-Current Assets:
Total Non-Current Assets:
Other Assets:
Total Assets:
Accounts Payable:
Short Term Debt:
Tax Payables:
Deferred Revenue:
Other Current Liabilities:
Total Current Liabilities:
Long Term Debt:
Other Non-Current Liabilities:
Total Non Current Liabilities:
Other Liabilities:
Total Liabilities:
Common Stock:
Retained Earnings:
Accumulated Other Comprehensive Loss:
Other Total Stockholders' Equity:
Total Stockholders' Equity:
Total Liabilities and Stockholders' Equity:
Total Investments:
Total Debt:
Net Debt:
13.94B
2.19B
-
163.00M
208.00M
-
43.00M
251.00M
48.00M
499.00M
910.00M
2.76B
1.94B
1.55B
1.36B
- 200000.00K
1.55B
Statement of Cash Flow
Date:
Period:
-
Differed Income Tax :
-
Stock Based Compensation :
-
Change in Working Capital :
- 386000.00K
Accounts Receivables:
-
Other Working Capital:
-
Other Non-Cash Items:
72.00M
Net Cash Provided by Operating Activities:
- 50000.00K
Investments in PP&E:
-
Net Acquisitions:
-
Purchases of Investments:
-
Sales/Maturities of Investments:
Other Investing Activities:
Net Cash Used for Investing Activities:
Debt Repayment:
Common Stock Issued:
Common Stock Repurchased:
Dividend Paid:
Other Financing Activities:
Net Cash Used Provided by Financing Activities:
Effect of FOREX on Changes in Cash:
Net Changes in Cash:
Cash at End of Period:
Cash at Beginning of Period:
Operating Cash Flow:
Capital Expenditure:
Free Cash Flow (FCF):
3/31/22
2022
Q1
2.15B
-
2.15B
4.03B
2.58B
959.00M
9.72B
5.18B
2.85B
-
-
2.74B
1.58B
12.36B
-
22.07B
2.56B
237.00M
534.00M
-
1.65B
4.44B
9.35B
1.25B
10.60B
-
15.04B
2.67B
9.78B
- 178000.0K
-
March 31, 2022 at 6:00:00 AM
14.19B
7.02B
22.06B
-
9.58B
7.4B
-
- 155000.00K
- 155000.00K
- 640000.00K
-
-
- 108000.00K
80.00M
- 668000.00K
- 17000.00K
- 890000.00K
2.15B
3.04B
- 50000.00K
- 189000.00K
- 239000.00K
Our Proprietary Portfolio Rating
Our Rating:
A+
Price Forecast/Expected Price in Next 5 Years of
HAL
2023
2024
2025
2026
2027
$38.77
$44.26
$50.52
$57.67
$65.83