Halliburton Company (HAL)
Valuation Overview•Is Halliburton Company Overvalued or Undervalued?
Trading at a discount to intrinsic cash flow value, implying pessimistic long-term market expectations.
Moderate quality score of 51/100, reflecting stable operating margins and manageable leverage.
Analysts remain bullish, forecasting further upside expansion with consensus targets suggesting solid gains.
Verdict: Average quality business weighed down by significant growth concerns.
Wall Street is broadly bullish, projecting solid upside alongside robust expected earnings growth. This outlook is strongly supported by highly attractive capital returns, driven by a balanced mix of reliable dividends and share buybacks.
HAL demonstrates adequate business quality with stable profitability. This is paired with a moderately leveraged but stable balance sheet.
The company exhibits steady, low-single-digit revenue growth however, earnings have severely contracted over the same period. Operating efficiency remains adequate with margins around 11.3%.
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $5.4B | -3.3% | +3.0% | +9.0% | -0.6% | |
| EBITDA | $679.0M | — | -2.3% | — | — | |
| Net Income | $461.0M | -48.7% | -6.5% | — | — | |
| EPS (Diluted) | $0.55 | -47.0% | -4.6% | — | — | |
| Free Cash Flow | $81.0M | -31.0% | +10.7% | +7.7% | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 15.3% | 17.8% | 16.5% | 12.9% |
| Operating Margin | 11.3% | 14.9% | 13.9% | 2.5% |
| Net Margin | 6.9% | 9.4% | 9.1% | -1.2% |
| FCF Margin | 7.6% | 9.0% | 8.1% | 4.7% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q2'26Latest | $0.50 | $0.55 | +10.3% | ||
| Q1'26 | $0.55 | $0.69 | +25.2% | ||
| Q4'25 | $0.50 | $0.58 | +16.3% | ||
| Q3'25 | $0.55 | $0.55 | -0.4% | ||
| Q2'25 | $0.60 | $0.60 | -0.3% | ||
| Q1'25 | $0.73 | $0.70 | -4.1% | ||
| Q4'24 | $0.75 | $0.73 | -2.7% | ||
| Q3'24 | $0.80 | $0.80 | +0.0% |
Total return is +59.8% (1Y), outperforming the benchmark by +34.8%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | +19.2% | +9.9% | — |
| 1Y | +59.8% | +34.8% | +3.1% |
| 3YCAGR | +5.5% | -12.8% | +6.4% |
| 5YCAGR | +11.5% | -1.0% | +13.2% |
| 10YCAGR | -0.7% | -14.1% | — |
The S&P 500 is at 31.3x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about Halliburton Company (HAL) valuation, health, and returns.
Halliburton Company is estimated to be undervalued under our discounted cash flow framework. relative multiples indicate the stock is Fair versus peers compared to industry peers. undervalued (implying +49.2% upside to DCF intrinsic value of $52.12)
Halliburton Company has multiple valuation anchors: DCF Intrinsic Value: $52.12 | Peer Relative Fair Value: $33.34 | Wall Street Analyst Target: $39.64 (implying +13.5% upside). A convergence of these signals offers higher conviction.
Halliburton Company displays fair financial health with a composite quality score of 51/100, supported by a Altman Z-Score of 3.1 (safe zone), Piotroski F-Score of 5/9, Return on Invested Capital (ROIC) of 10.2%.
Halliburton Company pays a 2.0% dividend yield, covered by a 45% payout ratio with 0 years of growth, supplemented by a 3.5% buyback yield.
Halliburton Company's current growth trajectory is Decelerating. The company achieved -3.3% 1Y revenue growth and -47.0% 1Y EPS growth, compared to its 3Y revenue CAGR of +3.0%.
Wall Street consensus is Buy based on 64 analysts, beating EPS expectations in 58% of recent quarters with a 3-quarter streak. The consensus price target represents a +13.5% change from current levels.
Investment risks for Halliburton Company include: -18.7% 1-year max drawdown. Volatility risk is characterized by a beta of 0.39x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.