Halliburton (HAL) AI Stock Analysis

• Market Cap: $18.65B
• Dividend Yield: 3.05%
• Average Volume (3M): 13.13M
• Price to Earnings (P/E): 10.5
• Beta (1Y): 0.78
• Revenue Growth: -4.08%
• EPS Growth: -29.26%
• Country: US
• Employees: 48,000
• Sector: Energy
• Sector Strength: 56
• Industry: Oil & Gas Equipment & Services
• EPS (TTM): 0.55
• Shares Outstanding: 852,602,100
• 10 Day Avg. Volume: 9,212,765
• 30 Day Avg. Volume: 13,133,357
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.29
• Enterprise Value/Revenue: 1.08
• Enterprise Value/Gross Profit: 6.32
• Enterprise Value/Ebitda: 6.00
• 1Y Price Target: $27.33
• Price Target Upside: 22.56% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 16

• Rating: 75 Outperform
• Price Target: $25.00 ▲(12.11% Upside)

Halliburton's overall stock score reflects its strong financial performance and reasonable valuation, tempered by mixed technical signals and challenges in North America. The company's strategic focus on technology and cost management supports its resilience in a volatile market.

Positive Factors

Financial Performance

HAL’s reported 2Q FCF of $582mm beat Cons/BofA estimates.

Shareholder Returns

HAL expects to return at least $1.6B of cash to shareholders which implies a continued $250MM/q pace of share repurchase.

Technology and Innovation

HAL reiterated confidence in Zeus IQ; expects it to change the landscape in unconventionals by improving productivity and recovery rates.

Negative Factors

Market Outlook

Recent headlines surrounding the OPEC+ decision to speed up oil output hikes has put further pressure on the oil macro outlook, with North America activity most at-risk in the near term.

Pricing Pressure

HAL's 3Q guide was more meaningfully light driven by substantial weakness in MX and North America pricing pressure.

Revenue and Margins

Guidance for 3Q indicates a sequential decline of 1-3% in both C&P and D&E revenues with C&P margin to contract 150-200bps due to price weakness in US Frac.

Halliburton Business Overview & Revenue Model

Company Description

Halliburton Company (HAL) is one of the largest oil field services companies in the world, providing a wide range of services and products to the energy industry. The company operates in two main segments: Completion and Production, and Drilling and Evaluation. Halliburton offers services such as well construction, completion, production optimization, and reservoir evaluation, along with a variety of specialized products including cementing, stimulation, and formation evaluation technologies. With a global presence, Halliburton serves major oil and gas companies, independent operators, and a diverse range of customers in both offshore and onshore markets.

How the Company Makes Money

Halliburton generates revenue primarily through its oil field services, which include drilling, evaluation, and completion services. The company earns money by charging its clients for the provision of these services and products, with revenue streams coming from contracts for well construction, cementing, and hydraulic fracturing, among others. Key revenue streams are derived from both onshore and offshore operations, with a significant portion coming from the North American market. Additionally, Halliburton benefits from long-term partnerships with major oil companies and independent operators, which often lead to repeat business. Factors contributing to its earnings include fluctuations in oil and gas prices, technological advancements in drilling techniques, and the overall health of the energy sector.

Halliburton Financial Statement Overview

Summary

Halliburton's strong financial performance is underscored by robust profitability and effective cash management. Despite a slight dip in revenue, the company's EBIT and EBITDA margins remain healthy. The balanced leverage and strong cash flow metrics mitigate potential risks.

Income Statement

Halliburton demonstrates strong profitability with robust gross and net profit margins over the TTM. The Gross Profit Margin stands at approximately 9.4%, and the Net Profit Margin at 10.5%. Despite a slight dip in revenue compared to the previous year, the company has maintained healthy EBIT and EBITDA margins, indicating effective cost management and operational efficiency.

Balance Sheet

The company's balance sheet shows a moderate Debt-to-Equity Ratio of 0.81, reflecting a balanced leverage position. Return on Equity is strong at approximately 22.2%, demonstrating efficient utilization of shareholder funds. However, the Equity Ratio is 41.6%, suggesting a moderate reliance on debt financing, which could be a risk if not managed properly.

Cash Flow

The cash flow statements reveal a positive Free Cash Flow growth compared to prior years, and an Operating Cash Flow to Net Income Ratio of 1.53, indicating good cash generation relative to net earnings. The Free Cash Flow to Net Income Ratio is commendable at 0.92, showcasing effective cash management practices.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	22.23B	22.94B	23.02B	20.30B	15.29B	14.45B
Gross Profit	3.80B	4.30B	4.36B	3.31B	2.02B	1.54B
EBITDA	4.00B	4.76B	4.84B	3.54B	2.69B	-1.62B
Net Income	1.86B	2.50B	2.64B	1.57B	1.46B	-2.94B
Balance Sheet
Total Assets	25.38B	25.59B	24.68B	23.25B	22.32B	20.68B
Cash, Cash Equivalents and Short-Term Investments	2.04B	2.62B	2.26B	2.35B	3.04B	2.56B
Total Debt	8.56B	8.60B	8.81B	8.94B	10.22B	10.84B
Total Liabilities	14.83B	15.04B	15.25B	15.28B	15.59B	15.70B
Stockholders Equity	10.51B	10.51B	9.39B	7.95B	6.71B	4.97B
Cash Flow
Free Cash Flow	2.15B	2.42B	2.08B	1.23B	1.11B	1.15B
Operating Cash Flow	3.57B	3.87B	3.46B	2.24B	1.91B	1.88B
Investing Cash Flow	-1.92B	-1.65B	-1.66B	-967.00M	-534.00M	-486.00M
Financing Cash Flow	-1.70B	-1.73B	-1.67B	-1.80B	-838.00M	-1.01B

Halliburton Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 22.30
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HAL, the sentiment is Positive. The current price of 22.3 is above the 20-day moving average (MA) of 21.46, above the 50-day MA of 21.60, and below the 200-day MA of 24.01, indicating a neutral trend. The MACD of 0.10 indicates Negative momentum. The RSI at 58.07 is Neutral, neither overbought nor oversold. The STOCH value of 83.32 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HAL.

Halliburton Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FTI	82 Outperform	$14.90B	17.26	29.27%	0.55%	12.15%	91.88%
SLB	77 Outperform	$53.01B	12.21	19.78%	3.11%	0.94%	-4.63%
TS	76 Outperform	$19.32B	9.79	12.06%	4.61%	-12.06%	-21.43%
HAL	75 Outperform	$18.65B	10.45	18.16%	3.05%	-4.08%	-29.26%
BKR	74 Outperform	$43.80B	14.64	18.32%	2.02%	2.13%	54.69%
NOV	70 Outperform	$4.78B	10.81	7.31%	3.96%	-1.21%	-54.44%
Sector *	65 Neutral	$15.26B	7.31	3.02%	5.32%	4.27%	-62.52%

Halliburton Corporate Events

Halliburton Secures New $3.5 Billion Credit Agreement

On August 18, 2025, Halliburton entered into a new $3.5 billion Five Year Revolving Credit Agreement, replacing its previous 2022 Credit Agreement. This new agreement, which involves Citibank as the agent, is intended for general working capital purposes and is set to terminate on August 16, 2030. The transition to the 2025 Credit Agreement signifies Halliburton’s ongoing efforts to manage its financial resources effectively, potentially impacting its operational flexibility and financial stability.

Halliburton Reports Q2 2025 Financial Results

On July 22, 2025, Halliburton announced its financial results for the second quarter of 2025, reporting a net income of $472 million, or $0.55 per diluted share, and revenue of $5.5 billion. The company highlighted its technological innovations, including collaborations with Chevron and Nabors Industries, and new contracts in the UK and East Texas. Despite anticipating a softer oilfield services market in the short to medium term, Halliburton remains confident in its strategic growth areas and continues to focus on shareholder returns.

Halliburton Appoints New Chief Accounting Officer

On July 8, 2025, Charles E. Geer, Jr., Senior Vice President and Chief Accounting Officer of Halliburton, announced his resignation effective July 16, 2025, to pursue an opportunity outside the energy services industry. Subsequently, Halliburton appointed Stephanie Holzhauser as the new Senior Vice President and Chief Accounting Officer, effective the same date. Holzhauser, who has been with Halliburton for over 20 years, has held various roles of increasing responsibility within the company. Her appointment is part of Halliburton’s succession management process, reflecting her significant contributions and the company’s confidence in her leadership capabilities.