Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.
Operating Margin13.9%
Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.
Net Income Margin5.8%
Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.
Financial Health
D
Years to Pay Off Debt6.3 yrs
Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.
Working Capital vs Long-Term Debt-$1.3B
Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.
Working Capital$5.8B
Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.
Valuation
N/A
Cash Flow
C
Free Cash Flow$1.7B
Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.
CapEx % of Net Income97.7%
Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.
Owner Earnings$3.7B
Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.
Metric Explanations
What each dimension measures and where the thresholds come from.
Gross Profit Margin
Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.
Operating Margin
Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.
Net Income Margin
Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.
Years to Pay Off Debt
Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.
Working Capital vs Long-Term Debt
Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.
Working Capital
Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.
Free Cash Flow
Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.
CapEx % of Net Income
Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.
Owner Earnings
Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.
Market Data
Key Margins
Gross Profit15.7%
Operating Margin13.9%
Net Margin5.8%
Company Info
Showing Key Metrics
Income Highlights
Metric
2025
2024
2023
2022
2021
Gross Profit %
15.7%▼
18.7%▼
18.9%▲
16.3%•
N/A
Operating Margin %
13.9%▼
17.2%▼
17.7%▲
15.1%•
N/A
Net Income %
5.8%▼
10.9%▼
11.5%▲
7.7%•
N/A
Diluted EPS
1.50▼
2.83▼
2.92▲
1.74•
N/A
Balance Sheet Highlights
Metric
2025
2024
2023
2022
2021
Total Assets
$25.0B
$25.6B
$24.7B
$23.3B
N/A
Total Debt
$8.1B▼
$8.6B▼
$8.8B▼
$8.9B•
N/A
Working Capital
$5.8B▼
$6.3B▲
$5.9B▲
$5.6B•
N/A
Years to Pay Debt
6.34
3.44
3.34
5.69
N/A
Cash Flow Highlights
Metric
2025
2024
2023
2022
2021
Free Cash Flow
$1.7B▼
$2.4B▲
$2.1B▲
$1.2B•
N/A
Owner Earnings
$3.7B
$5.0B
$5.0B
$3.5B
N/A
CapEx % of Net Income
97.7%
57.7%
52.3%
64.3%
N/A
Income Statement
2025
2024
2023
2022
2021
Tax Effect Of Unusual Items
-226,800
-27,528
-50,128
-106,872
Tax Rate For Calcs
0
0
0
0
Normalized EBITDA
4,099,000
4,790,000
4,997,000
3,980,000
Total Unusual Items
-840,000
-124,000
-241,000
-438,000
Total Unusual Items Excluding Goodwill
-840,000
-124,000
-241,000
-438,000
Net Income From Continuing Operation Net Minority Interest
1,283,000
2,501,000
2,638,000
1,572,000
Reconciled Depreciation
1,136,000
1,079,000
998,000
940,000
Reconciled Cost Of Revenue
18,700,000
18,643,000
18,658,000
16,984,000
EBITDA
3,259,000
4,666,000
4,756,000
3,542,000
EBIT
2,123,000
3,587,000
3,758,000
2,602,000
Net Interest Income
-352,000
-353,000
-395,000
-463,000
Interest Expense
352,000
353,000
395,000
492,000
Interest Income
97,000
81,000
29,000
9,000
Normalized Income
1,896,200
2,597,472
2,828,872
1,903,128
Net Income From Continuing And Discontinued Operation
1,283,000
2,501,000
2,638,000
1,572,000
Total Expenses
19,093,000
19,006,000
18,935,000
17,224,000
Total Operating Income As Reported
2,260,000
3,822,000
4,083,000
2,707,000
Diluted Average Shares
853,000
883,000
902,000
908,000
Basic Average Shares
853,000
882,000
899,000
904,000
Diluted EPS
0
0
0
0
Basic EPS
0
0
0
0
Diluted NI Availto Com Stockholders
1,283,000
2,501,000
2,638,000
1,572,000
Net Income Common Stockholders
1,283,000
2,501,000
2,638,000
1,572,000
Net Income
1,283,000
2,501,000
2,638,000
1,572,000
Minority Interests
-9,000
-15,000
-24,000
-23,000
Net Income Including Noncontrolling Interests
1,292,000
2,516,000
2,662,000
1,595,000
Net Income Continuous Operations
1,292,000
2,516,000
2,662,000
1,595,000
Tax Provision
479,000
718,000
701,000
515,000
Pretax Income
1,771,000
3,234,000
3,363,000
2,110,000
Other Income Expense
-968,000
-351,000
-325,000
-500,000
Other Non Operating Income Expenses
-128,000
-227,000
-84,000
-62,000
Special Income Charges
-831,000
-116,000
0
-408,000
Other Special Charges
42,000
Write Off
193,000
4,000
0
196,000
Impairment Of Capital Assets
339,000
49,000
0
170,000
Restructuring And Mergern Acquisition
299,000
63,000
0
0
Gain On Sale Of Security
-9,000
-8,000
-241,000
-30,000
Net Non Operating Interest Income Expense
-352,000
-353,000
-395,000
-463,000
Interest Expense Non Operating
352,000
353,000
395,000
492,000
Interest Income Non Operating
97,000
81,000
29,000
9,000
Operating Income
3,091,000
3,938,000
4,083,000
3,073,000
Operating Expense
393,000
363,000
277,000
240,000
Other Operating Expenses
154,000
124,000
51,000
Depreciation Amortization Depletion Income Statement
0
36,000
Depreciation And Amortization In Income Statement
0
36,000
Depreciation Income Statement
0
36,000
Selling General And Administration
239,000
239,000
226,000
240,000
General And Administrative Expense
239,000
239,000
226,000
240,000
Other Gand A
239,000
239,000
226,000
240,000
Gross Profit
3,484,000
4,301,000
4,360,000
3,313,000
Cost Of Revenue
18,700,000
18,643,000
18,658,000
16,984,000
Total Revenue
22,184,000
22,944,000
23,018,000
20,297,000
Operating Revenue
22,184,000
22,944,000
23,018,000
20,297,000
Balance Sheet
2025
2024
2023
2022
2021
Treasury Shares Number
229,000
197,000
176,000
164,000
Ordinary Shares Number
834,602
868,000
889,052
902,000
Share Issued
1,063,602
1,065,000
1,065,052
1,066,000
Net Debt
4,952,000
4,923,000
5,372,000
5,582,000
Total Debt
8,133,000
8,602,000
8,809,000
8,943,000
Tangible Book Value
7,523,000
7,668,000
6,541,000
5,119,000
Invested Capital
17,619,000
18,047,000
17,027,000
15,876,000
Working Capital
5,810,000
6,332,000
5,935,000
5,607,000
Net Tangible Assets
7,523,000
7,668,000
6,541,000
5,119,000
Capital Lease Obligations
975,000
1,061,000
1,173,000
1,015,000
Common Stock Equity
10,461,000
10,506,000
9,391,000
7,948,000
Total Capitalization
17,619,000
17,666,000
17,027,000
15,876,000
Total Equity Gross Minority Interest
10,505,000
10,548,000
9,433,000
7,977,000
Minority Interest
44,000
42,000
42,000
29,000
Stockholders Equity
10,461,000
10,506,000
9,391,000
7,948,000
Gains Losses Not Affecting Retained Earnings
-363,000
-353,000
-331,000
-230,000
Other Equity Adjustments
-363,000
-353,000
-331,000
-230,000
Treasury Stock
6,983,000
6,214,000
5,540,000
5,108,000
Retained Earnings
15,036,000
14,332,000
12,536,000
10,572,000
Additional Paid In Capital
112,000
79,000
63,000
50,000
Capital Stock
2,659,000
2,662,000
2,663,000
2,664,000
Common Stock
2,659,000
2,662,000
2,663,000
2,664,000
Total Liabilities Net Minority Interest
14,505,000
15,039,000
15,250,000
15,278,000
Total Non Current Liabilities Net Minority Interest
8,917,000
8,989,000
9,642,000
9,933,000
Other Non Current Liabilities
619,000
617,000
687,000
806,000
Employee Benefits
428,000
414,000
408,000
408,000
Long Term Debt And Capital Lease Obligation
7,870,000
7,958,000
8,547,000
8,719,000
Long Term Capital Lease Obligation
712,000
798,000
911,000
791,000
Long Term Debt
7,158,000
7,160,000
7,636,000
7,928,000
Current Liabilities
5,588,000
6,050,000
5,608,000
5,345,000
Other Current Liabilities
759,000
729,000
750,000
723,000
Current Debt And Capital Lease Obligation
263,000
644,000
262,000
224,000
Current Capital Lease Obligation
263,000
263,000
262,000
224,000
Current Debt
381,000
7,000
Other Current Borrowings
381,000
7,000
Pensionand Other Post Retirement Benefit Plans Current
767,000
711,000
689,000
634,000
Payables And Accrued Expenses
3,799,000
3,966,000
3,907,000
3,764,000
Payables
3,799,000
3,966,000
3,907,000
3,764,000
Total Tax Payable
666,000
777,000
760,000
643,000
Income Tax Payable
375,000
449,000
390,000
294,000
Accounts Payable
3,133,000
3,189,000
3,147,000
3,121,000
Total Assets
25,010,000
25,587,000
24,683,000
23,255,000
Total Non Current Assets
13,612,000
13,205,000
13,140,000
12,303,000
Other Non Current Assets
2,177,000
1,893,000
1,797,000
1,577,000
Non Current Deferred Assets
2,298,000
2,339,000
2,505,000
2,636,000
Non Current Deferred Taxes Assets
2,298,000
2,339,000
2,505,000
2,636,000
Goodwill And Other Intangible Assets
2,938,000
2,838,000
2,850,000
2,829,000
Goodwill
2,938,000
2,838,000
2,850,000
2,829,000
Net PPE
6,199,000
6,135,000
5,988,000
5,261,000
Accumulated Depreciation
-12,616,000
-12,461,000
-12,064,000
-11,660,000
Gross PPE
18,815,000
18,596,000
18,052,000
16,921,000
Other Properties
938,000
1,022,000
1,088,000
913,000
Machinery Furniture Equipment
16,076,000
15,704,000
15,121,000
14,220,000
Buildings And Improvements
1,697,000
1,751,000
1,724,000
1,671,000
Land And Improvements
104,000
119,000
119,000
117,000
Current Assets
11,398,000
12,382,000
11,543,000
10,952,000
Other Current Assets
1,274,000
1,607,000
1,193,000
1,056,000
Inventory
2,976,000
3,040,000
3,226,000
2,923,000
Finished Goods
1,968,000
1,956,000
2,069,000
1,859,000
Work In Process
124,000
132,000
136,000
111,000
Raw Materials
884,000
952,000
1,021,000
953,000
Receivables
4,942,000
5,117,000
4,860,000
4,627,000
Accounts Receivable
4,942,000
5,117,000
4,860,000
4,627,000
Allowance For Doubtful Accounts Receivable
-805,000
-754,000
-742,000
-731,000
Gross Accounts Receivable
5,747,000
5,871,000
5,602,000
5,358,000
Cash Cash Equivalents And Short Term Investments
2,206,000
2,618,000
2,264,000
2,346,000
Cash And Cash Equivalents
2,206,000
2,618,000
2,264,000
2,346,000
Cash Flow
2025
2024
2023
2022
2021
Free Cash Flow
1,672,000
2,423,000
2,079,000
1,231,000
Repurchase Of Capital Stock
-1,007,000
-1,005,000
-800,000
-250,000
Repayment Of Debt
-389,000
-100,000
-305,000
-1,242,000
Issuance Of Capital Stock
98,000
105,000
136,000
229,000
Capital Expenditure
-1,254,000
-1,442,000
-1,379,000
-1,011,000
Interest Paid Supplemental Data
432,000
441,000
460,000
487,000
Income Tax Paid Supplemental Data
639,000
538,000
616,000
354,000
End Cash Position
2,206,000
2,618,000
2,264,000
2,346,000
Beginning Cash Position
2,618,000
2,264,000
2,346,000
3,044,000
Effect Of Exchange Rate Changes
-26,000
-127,000
-210,000
-175,000
Changes In Cash
-386,000
481,000
128,000
-523,000
Financing Cash Flow
-1,987,000
-1,730,000
-1,671,000
-1,798,000
Cash Flow From Continuing Financing Activities
-1,987,000
-1,730,000
-1,671,000
-1,798,000
Net Other Financing Charges
-110,000
-130,000
-126,000
-100,000
Cash Dividends Paid
-579,000
-600,000
-576,000
-435,000
Common Stock Dividend Paid
-579,000
-600,000
-576,000
-435,000
Net Common Stock Issuance
-909,000
-900,000
-664,000
-21,000
Common Stock Payments
-1,007,000
-1,005,000
-800,000
-250,000
Common Stock Issuance
98,000
105,000
136,000
229,000
Net Issuance Payments Of Debt
-389,000
-100,000
-305,000
-1,242,000
Net Long Term Debt Issuance
-389,000
-100,000
-305,000
-1,242,000
Long Term Debt Payments
-389,000
-100,000
-305,000
-1,242,000
Investing Cash Flow
-1,325,000
-1,654,000
-1,659,000
-967,000
Cash Flow From Continuing Investing Activities
-1,325,000
-1,654,000
-1,659,000
-967,000
Net Other Investing Changes
-70,000
-45,000
-101,000
-81,000
Net Investment Purchase And Sale
362,000
-224,000
-361,000
-75,000
Sale Of Investment
564,000
214,000
131,000
0
Purchase Of Investment
-202,000
-438,000
-492,000
-75,000
Net Business Purchase And Sale
-548,000
-166,000
-13,000
0
Sale Of Business
0
0
87,000
Purchase Of Business
-548,000
-166,000
-13,000
Net PPE Purchase And Sale
185,000
223,000
195,000
200,000
Sale Of PPE
185,000
223,000
195,000
200,000
Capital Expenditure Reported
-1,254,000
-1,442,000
-1,379,000
-1,011,000
Operating Cash Flow
2,926,000
3,865,000
3,458,000
2,242,000
Cash Flow From Continuing Operating Activities
2,926,000
3,865,000
3,458,000
2,242,000
Change In Working Capital
196,000
-103,000
-511,000
-941,000
Change In Payables And Accrued Expense
-72,000
62,000
49,000
852,000
Change In Payable
-72,000
62,000
49,000
852,000
Change In Account Payable
-72,000
62,000
49,000
852,000
Change In Inventory
80,000
147,000
-303,000
-642,000
Change In Receivables
188,000
-312,000
-257,000
-1,151,000
Other Non Cash Items
-552,000
109,000
113,000
212,000
Asset Impairment Charge
831,000
116,000
0
366,000
Deferred Tax
23,000
148,000
196,000
70,000
Deferred Income Tax
23,000
148,000
196,000
70,000
Depreciation Amortization Depletion
1,136,000
1,079,000
998,000
940,000
Net Income From Continuing Operations
1,292,000
2,516,000
2,662,000
1,595,000
3/5
Graham Score
Speculative Investor
Fails most of Graham's safety criteria. Treat with caution.
Graham's Fair Value
N/A
N/A — requires
positive EPS and positive book value per share. Check the Financials tab for earnings history.
Margin of Safety
—
Market Cap / Net Assets
N/A
Net Assets: $10.5B
Warren's Owner Earnings
$3.7B
Latest fiscal year
Graham's 7 Criteria
Defensive Investor Checklist
3/5 — Speculative Investor
✅
Adequate Size
Graham required companies large enough to withstand economic downturns. This threshold ($1.5B) is inflation-adjusted from Graham's original $100M — virtually all S&P 500 companies pass this today.
$22.2B
vs > $1.5B revenue
✅
Strong Financial Condition
Current assets must be at least twice current liabilities. Note: highly profitable companies (Apple, Domino's) often run negative or low working capital deliberately — they collect cash fast and stretch payables. A failing score here is not always a warning sign.
2.04x
vs Current Ratio > 2.0x
✅
Earnings Stability
Graham required uninterrupted positive earnings. Any loss year is a red flag for defensive investors. Growth companies and cyclicals may show occasional losses during investment cycles or downturns without being fundamentally unsound.
No loss years (4 yrs data)
vs No negative EPS years
❌
Dividend Record
Graham valued dividends as evidence of financial discipline and shareholder alignment. Many excellent modern businesses (Alphabet, Amazon, Berkshire Hathaway) pay no dividend, preferring to reinvest cash at high rates of return. Failing this criterion does not indicate a poor business — it may indicate a high-growth one.
No dividend
vs Uninterrupted dividends
❌
Earnings Growth
EPS grew from $1.74 to $1.50 over 3 years. Graham's 33% threshold was set over a 10-year period. Measured over fewer years (as here), the bar is proportionally lower. Share buybacks can also inflate EPS growth without reflecting underlying business improvement.
-13.8% EPS growth
vs > 33% EPS growth
Graham's 7 Criteria — Explained
What each criterion measures and why it matters.
✅ Adequate Size — $22.2Bvs > $1.5B revenue
Graham required companies large enough to withstand economic downturns. This threshold ($1.5B) is inflation-adjusted from Graham's original $100M — virtually all S&P 500 companies pass this today.
"The minimum size of an enterprise should be not less than $100 million of annual sales."
✅ Strong Financial Condition — 2.04xvs Current Ratio > 2.0x
Current assets must be at least twice current liabilities. Note: highly profitable companies (Apple, Domino's) often run negative or low working capital deliberately — they collect cash fast and stretch payables. A failing score here is not always a warning sign.
"For industrial companies, current assets should be at least twice current liabilities."
✅ Earnings Stability — No loss years (4 yrs data)vs No negative EPS years
Graham required uninterrupted positive earnings. Any loss year is a red flag for defensive investors. Growth companies and cyclicals may show occasional losses during investment cycles or downturns without being fundamentally unsound.
"The company should have shown no deficit in the past ten years."
❌ Dividend Record — No dividendvs Uninterrupted dividends
Graham valued dividends as evidence of financial discipline and shareholder alignment. Many excellent modern businesses (Alphabet, Amazon, Berkshire Hathaway) pay no dividend, preferring to reinvest cash at high rates of return. Failing this criterion does not indicate a poor business — it may indicate a high-growth one.
"Some current dividend payments — for at least the past 20 years."
EPS grew from $1.74 to $1.50 over 3 years. Graham's 33% threshold was set over a 10-year period. Measured over fewer years (as here), the bar is proportionally lower. Share buybacks can also inflate EPS growth without reflecting underlying business improvement.
"A minimum increase of at least one-third in per-share earnings over ten years."
These metrics estimate what HAL is worth based on fundamentals — independent of what the market prices it at.
Graham's Fair Value and NCAV are conservative floors.
EPV assumes zero growth. These are reference points, not price targets.
Net Current Asset Value
N/A
"Buy at two-thirds of net current assets." — Graham
Earnings Power Value
N/A
Per share, no-growth floor. Compare to current price.
ROIC — Return on Invested Capital
12.6%
Return on Invested Capital — Buffett's preferred measure for asset-light businesses. ROIC > 15% consistently signals a durable competitive advantage (moat). More meaningful than P/B for software, pharma, and consumer brand companies where most value is intangible and off-balance-sheet.
Cash Flow Analysis
Metric
2025
2024
2023
2022
2021
Capital Expenditure % of Net Income
97.7%
57.7%
52.3%
64.3%
N/A
Repurchase of Capital Stock
-$1.0B
-$1.0B
-$800M
-$250M
N/A
Free Cash Flow
$1.7B▼
$2.4B▲
$2.1B▲
$1.2B•
N/A•
Warren's Owner Earnings
$3.7B
$5.0B
$5.0B
$3.5B
N/A
Peers & Industry
No auto-detected peers for this industry. You can manually compare HAL against any stock using the Compare tool.
"The management of a business is its most important single factor — more important than market position, patents, or financial structure."
— Benjamin Graham
No management data available.
Risk Analysis
HAL (HAL) fundamental analysis — Overall grade D based on profitability, financial health, valuation and cash flow. Graham's
Fair Value: N/A. Gross profit margin: 15.7%. Operating margin: 13.9%. Net margin: 5.8%. Analysis powered by 360investing — free fundamental stock analysis based on Benjamin Graham and Warren Buffett
principles.
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and may be delayed, inaccurate, or incomplete. Past performance is not indicative of future results. Analysis, scores, and valuations are algorithmic and do not represent professional investment recommendations. Always conduct your own due
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