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Halliburton Company

Data period: Annual Quarterly Graham uses annual
NYSE · Energy
Halliburton Company
HAL · Oil & Gas Equipment & Services
$34.93
▼ -1.3 (-3.59%)
Cached · 10 min
Overall Grade
D
Defensive
C
Enterprising
Profitability
D
Gross Profit Margin 14.5%
Operating Margin 12.6%
Net Income Margin 8.5%
Fin. Health
D
Years to Pay Off Debt 17.5 yrs
Working Capital vs Long-Term Debt -$1.1B
Working Capital $6.0B
Valuation
F
Margin of Safety 0.0%
Price-to-Book 2.71x
Cash Flow
C
Free Cash Flow $81M
CapEx % of Net Income 41.6%
Owner Earnings $948M
About Halliburton Company
Halliburton Company provides products and services to the energy industry worldwide. It operates in two segments, Completion and Production, and Drilling and Evaluation. The Completion and Production segment offers production enhancement services that include stimulation and sand control services; cementing services, such as well bonding and casing, and casing equipment; and completion tools that offer downhole solutions and services, including well completion products and services, intelligent well completions, liner hanger systems, sand control systems, multilateral systems, and service tools. This segment also provides electrical submersible pumps, as well as artificial lift services; production solutions comprising coiled tubing, hydraulic workover units, downhole tools, and pumping and nitrogen services; pipeline and process services, such as pre-commissioning, commissioning, maintenance, and decommissioning; and specialty chemicals and services. The Drilling and Evaluation segment offers drilling fluid systems, performance additives, completion fluids, solids control, specialized testing equipment, and waste management services; drilling systems and services; wireline and perforating services consisting of open-hole logging, and cased-hole and slickline; and drill bits and services comprising roller cone bits, fixed cutter bits, hole enlargement, and related downhole tools and services, as well as coring equipment and services. This segment also provides cloud based digital services and artificial intelligence solutions on an open architecture for subsurface insights, integrated well construction, and reservoir and production management; testing and subsea services, such as acquisition and analysis of reservoir information and optimization solutions; and project management and integrated asset management services. Halliburton Company was founded in 1919 and is based in Houston, Texas.
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.
Margin of Safety
How far below the Graham Number the stock trades. Graham required a 33% discount as a buffer against analytical error. However, the Graham Number itself assumes 1960s-era P/E and P/B norms — for modern asset-light businesses it often understates true intrinsic value, making 0% MoS appear misleadingly bad.
Price-to-Book
Market price vs book value per share. Rarely below 1.5x for quality businesses today. Intangible assets (brand, software, patents) don't appear on the balance sheet under accounting rules, making P/B artificially high for asset-light companies like software and consumer brands.
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 Cap $29.2B
Enterprise Value $37.2B
P/E (TTM) 19.30
Dividend Yield 1.88%
Exchange NYSE
Gross Profit 14.5%
Operating Margin 12.6%
Net Margin 8.5%
Sector Energy
Industry Oil & Gas Equipment & Services
Employees 46000
Country United States
📖
Full Graham Analysis

Mr. Market is currently offering Halliburton Company at $34.93.

The business passes only 3 of 7 of Graham's defensive criteria — well below his required standard.

At $34.93, the stock trades at a 176% premium to its Graham Number of $12.64. Graham would consider this price speculative.

There is no margin of safety at the current price. Graham would advise patience and waiting for a better entry point.

Negative NCAV — liabilities exceed current assets. Common in capital-return businesses (buybacks, debt-funded dividends) and capital-intensive industries. Not automatically a warning sign..

Conclusion: By Graham's standards, this stock is speculative at its current price. The intelligent investor would look elsewhere or wait.

Showing Key Metrics
Income Highlights
Metric Q1 2026 Q4 2025 Q4 2024
Gross Profit % 14.5% 16.4% N/A
Operating Margin % 12.6% 14.7% N/A
Net Income % 8.5% 10.4% N/A
Diluted EPS 0.55 0.70 N/A
Balance Sheet Highlights
Metric Q1 2026 Q4 2025 Q4 2024
Total Assets $25.1B $25.0B N/A
Total Debt $8.1B $8.1B N/A
Working Capital $6.0B $5.8B N/A
Years to Pay Debt 17.53 13.81 N/A
Cash Flow Highlights
Metric Q1 2026 Q4 2025 Q4 2024
Free Cash Flow $81M $828M N/A
Owner Earnings $948M $1.2B N/A
CapEx % of Net Income 41.6% 57.2% N/A
📊 Quarterly mode — Graham Fair Value & 7 Criteria require annual data. Switch to Annual for full analysis.
Quarter vs Same Quarter Last Year
YoY strips seasonality
Revenue Growth (YoY)
Prior year: $5.4B ▼ $5.4B -0.3%
Revenue growth vs same quarter last year strips seasonality. Consistent double-digit growth is a Buffett hallmark.
Gross Margin
Prior year: 16.2% ▼ 14.5% -1.7pp
Buffett: consistent gross margin above 40% signals durable pricing power and competitive moat.
Operating Margin
Prior year: 12.5% ▼ 12.6% +0.0pp
Graham: operating margin reflects true business economics before financing. Trend matters as much as level.
Net Margin
Prior year: 3.8% ▲ 8.5% +4.8pp
Net margin can be distorted by one-time items, tax timing, or interest costs — compare to operating margin for signal quality.
Quarterly Health Checks
3 Graham/Buffett criteria that are valid and reliable on quarterly data
✅ Adequate Size
Graham required scale for resilience. Quarterly revenue × 4 gives an annualised proxy.
$5.4B/qtr (≈$21.6B ann.)
vs > $1.5B annualised revenue
✅ Financial Condition
Current assets vs current liabilities — a real-time liquidity snapshot. Valid and reliable on quarterly data.
2.08x current ratio
vs ≥ 2.0x
✅ Free Cash Flow
Buffett's most important single metric. A positive FCF quarter means the business generated real cash for owners after maintaining its asset base.
$81M
vs Positive
Operating Cash Flow
$273M
Latest quarter · Buffett's cash reality check
ROIC
2.7%
Based on latest annual operating income
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.
Market Cap / Net Assets
2.7x
Net Assets: $10.8B
Peers & Industry
No auto-detected peers for Oil & Gas Equipment & Services. 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
Capital Allocation & Alignment
Insider Ownership
0.47%
Low — management has little skin in the game
Return on Equity (ROE)
4.3%
Weak — poor returns on equity
Return on Assets (ROA)
1.8%
Poor — assets are not generating adequate returns
Share Buybacks (Latest Year)
$1.0B
Management is returning capital to shareholders via buybacks
Debt Trend YoY
-0.6% YoY
Debt is declining — management is deleveraging
Leadership Team
Eric Carre
Executive VP & CFO
Age 58
Pay: $3,189,766
0.692% of net income
Jeffrey Shannon Slocum
Executive VP, COO & Director
Age 52
Pay: $4,029,764
0.874% of net income
Jill Sharp
Senior Vice President of Internal Assurance Services
Age 54
Mark Dawson
Senior Vice President of Halliburton Completion & Production Division
Top Institutional Holders
Institution % Owned Shares
Blackrock Inc. 9.99% 83,452,980
Capital Research Global Investors 6.74% 56,339,126
State Street Corporation 6.51% 54,407,307
Vanguard Capital Management LLC 6.19% 51,732,201
Vanguard Portfolio Management LLC 4.70% 39,287,173
Geode Capital Management, LLC 2.73% 22,800,323
Morgan Stanley 2.07% 17,258,914
Barrow, Hanley Mewhinney & Strauss, LLC 1.30% 10,856,543
Risk Analysis
Beta (Market Risk)
0.70
Low volatility — more stable than the market
Short Interest
5.2% of float
Moderate short interest
Debt-to-Equity
0.75x
Conservative balance sheet — low financial risk
Current Ratio
2.08x
Strong liquidity — Graham approved
52-Week Price Range
Low: $20.09 Current: $34.93 High: $43.59
Currently at 63% of 52-week range

Halliburton Company (HAL) fundamental analysis — Overall grade D based on profitability, financial health, valuation and cash flow. Graham's Fair Value: $12.64. Margin of safety: 0%. Gross profit margin: 14.5%. Operating margin: 12.6%. Net margin: 8.5%. Market cap: $29.2B. Sector: Energy. Industry: Oil & Gas Equipment & Services. Analysis powered by 360investing — free fundamental stock analysis based on Benjamin Graham and Warren Buffett principles.

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