Halliburton (NYSE: NYSE:HAL) is a large cap company that operates within the energy equipment and services industry. Its market cap is $39 billion today, and the total one-year return is 3.46% for shareholders.
Halliburton stock is underperforming the market. It's beaten down, but it reports earnings next week. So is it a good time to buy? To answer this question, we've turned to the Investment U Stock Grader. Our Research Team built this system to diagnose the financial health of a company.
Our system looks at six key metrics...
✓ Earnings-per-Share (EPS) Growth: Halliburton reported a recent EPS growth rate of 98.58%. That's above the energy equipment and services industry average of 58.5%. That's a great sign. Halliburton's earnings growth is outpacing that of its competitors.
✓ Price-to-Earnings (P/E): The average price-to-earnings ratio of the energy equipment and services industry is 182.29. And Halliburton's ratio comes in at 113.77. It's trading at a better value than many of its competitors.
✗ Debt-to-Equity : The debt-to-equity ratio for Halliburton stock is 121.36%. That's above the energy equipment and services industry average of 67.51%. That's not a good sign. Halliburton's debt levels should be lower.
✓ Free Cash Flow per Share Growth Halliburton's FCF has been higher than that of its competitors over the last year. That's good for investors. In general, if a company is growing its FCF, it will be able to pay down debt, buy back stock, pay out more in dividends and/or invest money back into the business to help boost growth. It's one of our most important fundamental factors.
✓ Profit Margins : The profit margin of Halliburton comes in at -0.75% today. And generally, the higher, the better. We also like to see this margin above that of its competitors. Halliburton's profit margin is above the energy equipment and services average of -4.08%. So that's a positive indicator for investors.
✗ Return on Equity : Return on equity gives us a look at the amount of net income returned to shareholders. The ROE for Halliburton is -30.80%, and that's below its industry average ROE of -9.77%.
Halliburton stock passes four of our six key metrics today. That's why our Investment U Stock Grader rates it as a Buy With Caution.