Intrinsic Value Halliburton Company (HAL.DE)

• Previous Close: €28.37
• Intrinsic Value: €9.79
• Upside potential: -65%

Stock Valuation Context

Business Model And Market Position

Halliburton Company operates as a leading provider of products and services to the global energy industry, specializing in oilfield solutions across two core segments: Completion and Production, and Drilling and Evaluation. The company’s revenue model is driven by a diversified portfolio that includes stimulation services, cementing, artificial lift systems, drilling fluids, wireline logging, and digital solutions for reservoir management. Halliburton serves upstream oil and gas operators, leveraging its technological expertise to enhance well productivity and operational efficiency. The company holds a strong competitive position due to its integrated service offerings, global footprint, and focus on innovation, particularly in digital and AI-driven solutions for subsurface analysis. As a key player in the oilfield services sector, Halliburton benefits from long-term customer relationships and cyclical demand tied to hydrocarbon exploration and production. Its market position is reinforced by its ability to deliver high-margin, technically advanced services in both conventional and unconventional resource plays.

Revenue Profitability And Efficiency

Halliburton reported revenue of €22.94 billion for the period, with net income of €2.50 billion, reflecting robust profitability in a recovering energy market. The company’s diluted EPS of €2.82 underscores its earnings strength, supported by disciplined cost management and operational leverage. Operating cash flow of €3.87 billion highlights efficient working capital management, though capital expenditures of €1.44 billion indicate ongoing investments in technology and infrastructure.

Earnings Power And Capital Efficiency

Halliburton’s earnings power is evident in its ability to generate consistent cash flows despite cyclical industry pressures. The company’s capital efficiency is demonstrated by its focus on high-return segments like digital solutions and production enhancement. With a beta of 1.195, Halliburton exhibits moderate sensitivity to broader market movements, reflecting its exposure to energy sector volatility.

Balance Sheet And Financial Health

The company maintains a solid liquidity position with €2.62 billion in cash and equivalents, though total debt of €8.60 billion suggests a leveraged balance sheet. Halliburton’s financial health is supported by strong cash flow generation, which provides flexibility for debt servicing and strategic investments. The balance sheet structure aligns with its capital-intensive business model.

Growth Trends And Dividend Policy

Halliburton’s growth is tied to global energy demand, with recent performance benefiting from increased drilling activity. The company’s dividend policy, with a payout of €0.6604 per share, reflects a commitment to shareholder returns while retaining capital for growth initiatives. Future trends will depend on oil price stability and adoption of its digital offerings.

Valuation And Market Expectations

With a market capitalization of €15.00 billion, Halliburton’s valuation reflects investor expectations of sustained energy sector recovery. The company’s P/E ratio and cash flow multiples suggest moderate market optimism, balancing cyclical risks with its technological leadership and operational scale.

Strategic Advantages And Outlook

Halliburton’s strategic advantages include its technological edge, global service network, and integrated solutions. The outlook remains cautiously positive, driven by energy demand resilience and the company’s ability to innovate in digital and sustainable energy solutions. Long-term success will hinge on adapting to energy transition trends while maintaining core profitability.

Sources

Company filings, market data