Stock Analysis & Valuation Halliburton Company (HAL.DE)

• Previous Close: €28.37
• Sector Valuation Confidence Level: Low

Valuation method	Value, €	Upside, %
Artificial intelligence (AI)	26.30	-7
Intrinsic value (DCF)	9.79	-65
Graham-Dodd Method	10.90	-62
Graham Formula	18.90	-33

Strategic Investment Analysis

Company Overview

Halliburton Company (HAL.DE) is a global leader in providing products and services to the energy industry, specializing in oilfield services and solutions. Founded in 1919 and headquartered in Houston, Texas, Halliburton operates through two primary segments: Completion and Production, and Drilling and Evaluation. The company offers a comprehensive suite of services, including stimulation, cementing, completion tools, artificial lift solutions, drilling fluids, wireline services, and digital solutions powered by AI and cloud-based platforms. Halliburton serves upstream oil and gas companies worldwide, helping them optimize reservoir performance, enhance production efficiency, and reduce operational costs. As a key player in the Oil & Gas Equipment & Services sector, Halliburton leverages its technological expertise and extensive global footprint to maintain a competitive edge in an industry increasingly focused on digital transformation and sustainable energy solutions.

Investment Summary

Halliburton presents a compelling investment case due to its strong market position, diversified service offerings, and technological leadership in the oilfield services sector. With a market cap of approximately €15 billion and a solid revenue base of €22.94 billion (FY 2024), the company demonstrates resilience in a cyclical industry. Its diluted EPS of €2.82 and operating cash flow of €3.87 billion reflect robust profitability. However, investors should consider risks such as exposure to volatile oil prices (beta of 1.195), high total debt (€8.6 billion), and capital expenditures (€1.44 billion). The dividend yield, supported by a €0.6604 per share payout, adds income appeal. Halliburton's focus on digital solutions and efficiency improvements could drive long-term growth, but macroeconomic and regulatory pressures in the energy sector remain key challenges.

Competitive Analysis

Halliburton holds a strong competitive position in the oilfield services industry, driven by its technological innovation, global scale, and integrated service offerings. The company's dual-segment structure allows it to provide end-to-end solutions, from drilling optimization to production enhancement, giving it an edge over more specialized competitors. Halliburton's investment in digital technologies, such as AI-driven reservoir management and cloud-based analytics, positions it as a leader in the industry's digital transformation. However, the company faces intense competition from larger rivals like Schlumberger (now SLB), which has a broader geographical presence and stronger financial resources. Halliburton's focus on North American shale operations provides revenue stability but also exposes it to regional market fluctuations. Its ability to maintain pricing power and manage debt levels will be critical in sustaining its competitive advantage. The company's strong R&D capabilities and long-standing client relationships help differentiate its services, but competition from lower-cost regional players and the shift toward renewable energy could pressure margins in the long term.

Major Competitors

• Schlumberger Limited (SLB): Schlumberger (SLB) is the largest oilfield services company globally, with a more diversified geographic footprint than Halliburton. Its strengths include superior technology integration, stronger financials, and a broader service portfolio. However, SLB's larger size can lead to slower decision-making, and it faces similar challenges from energy transition pressures. Compared to Halliburton, SLB has less exposure to the North American shale market, which can be both an advantage and a disadvantage depending on regional dynamics.
• Baker Hughes Company (BKR): Baker Hughes (BKR) competes closely with Halliburton in oilfield services but has a stronger focus on gas and energy transition technologies. Its strengths include a growing portfolio in renewable energy and LNG solutions, providing diversification beyond traditional oil services. However, Baker Hughes has lower margins in some segments compared to Halliburton. The company's partnership with GE gives it access to industrial technology but also creates some integration complexities.
• Weatherford International (WFT): Weatherford is a smaller competitor that has emerged from bankruptcy restructuring with a leaner operation. It competes with Halliburton in several product lines, particularly in artificial lift and well construction. Weatherford's strengths include competitive pricing and agility, but it lacks Halliburton's scale, technological depth, and financial stability. The company's recent restructuring has improved its balance sheet but left it with less R&D capacity than larger rivals.
• National Oilwell Varco (NOV): NOV primarily competes with Halliburton in drilling equipment and technologies. Its strengths include strong manufacturing capabilities and a comprehensive portfolio of drilling hardware. However, NOV has less service-oriented revenue than Halliburton, making it more susceptible to capital expenditure cycles in the oil industry. The company has been slower than Halliburton in adopting digital solutions across its product lines.