Stock Analysis & Valuation Halliburton Company (HAL.SW)

• Previous Close: CHF22.80
• Sector Valuation Confidence Level: Low

Valuation method	Value, CHF	Upside, %
Artificial intelligence (AI)	n/a	n/a
Intrinsic value (DCF)		n/a
Graham-Dodd Method	9.90	-57
Graham Formula	49.60	118

Strategic Investment Analysis

Company Overview

Halliburton Company (HAL.SW) is a global leader in providing products and services to the energy industry, specializing in oilfield services and equipment. Headquartered in Houston, Texas, and listed on the Swiss Exchange (SIX), Halliburton operates through two key segments: Completion and Production, and Drilling and Evaluation. The company offers a comprehensive suite of solutions, including well stimulation, cementing, artificial lift services, drilling fluids, wireline logging, and digital services powered by AI and cloud-based platforms. With a century-long legacy since its founding in 1919, Halliburton serves upstream oil and gas operators worldwide, helping them optimize reservoir performance, enhance production efficiency, and reduce operational costs. As the energy sector transitions toward sustainable practices, Halliburton remains pivotal in enabling both conventional and emerging energy solutions, positioning itself as a critical player in the evolving energy landscape.

Investment Summary

Halliburton presents a mixed investment profile with strengths in its diversified service offerings and global market presence, but risks tied to oil price volatility and energy transition pressures. The company reported solid FY 2023 results, with revenue of CHF 23.0 billion and net income of CHF 2.6 billion, reflecting robust demand for oilfield services. Its high beta (1.94) indicates sensitivity to energy market cycles, making it a leveraged play on oil and gas activity. While Halliburton generates strong operating cash flow (CHF 3.5 billion) and maintains a moderate dividend (CHF 0.58/share), its substantial debt (CHF 8.8 billion) and capital-intensive operations warrant caution. Investors bullish on sustained hydrocarbon demand may find value, but those wary of decarbonization headwinds should weigh exposure carefully.

Competitive Analysis

Halliburton competes in the highly fragmented oilfield services (OFS) sector, differentiated by its integrated technology stack and global scale. Its competitive edge lies in proprietary digital solutions (e.g., AI-driven reservoir modeling) and a broad service portfolio that reduces client reliance on multiple vendors. The company’s dual-segment structure allows cross-selling opportunities, while its focus on North American shale and international deepwater markets balances regional exposure. However, pricing pressure from smaller, niche players and commoditization of basic services (e.g., pressure pumping) erode margins. Halliburton trails Schlumberger (now SLB) in international market share but leads in North America due to its pressure pumping dominance. Its R&D investments in decarbonization technologies (e.g., carbon capture well services) aim to future-proof the business but remain untested against pure-play renewable energy service providers. The company’s asset-light shift (e.g., cloud-based platforms) improves capital efficiency but doesn’t fully mitigate cyclical risks.

Major Competitors

• Schlumberger NV (SLB): SLB (formerly Schlumberger) is Halliburton’s primary global rival, with superior international exposure (75% of revenue) and leadership in digital oilfield technologies. Its strength lies in integrated project management and reservoir characterization services, but it lags in North American pressure pumping. SLB’s recent rebranding emphasizes energy transition services, potentially giving it an edge in low-carbon solutions.
• Baker Hughes Company (BKR): Baker Hughes combines OFS with equipment manufacturing (e.g., turbines), offering broader energy exposure. Its strength in LNG and turbomachinery diversifies revenue away from upstream volatility, but this limits focus on core oilfield services. Baker Hughes’ partnership with energy transition players (e.g., hydrogen) contrasts with Halliburton’s hydrocarbon-centric approach.
• Tenaris SA (TS): Tenaris specializes in tubular products for drilling, competing indirectly with Halliburton’s completion tools segment. Its vertically integrated steel production provides cost advantages but exposes it to raw material price swings. Tenaris has weaker service capabilities but dominates niche markets like premium OCTG pipes.
• National Oilwell Varco Inc. (NOV): NOV focuses on drilling equipment manufacturing, overlapping with Halliburton’s drill bits and rig technology offerings. Its strength in capital equipment sales provides higher margins during upcycles but greater downside during downturns. NOV lacks Halliburton’s service-driven recurring revenue model.
• Weatherford International plc (WFT): Weatherford is a smaller, restructured competitor with strengths in well construction and intervention services. It competes aggressively on price in commoditized segments but lacks Halliburton’s R&D budget or digital capabilities. Weatherford’s post-bankruptcy clean balance sheet is an advantage but scale remains a limitation.