Company Overview Halliburton Co. is a global oilfield services provider that supplies drilling, evaluation, completion and production services and tools, and its financial profile is marked by durable margins and conservative balance-sheet metrics alongside uneven top-line momentum. Financial Strengths The company shows several clear financial strengths: gross margin has recovered to about 41.3% a
Halliburton Co. is a global oilfield services provider that supplies drilling, evaluation, completion and production services and tools, and its financial profile is marked by durable margins and conservative balance-sheet metrics alongside uneven top-line momentum.
The company shows several clear financial strengths: gross margin has recovered to about 41.3% and operating margin to roughly 40.3% in the most recent year, with a trailing net margin near 11.5%, highlighting improved unit economics after earlier volatility (Profit Margin Trends).
Balance-sheet and liquidity metrics are similarly strong — interest coverage is about 10.8x, debt-to-equity is approximately 0.656, and the current ratio is roughly 2.22 — while book value per share has compounded at about 15.8% over five years, indicating equity growth. The trailing P/E sits near 12.0x, providing a clear, observable valuation benchmark to track over time (Price-to-Earnings (PE) Ratio Trend).
There are notable areas of concern to monitor. Revenue-per-share momentum has decelerated sharply from double-digit gains in 2022–early 2023 to a most recent 1-year change of -0.3% (EPS Diluted & Revenue per Share); Revenue & EPS Growth).
Return on equity remains a material weakness in the historical series, with a most recent -5.6% (Return on Equity (ROE)).
Earnings quality and cash conversion also warrant attention: the most recent reported net income (TTM) was $2.64B while the latest available operating cash flow observation is $1.91B, a $0.73B gap, and operating cash flow declined from $2.44B in 2019 to $1.91B in 2021 even as investing outflows expanded to -$967M and financing outflows widened to -$1.67B in later periods (Revenue & Net Income; Earnings Quality Analysis; Strategic Capital Allocation).
The foundation of business quality and long-term value creation
HALLIBURTON CO's revenue has risen from lower levels in 2020–2021 (roughly $3.2B—$4.3B per quarter) into a steadier range around $5.3B—$5.8B through 2022–2025. There is a notable outlier quarter on 2024-12-31 with revenue of $11.44B that sits well above the typical quarterly range. In the most recent sequence, revenue moved from $5.60B on 2025-09-30 to $5.40B on 2026-03-31, a modest decline quarter-to-quarter.
Net income swung from a loss of -$1.02B in 2020-03-31 to sustained positive results thereafter, peaking at $1.92B on 2023-12-31 before moderating in subsequent quarters. Recent net income figures show $472.0M on 2025-06-30 and $461.0M on 2026-03-31, indicating positive but lower profitability in the latest quarter. The most recent quarterly revenue was $5.40B. The most recent quarterly net income was $461.0M.
Why Growth Matters
Consistent revenue and earnings growth are the lifeblood of successful long-term investments. Companies that can grow their top line (revenue) and bottom line (net income) over many years demonstrate they have products or services customers value and are willing to pay for repeatedly.
Revenue Growth shows whether the company is expanding its market reach, gaining market share, or successfully launching new products.Net Income Growth demonstrates the company can convert that revenue into actual profits while managing costs effectively.
Look for steady, sustainable growth rather than erratic spikes. The best businesses compound earnings year after year, creating tremendous value for shareholders over time. Companies that can grow earnings faster than revenue are improving their profitability—a sign of operational excellence and competitive strength.
Year-over-year growth rates for revenue and earnings per share
Reading the Growth Rate Chart
This chart converts the absolute per-share figures into year-over-year percentage changes, making it easy to see whether growth is accelerating, decelerating, or reverting to trend — regardless of the company's absolute size.
Revenue per Share Growth (1-year, split-adjusted) measures how quickly the top line is expanding on a per-share basis. Sustained positive growth signals that the company continues to win customers and grow its addressable market.EPS Diluted Growth (1-year, split-adjusted) measures how quickly earnings are compounding for each shareholder. When EPS growth consistently outpaces revenue growth, operating leverage and margin expansion are at work.
Look for consistency, not just magnitude. A company that reliably grows EPS 10–15% per year is far more valuable than one that alternates between 50% spikes and deep contractions. Negative EPS growth during a period of positive revenue growth is a red flag — costs are rising faster than sales. Quarters where both lines converge near zero or go negative deserve close scrutiny.
How revenue converts to net income for the most recent annual period
Period Information
Report Type: Annual (10-K)
Period: Jan 2024 to Dec 2024
Analyzing long-term margin stability and competitive positioning
HALLIBURTON CO’s margins show pronounced multi-year volatility. Gross margin was very high (around 80% through 2018–2019), collapsed into 2020–2021 with several quarters in the low teens, then recovered through 2022–2023 into the mid-to-high 30s and briefly spiked to about 58% in Q1 2024. Operating margin follows a similar pattern, rising to the high 50s in Q4 2023–Q1 2024 before declining. Net profit margin data are sparser but show variability over the long run, including a negative print in 2017 and mid-teens/low-double-digit levels at other points.
In the most recent year, the company’s margins have retreated from the peak in early 2024: gross margin declined to 41.3% and operating margin to 40.3% as of . The most recent reported net profit margin in the series is 11.5% as of . The most recent gross margin was 41.3% (), the most recent operating margin was 40.3% (), and the most recent net profit margin was 11.5% ().
Understanding Profit Margins
Between Jan 2024 and Dec 2024, Halliburton Co converts every dollar of revenue through the following stages:
Sustainable competitive advantages reveal themselves through consistently superior profit margins over extended periods. Companies with durable economic moats maintain pricing power and operational efficiency that competitors struggle to match.
A sign of durable competitive advantage is earning sustained higher margins than competitors.Look for margins that remain stable or improve over time, especially during economic downturns. Declining margins may signal increasing competition, pricing pressure, or deteriorating business fundamentals.
Comparing reported earnings to actual cash generation
HALLIBURTON CO's trailing twelve-month net income rose to $2.64B as of the period ending 2023-12-31. The most recent operating cash flow TTM in the dataset is $1.91B as of 2021-12-31, so the latest reported net income exceeds the latest available operating cash flow observation by $0.73B. This shows a divergence between reported earnings and the most recently reported cash generation in the available data.
Looking back, operating cash flow was higher at $2.44B for the period ending 2019-12-31 before declining to $1.91B by 2021-12-31, while net income moved from negatives in 2015 (−$671.0M) and 2017 (−$463.0M) to positive multi‑billion dollar levels in the most recent 2023 observation. The most recent Net Income (TTM) was $2.64B (2023-12-31) and the most recent Operating Cash Flow (TTM) observation was $1.91B (2021-12-31).
The Earnings vs. Cash Flow Gap
Reported earnings (Net Income) doesn't always reflect actual cash generation. Companies use accrual accounting, which recognizes revenue when earned and expenses when incurred—not when cash actually changes hands. This creates timing differences and opportunities for accounting discretion that can mask underlying business health.
Net Income (the "earnings" number) can be influenced by non-cash items like depreciation, stock-based compensation, and changes in accounting estimates.Operating Cash Flow, however, shows the actual cash the business generates from its core operations—a harder number to manipulate.
What to Look For
Key Insight: Companies with durable competitive advantages typically show operating cash flow that meets or exceeds net income over time, demonstrating they convert accounting profits into actual cash that can be returned to shareholders or reinvested in the business.
Measuring management's efficiency at generating profits from shareholder capital
HALLIBURTON CO's ROE shows a clear decline over the series. The metric was solid in the early part of the decade, rising from 17.7% in 2010 to a peak of 21.5% in 2011, then falling to 15.6% by 2013.
The series crosses a notable inflection between 2013 and 2015, turning negative in 2015 at -4.3% and moving slightly further negative by the most recent point in 2017 at -5.6%. The most recent ROE was -5.6%.
The Gold Standard of Profitability
Return on Equity (ROE) is a powerful measure of how effectively a company's management is using the money shareholders have invested. Calculated by dividing Net Income by Shareholders' Equity, it reveals how much profit is generated for every dollar of equity capital.
A consistently high ROE (typically above 15-20%) is often the signature of a "quality" business with a durable competitive advantage. It indicates that the company can generate high returns on its own capital, which it can then reinvest at these high rates to compound value over time.
What to Look For:
How the company generates and deploys its cash
HALLIBURTON CO's trailing twelve-month operating cash flow shows a decline from $2.44B in 2019 to $1.91B in 2021, with the most recent operating CF observation in the dataset at $1.91B. Investing cash flows have been consistently negative and moved toward larger outflows over time, widening from –$486.0M in 2020 to –$534.0M in 2021 and then to –$967.0M in 2022, indicating an increasing level of cash deployed to investing activities in the latest reported period.
Financing cash flow outflows have also increased in magnitude across the available periods, from –$695.0M in 2019 to –$838.0M in 2021 and to –$1.67B in the most recent 2023 observation, representing a larger net use of cash in financing in the latest data. The most recent trailing twelve-month values are: operating cash flow $1.91B, investing cash flow –$967.0M, and financing cash flow –$1.67B.
Understanding Company Strategy
Capital allocation refers to how management decides to spend and invest the company's cash. Analyzing the three primary categories of cash flow reveals a company's true operational strategy:
What to look for: Is the company bootstrapping (funding growth solely from operating cash)? Are they borrowing to fund aggressive expansion or dividends? Or are they capital raising by issuing new shares, potentially diluting your ownership? A healthy, mature company typically generates strong operating cash, moderately invests in growth, and returns the surplus to shareholders through financing activities.
Net assets attributable to each share — the accounting floor of intrinsic value
Why Book Value per Share Matters
Book value per share is the net worth of the company — total assets minus total liabilities — divided by shares outstanding (split-adjusted). It represents the theoretical liquidation value per share if every asset were sold and every liability repaid at balance-sheet carrying values. It is the accounting foundation upon which much of equity valuation is built.
A steadily rising book value per share is one of the most reliable signals of compounding wealth creation. It means the company is retaining earnings and building net worth faster than it is returning capital or eroding it. Warren Buffett famously tracked Berkshire Hathaway's book value per share for decades as his primary measure of intrinsic value growth.
Context is essential. Asset-heavy businesses (banks, manufacturers, utilities) should be judged by book value more directly than asset-light businesses (software, consumer brands), where intangible assets like intellectual property and customer loyalty may far exceed their balance-sheet carrying values. A company trading at a large premium to book value is not necessarily overvalued — it may simply possess competitive advantages that accounting rules do not capture. Conversely, a declining book value per share — especially over multiple years — is a serious warning sign of capital destruction.
How much of the company is financed by debt versus shareholders' equity
Reading the Debt-to-Equity Ratio
The debt-to-equity (D/E) ratio compares total financial debt to shareholders' equity. A ratio of 1.0 means the company has borrowed one dollar for every dollar of equity; a ratio of 2.0 means it has borrowed twice as much as it owns. Financial leverage amplifies both returns and risk: in good times, debt turbocharges equity returns; in bad times, it accelerates losses and can threaten solvency.
Trends matter more than a single number. A rising D/E ratio can mean the company is taking on debt to fund growth — potentially value-creating if returns exceed the cost of capital. But it can also mean equity is being eroded through losses or that the business is borrowing simply to sustain operations. A falling D/E ratio generally reflects strengthening financial health: earnings are being retained, debt maturities are being paid down, or both.
Industry norms vary enormously. Capital-intensive sectors (utilities, real estate, financials) routinely carry high D/E ratios that would be alarming in, say, a technology company. Always compare against sector peers. As a rough rule of thumb, a D/E above 2× in a cyclical business warrants careful scrutiny of interest coverage and refinancing risk.
Short-term liquidity — can the company cover its near-term obligations?
Liquidity: Can the Business Pay Its Bills?
The current ratio is calculated as current assets divided by current liabilities. A ratio of 1.5 means the company has $1.50 of short-term assets — cash, receivables, inventory — for every $1.00 of obligations due within the next twelve months. It is the most direct measure of near-term financial resilience: can the business meet its obligations without needing to raise new capital or sell long-term assets at a discount?
A ratio above 1.0 is generally healthy, meaning current assets exceed current liabilities. A ratio consistently above 2.0 may indicate the company is holding excess cash or inventory that could be deployed more productively. A ratio below 1.0 is a warning sign — the company is relying on future cash generation or external financing to cover its near-term obligations, which is manageable in normal conditions but dangerous during a downturn.
Trends and context matter.A declining current ratio isn't always alarming — highly efficient businesses (e.g., large retailers with reliable daily cash flows) often run leaner balance sheets intentionally. Conversely, a rapidly rising current ratio can signal slowing sales causing inventory to build, or customers taking longer to pay. Always compare the trend against industry peers and cross-reference with the cash flow statement to assess whether the business is genuinely liquid or just holding non-cash current assets.
How much the market is paying for each dollar of company earnings
Across the reported annual points, HALLIBURTON CO's trailing twelve-month Price-to-Earnings ratio shows variability. Provided values include 19.5x (2010), 10.5x (2011), 20.9x (2013) and 12.0x (2023); entries for 2015 and 2017 are not populated in the dataset. The highest reported P/E in this series is 20.9x (2013) and the lowest is 10.5x (2011).
The most recent observation, for the period ending 2023-12-31, is 12.0x, which is below the 2013 level and above the 2011 low. The most recent Price-to-Earnings (P/E) ratio was 12.0x.
What Is the PE Ratio?
The Price-to-Earnings (PE) ratio is one of the most widely used valuation metrics in investing. It divides the current stock price by the company's earnings per share (EPS), revealing how much investors are willing to pay for each dollar of earnings. A high PE can signal that the market expects strong future growth, while a low PE may suggest undervaluation—or reflect genuine concerns about the company's prospects.
Context matters:PE ratios vary significantly across industries. High-growth technology companies routinely trade at PE ratios above 30x or 40x, while mature, low-growth sectors like utilities or financials often trade closer to 10–15x. Always compare a company's PE to its own history and its industry peers, not just an absolute number.
What to Look For:
Key Insight:The PE ratio is a snapshot of market sentiment and expectations. Tracking it over time alongside earnings trends reveals whether the market's valuation has expanded or contracted—and whether that change is justified by fundamentals.