Halliburton provides a range of services and products to the upstream oil and natural gas industry worldwide. The company operates through two segments, Completion and Production, and Drilling and Evaluation. The company was founded in 1919 and is based in Houston, Texas.
HAL Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for HAL, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Halliburton Co ranked in the 26th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. The most interesting components of our discounted cash flow analysis for Halliburton Co ended up being:
The company's debt burden, as measured by earnings divided by interest payments, is -2.95; that's higher than merely 23.49% of US stocks in the Energy sector that have positive free cash flow.
Its compound free cash flow growth rate, as measured over the past 5.75 years, is -0.06% -- higher than only 19.91% of stocks in our DCF forecasting set.
Halliburton Co's effective tax rate, as measured by taxes paid relative to net income, is at 0 -- greater than only 0% of US stocks with positive free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
SDPI, FTI, PBA, FTSI, and PEIX can be thought of as valuation peers to HAL, in the sense that they are in the Energy sector and have a similar price forecast based on DCF valuation.
Halliburton Company (NYSE: HAL) will host a conference call on Monday, July 20, 2020, to discuss its second quarter 2020 financial results. The call will begin at 8:00 AM Central Time (9:00 AM Eastern Time).
Oilfield services provider Halliburton Co slashed its quarterly dividend by 75% on Wednesday, the latest in a string of moves aimed at saving cash to cope with a dramatic plunge in oil prices that began in March.
Halliburton (HAL) has announced today a 2020 second quarter dividend of $0.045 a share on the company’s common stock payable on June 24, … The post Halliburton Wipes 75% Off Dividend; Board Takes Pay Cut appeared first on Smarter Analyst .