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Description of business and strategy Halliburton Company (Halliburton) is one of the world's largest providers of products and services to the energy industry. Its predecessor was established in 1919 and incorporated under the laws of the State of Delaware in 1924.
10.19% operating margin is respectable but not wide. ROIC at 9.27%. Suggests the business covers its cost of capital, but doesn't point to a wide moat.
Revenue declined 3.3% YoY. Margins deteriorated 6.5pp alongside, both lines moving the wrong way.
Free cash flow declined 31% versus the prior year, cash generation momentum has weakened. ROIC dropped from 16.33% to 9.27%, capital efficiency is deteriorating.
Profitability & Returns
Revenue (TTM)
$22.17B
▼ -3.3% YoY
Net Income (TTM)
$1.54B
▼ -48.7% YoY
Op. Margin
11.31%
▼ -6.5pp YoY
ROIC
10.74%
▼ -7.1pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
$1.68B
▼ -31.0% YoY
Op. Cash Flow (TTM)
$2.82B
▼ -24.3% YoY
Net Debt
$6.08B
Cash & Equiv.
$2.00B
5Y CAGR: +9.0%
5Y CAGR: +7.7%
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