Halliburton Beneish M Score

HAL -  USA Stock  

USD 38.33  0.45  1.16%

This module uses fundamental data of Halliburton to approximate the value of its Beneish M Score. Halliburton M Score tells investors if the company management is likely to be manipulating earnings. The score is calculated using eight financial indicators that are adjusted by a specific multiplier. Please note, the M Score is a probabilistic model and cannot detect companies that manipulate their earnings with 100% accuracy. Please check Halliburton Piotroski F Score and Halliburton Altman Z Score analysis.
  
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Halliburton Total Debt is relatively stable at the moment as compared to the past year. The company's current value of Total Debt is estimated at 10.99 Billion. Debt Current is expected to hike to about 354.6 M this year, although the value of Long Term Debt to Equity will most likely fall to 1.11. Halliburton Accrued Expenses Turnover is relatively stable at the moment as compared to the past year. The company's current value of Accrued Expenses Turnover is estimated at 24.21. Operating Margin is expected to hike to 12.70 this year, although the value of Calculated Tax Rate will most likely fall to (20.36) .
At this time, it appears that Halliburton is an unlikely manipulator. The earnings manipulation may begin if Halliburton's top management creates an artificial sense of financial success, forcing the stock price to be traded at a high price-earnings multiple than it should be. In general, excessive earnings management by Halliburton executives may lead to removing some of the operating profits from subsequent periods to inflate earnings in the following periods. This way, the manipulation of Halliburton's earnings can lead to misrepresentations of actual financial condition, taking the otherwise loyal stakeholders on to the path of questionable ethical practices and plain fraud.
-2.96
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables0.96Focus
Asset QualityN/AFocus
Expense Coverage0.9Focus
Gross Margin Strengs0.91Focus
Accruals Factor0.9Focus
Depreciation Resistance1.0Focus
Net Sales Growth1.16Focus
Financial Leverage Condition1.06Focus

Halliburton Beneish M-Score Indicator Trends

The cure to earnings manipulation is the transparency of financial reporting. It will typically remove the temptation of the top executives to inflate earnings (i.e., to promote the idea of 'winning at any cost'). Because a healthy internal audit department can enhance transparency, the board should promote the auditors' access to all the record-keeping systems across the enterprise. For example, if Halliburton's auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back.
Current ValueLast YearChange From Last Year 10 Year Trend
Revenues17.7 B15.3 B
Fairly Up
Decreasing
Slightly volatile
Selling General and Administrative Expense211.9 M204 M
Sufficiently Up
Decreasing
Slightly volatile
Net Cash Flow from Operations2.1 B1.9 B
Significantly Up
Decreasing
Slightly volatile
Depreciation Amortization and Accretion1.1 B904 M
Significantly Up
Decreasing
Slightly volatile
Total Assets23.1 B22.3 B
Sufficiently Up
Decreasing
Slightly volatile
Property Plant and Equipment Net6.6 B5.3 B
Fairly Up
Decreasing
Slightly volatile
Trade and Non Trade Receivables4.1 B3.7 B
Significantly Up
Decreasing
Slightly volatile
Total Liabilities17.4 B15.6 B
Moderately Up
Increasing
Slightly volatile
Current Assets10.5 B9.9 B
Notably Up
Decreasing
Slightly volatile
Assets Non Current12.6 B12.4 B
Fairly Up
Decreasing
Stable
Current Liabilities4.3 B4.3 B
Slightly Down
Decreasing
Very volatile
Liabilities Non Current12.4 B11.3 B
Significantly Up
Increasing
Slightly volatile
Total Debt11 B10.2 B
Significantly Up
Increasing
Slightly volatile
Debt Current354.6 M240 M
Way Up
Increasing
Slightly volatile
Debt Non Current10.7 B10 B
Notably Up
Increasing
Slightly volatile
Operating Income1.4 B1.8 B
Significantly Down
Decreasing
Slightly volatile
Gross Margin0.120.132
Moderately Down
Decreasing
Slightly volatile

Halliburton Beneish M-Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to detect the potential manipulation of earnings. Understanding the correlation between Halliburton's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Halliburton in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find Halliburton's degree of accounting gimmicks and manipulations.

About Halliburton Beneish M Score

M-Score is one of many grading techniques for value stocks. It was developed by Professor M. Daniel Beneish of the Kelley School of Business at Indiana University and published in 1999 under the paper titled The Detection of Earnings Manipulation. The Beneish score is a multi-factor model that utilizes financial identifiers to compile eight variables used to classify whether a company has manipulated its reported earnings. The variables are built from the officially filed financial statements to create a final score call 'M Score.' The score helps to identify companies that are likely to manipulate their profits if they show deteriorating gross margins, operating expenses, and leverage against growing revenue.

Operating Expenses

221.68 Million

Share
Halliburton Operating Expenses is relatively stable at the moment as compared to the past year. The company's current value of Operating Expenses is estimated at 221.68 Million

Halliburton Earnings Manipulation Drivers

Although earnings manipulation is typically not the result of intentional misconduct by the c-level executives, it is still a widespread practice by the senior management of public companies such as Halliburton. It is usually done by a series of misrepresentations of various accounting rules and operating activities across multiple financial cycles. The best way to spot the manipulation is to examine the historical financial statement to find inconsistencies in earning reports to find trends in assets or liabilities that are not sustainable in the future.
201720182019202020212022 (projected)
Revenues20.62 B24 B22.41 B14.45 B15.29 B17.69 B
Total Assets25.09 B25.98 B25.38 B20.68 B22.32 B23.07 B
Current Assets10.78 B11.15 B11.21 B9.47 B9.94 B10.49 B
Assets Non Current14.31 B14.83 B14.16 B11.21 B12.38 B12.58 B
Total Liabilities16.74 B16.44 B17.35 B15.7 B15.59 B17.38 B
Current Liabilities4.86 B4.8 B4.88 B4.42 B4.31 B4.27 B
Total Debt10.94 B10.31 B11.36 B10.84 B10.21 B10.99 B
Debt Current170 M512 M219 M946 M240 M354.59 M
Debt Non Current10.43 B10.31 B11.14 B9.89 B9.97 B10.72 B
Operating Income1.37 B2.47 B(448 M)(2.44 B)1.8 B1.44 B

About Halliburton Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Halliburton's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Halliburton using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Halliburton based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Halliburton Company provides products and services to the energy industry worldwide. Halliburton Company was founded in 1919 and is based in Houston, Texas. Halliburton operates under Oil Gas Equipment Services classification in the United States and is traded on New York Stock Exchange. It employs 40000 people.

Halliburton Investors Sentiment

The influence of Halliburton's investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in Halliburton. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock markets does not have a solid backing from leading economists and market statisticians.

Halliburton Implied Volatility

    
  56.81  
Halliburton's implied volatility exposes the market's sentiment of Halliburton stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Halliburton's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Halliburton stock will not fluctuate a lot when Halliburton's options are near their expiration.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards Halliburton in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, Halliburton's short interest history, or implied volatility extrapolated from Halliburton options trading.

Current Sentiment - HAL

Halliburton Investor Sentiment

Predominant part of Macroaxis users are currently bullish on Halliburton. What is your judgment towards investing in Halliburton? Are you bullish or bearish?
Bullish
Bearish
98% Bullish
2% Bearish
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Please check Halliburton Piotroski F Score and Halliburton Altman Z Score analysis. Note that the Halliburton information on this page should be used as a complementary analysis to other Halliburton's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.

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Is Halliburton's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Halliburton. If investors know Halliburton will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Halliburton listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Halliburton is measured differently than its book value, which is the value of Halliburton that is recorded on the company's balance sheet. Investors also form their own opinion of Halliburton's value that differs from its market value or its book value, called intrinsic value, which is Halliburton's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Halliburton's market value can be influenced by many factors that don't directly affect Halliburton's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Halliburton's value and its price as these two are different measures arrived at by different means. Investors typically determine Halliburton value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Halliburton's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.