HUNTINGTON INGALLS INDUSTRIE (HII) Stock Fundamental Analysis
NYSE:HII - New York Stock Exchange, Inc. - US4464131063 - Common Stock - Currency: USD
Taking everything into account, HII scores 4 out of 10 in our fundamental rating. HII was compared to 64 industry peers in the Aerospace & Defense industry. There are concerns on the financial health of HII while its profitability can be described as average. HII is not valued too expensively and it also shows a decent growth rate. Finally HII also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
HII had positive earnings in the past year.
HII had a positive operating cash flow in the past year.
In the past 5 years HII has always been profitable.
HII had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of 4.53%, HII perfoms like the industry average, outperforming 59.38% of the companies in the same industry.
HII has a Return On Equity of 11.79%. This is in the better half of the industry: HII outperforms 76.56% of its industry peers.
HII has a Return On Invested Capital (4.39%) which is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for HII is below the industry average of 7.79%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.53% | ||
| ROE | 11.79% | ||
| ROIC | 4.39% |
ROA(3y)5.31%
ROA(5y)5.92%
ROE(3y)15.01%
ROE(5y)20.2%
ROIC(3y)5.76%
ROIC(5y)6.54%
1.3 Margins
Looking at the Profit Margin, with a value of 4.77%, HII is in line with its industry, outperforming 54.69% of the companies in the same industry.
HII's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 4.21%, HII is in line with its industry, outperforming 43.75% of the companies in the same industry.
HII's Operating Margin has declined in the last couple of years.
HII's Gross Margin of 12.57% is on the low side compared to the rest of the industry. HII is outperformed by 79.69% of its industry peers.
In the last couple of years the Gross Margin of HII has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.21% | ||
| PM (TTM) | 4.77% | ||
| GM | 12.57% |
OM growth 3Y-5.13%
OM growth 5Y-12.78%
PM growth 3Y-5.84%
PM growth 5Y-5.02%
GM growth 3Y-4.35%
GM growth 5Y-6.08%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so HII is destroying value.
HII has less shares outstanding than it did 1 year ago.
The number of shares outstanding for HII has been reduced compared to 5 years ago.
HII has a worse debt/assets ratio than last year.
2.2 Solvency
HII has an Altman-Z score of 2.38. This is not the best score and indicates that HII is in the grey zone with still only limited risk for bankruptcy at the moment.
The Altman-Z score of HII (2.38) is comparable to the rest of the industry.
The Debt to FCF ratio of HII is 123.19, which is on the high side as it means it would take HII, 123.19 years of fcf income to pay off all of its debts.
HII's Debt to FCF ratio of 123.19 is in line compared to the rest of the industry. HII outperforms 53.13% of its industry peers.
HII has a Debt/Equity ratio of 0.58. This is a neutral value indicating HII is somewhat dependend on debt financing.
HII's Debt to Equity ratio of 0.58 is in line compared to the rest of the industry. HII outperforms 48.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | 123.19 | ||
| Altman-Z | 2.38 |
ROIC/WACC0.48
WACC9.15%
2.3 Liquidity
HII has a Current Ratio of 1.08. This is a normal value and indicates that HII is financially healthy and should not expect problems in meeting its short term obligations.
HII's Current ratio of 1.08 is on the low side compared to the rest of the industry. HII is outperformed by 82.81% of its industry peers.
A Quick Ratio of 1.01 indicates that HII should not have too much problems paying its short term obligations.
The Quick ratio of HII (1.01) is worse than 67.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.08 | ||
| Quick Ratio | 1.01 |
3. Growth
3.1 Past
The earnings per share for HII have decreased strongly by -18.36% in the last year.
The Earnings Per Share has been decreasing by -0.09% on average over the past years.
HII shows a small growth in Revenue. In the last year, the Revenue has grown by 0.71%.
Measured over the past years, HII shows a small growth in Revenue. The Revenue has been growing by 5.33% on average per year.
EPS 1Y (TTM)-18.36%
EPS 3Y1.07%
EPS 5Y-0.09%
EPS Q2Q%-54.35%
Revenue 1Y (TTM)0.71%
Revenue growth 3Y6.59%
Revenue growth 5Y5.33%
Sales Q2Q%-5.45%
3.2 Future
The Earnings Per Share is expected to grow by 11.92% on average over the next years. This is quite good.
HII is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.37% yearly.
EPS Next Y1.13%
EPS Next 2Y10.1%
EPS Next 3Y11.49%
EPS Next 5Y11.92%
Revenue Next Year3.02%
Revenue Next 2Y3.74%
Revenue Next 3Y4.11%
Revenue Next 5Y4.37%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 15.72, HII is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of HII indicates a rather cheap valuation: HII is cheaper than 90.63% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.29, HII is valued a bit cheaper.
The Price/Forward Earnings ratio is 15.55, which indicates a correct valuation of HII.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HII indicates a rather cheap valuation: HII is cheaper than 92.19% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of HII to the average of the S&P500 Index (21.08), we can say HII is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.72 | ||
| Fwd PE | 15.55 |
4.2 Price Multiples
81.25% of the companies in the same industry are more expensive than HII, based on the Enterprise Value to EBITDA ratio.
HII's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 331.25 | ||
| EV/EBITDA | 13.53 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates HII does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)13.88
PEG (5Y)N/A
EPS Next 2Y10.1%
EPS Next 3Y11.49%
5. Dividend
5.1 Amount
HII has a Yearly Dividend Yield of 2.46%.
HII's Dividend Yield is rather good when compared to the industry average which is at 1.39. HII pays more dividend than 95.31% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.52, HII has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.46% |
5.2 History
The dividend of HII is nicely growing with an annual growth rate of 7.82%!
HII has been paying a dividend for at least 10 years, so it has a reliable track record.
HII has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)7.82%
Div Incr Years12
Div Non Decr Years12
5.3 Sustainability
37.45% of the earnings are spent on dividend by HII. This is a low number and sustainable payout ratio.
HII's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP37.45%
EPS Next 2Y10.1%
EPS Next 3Y11.49%
219.48
+3.88 (+1.8%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners95.25%
Inst Owner Change1.92%
Ins Owners0.61%
Ins Owner Change4.87%
Market Cap8.61B
Analysts68.24
Price Target211.46 (-3.65%)
Short Float %6.55%
Short Ratio3.26
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.46% |
Yearly Dividend5.23
Dividend Growth(5Y)7.82%
DP37.45%
Div Incr Years12
Div Non Decr Years12
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-22.43%
Min EPS beat(2)-34.31%
Max EPS beat(2)-10.56%
EPS beat(4)2
Avg EPS beat(4)-4.07%
Min EPS beat(4)-34.31%
Max EPS beat(4)19.95%
EPS beat(8)6
Avg EPS beat(8)8.11%
EPS beat(12)8
Avg EPS beat(12)8.06%
EPS beat(16)11
Avg EPS beat(16)11.4%
Revenue beat(2)0
Avg Revenue beat(2)-3.83%
Min Revenue beat(2)-5.04%
Max Revenue beat(2)-2.63%
Revenue beat(4)1
Avg Revenue beat(4)-1.15%
Min Revenue beat(4)-5.04%
Max Revenue beat(4)3.62%
Revenue beat(8)5
Avg Revenue beat(8)2.03%
Revenue beat(12)8
Avg Revenue beat(12)1.54%
Revenue beat(16)10
Avg Revenue beat(16)1.14%
PT rev (1m)4.43%
PT rev (3m)-7.28%
EPS NQ rev (1m)-0.61%
EPS NQ rev (3m)-14.43%
EPS NY rev (1m)1.61%
EPS NY rev (3m)-11.74%
Revenue NQ rev (1m)-0.21%
Revenue NQ rev (3m)-3.23%
Revenue NY rev (1m)-0.12%
Revenue NY rev (3m)-1.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.72 | ||
| Fwd PE | 15.55 | ||
| P/S | 0.75 | ||
| P/FCF | 331.25 | ||
| P/OCF | 21.91 | ||
| P/B | 1.85 | ||
| P/tB | 6.8 | ||
| EV/EBITDA | 13.53 |
EPS(TTM)13.96
EY6.36%
EPS(NY)14.12
Fwd EY6.43%
FCF(TTM)0.66
FCFY0.3%
OCF(TTM)10.02
OCFY4.56%
SpS293.96
BVpS118.91
TBVpS32.26
PEG (NY)13.88
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.53% | ||
| ROE | 11.79% | ||
| ROCE | 5.31% | ||
| ROIC | 4.39% | ||
| ROICexc | 4.83% | ||
| ROICexgc | 8.17% | ||
| OM | 4.21% | ||
| PM (TTM) | 4.77% | ||
| GM | 12.57% | ||
| FCFM | 0.23% |
ROA(3y)5.31%
ROA(5y)5.92%
ROE(3y)15.01%
ROE(5y)20.2%
ROIC(3y)5.76%
ROIC(5y)6.54%
ROICexc(3y)6.16%
ROICexc(5y)7.06%
ROICexgc(3y)11.25%
ROICexgc(5y)12.66%
ROCE(3y)6.97%
ROCE(5y)7.91%
ROICexcg growth 3Y-7.33%
ROICexcg growth 5Y-15.7%
ROICexc growth 3Y-2%
ROICexc growth 5Y-16.81%
OM growth 3Y-5.13%
OM growth 5Y-12.78%
PM growth 3Y-5.84%
PM growth 5Y-5.02%
GM growth 3Y-4.35%
GM growth 5Y-6.08%
F-Score4
Asset Turnover0.95
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | 123.19 | ||
| Debt/EBITDA | 3.33 | ||
| Cap/Depr | 112.58% | ||
| Cap/Sales | 3.18% | ||
| Interest Coverage | 4.81 | ||
| Cash Conversion | 48.4% | ||
| Profit Quality | 4.73% | ||
| Current Ratio | 1.08 | ||
| Quick Ratio | 1.01 | ||
| Altman-Z | 2.38 |
F-Score4
WACC9.15%
ROIC/WACC0.48
Cap/Depr(3y)92.02%
Cap/Depr(5y)106.39%
Cap/Sales(3y)2.8%
Cap/Sales(5y)3.13%
Profit Quality(3y)62.51%
Profit Quality(5y)74.54%
High Growth Momentum
Growth
EPS 1Y (TTM)-18.36%
EPS 3Y1.07%
EPS 5Y-0.09%
EPS Q2Q%-54.35%
EPS Next Y1.13%
EPS Next 2Y10.1%
EPS Next 3Y11.49%
EPS Next 5Y11.92%
Revenue 1Y (TTM)0.71%
Revenue growth 3Y6.59%
Revenue growth 5Y5.33%
Sales Q2Q%-5.45%
Revenue Next Year3.02%
Revenue Next 2Y3.74%
Revenue Next 3Y4.11%
Revenue Next 5Y4.37%
EBIT growth 1Y-34.68%
EBIT growth 3Y1.12%
EBIT growth 5Y-8.14%
EBIT Next Year64.4%
EBIT Next 3Y26.19%
EBIT Next 5Y17.42%
FCF growth 1Y-96.17%
FCF growth 3Y-60.72%
FCF growth 5Y-41.08%
OCF growth 1Y-59.48%
OCF growth 3Y-19.73%
OCF growth 5Y-15.2%