HUNTINGTON INGALLS INDUSTRIE (HII) Stock Fundamental Analysis
USA - NYSE:HII - US4464131063 - Common Stock
313.97 USD
+1.3 (+0.42%)
313.97 USD
0 (0%)
HII gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 71 industry peers in the Aerospace & Defense industry. HII has an average financial health and profitability rating. HII has a correct valuation and a medium growth rate. HII also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year HII was profitable.
HII had a positive operating cash flow in the past year.
Each year in the past 5 years HII has been profitable.
Each year in the past 5 years HII had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.62%, HII is in the better half of the industry, outperforming 65.28% of the companies in the same industry.
With a decent Return On Equity value of 11.42%, HII is doing good in the industry, outperforming 76.39% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 4.72%, HII is in line with its industry, outperforming 47.22% of the companies in the same industry.
HII had an Average Return On Invested Capital over the past 3 years of 5.76%. This is below the industry average of 8.49%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.62% | ||
| ROE | 11.42% | ||
| ROIC | 4.72% |
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
HII has a Profit Margin of 4.74%. This is comparable to the rest of the industry: HII outperforms 56.94% of its industry peers.
In the last couple of years the Profit Margin of HII has declined.
HII has a Operating Margin of 4.56%. This is comparable to the rest of the industry: HII outperforms 45.83% of its industry peers.
HII's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 12.52%, HII is not doing good in the industry: 76.39% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of HII has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.56% | ||
| PM (TTM) | 4.74% | ||
| GM | 12.52% |
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
HII has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
HII has less shares outstanding than it did 1 year ago.
HII has less shares outstanding than it did 5 years ago.
The debt/assets ratio for HII is higher compared to a year ago.
2.2 Solvency
HII has an Altman-Z score of 2.78. 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.
HII has a Altman-Z score of 2.78. This is comparable to the rest of the industry: HII outperforms 41.67% of its industry peers.
The Debt to FCF ratio of HII is 4.86, which is a neutral value as it means it would take HII, 4.86 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of HII (4.86) is better than 70.83% of its industry peers.
A Debt/Equity ratio of 0.54 indicates that HII is somewhat dependend on debt financing.
The Debt to Equity ratio of HII (0.54) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | 4.86 | ||
| Altman-Z | 2.78 |
ROIC/WACC0.5
WACC9.47%
2.3 Liquidity
A Current Ratio of 1.14 indicates that HII should not have too much problems paying its short term obligations.
HII has a worse Current ratio (1.14) than 80.56% of its industry peers.
HII has a Quick Ratio of 1.06. 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 Quick ratio of 1.06 is on the low side compared to the rest of the industry. HII is outperformed by 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.14 | ||
| Quick Ratio | 1.06 |
3. Growth
3.1 Past
The earnings per share for HII have decreased strongly by -18.24% in the last year.
HII shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -0.09% yearly.
HII shows a small growth in Revenue. In the last year, the Revenue has grown by 2.60%.
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)-18.24%
EPS 3Y1.07%
EPS 5Y-0.09%
EPS Q2Q%43.75%
Revenue 1Y (TTM)2.6%
Revenue growth 3Y6.59%
Revenue growth 5Y5.33%
Sales Q2Q%16.11%
3.2 Future
The Earnings Per Share is expected to grow by 11.63% on average over the next years. This is quite good.
Based on estimates for the next years, HII will show a small growth in Revenue. The Revenue will grow by 4.50% on average per year.
EPS Next Y8.35%
EPS Next 2Y11.88%
EPS Next 3Y13.23%
EPS Next 5Y11.63%
Revenue Next Year3.67%
Revenue Next 2Y4.28%
Revenue Next 3Y4.59%
Revenue Next 5Y4.5%
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
HII is valuated rather expensively with a Price/Earnings ratio of 21.68.
Compared to the rest of the industry, the Price/Earnings ratio of HII indicates a rather cheap valuation: HII is cheaper than 86.11% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.89, HII is valued at the same level.
HII is valuated rather expensively with a Price/Forward Earnings ratio of 17.97.
Based on the Price/Forward Earnings ratio, HII is valued cheaply inside the industry as 87.50% of the companies are valued more expensively.
HII is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 34.59, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.68 | ||
| Fwd PE | 17.97 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HII is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
HII's Price/Free Cash Flow ratio is rather cheap when compared to the industry. HII is cheaper than 90.28% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.2 | ||
| EV/EBITDA | 16.83 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
A more expensive valuation may be justified as HII's earnings are expected to grow with 13.23% in the coming years.
PEG (NY)2.6
PEG (5Y)N/A
EPS Next 2Y11.88%
EPS Next 3Y13.23%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.77%, HII has a reasonable but not impressive dividend return.
HII's Dividend Yield is rather good when compared to the industry average which is at 1.37. HII pays more dividend than 94.44% of the companies in the same industry.
Compared to the average S&P500 Dividend Yield of 2.44, HII is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.77% |
5.2 History
The dividend of HII is nicely growing with an annual growth rate of 7.82%!
HII has paid a dividend for at least 10 years, which is a reliable track record.
HII has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)7.82%
Div Incr Years12
Div Non Decr Years12
5.3 Sustainability
37.08% 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.
DP37.08%
EPS Next 2Y11.88%
EPS Next 3Y13.23%
313.97
+1.3 (+0.42%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners98.27%
Inst Owner Change-2.24%
Ins Owners0.66%
Ins Owner Change-3.92%
Market Cap12.32B
Revenue(TTM)12.01B
Net Income(TTM)569.00M
Analysts70.67
Price Target304.12 (-3.14%)
Short Float %3.98%
Short Ratio3.61
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.77% |
Yearly Dividend5.23
Dividend Growth(5Y)7.82%
DP37.08%
Div Incr Years12
Div Non Decr Years12
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)12.59%
Min EPS beat(2)8.55%
Max EPS beat(2)16.62%
EPS beat(4)3
Avg EPS beat(4)10.84%
Min EPS beat(4)-10.56%
Max EPS beat(4)28.76%
EPS beat(8)6
Avg EPS beat(8)12.17%
EPS beat(12)9
Avg EPS beat(12)9.26%
EPS beat(16)11
Avg EPS beat(16)9.39%
Revenue beat(2)2
Avg Revenue beat(2)5.51%
Min Revenue beat(2)4.23%
Max Revenue beat(2)6.79%
Revenue beat(4)2
Avg Revenue beat(4)1.34%
Min Revenue beat(4)-3.02%
Max Revenue beat(4)6.79%
Revenue beat(8)4
Avg Revenue beat(8)2.07%
Revenue beat(12)8
Avg Revenue beat(12)2.32%
Revenue beat(16)10
Avg Revenue beat(16)1.63%
PT rev (1m)1.66%
PT rev (3m)6.15%
EPS NQ rev (1m)-6.15%
EPS NQ rev (3m)-7.34%
EPS NY rev (1m)-0.17%
EPS NY rev (3m)3.05%
Revenue NQ rev (1m)-3.72%
Revenue NQ rev (3m)-4.99%
Revenue NY rev (1m)0.36%
Revenue NY rev (3m)0.86%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.68 | ||
| Fwd PE | 17.97 | ||
| P/S | 1.03 | ||
| P/FCF | 22.2 | ||
| P/OCF | 13.15 | ||
| P/B | 2.47 | ||
| P/tB | 7.63 | ||
| EV/EBITDA | 16.83 |
EPS(TTM)14.48
EY4.61%
EPS(NY)17.47
Fwd EY5.57%
FCF(TTM)14.14
FCFY4.5%
OCF(TTM)23.88
OCFY7.61%
SpS306.12
BVpS127.01
TBVpS41.13
PEG (NY)2.6
PEG (5Y)N/A
Graham Number203.42
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.62% | ||
| ROE | 11.42% | ||
| ROCE | 5.7% | ||
| ROIC | 4.72% | ||
| ROICexc | 4.87% | ||
| ROICexgc | 7.65% | ||
| OM | 4.56% | ||
| PM (TTM) | 4.74% | ||
| GM | 12.52% | ||
| FCFM | 4.62% |
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%
ROICexgc growth 3Y-7.33%
ROICexgc 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 Turnover0.98
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | 4.86 | ||
| Debt/EBITDA | 3.09 | ||
| Cap/Depr | 117.18% | ||
| Cap/Sales | 3.18% | ||
| Interest Coverage | 4.53 | ||
| Cash Conversion | 107.21% | ||
| Profit Quality | 97.54% | ||
| Current Ratio | 1.14 | ||
| Quick Ratio | 1.06 | ||
| Altman-Z | 2.78 |
F-Score4
WACC9.47%
ROIC/WACC0.5
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)-18.24%
EPS 3Y1.07%
EPS 5Y-0.09%
EPS Q2Q%43.75%
EPS Next Y8.35%
EPS Next 2Y11.88%
EPS Next 3Y13.23%
EPS Next 5Y11.63%
Revenue 1Y (TTM)2.6%
Revenue growth 3Y6.59%
Revenue growth 5Y5.33%
Sales Q2Q%16.11%
Revenue Next Year3.67%
Revenue Next 2Y4.28%
Revenue Next 3Y4.59%
Revenue Next 5Y4.5%
EBIT growth 1Y-20.58%
EBIT growth 3Y1.12%
EBIT growth 5Y-8.14%
EBIT Next Year70.45%
EBIT Next 3Y28%
EBIT Next 5Y18.65%
FCF growth 1Y-25%
FCF growth 3Y-60.72%
FCF growth 5Y-41.08%
OCF growth 1Y-7.14%
OCF growth 3Y-19.73%
OCF growth 5Y-15.2%
HUNTINGTON INGALLS INDUSTRIE / HII FAQ
What is the fundamental rating for HII stock?
ChartMill assigns a fundamental rating of 4 / 10 to HII.
What is the valuation status for HII stock?
ChartMill assigns a valuation rating of 5 / 10 to HUNTINGTON INGALLS INDUSTRIE (HII). This can be considered as Fairly Valued.
What is the profitability of HII stock?
HUNTINGTON INGALLS INDUSTRIE (HII) has a profitability rating of 4 / 10.
What is the expected EPS growth for HUNTINGTON INGALLS INDUSTRIE (HII) stock?
The Earnings per Share (EPS) of HUNTINGTON INGALLS INDUSTRIE (HII) is expected to grow by 8.35% in the next year.
Can you provide the dividend sustainability for HII stock?
The dividend rating of HUNTINGTON INGALLS INDUSTRIE (HII) is 7 / 10 and the dividend payout ratio is 37.08%.