HUNTINGTON INGALLS INDUSTRIE (HII) Stock Fundamental Analysis
USA - NYSE:HII - US4464131063 - Common Stock
309.74 USD
-4.23 (-1.35%)
309.14 USD
-0.6 (-0.19%)
Overall HII gets a fundamental rating of 4 out of 10. We evaluated HII against 71 industry peers in the Aerospace & Defense industry. HII has an average financial health and profitability rating. HII is not valued too expensively and it also shows a decent growth rate. HII also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
HII had positive earnings in the past year.
In the past year HII had a positive cash flow from operations.
Each year in the past 5 years HII has been profitable.
In the past 5 years HII always reported a positive cash flow from operatings.
1.2 Ratios
HII has a better Return On Assets (4.62%) than 66.20% of its industry peers.
HII has a Return On Equity of 11.42%. This is in the better half of the industry: HII outperforms 76.06% of its industry peers.
HII has a Return On Invested Capital (4.72%) 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 8.46%.
| 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
The Profit Margin of HII (4.74%) is comparable to the rest of the industry.
HII's Profit Margin has declined in the last couple of years.
HII has a Operating Margin (4.56%) which is in line with its industry peers.
In the last couple of years the Operating Margin of HII has declined.
The Gross Margin of HII (12.52%) is worse than 76.06% of its industry peers.
HII's Gross Margin has declined in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), HII is destroying value.
The number of shares outstanding for HII has been reduced compared to 1 year ago.
HII has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, HII has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.78 indicates that HII is not a great score, but indicates only limited risk for bankruptcy at the moment.
HII has a Altman-Z score (2.78) which is in line with its industry peers.
HII has a debt to FCF ratio of 4.86. This is a neutral value as HII would need 4.86 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 4.86, HII is doing good in the industry, outperforming 71.83% of the companies in the same industry.
HII has a Debt/Equity ratio of 0.54. This is a neutral value indicating HII is somewhat dependend on debt financing.
HII's Debt to Equity ratio of 0.54 is in line compared to the rest of the industry. HII outperforms 49.30% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | 4.86 | ||
| Altman-Z | 2.78 |
ROIC/WACC0.51
WACC9.3%
2.3 Liquidity
A Current Ratio of 1.14 indicates that HII should not have too much problems paying its short term obligations.
The Current ratio of HII (1.14) is worse than 80.28% of its industry peers.
A Quick Ratio of 1.06 indicates that HII should not have too much problems paying its short term obligations.
HII has a worse Quick ratio (1.06) than 66.20% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.14 | ||
| Quick Ratio | 1.06 |
3. Growth
3.1 Past
HII shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -18.24%.
Measured over the past years, HII shows a decrease in Earnings Per Share. The EPS has been decreasing by -0.09% on average per year.
The Revenue has been growing slightly by 2.60% in the past year.
The Revenue has been growing slightly by 5.33% on average over the past years.
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
Based on estimates for the next years, HII will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.63% on average per year.
HII is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.50% yearly.
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 21.39.
Based on the Price/Earnings ratio, HII is valued cheaply inside the industry as 85.92% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 25.56, HII is valued at the same level.
HII is valuated rather expensively with a Price/Forward Earnings ratio of 17.73.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HII indicates a rather cheap valuation: HII is cheaper than 87.32% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.62, HII is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.39 | ||
| Fwd PE | 17.73 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HII indicates a somewhat cheap valuation: HII is cheaper than 77.46% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, HII is valued cheaply inside the industry as 91.55% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.9 | ||
| EV/EBITDA | 16.83 |
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.
HII's earnings are expected to grow with 13.23% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.56
PEG (5Y)N/A
EPS Next 2Y11.88%
EPS Next 3Y13.23%
5. Dividend
5.1 Amount
HII has a Yearly Dividend Yield of 1.77%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.37, HII pays a better dividend. On top of this HII pays more dividend than 94.37% of the companies listed in the same industry.
HII's Dividend Yield is slightly below the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.77% |
5.2 History
On average, the dividend of HII grows each year by 7.82%, which is quite nice.
HII has paid a dividend for at least 10 years, which is 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
HII pays out 37.08% of its income as dividend. This is a sustainable payout ratio.
The dividend of HII is growing, but earnings are growing more, so the dividend growth is sustainable.
DP37.08%
EPS Next 2Y11.88%
EPS Next 3Y13.23%
309.74
-4.23 (-1.35%)
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 Cap12.15B
Revenue(TTM)12.01B
Net Income(TTM)569.00M
Analysts70.67
Price Target304.12 (-1.81%)
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 | 21.39 | ||
| Fwd PE | 17.73 | ||
| P/S | 1.01 | ||
| P/FCF | 21.9 | ||
| P/OCF | 12.97 | ||
| P/B | 2.44 | ||
| P/tB | 7.53 | ||
| EV/EBITDA | 16.83 |
EPS(TTM)14.48
EY4.67%
EPS(NY)17.47
Fwd EY5.64%
FCF(TTM)14.14
FCFY4.57%
OCF(TTM)23.88
OCFY7.71%
SpS306.12
BVpS127.01
TBVpS41.13
PEG (NY)2.56
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
WACC9.3%
ROIC/WACC0.51
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%.