HUNTINGTON INGALLS INDUSTRIE (HII)
US4464131063 - Common Stock
HII gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 65 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 has a correct valuation and a medium 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.
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's Return On Assets of 6.33% is fine compared to the rest of the industry. HII outperforms 75.38% of its industry peers.
HII's Return On Equity of 16.68% is amongst the best of the industry. HII outperforms 87.69% of its industry peers.
With a decent Return On Invested Capital value of 7.14%, HII is doing good in the industry, outperforming 70.77% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for HII is in line with the industry average of 7.69%.
The 3 year average ROIC (5.70%) for HII is below the current ROIC(7.14%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.33% | ||
| ROE | 16.68% | ||
| ROIC | 7.14% |
ROA(3y)5.51%
ROA(5y)6.57%
ROE(3y)17.54%
ROE(5y)24.76%
ROIC(3y)5.7%
ROIC(5y)7.81%
1.3 Margins
With a decent Profit Margin value of 5.99%, HII is doing good in the industry, outperforming 64.62% of the companies in the same industry.
HII's Profit Margin has declined in the last couple of years.
HII has a Operating Margin (5.89%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of HII has declined.
The Gross Margin of HII (13.84%) is worse than 76.92% of its industry peers.
In the last couple of years the Gross Margin of HII has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.89% | ||
| PM (TTM) | 5.99% | ||
| GM | 13.84% |
OM growth 3Y-7.45%
OM growth 5Y-10.68%
PM growth 3Y-7.18%
PM growth 5Y-10.28%
GM growth 3Y-6.96%
GM growth 5Y-8.09%
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.
Compared to 1 year ago, HII has less shares outstanding
HII has less shares outstanding than it did 5 years ago.
The debt/assets ratio for HII has been reduced compared to a year ago.
2.2 Solvency
HII has an Altman-Z score of 2.47. 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.
Looking at the Altman-Z score, with a value of 2.47, HII is in line with its industry, outperforming 46.15% of the companies in the same industry.
The Debt to FCF ratio of HII is 14.25, which is on the high side as it means it would take HII, 14.25 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 14.25, HII perfoms like the industry average, outperforming 53.85% of the companies in the same industry.
A Debt/Equity ratio of 0.41 indicates that HII is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.41, HII is in line with its industry, outperforming 56.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | 14.25 | ||
| Altman-Z | 2.47 |
ROIC/WACC0.79
WACC9%
2.3 Liquidity
HII has a Current Ratio of 0.79. This is a bad value and indicates that HII is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.79, HII is not doing good in the industry: 90.77% of the companies in the same industry are doing better.
A Quick Ratio of 0.73 indicates that HII may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.73, HII is doing worse than 78.46% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.79 | ||
| Quick Ratio | 0.73 |
3. Growth
3.1 Past
HII shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 33.46%, which is quite impressive.
HII shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -2.20% yearly.
Looking at the last year, HII shows a small growth in Revenue. The Revenue has grown by 5.58% in the last year.
HII shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.98% yearly.
EPS 1Y (TTM)33.46%
EPS 3Y3.71%
EPS 5Y-2.2%
EPS Q2Q%-30.81%
Revenue 1Y (TTM)5.58%
Revenue growth 3Y6.96%
Revenue growth 5Y6.98%
Sales Q2Q%-2.38%
3.2 Future
The Earnings Per Share is expected to grow by 6.34% on average over the next years.
Based on estimates for the next years, HII will show a small growth in Revenue. The Revenue will grow by 4.36% on average per year.
EPS Next Y-15.77%
EPS Next 2Y-3.28%
EPS Next 3Y2.49%
EPS Next 5Y6.34%
Revenue Next Year4.79%
Revenue Next 2Y4.52%
Revenue Next 3Y4.44%
Revenue Next 5Y4.36%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 10.75 indicates a reasonable valuation of HII.
Based on the Price/Earnings ratio, HII is valued cheaply inside the industry as 96.92% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.73, HII is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 11.91, the valuation of HII can be described as reasonable.
HII's Price/Forward Earnings ratio is rather cheap when compared to the industry. HII is cheaper than 98.46% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.83, HII is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.75 | ||
| Fwd PE | 11.91 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HII indicates a rather cheap valuation: HII is cheaper than 96.92% of the companies listed in the same industry.
HII's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. HII is cheaper than 69.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 40.72 | ||
| EV/EBITDA | 9.85 |
4.3 Compensation for Growth
HII has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-3.28%
EPS Next 3Y2.49%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.88%, HII has a reasonable but not impressive dividend return.
In the last 3 months the price of HII has falen by -28.81%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
HII's Dividend Yield is rather good when compared to the industry average which is at 1.42. HII pays more dividend than 96.92% of the companies in the same industry.
HII's Dividend Yield is a higher than the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.88% |
5.2 History
The dividend of HII is nicely growing with an annual growth rate of 10.61%!
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)10.61%
Div Incr Years12
Div Non Decr Years12
5.3 Sustainability
HII pays out 29.24% of its income as dividend. This is a sustainable payout ratio.
HII's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP29.24%
EPS Next 2Y-3.28%
EPS Next 3Y2.49%
HUNTINGTON INGALLS INDUSTRIE
NYSE:HII (12/20/2024, 8:16:40 PM)
After market: 190.45 0 (0%)190.45
+2.84 (+1.51%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners93.89%
Inst Owner Change0.89%
Ins Owners0.66%
Ins Owner Change0.14%
Market Cap7.45B
Analysts55.45
Price Target228.07 (19.75%)
Short Float %2.27%
Short Ratio1.63
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.88% |
Dividend Growth(5Y)10.61%
DP29.24%
Div Incr Years12
Div Non Decr Years12
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-7.18%
Min EPS beat(2)-34.31%
Max EPS beat(2)19.95%
EPS beat(4)3
Avg EPS beat(4)13.49%
Min EPS beat(4)-34.31%
Max EPS beat(4)59.68%
EPS beat(8)6
Avg EPS beat(8)8.47%
EPS beat(12)8
Avg EPS beat(12)8.91%
EPS beat(16)12
Avg EPS beat(16)14.16%
Revenue beat(2)1
Avg Revenue beat(2)-0.71%
Min Revenue beat(2)-5.04%
Max Revenue beat(2)3.62%
Revenue beat(4)2
Avg Revenue beat(4)2.8%
Min Revenue beat(4)-5.04%
Max Revenue beat(4)13.18%
Revenue beat(8)6
Avg Revenue beat(8)2.81%
Revenue beat(12)8
Avg Revenue beat(12)1.72%
Revenue beat(16)11
Avg Revenue beat(16)2.15%
PT rev (1m)-20.41%
PT rev (3m)-21.82%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-30.82%
EPS NY rev (1m)-0.49%
EPS NY rev (3m)-14.27%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.87%
Revenue NY rev (1m)-0.08%
Revenue NY rev (3m)-1.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.75 | ||
| Fwd PE | 11.91 | ||
| P/S | 0.64 | ||
| P/FCF | 40.72 | ||
| P/OCF | 13.21 | ||
| P/B | 1.77 | ||
| P/tB | 9.6 | ||
| EV/EBITDA | 9.85 |
EPS(TTM)17.71
EY9.3%
EPS(NY)16
Fwd EY8.4%
FCF(TTM)4.68
FCFY2.46%
OCF(TTM)14.41
OCFY7.57%
SpS299.21
BVpS107.41
TBVpS19.83
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.33% | ||
| ROE | 16.68% | ||
| ROCE | 8.91% | ||
| ROIC | 7.14% | ||
| ROICexc | 7.15% | ||
| ROICexgc | 12.84% | ||
| OM | 5.89% | ||
| PM (TTM) | 5.99% | ||
| GM | 13.84% | ||
| FCFM | 1.56% |
ROA(3y)5.51%
ROA(5y)6.57%
ROE(3y)17.54%
ROE(5y)24.76%
ROIC(3y)5.7%
ROIC(5y)7.81%
ROICexc(3y)6.07%
ROICexc(5y)8.26%
ROICexgc(3y)11.59%
ROICexgc(5y)14.41%
ROCE(3y)7.11%
ROCE(5y)9.74%
ROICexcg growth 3Y-9.06%
ROICexcg growth 5Y-13.64%
ROICexc growth 3Y-12.15%
ROICexc growth 5Y-15.02%
OM growth 3Y-7.45%
OM growth 5Y-10.68%
PM growth 3Y-7.18%
PM growth 5Y-10.28%
GM growth 3Y-6.96%
GM growth 5Y-8.09%
F-Score7
Asset Turnover1.06
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | 14.25 | ||
| Debt/EBITDA | 1.68 | ||
| Cap/Depr | 115.46% | ||
| Cap/Sales | 3.25% | ||
| Interest Coverage | 6.63 | ||
| Cash Conversion | 55.29% | ||
| Profit Quality | 26.11% | ||
| Current Ratio | 0.79 | ||
| Quick Ratio | 0.73 | ||
| Altman-Z | 2.47 |
F-Score7
WACC9%
ROIC/WACC0.79
Cap/Depr(3y)92.15%
Cap/Depr(5y)130.57%
Cap/Sales(3y)2.89%
Cap/Sales(5y)3.68%
Profit Quality(3y)87.22%
Profit Quality(5y)86.93%
High Growth Momentum
Growth
EPS 1Y (TTM)33.46%
EPS 3Y3.71%
EPS 5Y-2.2%
EPS Q2Q%-30.81%
EPS Next Y-15.77%
EPS Next 2Y-3.28%
EPS Next 3Y2.49%
EPS Next 5Y6.34%
Revenue 1Y (TTM)5.58%
Revenue growth 3Y6.96%
Revenue growth 5Y6.98%
Sales Q2Q%-2.38%
Revenue Next Year4.79%
Revenue Next 2Y4.52%
Revenue Next 3Y4.44%
Revenue Next 5Y4.36%
EBIT growth 1Y25.91%
EBIT growth 3Y-1.01%
EBIT growth 5Y-4.45%
EBIT Next Year35.89%
EBIT Next 3Y18.71%
EBIT Next 5Y13.78%
FCF growth 1Y28.87%
FCF growth 3Y-2.87%
FCF growth 5Y8.5%
OCF growth 1Y29.36%
OCF growth 3Y-3.9%
OCF growth 5Y1.2%