HUNTINGTON INGALLS INDUSTRIE (HII) Fundamental Analysis & Valuation

NYSE:HII • US4464131063

Current stock price

357.43 USD
-12.71 (-3.43%)
Last:

This HII fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

4

1. HII Profitability Analysis

1.1 Basic Checks

  • In the past year HII was profitable.
  • In the past year HII had a positive cash flow from operations.
  • In the past 5 years HII has always been profitable.
  • In the past 5 years HII always reported a positive cash flow from operatings.
HII Yearly Net Income VS EBIT VS OCF VS FCFHII Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M 1B

1.2 Ratios

  • HII's Return On Assets of 4.75% is fine compared to the rest of the industry. HII outperforms 63.75% of its industry peers.
  • HII has a better Return On Equity (11.93%) than 71.25% of its industry peers.
  • HII has a Return On Invested Capital (5.14%) which is comparable to the rest of the industry.
  • Measured over the past 3 years, the Average Return On Invested Capital for HII is below the industry average of 9.30%.
Industry RankSector Rank
ROA 4.75%
ROE 11.93%
ROIC 5.14%
ROA(3y)5.12%
ROA(5y)5.16%
ROE(3y)13.45%
ROE(5y)15.26%
ROIC(3y)5.64%
ROIC(5y)5.38%
HII Yearly ROA, ROE, ROICHII Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30 40 50

1.3 Margins

  • HII has a Profit Margin (4.85%) which is in line with its industry peers.
  • In the last couple of years the Profit Margin of HII has declined.
  • HII has a Operating Margin of 4.89%. This is comparable to the rest of the industry: HII outperforms 46.25% of its industry peers.
  • HII's Operating Margin has declined in the last couple of years.
  • The Gross Margin of HII (12.70%) is worse than 78.75% of its industry peers.
  • HII's Gross Margin has declined in the last couple of years.
Industry RankSector Rank
OM 4.89%
PM (TTM) 4.85%
GM 12.7%
OM growth 3Y0.35%
OM growth 5Y-9.79%
PM growth 3Y-3.68%
PM growth 5Y-8.2%
GM growth 3Y-2%
GM growth 5Y-6.58%
HII Yearly Profit, Operating, Gross MarginsHII Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10 15 20

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4

2. HII Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so HII is destroying value.
  • The number of shares outstanding for HII has been increased compared to 1 year ago.
  • Compared to 5 years ago, HII has less shares outstanding
  • The debt/assets ratio for HII has been reduced compared to a year ago.
HII Yearly Shares OutstandingHII Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10M 20M 30M 40M
HII Yearly Total Debt VS Total AssetsHII Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B 10B

2.2 Solvency

  • An Altman-Z score of 2.92 indicates that HII is not a great score, but indicates only limited risk for bankruptcy at the moment.
  • HII has a worse Altman-Z score (2.92) than 60.00% of its industry peers.
  • The Debt to FCF ratio of HII is 3.40, which is a good value as it means it would take HII, 3.40 years of fcf income to pay off all of its debts.
  • Looking at the Debt to FCF ratio, with a value of 3.40, HII is in the better half of the industry, outperforming 78.75% of the companies in the same industry.
  • HII has a Debt/Equity ratio of 0.53. This is a neutral value indicating HII is somewhat dependend on debt financing.
  • HII has a Debt to Equity ratio (0.53) which is in line with its industry peers.
Industry RankSector Rank
Debt/Equity 0.53
Debt/FCF 3.4
Altman-Z 2.92
ROIC/WACC0.51
WACC10.05%
HII Yearly LT Debt VS Equity VS FCFHII Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B 4B 5B

2.3 Liquidity

  • HII has a Current Ratio of 1.13. This is a normal value and indicates that HII is financially healthy and should not expect problems in meeting its short term obligations.
  • With a Current ratio value of 1.13, HII is not doing good in the industry: 86.25% of the companies in the same industry are doing better.
  • 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 72.50% of its industry peers.
Industry RankSector Rank
Current Ratio 1.13
Quick Ratio 1.06
HII Yearly Current Assets VS Current LiabilitesHII Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B

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5

3. HII Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an nice 10.10% over the past year.
  • HII shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 0.05% yearly.
  • Looking at the last year, HII shows a quite strong growth in Revenue. The Revenue has grown by 8.23% in the last year.
  • HII shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.93% yearly.
EPS 1Y (TTM)10.1%
EPS 3Y2.08%
EPS 5Y0.05%
EPS Q2Q%28.25%
Revenue 1Y (TTM)8.23%
Revenue growth 3Y5.35%
Revenue growth 5Y5.93%
Sales Q2Q%15.71%

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 12.55% on average per year.
  • HII is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.06% yearly.
EPS Next Y14.71%
EPS Next 2Y16.17%
EPS Next 3Y15.66%
EPS Next 5Y12.55%
Revenue Next Year7.11%
Revenue Next 2Y6.7%
Revenue Next 3Y6.5%
Revenue Next 5Y5.06%

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 stable.
HII Yearly Revenue VS EstimatesHII Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 5B 10B 15B
HII Yearly EPS VS EstimatesHII Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 5 10 15 20 25

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5

4. HII Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 23.26, which indicates a rather expensive current valuation of HII.
  • HII's Price/Earnings ratio is rather cheap when compared to the industry. HII is cheaper than 82.50% of the companies in the same industry.
  • Compared to an average S&P500 Price/Earnings ratio of 27.47, HII is valued at the same level.
  • With a Price/Forward Earnings ratio of 20.27, HII is valued on the expensive side.
  • Based on the Price/Forward Earnings ratio, HII is valued cheaply inside the industry as 85.00% of the companies are valued more expensively.
  • When comparing the Price/Forward Earnings ratio of HII to the average of the S&P500 Index (22.62), we can say HII is valued inline with the index average.
Industry RankSector Rank
PE 23.26
Fwd PE 20.27
HII Price Earnings VS Forward Price EarningsHII Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, HII is valued a bit cheaper than the industry average as 76.25% of the companies are valued more expensively.
  • 95.00% of the companies in the same industry are more expensive than HII, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 17.73
EV/EBITDA 17.56
HII Per share dataHII EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 100 200 300

4.3 Compensation for Growth

  • HII's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
  • HII's earnings are expected to grow with 15.66% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.58
PEG (5Y)446.09
EPS Next 2Y16.17%
EPS Next 3Y15.66%

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7

5. HII Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 1.39%, HII has a reasonable but not impressive dividend return.
  • Compared to an average industry Dividend Yield of 0.35, HII pays a better dividend. On top of this HII pays more dividend than 91.25% of the companies listed in the same industry.
  • Compared to the average S&P500 Dividend Yield of 1.81, HII is paying slightly less dividend.
Industry RankSector Rank
Dividend Yield 1.39%

5.2 History

  • The dividend of HII has a limited annual growth rate of 5.32%.
  • HII has been paying a dividend for at least 10 years, so it has 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)5.32%
Div Incr Years13
Div Non Decr Years13
HII Yearly Dividends per shareHII Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1 2 3 4 5

5.3 Sustainability

  • HII pays out 35.21% of its income as dividend. This is a sustainable payout ratio.
  • HII's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP35.21%
EPS Next 2Y16.17%
EPS Next 3Y15.66%
HII Yearly Income VS Free CF VS DividendHII Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M
HII Dividend Payout.HII Dividend Payout, showing the Payout Ratio.HII Dividend Payout.PayoutRetained Earnings

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HII Fundamentals: All Metrics, Ratios and Statistics

HUNTINGTON INGALLS INDUSTRIE

NYSE:HII (4/24/2026, 2:30:57 PM)

357.43

-12.71 (-3.43%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)02-05
Earnings (Next)05-05
Inst Owners96.08%
Inst Owner Change-0.22%
Ins Owners0.59%
Ins Owner Change2.86%
Market Cap14.08B
Revenue(TTM)12.48B
Net Income(TTM)605.00M
Analysts72.94
Price Target411.21 (15.05%)
Short Float %2.73%
Short Ratio2.04
Dividend
Industry RankSector Rank
Dividend Yield 1.39%
Yearly Dividend5.44
Dividend Growth(5Y)5.32%
DP35.21%
Div Incr Years13
Div Non Decr Years13
Ex-Date02-27
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.8%
Min EPS beat(2)3.05%
Max EPS beat(2)8.55%
EPS beat(4)4
Avg EPS beat(4)14.25%
Min EPS beat(4)3.05%
Max EPS beat(4)28.76%
EPS beat(8)6
Avg EPS beat(8)5.09%
EPS beat(12)10
Avg EPS beat(12)10.16%
EPS beat(16)12
Avg EPS beat(16)9.61%
Revenue beat(2)2
Avg Revenue beat(2)8.89%
Min Revenue beat(2)6.79%
Max Revenue beat(2)10.98%
Revenue beat(4)3
Avg Revenue beat(4)4.75%
Min Revenue beat(4)-3.02%
Max Revenue beat(4)10.98%
Revenue beat(8)4
Avg Revenue beat(8)1.8%
Revenue beat(12)8
Avg Revenue beat(12)2.94%
Revenue beat(16)11
Avg Revenue beat(16)2.34%
PT rev (1m)0.84%
PT rev (3m)15.38%
EPS NQ rev (1m)-0.22%
EPS NQ rev (3m)-4.54%
EPS NY rev (1m)0.19%
EPS NY rev (3m)-0.61%
Revenue NQ rev (1m)0.1%
Revenue NQ rev (3m)3.12%
Revenue NY rev (1m)0.22%
Revenue NY rev (3m)1.73%
Valuation
Industry RankSector Rank
PE 23.26
Fwd PE 20.27
P/S 1.13
P/FCF 17.73
P/OCF 11.77
P/B 2.77
P/tB 8.14
EV/EBITDA 17.56
EPS(TTM)15.37
EY4.3%
EPS(NY)17.63
Fwd EY4.93%
FCF(TTM)20.16
FCFY5.64%
OCF(TTM)30.37
OCFY8.5%
SpS317.01
BVpS128.82
TBVpS43.91
PEG (NY)1.58
PEG (5Y)446.09
Graham Number211.068 (-40.95%)
Profitability
Industry RankSector Rank
ROA 4.75%
ROE 11.93%
ROCE 6.3%
ROIC 5.14%
ROICexc 5.59%
ROICexgc 8.94%
OM 4.89%
PM (TTM) 4.85%
GM 12.7%
FCFM 6.36%
ROA(3y)5.12%
ROA(5y)5.16%
ROE(3y)13.45%
ROE(5y)15.26%
ROIC(3y)5.64%
ROIC(5y)5.38%
ROICexc(3y)6.07%
ROICexc(5y)5.78%
ROICexgc(3y)10.44%
ROICexgc(5y)10.48%
ROCE(3y)6.9%
ROCE(5y)6.58%
ROICexgc growth 3Y-6.54%
ROICexgc growth 5Y-14.05%
ROICexc growth 3Y-0.27%
ROICexc growth 5Y-13.53%
OM growth 3Y0.35%
OM growth 5Y-9.79%
PM growth 3Y-3.68%
PM growth 5Y-8.2%
GM growth 3Y-2%
GM growth 5Y-6.58%
F-Score8
Asset Turnover0.98
Health
Industry RankSector Rank
Debt/Equity 0.53
Debt/FCF 3.4
Debt/EBITDA 2.87
Cap/Depr 122.19%
Cap/Sales 3.22%
Interest Coverage 5.66
Cash Conversion 127.23%
Profit Quality 131.24%
Current Ratio 1.13
Quick Ratio 1.06
Altman-Z 2.92
F-Score8
WACC10.05%
ROIC/WACC0.51
Cap/Depr(3y)106.31%
Cap/Depr(5y)102.24%
Cap/Sales(3y)2.98%
Cap/Sales(5y)3.02%
Profit Quality(3y)78.51%
Profit Quality(5y)79.53%
High Growth Momentum
Growth
EPS 1Y (TTM)10.1%
EPS 3Y2.08%
EPS 5Y0.05%
EPS Q2Q%28.25%
EPS Next Y14.71%
EPS Next 2Y16.17%
EPS Next 3Y15.66%
EPS Next 5Y12.55%
Revenue 1Y (TTM)8.23%
Revenue growth 3Y5.35%
Revenue growth 5Y5.93%
Sales Q2Q%15.71%
Revenue Next Year7.11%
Revenue Next 2Y6.7%
Revenue Next 3Y6.5%
Revenue Next 5Y5.06%
EBIT growth 1Y25.72%
EBIT growth 3Y5.73%
EBIT growth 5Y-4.45%
EBIT Next Year59.41%
EBIT Next 3Y27.35%
EBIT Next 5Y18.3%
FCF growth 1Y2953.85%
FCF growth 3Y18.1%
FCF growth 5Y1.42%
OCF growth 1Y204.33%
OCF growth 3Y16.01%
OCF growth 5Y1.82%

HUNTINGTON INGALLS INDUSTRIE / HII Fundamental Analysis FAQ

What is the fundamental rating for HII stock?

ChartMill assigns a fundamental rating of 5 / 10 to HII.


Can you provide the valuation status for HUNTINGTON INGALLS INDUSTRIE?

ChartMill assigns a valuation rating of 5 / 10 to HUNTINGTON INGALLS INDUSTRIE (HII). This can be considered as Fairly Valued.


How profitable is HUNTINGTON INGALLS INDUSTRIE (HII) stock?

HUNTINGTON INGALLS INDUSTRIE (HII) has a profitability rating of 4 / 10.


What is the financial health of HUNTINGTON INGALLS INDUSTRIE (HII) stock?

The financial health rating of HUNTINGTON INGALLS INDUSTRIE (HII) is 4 / 10.


What is the earnings growth outlook for HUNTINGTON INGALLS INDUSTRIE?

The Earnings per Share (EPS) of HUNTINGTON INGALLS INDUSTRIE (HII) is expected to grow by 14.71% in the next year.