HUNTINGTON INGALLS INDUSTRIE (HII) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:HII • US4464131063
420.3 USD
-0.21 (-0.05%)
At close: Feb 2, 2026
422 USD
+1.7 (+0.4%)
After Hours: 2/2/2026, 8:12:11 PM
HII gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 72 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. 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
- Looking at the Return On Assets, with a value of 4.62%, HII is in the better half of the industry, outperforming 68.06% of the companies in the same industry.
- HII's Return On Equity of 11.42% is fine compared to the rest of the industry. HII outperforms 72.22% of its industry peers.
- HII has a Return On Invested Capital of 4.72%. This is comparable to the rest of the industry: HII outperforms 48.61% of its industry peers.
- HII had an Average Return On Invested Capital over the past 3 years of 5.76%. This is below the industry average of 8.65%.
| 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
- Looking at the Profit Margin, with a value of 4.74%, HII is in line with its industry, outperforming 56.94% 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 4.56%, HII is in line with its industry, outperforming 48.61% of the companies in the same industry.
- In the last couple of years the Operating Margin of HII has declined.
- Looking at the Gross Margin, with a value of 12.52%, HII is doing worse than 73.61% of the companies in the same industry.
- 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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so HII is destroying value.
- Compared to 1 year ago, HII has less shares outstanding
- The number of shares outstanding for HII has been reduced compared to 5 years ago.
- The debt/assets ratio for HII is higher compared to a year ago.
2.2 Solvency
- An Altman-Z score of 3.12 indicates that HII is not in any danger for bankruptcy at the moment.
- HII's Altman-Z score of 3.12 is in line compared 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.
- With a decent Debt to FCF ratio value of 4.86, HII is doing good in the industry, outperforming 69.44% 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 has a Debt to Equity ratio of 0.54. This is comparable to the rest of the industry: HII outperforms 41.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | 4.86 | ||
| Altman-Z | 3.12 |
ROIC/WACC0.47
WACC10.07%
2.3 Liquidity
- HII has a Current Ratio of 1.14. 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 1.14, HII is not doing good in the industry: 81.94% of the companies in the same industry are doing better.
- 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 69.44% 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.
- The Earnings Per Share has been decreasing by -0.09% on average over the past years.
- Looking at the last year, HII shows a small growth in Revenue. The Revenue has grown by 2.60% in the last year.
- HII shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.33% yearly.
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 12.34% 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 4.78% yearly.
EPS Next Y9.22%
EPS Next 2Y12.99%
EPS Next 3Y14.6%
EPS Next 5Y12.34%
Revenue Next Year4.19%
Revenue Next 2Y4.77%
Revenue Next 3Y5.12%
Revenue Next 5Y4.78%
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.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 29.03, which means the current valuation is very expensive for HII.
- 83.33% of the companies in the same industry are more expensive than HII, based on the Price/Earnings ratio.
- HII is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.41, which is the current average of the S&P500 Index.
- The Price/Forward Earnings ratio is 23.58, which indicates a rather expensive current valuation of HII.
- HII's Price/Forward Earnings ratio is rather cheap when compared to the industry. HII is cheaper than 88.89% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.64, HII is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.03 | ||
| Fwd PE | 23.58 |
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 72.22% of the companies listed in the same industry.
- 87.50% of the companies in the same industry are more expensive than HII, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.72 | ||
| EV/EBITDA | 21.6 |
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 14.60% in the coming years.
PEG (NY)3.15
PEG (5Y)N/A
EPS Next 2Y12.99%
EPS Next 3Y14.6%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.29%, HII has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 0.34, HII pays a better dividend. On top of this HII pays more dividend than 90.28% of the companies listed in the same industry.
- HII's Dividend Yield is slightly below the S&P500 average, which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.29% |
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.
- HII's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP37.08%
EPS Next 2Y12.99%
EPS Next 3Y14.6%
420.3
-0.21 (-0.05%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)10-30 2025-10-30/bmo
Earnings (Next)02-05 2026-02-05/bmo
Inst Owners96.94%
Inst Owner Change-1.19%
Ins Owners0.65%
Ins Owner Change-2.54%
Market Cap16.49B
Revenue(TTM)12.01B
Net Income(TTM)569.00M
Analysts72.5
Price Target356.38 (-15.21%)
Short Float %3.29%
Short Ratio2.51
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.29% |
Yearly Dividend5.23
Dividend Growth(5Y)7.82%
DP37.08%
Div Incr Years12
Div Non Decr Years12
Ex-DateN/A
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)2.88%
PT rev (3m)17.18%
EPS NQ rev (1m)0.54%
EPS NQ rev (3m)-2.61%
EPS NY rev (1m)-0.04%
EPS NY rev (3m)0.88%
Revenue NQ rev (1m)0.61%
Revenue NQ rev (3m)-2.79%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)0.89%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.03 | ||
| Fwd PE | 23.58 | ||
| P/S | 1.37 | ||
| P/FCF | 29.72 | ||
| P/OCF | 17.6 | ||
| P/B | 3.31 | ||
| P/tB | 10.22 | ||
| EV/EBITDA | 21.6 |
EPS(TTM)14.48
EY3.45%
EPS(NY)17.82
Fwd EY4.24%
FCF(TTM)14.14
FCFY3.37%
OCF(TTM)23.88
OCFY5.68%
SpS306.12
BVpS127.01
TBVpS41.13
PEG (NY)3.15
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 | 3.12 |
F-Score4
WACC10.07%
ROIC/WACC0.47
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 Y9.22%
EPS Next 2Y12.99%
EPS Next 3Y14.6%
EPS Next 5Y12.34%
Revenue 1Y (TTM)2.6%
Revenue growth 3Y6.59%
Revenue growth 5Y5.33%
Sales Q2Q%16.11%
Revenue Next Year4.19%
Revenue Next 2Y4.77%
Revenue Next 3Y5.12%
Revenue Next 5Y4.78%
EBIT growth 1Y-20.58%
EBIT growth 3Y1.12%
EBIT growth 5Y-8.14%
EBIT Next Year67.15%
EBIT Next 3Y28.45%
EBIT Next 5Y19.38%
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 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.
What is the profitability of HII stock?
HUNTINGTON INGALLS INDUSTRIE (HII) has a profitability rating of 4 / 10.
Can you provide the financial health for HII stock?
The financial health rating of HUNTINGTON INGALLS INDUSTRIE (HII) is 5 / 10.
Is the dividend of HUNTINGTON INGALLS INDUSTRIE sustainable?
The dividend rating of HUNTINGTON INGALLS INDUSTRIE (HII) is 7 / 10 and the dividend payout ratio is 37.08%.