HUNTINGTON INGALLS INDUSTRIE (HII) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:HII - US4464131063 - Common Stock
418.58 USD
-5.56 (-1.31%)
417.493 USD
-1.09 (-0.26%)
Taking everything into account, HII scores 5 out of 10 in our fundamental rating. HII was compared to 73 industry peers in the Aerospace & Defense industry. HII has an average financial health and profitability rating. HII has a decent growth rate and is not valued too expensively. HII also has an excellent dividend rating.
1. Profitability
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.
- Each year in the past 5 years HII had a positive operating cash flow.
1.2 Ratios
- HII's Return On Assets of 4.62% is fine compared to the rest of the industry. HII outperforms 67.12% of its industry peers.
- The Return On Equity of HII (11.42%) is better than 73.97% of its industry peers.
- The Return On Invested Capital of HII (4.72%) 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 8.56%.
| 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 57.53% of the companies in the same industry.
- In the last couple of years the Profit Margin of HII has declined.
- The Operating Margin of HII (4.56%) is comparable to the rest of the industry.
- HII's Operating Margin has declined in the last couple of years.
- HII has a worse Gross Margin (12.52%) than 75.34% 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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so HII is destroying value.
- HII has less shares outstanding than it did 1 year ago.
- Compared to 5 years ago, HII has less shares outstanding
- Compared to 1 year ago, HII has a worse debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 3.12 indicates that HII is not in any danger for bankruptcy at the moment.
- The Altman-Z score of HII (3.12) is comparable to the rest of the industry.
- 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 72.60% 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.
- 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 | 3.12 |
ROIC/WACC0.5
WACC9.5%
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.
- HII has a worse Current ratio (1.14) than 82.19% 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 has a Quick ratio of 1.06. This is in the lower half of the industry: HII underperforms 69.86% 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.
- HII shows a small growth in Revenue. In the last year, the Revenue has grown by 2.60%.
- 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
- HII is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.34% yearly.
- 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
- Based on the Price/Earnings ratio of 28.91, the valuation of HII can be described as expensive.
- HII's Price/Earnings ratio is rather cheap when compared to the industry. HII is cheaper than 83.56% of the companies in the same industry.
- When comparing the Price/Earnings ratio of HII to the average of the S&P500 Index (27.21), we can say HII is valued inline with the index average.
- Based on the Price/Forward Earnings ratio of 23.49, the valuation of HII can be described as rather expensive.
- HII's Price/Forward Earnings ratio is rather cheap when compared to the industry. HII is cheaper than 89.04% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of HII to the average of the S&P500 Index (25.98), we can say HII is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.91 | ||
| Fwd PE | 23.49 |
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 72.60% of the companies listed in the same industry.
- HII's Price/Free Cash Flow ratio is rather cheap when compared to the industry. HII is cheaper than 91.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.59 | ||
| EV/EBITDA | 21.52 |
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.
- A more expensive valuation may be justified as HII's earnings are expected to grow with 14.60% in the coming years.
PEG (NY)3.13
PEG (5Y)N/A
EPS Next 2Y12.99%
EPS Next 3Y14.6%
5. Dividend
5.1 Amount
- HII has a Yearly Dividend Yield of 1.30%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 0.34, HII pays a better dividend. On top of this HII pays more dividend than 90.41% 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 Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.3% |
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
- 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 2Y12.99%
EPS Next 3Y14.6%
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%.