HUNTINGTON INGALLS INDUSTRIE (HII) Stock Fundamental Analysis
NYSE:HII - New York Stock Exchange, Inc. - US4464131063 - Common Stock - Currency: USD
HII gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 65 industry peers in the Aerospace & Defense industry. HII has a medium profitability rating, but doesn't score so well on its financial health evaluation. HII has a valuation in line with the averages, but on the other hand it scores bad on growth. 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 4.51% is fine compared to the rest of the industry. HII outperforms 64.62% of its industry peers.
HII has a Return On Equity of 11.44%. This is in the better half of the industry: HII outperforms 73.85% of its industry peers.
The Return On Invested Capital of HII (4.40%) 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 8.44%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.51% | ||
| ROE | 11.44% | ||
| ROIC | 4.4% |
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
HII has a Profit Margin of 4.76%. This is comparable to the rest of the industry: HII outperforms 52.31% of its industry peers.
In the last couple of years the Profit Margin of HII has declined.
HII's Operating Margin of 4.29% is in line compared to the rest of the industry. HII outperforms 43.08% of its industry peers.
In the last couple of years the Operating Margin of HII has declined.
HII's Gross Margin of 12.81% is on the low side compared to the rest of the industry. HII is outperformed by 78.46% of its industry peers.
In the last couple of years the Gross Margin of HII has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.29% | ||
| PM (TTM) | 4.76% | ||
| GM | 12.81% |
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%
2. Health
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 reduced compared to 1 year ago.
HII has less shares outstanding than it did 5 years ago.
The debt/assets ratio for HII is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.50 indicates that HII is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.50, HII is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
HII has a Debt/Equity ratio of 0.57. This is a neutral value indicating HII is somewhat dependend on debt financing.
HII has a Debt to Equity ratio of 0.57. This is comparable to the rest of the industry: HII outperforms 50.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.5 |
ROIC/WACC0.45
WACC9.85%
2.3 Liquidity
HII has a Current Ratio of 1.07. 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 Current ratio of 1.07 is on the low side compared to the rest of the industry. HII is outperformed by 83.08% of its industry peers.
A Quick Ratio of 0.99 indicates that HII may have some problems paying its short term obligations.
The Quick ratio of HII (0.99) is worse than 67.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.07 | ||
| Quick Ratio | 0.99 |
3. Growth
3.1 Past
The earnings per share for HII have decreased strongly by -21.76% in the last year.
The Earnings Per Share has been decreasing by -0.09% on average over the past years.
The Revenue has decreased by -1.04% in the past year.
Measured over the past years, HII shows a small growth in Revenue. The Revenue has been growing by 5.33% on average per year.
EPS 1Y (TTM)-21.76%
EPS 3Y1.07%
EPS 5Y-0.09%
EPS Q2Q%-2.07%
Revenue 1Y (TTM)-1.04%
Revenue growth 3Y6.59%
Revenue growth 5Y5.33%
Sales Q2Q%-2.53%
3.2 Future
The Earnings Per Share is expected to grow by 11.29% on average over the next years. This is quite good.
Based on estimates for the next years, HII will show a small growth in Revenue. The Revenue will grow by 4.35% on average per year.
EPS Next Y5.56%
EPS Next 2Y10.71%
EPS Next 3Y12.56%
EPS Next 5Y11.29%
Revenue Next Year2.66%
Revenue Next 2Y3.56%
Revenue Next 3Y4.31%
Revenue Next 5Y4.35%
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.
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 17.86, which indicates a rather expensive current valuation of HII.
Compared to the rest of the industry, the Price/Earnings ratio of HII indicates a rather cheap valuation: HII is cheaper than 93.85% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of HII to the average of the S&P500 Index (27.30), we can say HII is valued slightly cheaper.
The Price/Forward Earnings ratio is 14.49, which indicates a correct valuation of HII.
HII's Price/Forward Earnings ratio is rather cheap when compared to the industry. HII is cheaper than 95.38% of the companies in the same industry.
HII's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.86 | ||
| Fwd PE | 14.49 |
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 78.46% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 15.62 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
HII's earnings are expected to grow with 12.56% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.21
PEG (5Y)N/A
EPS Next 2Y10.71%
EPS Next 3Y12.56%
5. Dividend
5.1 Amount
HII has a Yearly Dividend Yield of 2.14%.
HII's Dividend Yield is rather good when compared to the industry average which is at 1.24. HII pays more dividend than 95.38% of the companies in the same industry.
HII's Dividend Yield is comparable with the S&P500 average which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.14% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)7.82%
Div Incr Years12
Div Non Decr Years12
5.3 Sustainability
38.10% of the earnings are spent on dividend by HII. This is a low number and sustainable payout ratio.
The dividend of HII is growing, but earnings are growing more, so the dividend growth is sustainable.
DP38.1%
EPS Next 2Y10.71%
EPS Next 3Y12.56%
247.95
-5.58 (-2.2%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners96.99%
Inst Owner Change-0.02%
Ins Owners0.75%
Ins Owner Change4.35%
Market Cap9.73B
Analysts70.59
Price Target247.53 (-0.17%)
Short Float %4.36%
Short Ratio3.1
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.14% |
Yearly Dividend5.23
Dividend Growth(5Y)7.82%
DP38.1%
Div Incr Years12
Div Non Decr Years12
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)9.1%
Min EPS beat(2)-10.56%
Max EPS beat(2)28.76%
EPS beat(4)2
Avg EPS beat(4)0.96%
Min EPS beat(4)-34.31%
Max EPS beat(4)28.76%
EPS beat(8)6
Avg EPS beat(8)10.41%
EPS beat(12)8
Avg EPS beat(12)9.74%
EPS beat(16)11
Avg EPS beat(16)10.78%
Revenue beat(2)0
Avg Revenue beat(2)-2.82%
Min Revenue beat(2)-3.02%
Max Revenue beat(2)-2.63%
Revenue beat(4)1
Avg Revenue beat(4)-1.77%
Min Revenue beat(4)-5.04%
Max Revenue beat(4)3.62%
Revenue beat(8)4
Avg Revenue beat(8)1.44%
Revenue beat(12)7
Avg Revenue beat(12)1.19%
Revenue beat(16)9
Avg Revenue beat(16)0.86%
PT rev (1m)1.21%
PT rev (3m)17.06%
EPS NQ rev (1m)-0.44%
EPS NQ rev (3m)-2.88%
EPS NY rev (1m)0.16%
EPS NY rev (3m)4.34%
Revenue NQ rev (1m)0.03%
Revenue NQ rev (3m)-2.45%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.86 | ||
| Fwd PE | 14.49 | ||
| P/S | 0.85 | ||
| P/FCF | N/A | ||
| P/OCF | 48.65 | ||
| P/B | 2.04 | ||
| P/tB | 7.13 | ||
| EV/EBITDA | 15.62 |
EPS(TTM)13.88
EY5.6%
EPS(NY)17.11
Fwd EY6.9%
FCF(TTM)-4.05
FCFYN/A
OCF(TTM)5.1
OCFY2.06%
SpS292.15
BVpS121.64
TBVpS34.79
PEG (NY)3.21
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.51% | ||
| ROE | 11.44% | ||
| ROCE | 5.32% | ||
| ROIC | 4.4% | ||
| ROICexc | 4.48% | ||
| ROICexgc | 7.17% | ||
| OM | 4.29% | ||
| PM (TTM) | 4.76% | ||
| GM | 12.81% | ||
| FCFM | N/A |
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%
ROICexcg growth 3Y-7.33%
ROICexcg 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 Turnover0.95
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3.3 | ||
| Cap/Depr | 110.46% | ||
| Cap/Sales | 3.13% | ||
| Interest Coverage | 4.97 | ||
| Cash Conversion | 24.48% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.07 | ||
| Quick Ratio | 0.99 | ||
| Altman-Z | 2.5 |
F-Score4
WACC9.85%
ROIC/WACC0.45
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)-21.76%
EPS 3Y1.07%
EPS 5Y-0.09%
EPS Q2Q%-2.07%
EPS Next Y5.56%
EPS Next 2Y10.71%
EPS Next 3Y12.56%
EPS Next 5Y11.29%
Revenue 1Y (TTM)-1.04%
Revenue growth 3Y6.59%
Revenue growth 5Y5.33%
Sales Q2Q%-2.53%
Revenue Next Year2.66%
Revenue Next 2Y3.56%
Revenue Next 3Y4.31%
Revenue Next 5Y4.35%
EBIT growth 1Y-35.01%
EBIT growth 3Y1.12%
EBIT growth 5Y-8.14%
EBIT Next Year69.94%
EBIT Next 3Y25.41%
EBIT Next 5Y18.04%
FCF growth 1Y-128.6%
FCF growth 3Y-60.72%
FCF growth 5Y-41.08%
OCF growth 1Y-76.19%
OCF growth 3Y-19.73%
OCF growth 5Y-15.2%