HUNTINGTON INGALLS INDUSTRIE (HII) Stock Fundamental Analysis
USA - NYSE:HII - US4464131063 - Common Stock
305.49 USD
+3.66 (+1.21%)
295 USD
-10.49 (-3.43%)
HII gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 71 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
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.
HII had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
HII has a better Return On Assets (4.62%) than 66.20% of its industry peers.
HII has a better Return On Equity (11.42%) than 76.06% of its industry peers.
The Return On Invested Capital of HII (4.72%) 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 8.47%.
| 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
HII has a Profit Margin of 4.74%. This is comparable to the rest of the industry: HII outperforms 57.75% of its industry peers.
In the last couple of years the Profit Margin of HII has declined.
HII has a Operating Margin (4.56%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of HII has declined.
HII has a Gross Margin of 12.52%. This is in the lower half of the industry: HII underperforms 76.06% of its industry peers.
In the last couple of years the Gross Margin of HII has declined.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), HII is destroying value.
Compared to 1 year ago, HII has less shares outstanding
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 2.74 indicates that HII is not a great score, but indicates only limited risk for bankruptcy at the moment.
HII's Altman-Z score of 2.74 is in line compared to the rest of the industry. HII outperforms 40.85% 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.
HII's Debt to FCF ratio of 4.86 is fine compared to the rest of the industry. HII outperforms 71.83% of its industry peers.
A Debt/Equity ratio of 0.54 indicates that HII is somewhat dependend on debt financing.
HII has a Debt to Equity ratio (0.54) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | 4.86 | ||
| Altman-Z | 2.74 |
ROIC/WACC0.51
WACC9.25%
2.3 Liquidity
A Current Ratio of 1.14 indicates that HII should not have too much problems paying its short term obligations.
With a Current ratio value of 1.14, HII is not doing good in the industry: 80.28% 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 66.20% 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%.
The Earnings Per Share has been decreasing by -0.09% on average over the past years.
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 11.63% yearly.
Based on estimates for the next years, HII will show a small growth in Revenue. The Revenue will grow by 4.50% on average per year.
EPS Next Y8.35%
EPS Next 2Y11.88%
EPS Next 3Y13.23%
EPS Next 5Y11.63%
Revenue Next Year3.67%
Revenue Next 2Y4.28%
Revenue Next 3Y4.59%
Revenue Next 5Y4.5%
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 21.10 indicates a rather expensive valuation of HII.
88.73% of the companies in the same industry are more expensive than HII, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of HII to the average of the S&P500 Index (25.07), we can say HII is valued inline with the index average.
A Price/Forward Earnings ratio of 17.48 indicates a rather expensive valuation of HII.
Based on the Price/Forward Earnings ratio, HII is valued cheaper than 88.73% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 34.08. HII is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.1 | ||
| Fwd PE | 17.48 |
4.2 Price Multiples
80.28% of the companies in the same industry are more expensive than HII, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, HII is valued cheaper than 94.37% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.6 | ||
| EV/EBITDA | 16.28 |
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 13.23% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.53
PEG (5Y)N/A
EPS Next 2Y11.88%
EPS Next 3Y13.23%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.77%, HII has a reasonable but not impressive dividend return.
HII's Dividend Yield is rather good when compared to the industry average which is at 1.37. HII pays more dividend than 94.37% of the companies in the same industry.
Compared to the average S&P500 Dividend Yield of 2.44, HII is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.77% |
5.2 History
The dividend of HII is nicely growing with an annual growth rate of 7.82%!
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.
The dividend of HII is growing, but earnings are growing more, so the dividend growth is sustainable.
DP37.08%
EPS Next 2Y11.88%
EPS Next 3Y13.23%
305.49
+3.66 (+1.21%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners98.27%
Inst Owner Change-2.24%
Ins Owners0.66%
Ins Owner Change-3.92%
Market Cap11.99B
Revenue(TTM)12.01B
Net Income(TTM)569.00M
Analysts70.67
Price Target304.12 (-0.45%)
Short Float %4.11%
Short Ratio3.34
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.77% |
Yearly Dividend5.23
Dividend Growth(5Y)7.82%
DP37.08%
Div Incr Years12
Div Non Decr Years12
Ex-Date
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)1.66%
PT rev (3m)6.15%
EPS NQ rev (1m)-6.15%
EPS NQ rev (3m)-7.34%
EPS NY rev (1m)-0.17%
EPS NY rev (3m)3.05%
Revenue NQ rev (1m)-3.72%
Revenue NQ rev (3m)-4.99%
Revenue NY rev (1m)0.36%
Revenue NY rev (3m)0.86%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.1 | ||
| Fwd PE | 17.48 | ||
| P/S | 1 | ||
| P/FCF | 21.6 | ||
| P/OCF | 12.79 | ||
| P/B | 2.41 | ||
| P/tB | 7.43 | ||
| EV/EBITDA | 16.28 |
EPS(TTM)14.48
EY4.74%
EPS(NY)17.47
Fwd EY5.72%
FCF(TTM)14.14
FCFY4.63%
OCF(TTM)23.88
OCFY7.82%
SpS306.12
BVpS127.01
TBVpS41.13
PEG (NY)2.53
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 | 2.74 |
F-Score4
WACC9.25%
ROIC/WACC0.51
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 Y8.35%
EPS Next 2Y11.88%
EPS Next 3Y13.23%
EPS Next 5Y11.63%
Revenue 1Y (TTM)2.6%
Revenue growth 3Y6.59%
Revenue growth 5Y5.33%
Sales Q2Q%16.11%
Revenue Next Year3.67%
Revenue Next 2Y4.28%
Revenue Next 3Y4.59%
Revenue Next 5Y4.5%
EBIT growth 1Y-20.58%
EBIT growth 3Y1.12%
EBIT growth 5Y-8.14%
EBIT Next Year70.45%
EBIT Next 3Y28%
EBIT Next 5Y18.65%
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 4 / 10 to HII.
What is the valuation status for HII stock?
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.
What is the expected EPS growth for HUNTINGTON INGALLS INDUSTRIE (HII) stock?
The Earnings per Share (EPS) of HUNTINGTON INGALLS INDUSTRIE (HII) is expected to grow by 8.35% in the next year.
Can you provide the dividend sustainability for HII stock?
The dividend rating of HUNTINGTON INGALLS INDUSTRIE (HII) is 7 / 10 and the dividend payout ratio is 37.08%.