HUNTINGTON INGALLS INDUSTRIE (HII) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:HII - US4464131063 - Common Stock
314.73 USD
+4.81 (+1.55%)
316 USD
+1.27 (+0.4%)
HII gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 71 industry peers in the Aerospace & Defense industry. Both the profitability and the financial health of HII get a neutral evaluation. Nothing too spectacular is happening here. HII is not valued too expensively and it also shows a decent growth rate. 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.
HII had positive earnings in each of the past 5 years.
HII had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
HII has a Return On Assets of 4.62%. This is in the better half of the industry: HII outperforms 66.20% of its industry peers.
The Return On Equity of HII (11.42%) is better than 74.65% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.72%, HII is in line with its industry, outperforming 47.89% of the companies in the same industry.
HII had an Average Return On Invested Capital over the past 3 years of 5.76%. This is below the industry average of 8.52%.
| 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 57.75% of the companies in the same industry.
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.
With a Gross Margin value of 12.52%, HII is not doing good in the industry: 76.06% of the companies in the same industry are doing better.
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
HII has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
HII has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, HII has less shares outstanding
HII has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.78 indicates that HII is not a great score, but indicates only limited risk for bankruptcy at the moment.
HII's Altman-Z score of 2.78 is in line compared to the rest of the industry. HII outperforms 40.85% of its industry peers.
HII has a debt to FCF ratio of 4.86. This is a neutral value as HII would need 4.86 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.86, HII is in the better half of the industry, outperforming 73.24% 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 (0.54) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | 4.86 | ||
| Altman-Z | 2.78 |
ROIC/WACC0.48
WACC9.75%
2.3 Liquidity
A Current Ratio of 1.14 indicates that HII should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.14, HII is doing worse than 80.28% of the companies in the same industry.
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 64.79% 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%.
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)-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.
The Revenue is expected to grow by 4.50% on average over the next years.
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
The Price/Earnings ratio is 21.74, 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 88.73% of the companies in the same industry.
HII is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 25.98, which is the current average of the S&P500 Index.
HII is valuated rather expensively with a Price/Forward Earnings ratio of 18.01.
88.73% of the companies in the same industry are more expensive than HII, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.79, HII is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.74 | ||
| Fwd PE | 18.01 |
4.2 Price Multiples
77.46% of the companies in the same industry are more expensive than HII, based on the Enterprise Value to EBITDA ratio.
92.96% 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 | 22.25 | ||
| EV/EBITDA | 16.86 |
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 13.23% in the coming years.
PEG (NY)2.6
PEG (5Y)N/A
EPS Next 2Y11.88%
EPS Next 3Y13.23%
5. Dividend
5.1 Amount
HII has a Yearly Dividend Yield of 1.83%.
Compared to an average industry Dividend Yield of 1.15, HII pays a better dividend. On top of this HII pays more dividend than 95.77% of the companies listed in the same industry.
Compared to the average S&P500 Dividend Yield of 2.41, HII is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.83% |
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 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
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%
314.73
+4.81 (+1.55%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners98.27%
Inst Owner Change-2.79%
Ins Owners0.66%
Ins Owner Change-2.54%
Market Cap12.35B
Revenue(TTM)12.01B
Net Income(TTM)569.00M
Analysts70.67
Price Target336.16 (6.81%)
Short Float %4.11%
Short Ratio3.34
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.83% |
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)12.37%
PT rev (3m)12.86%
EPS NQ rev (1m)-2.93%
EPS NQ rev (3m)-3.86%
EPS NY rev (1m)0.07%
EPS NY rev (3m)0.21%
Revenue NQ rev (1m)-3.53%
Revenue NQ rev (3m)-4.22%
Revenue NY rev (1m)0.39%
Revenue NY rev (3m)0.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.74 | ||
| Fwd PE | 18.01 | ||
| P/S | 1.03 | ||
| P/FCF | 22.25 | ||
| P/OCF | 13.18 | ||
| P/B | 2.48 | ||
| P/tB | 7.65 | ||
| EV/EBITDA | 16.86 |
EPS(TTM)14.48
EY4.6%
EPS(NY)17.47
Fwd EY5.55%
FCF(TTM)14.14
FCFY4.49%
OCF(TTM)23.88
OCFY7.59%
SpS306.12
BVpS127.01
TBVpS41.13
PEG (NY)2.6
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 | 2.78 |
F-Score4
WACC9.75%
ROIC/WACC0.48
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%.