HUNTINGTON INGALLS INDUSTRIE (HII) Stock Fundamental Analysis
USA - NYSE:HII - US4464131063 - Common Stock
285.77 USD
+5.75 (+2.05%)
285.8 USD
+0.03 (+0.01%)
Overall HII gets a fundamental rating of 4 out of 10. We evaluated HII against 70 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 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.
In the past year HII had a positive cash flow from operations.
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 4.34% is fine compared to the rest of the industry. HII outperforms 64.29% of its industry peers.
Looking at the Return On Equity, with a value of 10.75%, HII is in the better half of the industry, outperforming 70.00% of the companies in the same industry.
The Return On Invested Capital of HII (4.15%) 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 8.41%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.34% | ||
| ROE | 10.75% | ||
| ROIC | 4.15% |
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's Profit Margin of 4.54% is in line compared to the rest of the industry. HII outperforms 54.29% of its industry peers.
HII's Profit Margin has declined in the last couple of years.
HII's Operating Margin of 4.05% is in line compared to the rest of the industry. HII outperforms 44.29% of its industry peers.
In the last couple of years the Operating Margin of HII has declined.
HII's Gross Margin of 12.38% is on the low side compared to the rest of the industry. HII is outperformed by 77.14% of its industry peers.
HII's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.05% | ||
| PM (TTM) | 4.54% | ||
| GM | 12.38% |
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
The debt/assets ratio for HII is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.65 indicates that HII is not a great score, but indicates only limited risk for bankruptcy at the moment.
HII has a worse Altman-Z score (2.65) than 60.00% of its industry peers.
HII has a debt to FCF ratio of 4.05. This is a neutral value as HII would need 4.05 years to pay back of all of its debts.
HII's Debt to FCF ratio of 4.05 is fine compared to the rest of the industry. HII outperforms 80.00% of its industry peers.
HII has a Debt/Equity ratio of 0.55. This is a neutral value indicating HII is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.55, HII is in line with its industry, outperforming 47.14% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 4.05 | ||
| Altman-Z | 2.65 |
ROIC/WACC0.46
WACC9.03%
2.3 Liquidity
HII has a Current Ratio of 1.08. 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 1.08, HII is not doing good in the industry: 80.00% of the companies in the same industry are doing better.
A Quick Ratio of 1.00 indicates that HII should not have too much problems paying its short term obligations.
HII has a Quick ratio of 1.00. This is in the lower half of the industry: HII underperforms 68.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.08 | ||
| Quick Ratio | 1 |
3. Growth
3.1 Past
The earnings per share for HII have decreased strongly by -29.12% in the last year.
The Earnings Per Share has been decreasing by -0.09% on average over the past years.
HII shows a decrease in Revenue. In the last year, the revenue decreased by -1.75%.
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)-29.12%
EPS 3Y1.07%
EPS 5Y-0.09%
EPS Q2Q%-11.87%
Revenue 1Y (TTM)-1.75%
Revenue growth 3Y6.59%
Revenue growth 5Y5.33%
Sales Q2Q%3.53%
3.2 Future
Based on estimates for the next years, HII will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.15% on average per year.
Based on estimates for the next years, HII will show a small growth in Revenue. The Revenue will grow by 4.37% on average per year.
EPS Next Y8.54%
EPS Next 2Y11.57%
EPS Next 3Y12.82%
EPS Next 5Y11.15%
Revenue Next Year3.3%
Revenue Next 2Y3.95%
Revenue Next 3Y4.48%
Revenue Next 5Y4.37%
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
Based on the Price/Earnings ratio of 21.39, the valuation of HII can be described as rather expensive.
Based on the Price/Earnings ratio, HII is valued cheaply inside the industry as 91.43% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.69. HII is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 16.45, the valuation of HII can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HII indicates a rather cheap valuation: HII is cheaper than 91.43% of the companies listed in the same industry.
HII's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.18.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.39 | ||
| Fwd PE | 16.45 |
4.2 Price Multiples
HII's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. HII is cheaper than 78.57% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of HII indicates a rather cheap valuation: HII is cheaper than 98.57% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.81 | ||
| EV/EBITDA | 17.03 |
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 12.82% in the coming years.
PEG (NY)2.51
PEG (5Y)N/A
EPS Next 2Y11.57%
EPS Next 3Y12.82%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.91%, 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 1.16. HII pays more dividend than 95.71% of the companies in the same industry.
HII's Dividend Yield is comparable with the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.91% |
5.2 History
On average, the dividend of HII grows each year by 7.82%, which is quite nice.
HII has been paying a dividend for at least 10 years, so it has 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 40.00% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of HII is growing, but earnings are growing more, so the dividend growth is sustainable.
DP40%
EPS Next 2Y11.57%
EPS Next 3Y12.82%
285.77
+5.75 (+2.05%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners98.27%
Inst Owner Change-0.17%
Ins Owners0.66%
Ins Owner Change-2.62%
Market Cap11.21B
Analysts70.67
Price Target299.17 (4.69%)
Short Float %3.46%
Short Ratio2.87
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.91% |
Yearly Dividend5.23
Dividend Growth(5Y)7.82%
DP40%
Div Incr Years12
Div Non Decr Years12
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)22.69%
Min EPS beat(2)16.62%
Max EPS beat(2)28.76%
EPS beat(4)2
Avg EPS beat(4)0.13%
Min EPS beat(4)-34.31%
Max EPS beat(4)28.76%
EPS beat(8)6
Avg EPS beat(8)12.03%
EPS beat(12)8
Avg EPS beat(12)8.51%
EPS beat(16)11
Avg EPS beat(16)10.16%
Revenue beat(2)1
Avg Revenue beat(2)0.61%
Min Revenue beat(2)-3.02%
Max Revenue beat(2)4.23%
Revenue beat(4)1
Avg Revenue beat(4)-1.61%
Min Revenue beat(4)-5.04%
Max Revenue beat(4)4.23%
Revenue beat(8)4
Avg Revenue beat(8)1.57%
Revenue beat(12)7
Avg Revenue beat(12)1.48%
Revenue beat(16)9
Avg Revenue beat(16)1.02%
PT rev (1m)3.32%
PT rev (3m)13.87%
EPS NQ rev (1m)-0.02%
EPS NQ rev (3m)-4.36%
EPS NY rev (1m)0.38%
EPS NY rev (3m)3.23%
Revenue NQ rev (1m)-0.1%
Revenue NQ rev (3m)-0.53%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)0.49%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.39 | ||
| Fwd PE | 16.45 | ||
| P/S | 0.97 | ||
| P/FCF | 16.81 | ||
| P/OCF | 10.87 | ||
| P/B | 2.3 | ||
| P/tB | 7.55 | ||
| EV/EBITDA | 17.03 |
EPS(TTM)13.36
EY4.68%
EPS(NY)17.38
Fwd EY6.08%
FCF(TTM)17
FCFY5.95%
OCF(TTM)26.3
OCFY9.2%
SpS294.83
BVpS124.41
TBVpS37.84
PEG (NY)2.51
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.34% | ||
| ROE | 10.75% | ||
| ROCE | 5.02% | ||
| ROIC | 4.15% | ||
| ROICexc | 4.31% | ||
| ROICexgc | 6.92% | ||
| OM | 4.05% | ||
| PM (TTM) | 4.54% | ||
| GM | 12.38% | ||
| FCFM | 5.77% |
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 Turnover0.96
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 4.05 | ||
| Debt/EBITDA | 3.39 | ||
| Cap/Depr | 111.28% | ||
| Cap/Sales | 3.15% | ||
| Interest Coverage | 5.1 | ||
| Cash Conversion | 129.49% | ||
| Profit Quality | 127.05% | ||
| Current Ratio | 1.08 | ||
| Quick Ratio | 1 | ||
| Altman-Z | 2.65 |
F-Score4
WACC9.03%
ROIC/WACC0.46
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)-29.12%
EPS 3Y1.07%
EPS 5Y-0.09%
EPS Q2Q%-11.87%
EPS Next Y8.54%
EPS Next 2Y11.57%
EPS Next 3Y12.82%
EPS Next 5Y11.15%
Revenue 1Y (TTM)-1.75%
Revenue growth 3Y6.59%
Revenue growth 5Y5.33%
Sales Q2Q%3.53%
Revenue Next Year3.3%
Revenue Next 2Y3.95%
Revenue Next 3Y4.48%
Revenue Next 5Y4.37%
EBIT growth 1Y-40.1%
EBIT growth 3Y1.12%
EBIT growth 5Y-8.14%
EBIT Next Year70.45%
EBIT Next 3Y28%
EBIT Next 5Y18.07%
FCF growth 1Y84.25%
FCF growth 3Y-60.72%
FCF growth 5Y-41.08%
OCF growth 1Y57.56%
OCF growth 3Y-19.73%
OCF growth 5Y-15.2%