HUNTINGTON INGALLS INDUSTRIE (HII) Stock Fundamental Analysis
USA - NYSE:HII - US4464131063 - Common Stock
273.06 USD
-0.13 (-0.05%)
We assign a fundamental rating of 4 out of 10 to HII. HII was compared to 69 industry peers in the Aerospace & Defense industry. HII has an average financial health and profitability rating. HII is valued correctly, but it does not seem to be growing. Finally 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
Looking at the Return On Assets, with a value of 4.34%, HII is in the better half of the industry, outperforming 63.77% of the companies in the same industry.
HII's Return On Equity of 10.75% is fine compared to the rest of the industry. HII outperforms 69.57% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.15%, HII is in line with its industry, outperforming 47.83% 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 8.22%.
| 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 has a Profit Margin (4.54%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of HII has declined.
Looking at the Operating Margin, with a value of 4.05%, HII is in line with its industry, outperforming 44.93% of the companies in the same industry.
In the last couple of years the Operating Margin of HII has declined.
HII has a worse Gross Margin (12.38%) than 76.81% of its industry peers.
In the last couple of years the Gross Margin of HII has declined.
| 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
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
The number of shares outstanding for HII has been reduced compared to 5 years ago.
The debt/assets ratio for HII is higher compared to a year ago.
2.2 Solvency
HII has an Altman-Z score of 2.61. This is not the best score and indicates that HII is in the grey zone with still only limited risk for bankruptcy at the moment.
HII's Altman-Z score of 2.61 is in line compared to the rest of the industry. HII outperforms 40.58% 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.
Looking at the Debt to FCF ratio, with a value of 4.05, HII is in the better half of the industry, outperforming 79.71% of the companies in the same industry.
HII has a Debt/Equity ratio of 0.55. This is a neutral value indicating HII is somewhat dependend on debt financing.
HII has a Debt to Equity ratio (0.55) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 4.05 | ||
| Altman-Z | 2.61 |
ROIC/WACC0.45
WACC9.27%
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.
HII has a Current ratio of 1.08. This is in the lower half of the industry: HII underperforms 79.71% of its industry peers.
HII has a Quick Ratio of 1.00. 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 1.00 is on the low side compared to the rest of the industry. HII is outperformed by 68.12% 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.
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.
Looking at the last year, HII shows a decrease in Revenue. The Revenue has decreased by -1.75% in the last year.
HII shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.33% yearly.
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
HII is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.15% yearly.
HII is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.37% yearly.
EPS Next Y8.12%
EPS Next 2Y11.36%
EPS Next 3Y12.53%
EPS Next 5Y11.15%
Revenue Next Year3.24%
Revenue Next 2Y3.88%
Revenue Next 3Y4.34%
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
A Price/Earnings ratio of 20.44 indicates a rather expensive valuation of HII.
89.86% of the companies in the same industry are more expensive than HII, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.20. HII is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 15.77, which indicates a correct valuation of HII.
91.30% of the companies in the same industry are more expensive than HII, based on the Price/Forward Earnings ratio.
HII's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.71.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.44 | ||
| Fwd PE | 15.77 |
4.2 Price Multiples
79.71% of the companies in the same industry are more expensive than HII, based on the Enterprise Value to EBITDA ratio.
HII's Price/Free Cash Flow ratio is rather cheap when compared to the industry. HII is cheaper than 97.10% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.06 | ||
| EV/EBITDA | 16.41 |
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.
HII's earnings are expected to grow with 12.53% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.52
PEG (5Y)N/A
EPS Next 2Y11.36%
EPS Next 3Y12.53%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.96%, HII has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.47, HII pays a better dividend. On top of this HII pays more dividend than 95.65% of the companies listed in the same industry.
HII's Dividend Yield is comparable with the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.96% |
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 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 40.00% of its income as dividend. This is a bit on the high side, but may be sustainable.
HII's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP40%
EPS Next 2Y11.36%
EPS Next 3Y12.53%
NYSE:HII (9/17/2025, 3:51:24 PM)
273.06
-0.13 (-0.05%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners96.81%
Inst Owner Change0.75%
Ins Owners0.76%
Ins Owner Change-2.62%
Market Cap10.71B
Analysts70
Price Target289.57 (6.05%)
Short Float %4.14%
Short Ratio3.64
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.96% |
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)1.07%
PT rev (3m)18.34%
EPS NQ rev (1m)-2.28%
EPS NQ rev (3m)-4.52%
EPS NY rev (1m)2.84%
EPS NY rev (3m)2.59%
Revenue NQ rev (1m)0.47%
Revenue NQ rev (3m)-0.3%
Revenue NY rev (1m)0.44%
Revenue NY rev (3m)0.57%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.44 | ||
| Fwd PE | 15.77 | ||
| P/S | 0.93 | ||
| P/FCF | 16.06 | ||
| P/OCF | 10.38 | ||
| P/B | 2.19 | ||
| P/tB | 7.22 | ||
| EV/EBITDA | 16.41 |
EPS(TTM)13.36
EY4.89%
EPS(NY)17.31
Fwd EY6.34%
FCF(TTM)17
FCFY6.23%
OCF(TTM)26.3
OCFY9.63%
SpS294.83
BVpS124.41
TBVpS37.84
PEG (NY)2.52
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 | 2.61 |
F-Score4
WACC9.27%
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)-29.12%
EPS 3Y1.07%
EPS 5Y-0.09%
EPS Q2Q%-11.87%
EPS Next Y8.12%
EPS Next 2Y11.36%
EPS Next 3Y12.53%
EPS Next 5Y11.15%
Revenue 1Y (TTM)-1.75%
Revenue growth 3Y6.59%
Revenue growth 5Y5.33%
Sales Q2Q%3.53%
Revenue Next Year3.24%
Revenue Next 2Y3.88%
Revenue Next 3Y4.34%
Revenue Next 5Y4.37%
EBIT growth 1Y-40.1%
EBIT growth 3Y1.12%
EBIT growth 5Y-8.14%
EBIT Next Year68.93%
EBIT Next 3Y27.03%
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%