HUNTINGTON INGALLS INDUSTRIE (HII) Stock Fundamental Analysis
NYSE:HII - New York Stock Exchange, Inc. - US4464131063 - Common Stock
HII gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 65 industry peers in the Aerospace & Defense industry. While HII is still in line with the averages on profitability rating, there are concerns on its financial health. 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
In the past year HII was profitable.
HII had a positive operating cash flow in the past year.
In the past 5 years HII has always been profitable.
HII had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
HII has a Return On Assets of 6.33%. This is in the better half of the industry: HII outperforms 75.00% of its industry peers.
Looking at the Return On Equity, with a value of 16.68%, HII belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
HII's Return On Invested Capital of 7.14% is fine compared to the rest of the industry. HII outperforms 65.63% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for HII is in line with the industry average of 7.66%.
The 3 year average ROIC (5.70%) for HII is below the current ROIC(7.14%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.33% | ||
| ROE | 16.68% | ||
| ROIC | 7.14% |
ROA(3y)5.51%
ROA(5y)6.57%
ROE(3y)17.54%
ROE(5y)24.76%
ROIC(3y)5.7%
ROIC(5y)7.81%
1.3 Margins
The Profit Margin of HII (5.99%) is better than 64.06% of its industry peers.
In the last couple of years the Profit Margin of HII has declined.
With a Operating Margin value of 5.89%, HII perfoms like the industry average, outperforming 46.88% of the companies in the same industry.
HII's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 13.84%, HII is not doing good in the industry: 78.13% of the companies in the same industry are doing better.
HII's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.89% | ||
| PM (TTM) | 5.99% | ||
| GM | 13.84% |
OM growth 3Y-7.45%
OM growth 5Y-10.68%
PM growth 3Y-7.18%
PM growth 5Y-10.28%
GM growth 3Y-6.96%
GM growth 5Y-8.09%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), HII is destroying value.
HII has less shares outstanding than it did 1 year ago.
The number of shares outstanding for HII has been reduced compared to 5 years ago.
Compared to 1 year ago, HII has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.53 indicates that HII is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.53, HII is doing worse than 60.94% of the companies in the same industry.
HII has a debt to FCF ratio of 14.25. This is a negative value and a sign of low solvency as HII would need 14.25 years to pay back of all of its debts.
HII's Debt to FCF ratio of 14.25 is in line compared to the rest of the industry. HII outperforms 57.81% of its industry peers.
A Debt/Equity ratio of 0.41 indicates that HII is not too dependend on debt financing.
The Debt to Equity ratio of HII (0.41) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | 14.25 | ||
| Altman-Z | 2.53 |
ROIC/WACC0.75
WACC9.54%
2.3 Liquidity
HII has a Current Ratio of 0.79. This is a bad value and indicates that HII is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.79, HII is doing worse than 89.06% of the companies in the same industry.
HII has a Quick Ratio of 0.79. This is a bad value and indicates that HII is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.73, HII is not doing good in the industry: 79.69% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.79 | ||
| Quick Ratio | 0.73 |
3. Growth
3.1 Past
HII shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 33.46%, which is quite impressive.
The Earnings Per Share has been decreasing by -2.20% on average over the past years.
The Revenue has been growing slightly by 5.58% in the past year.
Measured over the past years, HII shows a small growth in Revenue. The Revenue has been growing by 6.98% on average per year.
EPS 1Y (TTM)33.46%
EPS 3Y3.71%
EPS 5Y-2.2%
EPS Q2Q%-30.81%
Revenue 1Y (TTM)5.58%
Revenue growth 3Y6.96%
Revenue growth 5Y6.98%
Sales Q2Q%-2.38%
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 8.00% on average per year.
The Revenue is expected to grow by 5.81% on average over the next years.
EPS Next Y-15.77%
EPS Next 2Y-3.28%
EPS Next 3Y2.49%
EPS Next 5Y8%
Revenue Next Year4.79%
Revenue Next 2Y4.52%
Revenue Next 3Y4.44%
Revenue Next 5Y5.81%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 11.78, which indicates a very decent valuation of HII.
HII's Price/Earnings ratio is rather cheap when compared to the industry. HII is cheaper than 95.31% of the companies in the same industry.
When comparing the Price/Earnings ratio of HII to the average of the S&P500 Index (28.29), we can say HII is valued rather cheaply.
The Price/Forward Earnings ratio is 13.04, which indicates a correct valuation of HII.
Based on the Price/Forward Earnings ratio, HII is valued cheaply inside the industry as 98.44% of the companies are valued more expensively.
HII's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.78 | ||
| Fwd PE | 13.04 |
4.2 Price Multiples
HII's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. HII is cheaper than 95.31% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, HII is valued a bit cheaper than the industry average as 70.31% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 44.61 | ||
| EV/EBITDA | 10.55 |
4.3 Compensation for Growth
The decent profitability rating of HII may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-3.28%
EPS Next 3Y2.49%
5. Dividend
5.1 Amount
HII has a Yearly Dividend Yield of 2.69%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.36, HII pays a better dividend. On top of this HII pays more dividend than 95.31% of the companies listed in the same industry.
HII's Dividend Yield is comparable with the S&P500 average which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.69% |
5.2 History
On average, the dividend of HII grows each year by 10.61%, which is quite nice.
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)10.61%
Div Incr Years12
Div Non Decr Years12
5.3 Sustainability
29.24% 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 the earnings are growing slower. This means the dividend growth is not sustainable.
DP29.24%
EPS Next 2Y-3.28%
EPS Next 3Y2.49%
HUNTINGTON INGALLS INDUSTRIE
NYSE:HII (1/21/2025, 8:05:32 PM)
Premarket: 209.01 +0.4 (+0.19%)208.61
+6.06 (+2.99%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners93.89%
Inst Owner Change-0.08%
Ins Owners0.66%
Ins Owner Change0.35%
Market Cap8.16B
Analysts55.45
Price Target228.07 (9.33%)
Short Float %3.02%
Short Ratio1.8
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.69% |
Yearly Dividend5.02
Dividend Growth(5Y)10.61%
DP29.24%
Div Incr Years12
Div Non Decr Years12
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-7.18%
Min EPS beat(2)-34.31%
Max EPS beat(2)19.95%
EPS beat(4)3
Avg EPS beat(4)13.49%
Min EPS beat(4)-34.31%
Max EPS beat(4)59.68%
EPS beat(8)6
Avg EPS beat(8)8.47%
EPS beat(12)8
Avg EPS beat(12)8.91%
EPS beat(16)12
Avg EPS beat(16)14.16%
Revenue beat(2)1
Avg Revenue beat(2)-0.71%
Min Revenue beat(2)-5.04%
Max Revenue beat(2)3.62%
Revenue beat(4)2
Avg Revenue beat(4)2.8%
Min Revenue beat(4)-5.04%
Max Revenue beat(4)13.18%
Revenue beat(8)6
Avg Revenue beat(8)2.81%
Revenue beat(12)8
Avg Revenue beat(12)1.72%
Revenue beat(16)11
Avg Revenue beat(16)2.15%
PT rev (1m)0%
PT rev (3m)-21.82%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-30.82%
EPS NY rev (1m)0%
EPS NY rev (3m)-14.27%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.87%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.78 | ||
| Fwd PE | 13.04 | ||
| P/S | 0.7 | ||
| P/FCF | 44.61 | ||
| P/OCF | 14.47 | ||
| P/B | 1.94 | ||
| P/tB | 10.52 | ||
| EV/EBITDA | 10.55 |
EPS(TTM)17.71
EY8.49%
EPS(NY)16
Fwd EY7.67%
FCF(TTM)4.68
FCFY2.24%
OCF(TTM)14.41
OCFY6.91%
SpS299.21
BVpS107.41
TBVpS19.83
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.33% | ||
| ROE | 16.68% | ||
| ROCE | 8.91% | ||
| ROIC | 7.14% | ||
| ROICexc | 7.15% | ||
| ROICexgc | 12.84% | ||
| OM | 5.89% | ||
| PM (TTM) | 5.99% | ||
| GM | 13.84% | ||
| FCFM | 1.56% |
ROA(3y)5.51%
ROA(5y)6.57%
ROE(3y)17.54%
ROE(5y)24.76%
ROIC(3y)5.7%
ROIC(5y)7.81%
ROICexc(3y)6.07%
ROICexc(5y)8.26%
ROICexgc(3y)11.59%
ROICexgc(5y)14.41%
ROCE(3y)7.11%
ROCE(5y)9.74%
ROICexcg growth 3Y-9.06%
ROICexcg growth 5Y-13.64%
ROICexc growth 3Y-12.15%
ROICexc growth 5Y-15.02%
OM growth 3Y-7.45%
OM growth 5Y-10.68%
PM growth 3Y-7.18%
PM growth 5Y-10.28%
GM growth 3Y-6.96%
GM growth 5Y-8.09%
F-Score7
Asset Turnover1.06
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | 14.25 | ||
| Debt/EBITDA | 1.68 | ||
| Cap/Depr | 115.46% | ||
| Cap/Sales | 3.25% | ||
| Interest Coverage | 6.63 | ||
| Cash Conversion | 55.29% | ||
| Profit Quality | 26.11% | ||
| Current Ratio | 0.79 | ||
| Quick Ratio | 0.73 | ||
| Altman-Z | 2.53 |
F-Score7
WACC9.54%
ROIC/WACC0.75
Cap/Depr(3y)92.15%
Cap/Depr(5y)130.57%
Cap/Sales(3y)2.89%
Cap/Sales(5y)3.68%
Profit Quality(3y)87.22%
Profit Quality(5y)86.93%
High Growth Momentum
Growth
EPS 1Y (TTM)33.46%
EPS 3Y3.71%
EPS 5Y-2.2%
EPS Q2Q%-30.81%
EPS Next Y-15.77%
EPS Next 2Y-3.28%
EPS Next 3Y2.49%
EPS Next 5Y8%
Revenue 1Y (TTM)5.58%
Revenue growth 3Y6.96%
Revenue growth 5Y6.98%
Sales Q2Q%-2.38%
Revenue Next Year4.79%
Revenue Next 2Y4.52%
Revenue Next 3Y4.44%
Revenue Next 5Y5.81%
EBIT growth 1Y25.91%
EBIT growth 3Y-1.01%
EBIT growth 5Y-4.45%
EBIT Next Year36.21%
EBIT Next 3Y18.71%
EBIT Next 5Y14.88%
FCF growth 1Y28.87%
FCF growth 3Y-2.87%
FCF growth 5Y8.5%
OCF growth 1Y29.36%
OCF growth 3Y-3.9%
OCF growth 5Y1.2%