HUNTINGTON INGALLS INDUSTRIE (HII) Fundamental Analysis & Valuation

NYSE:HII • US4464131063

Current stock price

384.79 USD
-17.77 (-4.41%)
At close:
376.9 USD
-7.89 (-2.05%)
After Hours:

This HII fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

4

1. HII Profitability Analysis

1.1 Basic Checks

  • In the past year HII was profitable.
  • HII had a positive operating cash flow in the past year.
  • 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.
HII Yearly Net Income VS EBIT VS OCF VS FCFHII Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M 1B

1.2 Ratios

  • HII's Return On Assets of 4.75% is fine compared to the rest of the industry. HII outperforms 65.82% of its industry peers.
  • HII's Return On Equity of 11.93% is fine compared to the rest of the industry. HII outperforms 70.89% of its industry peers.
  • With a Return On Invested Capital value of 5.14%, HII perfoms like the industry average, outperforming 48.10% of the companies in the same industry.
  • The Average Return On Invested Capital over the past 3 years for HII is below the industry average of 9.24%.
Industry RankSector Rank
ROA 4.75%
ROE 11.93%
ROIC 5.14%
ROA(3y)5.12%
ROA(5y)5.16%
ROE(3y)13.45%
ROE(5y)15.26%
ROIC(3y)5.64%
ROIC(5y)5.38%
HII Yearly ROA, ROE, ROICHII Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30 40 50

1.3 Margins

  • The Profit Margin of HII (4.85%) is comparable to the rest of the industry.
  • In the last couple of years the Profit Margin of HII has declined.
  • HII's Operating Margin of 4.89% is in line compared to the rest of the industry. HII outperforms 44.30% of its industry peers.
  • HII's Operating Margin has declined in the last couple of years.
  • The Gross Margin of HII (12.70%) is worse than 79.75% of its industry peers.
  • HII's Gross Margin has declined in the last couple of years.
Industry RankSector Rank
OM 4.89%
PM (TTM) 4.85%
GM 12.7%
OM growth 3Y0.35%
OM growth 5Y-9.79%
PM growth 3Y-3.68%
PM growth 5Y-8.2%
GM growth 3Y-2%
GM growth 5Y-6.58%
HII Yearly Profit, Operating, Gross MarginsHII Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10 15 20

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ROAROEROICOperating and Profit MarginShow most profitable peers

5

2. HII Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so HII is destroying value.
  • Compared to 1 year ago, HII has more shares outstanding
  • The number of shares outstanding for HII has been reduced compared to 5 years ago.
  • The debt/assets ratio for HII has been reduced compared to a year ago.
HII Yearly Shares OutstandingHII Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10M 20M 30M 40M
HII Yearly Total Debt VS Total AssetsHII Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B 10B

2.2 Solvency

  • HII has an Altman-Z score of 3.01. This indicates that HII is financially healthy and has little risk of bankruptcy at the moment.
  • With a Altman-Z score value of 3.01, HII perfoms like the industry average, outperforming 43.04% of the companies in the same industry.
  • HII has a debt to FCF ratio of 3.40. This is a good value and a sign of high solvency as HII would need 3.40 years to pay back of all of its debts.
  • HII's Debt to FCF ratio of 3.40 is fine compared to the rest of the industry. HII outperforms 78.48% of its industry peers.
  • A Debt/Equity ratio of 0.53 indicates that HII is somewhat dependend on debt financing.
  • With a Debt to Equity ratio value of 0.53, HII perfoms like the industry average, outperforming 50.63% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.53
Debt/FCF 3.4
Altman-Z 3.01
ROIC/WACC0.53
WACC9.74%
HII Yearly LT Debt VS Equity VS FCFHII Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B 4B 5B

2.3 Liquidity

  • HII has a Current Ratio of 1.13. 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 1.13. This is amonst the worse of the industry: HII underperforms 81.01% of its industry peers.
  • 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.
  • With a Quick ratio value of 1.06, HII is not doing good in the industry: 69.62% of the companies in the same industry are doing better.
Industry RankSector Rank
Current Ratio 1.13
Quick Ratio 1.06
HII Yearly Current Assets VS Current LiabilitesHII Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

3. HII Growth Analysis

3.1 Past

  • HII shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.10%, which is quite good.
  • Measured over the past 5 years, HII shows a small growth in Earnings Per Share. The EPS has been growing by 0.05% on average per year.
  • The Revenue has grown by 8.23% in the past year. This is quite good.
  • The Revenue has been growing slightly by 5.93% on average over the past years.
EPS 1Y (TTM)10.1%
EPS 3Y2.08%
EPS 5Y0.05%
EPS Q2Q%28.25%
Revenue 1Y (TTM)8.23%
Revenue growth 3Y5.35%
Revenue growth 5Y5.93%
Sales Q2Q%15.71%

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 12.55% yearly.
  • Based on estimates for the next years, HII will show a small growth in Revenue. The Revenue will grow by 5.06% on average per year.
EPS Next Y14.49%
EPS Next 2Y16.14%
EPS Next 3Y15.71%
EPS Next 5Y12.55%
Revenue Next Year6.88%
Revenue Next 2Y6.59%
Revenue Next 3Y6.4%
Revenue Next 5Y5.06%

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.
  • 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.
HII Yearly Revenue VS EstimatesHII Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 5B 10B 15B
HII Yearly EPS VS EstimatesHII Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 5 10 15 20 25

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5

4. HII Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 25.04, HII can be considered very expensive at the moment.
  • 79.75% 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 25.23. HII is around the same levels.
  • Based on the Price/Forward Earnings ratio of 21.87, the valuation of HII can be described as rather expensive.
  • HII's Price/Forward Earnings ratio is rather cheap when compared to the industry. HII is cheaper than 83.54% of the companies in the same industry.
  • When comparing the Price/Forward Earnings ratio of HII to the average of the S&P500 Index (22.51), we can say HII is valued inline with the index average.
Industry RankSector Rank
PE 25.04
Fwd PE 21.87
HII Price Earnings VS Forward Price EarningsHII Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HII indicates a somewhat cheap valuation: HII is cheaper than 73.42% of the companies listed in the same industry.
  • Based on the Price/Free Cash Flow ratio, HII is valued cheaply inside the industry as 96.20% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 19.02
EV/EBITDA 18.85
HII Per share dataHII EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 100 200 300

4.3 Compensation for Growth

  • HII's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
  • A more expensive valuation may be justified as HII's earnings are expected to grow with 15.71% in the coming years.
PEG (NY)1.73
PEG (5Y)480.24
EPS Next 2Y16.14%
EPS Next 3Y15.71%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

7

5. HII Dividend Analysis

5.1 Amount

  • HII has a Yearly Dividend Yield of 1.32%. Purely for dividend investing, there may be better candidates out there.
  • Compared to an average industry Dividend Yield of 0.36, HII pays a better dividend. On top of this HII pays more dividend than 92.41% of the companies listed in the same industry.
  • HII's Dividend Yield is slightly below the S&P500 average, which is at 1.90.
Industry RankSector Rank
Dividend Yield 1.32%

5.2 History

  • The dividend of HII has a limited annual growth rate of 5.32%.
  • 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)5.32%
Div Incr Years12
Div Non Decr Years12
HII Yearly Dividends per shareHII Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1 2 3 4 5

5.3 Sustainability

  • 35.21% 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 earnings are growing more, so the dividend growth is sustainable.
DP35.21%
EPS Next 2Y16.14%
EPS Next 3Y15.71%
HII Yearly Income VS Free CF VS DividendHII Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M
HII Dividend Payout.HII Dividend Payout, showing the Payout Ratio.HII Dividend Payout.PayoutRetained Earnings

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HII Fundamentals: All Metrics, Ratios and Statistics

HUNTINGTON INGALLS INDUSTRIE

NYSE:HII (3/26/2026, 8:27:15 PM)

After market: 376.9 -7.89 (-2.05%)

384.79

-17.77 (-4.41%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)02-05
Earnings (Next)04-29
Inst Owners96.12%
Inst Owner Change3.67%
Ins Owners0.77%
Ins Owner Change2.93%
Market Cap15.10B
Revenue(TTM)12.48B
Net Income(TTM)605.00M
Analysts73.75
Price Target407.79 (5.98%)
Short Float %4.72%
Short Ratio3.19
Dividend
Industry RankSector Rank
Dividend Yield 1.32%
Yearly Dividend5.44
Dividend Growth(5Y)5.32%
DP35.21%
Div Incr Years12
Div Non Decr Years12
Ex-Date02-27
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.8%
Min EPS beat(2)3.05%
Max EPS beat(2)8.55%
EPS beat(4)4
Avg EPS beat(4)14.25%
Min EPS beat(4)3.05%
Max EPS beat(4)28.76%
EPS beat(8)6
Avg EPS beat(8)5.09%
EPS beat(12)10
Avg EPS beat(12)10.16%
EPS beat(16)12
Avg EPS beat(16)9.61%
Revenue beat(2)2
Avg Revenue beat(2)8.89%
Min Revenue beat(2)6.79%
Max Revenue beat(2)10.98%
Revenue beat(4)3
Avg Revenue beat(4)4.75%
Min Revenue beat(4)-3.02%
Max Revenue beat(4)10.98%
Revenue beat(8)4
Avg Revenue beat(8)1.8%
Revenue beat(12)8
Avg Revenue beat(12)2.94%
Revenue beat(16)11
Avg Revenue beat(16)2.34%
PT rev (1m)7.42%
PT rev (3m)21.31%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.74%
EPS NY rev (1m)-1.43%
EPS NY rev (3m)-0.88%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.25%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)1.79%
Valuation
Industry RankSector Rank
PE 25.04
Fwd PE 21.87
P/S 1.21
P/FCF 19.02
P/OCF 12.62
P/B 2.98
P/tB 8.73
EV/EBITDA 18.85
EPS(TTM)15.37
EY3.99%
EPS(NY)17.6
Fwd EY4.57%
FCF(TTM)20.23
FCFY5.26%
OCF(TTM)30.48
OCFY7.92%
SpS318.14
BVpS129.28
TBVpS44.06
PEG (NY)1.73
PEG (5Y)480.24
Graham Number211.44
Profitability
Industry RankSector Rank
ROA 4.75%
ROE 11.93%
ROCE 6.3%
ROIC 5.14%
ROICexc 5.59%
ROICexgc 8.94%
OM 4.89%
PM (TTM) 4.85%
GM 12.7%
FCFM 6.36%
ROA(3y)5.12%
ROA(5y)5.16%
ROE(3y)13.45%
ROE(5y)15.26%
ROIC(3y)5.64%
ROIC(5y)5.38%
ROICexc(3y)6.07%
ROICexc(5y)5.78%
ROICexgc(3y)10.44%
ROICexgc(5y)10.48%
ROCE(3y)6.9%
ROCE(5y)6.58%
ROICexgc growth 3Y-6.54%
ROICexgc growth 5Y-14.05%
ROICexc growth 3Y-0.27%
ROICexc growth 5Y-13.53%
OM growth 3Y0.35%
OM growth 5Y-9.79%
PM growth 3Y-3.68%
PM growth 5Y-8.2%
GM growth 3Y-2%
GM growth 5Y-6.58%
F-Score8
Asset Turnover0.98
Health
Industry RankSector Rank
Debt/Equity 0.53
Debt/FCF 3.4
Debt/EBITDA 2.87
Cap/Depr 122.19%
Cap/Sales 3.22%
Interest Coverage 5.66
Cash Conversion 127.23%
Profit Quality 131.24%
Current Ratio 1.13
Quick Ratio 1.06
Altman-Z 3.01
F-Score8
WACC9.74%
ROIC/WACC0.53
Cap/Depr(3y)106.31%
Cap/Depr(5y)102.24%
Cap/Sales(3y)2.98%
Cap/Sales(5y)3.02%
Profit Quality(3y)78.51%
Profit Quality(5y)79.53%
High Growth Momentum
Growth
EPS 1Y (TTM)10.1%
EPS 3Y2.08%
EPS 5Y0.05%
EPS Q2Q%28.25%
EPS Next Y14.49%
EPS Next 2Y16.14%
EPS Next 3Y15.71%
EPS Next 5Y12.55%
Revenue 1Y (TTM)8.23%
Revenue growth 3Y5.35%
Revenue growth 5Y5.93%
Sales Q2Q%15.71%
Revenue Next Year6.88%
Revenue Next 2Y6.59%
Revenue Next 3Y6.4%
Revenue Next 5Y5.06%
EBIT growth 1Y25.72%
EBIT growth 3Y5.73%
EBIT growth 5Y-4.45%
EBIT Next Year58.81%
EBIT Next 3Y27.35%
EBIT Next 5Y18.3%
FCF growth 1Y2953.85%
FCF growth 3Y18.1%
FCF growth 5Y1.42%
OCF growth 1Y204.33%
OCF growth 3Y16.01%
OCF growth 5Y1.82%

HUNTINGTON INGALLS INDUSTRIE / HII Fundamental Analysis FAQ

What is the fundamental rating for HII stock?

ChartMill assigns a fundamental rating of 5 / 10 to HII.


Can you provide the valuation status for HUNTINGTON INGALLS INDUSTRIE?

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.


Can you provide the financial health for HII stock?

The financial health rating of HUNTINGTON INGALLS INDUSTRIE (HII) is 5 / 10.


Is the dividend of HUNTINGTON INGALLS INDUSTRIE sustainable?

The dividend rating of HUNTINGTON INGALLS INDUSTRIE (HII) is 7 / 10 and the dividend payout ratio is 35.21%.