HUNTINGTON INGALLS INDUSTRIE (HII)
US4464131063 - Common Stock
Overall HII gets a fundamental rating of 5 out of 10. We evaluated HII against 65 industry peers in the Aerospace & Defense industry. There are concerns on the financial health of HII while its profitability can be described as average. 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
HII had positive earnings in the past year.
In the past year HII had a positive cash flow from operations.
In the past 5 years HII has always been profitable.
Each year in the past 5 years HII had a positive operating cash flow.
1.2 Ratios
HII's Return On Assets of 6.33% is fine compared to the rest of the industry. HII outperforms 75.38% of its industry peers.
HII's Return On Equity of 16.68% is amongst the best of the industry. HII outperforms 87.69% of its industry peers.
Looking at the Return On Invested Capital, with a value of 7.14%, HII is in the better half of the industry, outperforming 69.23% 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 7.71%.
The last Return On Invested Capital (7.14%) for HII is above the 3 year average (5.70%), which is a sign of increasing profitability.
| 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
Looking at the Profit Margin, with a value of 5.99%, HII is in the better half of the industry, outperforming 64.62% of the companies in the same industry.
HII's Profit Margin has declined in the last couple of years.
The Operating Margin of HII (5.89%) is comparable to the rest of the industry.
HII's Operating Margin has declined in the last couple of years.
The Gross Margin of HII (13.84%) is worse than 75.38% of its industry peers.
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
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 less 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.
2.2 Solvency
An Altman-Z score of 2.47 indicates that HII is not a great score, but indicates only limited risk for bankruptcy at the moment.
HII's Altman-Z score of 2.47 is in line compared to the rest of the industry. HII outperforms 47.69% of its industry peers.
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 has a Debt to FCF ratio (14.25) which is in line with its industry peers.
A Debt/Equity ratio of 0.41 indicates that HII is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.41, HII perfoms like the industry average, outperforming 56.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | 14.25 | ||
| Altman-Z | 2.47 |
ROIC/WACC0.86
WACC8.31%
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 89.23% 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.
HII's Quick ratio of 0.73 is on the low side compared to the rest of the industry. HII is outperformed by 78.46% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.79 | ||
| Quick Ratio | 0.73 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 33.46% over the past year.
Measured over the past years, HII shows a decrease in Earnings Per Share. The EPS has been decreasing by -2.20% on average per year.
Looking at the last year, HII shows a small growth in Revenue. The Revenue has grown by 5.58% in the last 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
HII is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.88% yearly.
HII is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.41% yearly.
EPS Next Y-15.35%
EPS Next 2Y-3.4%
EPS Next 3Y2.85%
EPS Next 5Y8.88%
Revenue Next Year4.87%
Revenue Next 2Y4.4%
Revenue Next 3Y4.26%
Revenue Next 5Y4.41%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 11.03, the valuation of HII can be described as reasonable.
HII's Price/Earnings ratio is rather cheap when compared to the industry. HII is cheaper than 95.38% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.96. HII is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 12.24 indicates a correct valuation of HII.
Based on the Price/Forward Earnings ratio, HII is valued cheaper than 98.46% of the companies in the same industry.
HII's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.03 | ||
| Fwd PE | 12.24 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HII is valued cheaply inside the industry as 96.92% of the companies are valued more expensively.
67.69% 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 | 41.76 | ||
| EV/EBITDA | 9.84 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-3.4%
EPS Next 3Y2.85%
5. Dividend
5.1 Amount
HII has a Yearly Dividend Yield of 2.76%. Purely for dividend investing, there may be better candidates out there.
The stock price of HII dropped by -28.86% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 1.49, HII pays a better dividend. On top of this HII pays more dividend than 96.92% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.23, HII pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.76% |
5.2 History
The dividend of HII is nicely growing with an annual growth rate of 10.61%!
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)10.61%
Div Incr Years11
Div Non Decr Years11
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-3.4%
EPS Next 3Y2.85%
HUNTINGTON INGALLS INDUSTRIE
NYSE:HII (11/21/2024, 8:04:00 PM)
After market: 195.3 0 (0%)195.3
+5.05 (+2.65%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap7.64B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.76% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.03 | ||
| Fwd PE | 12.24 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.33% | ||
| ROE | 16.68% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 5.89% | ||
| PM (TTM) | 5.99% | ||
| GM | 13.84% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.06
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.79 | ||
| Quick Ratio | 0.73 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)33.46%
EPS 3Y3.71%
EPS 5Y
EPS Q2Q%
EPS Next Y-15.35%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)5.58%
Revenue growth 3Y6.96%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y