HUNTINGTON INGALLS INDUSTRIE (HII) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:HII - US4464131063 - Common Stock
349.75 USD
+9.68 (+2.85%)
351.39 USD
+1.64 (+0.47%)
We assign a fundamental rating of 4 out of 10 to HII. HII was compared to 71 industry peers in the Aerospace & Defense industry. HII has an average financial health and profitability rating. HII has a correct valuation and a medium growth rate. 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.
HII had positive earnings in each of the past 5 years.
Each year in the past 5 years HII had a positive operating cash flow.
1.2 Ratios
HII's Return On Assets of 4.62% is fine compared to the rest of the industry. HII outperforms 66.20% of its industry peers.
HII has a Return On Equity of 11.42%. This is in the better half of the industry: HII outperforms 73.24% of its industry peers.
HII has a Return On Invested Capital (4.72%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for HII is below the industry average of 8.60%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.62% | ||
| ROE | 11.42% | ||
| ROIC | 4.72% |
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 of 4.74%. This is comparable to the rest of the industry: HII outperforms 56.34% of its industry peers.
In the last couple of years the Profit Margin of HII has declined.
HII has a Operating Margin (4.56%) which 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 (12.52%) is worse than 77.46% of its industry peers.
HII's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.56% | ||
| PM (TTM) | 4.74% | ||
| GM | 12.52% |
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.
The number of shares outstanding for HII has been reduced compared to 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 a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.86 indicates that HII is not a great score, but indicates only limited risk for bankruptcy at the moment.
HII has a Altman-Z score (2.86) which is in line with its industry peers.
HII has a debt to FCF ratio of 4.86. This is a neutral value as HII would need 4.86 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 4.86, HII is doing good in the industry, outperforming 73.24% of the companies in the same industry.
A Debt/Equity ratio of 0.54 indicates that HII is somewhat dependend on debt financing.
HII's Debt to Equity ratio of 0.54 is in line compared to the rest of the industry. HII outperforms 45.07% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | 4.86 | ||
| Altman-Z | 2.86 |
ROIC/WACC0.5
WACC9.4%
2.3 Liquidity
A Current Ratio of 1.14 indicates that HII should not have too much problems paying its short term obligations.
HII has a Current ratio of 1.14. This is amonst the worse of the industry: HII underperforms 83.10% 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.
The Quick ratio of HII (1.06) is worse than 70.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.14 | ||
| Quick Ratio | 1.06 |
3. Growth
3.1 Past
HII shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -18.24%.
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.
HII shows a small growth in Revenue. In the last year, the Revenue has grown by 2.60%.
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)-18.24%
EPS 3Y1.07%
EPS 5Y-0.09%
EPS Q2Q%43.75%
Revenue 1Y (TTM)2.6%
Revenue growth 3Y6.59%
Revenue growth 5Y5.33%
Sales Q2Q%16.11%
3.2 Future
The Earnings Per Share is expected to grow by 12.29% on average over the next years. This is quite good.
HII is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.74% yearly.
EPS Next Y9.27%
EPS Next 2Y12.72%
EPS Next 3Y14.33%
EPS Next 5Y12.29%
Revenue Next Year4.21%
Revenue Next 2Y4.79%
Revenue Next 3Y5.06%
Revenue Next 5Y4.74%
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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 24.15 indicates a rather expensive valuation of HII.
85.92% of the companies in the same industry are more expensive than HII, based on the Price/Earnings ratio.
HII's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.60.
The Price/Forward Earnings ratio is 19.72, which indicates a rather expensive current valuation of HII.
Based on the Price/Forward Earnings ratio, HII is valued cheaply inside the industry as 91.55% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of HII to the average of the S&P500 Index (23.23), we can say HII is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.15 | ||
| Fwd PE | 19.72 |
4.2 Price Multiples
74.65% of the companies in the same industry are more expensive than HII, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, HII is valued cheaply inside the industry as 92.96% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.73 | ||
| EV/EBITDA | 18 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
A more expensive valuation may be justified as HII's earnings are expected to grow with 14.33% in the coming years.
PEG (NY)2.61
PEG (5Y)N/A
EPS Next 2Y12.72%
EPS Next 3Y14.33%
5. Dividend
5.1 Amount
HII has a Yearly Dividend Yield of 1.55%.
HII's Dividend Yield is rather good when compared to the industry average which is at 0.39. HII pays more dividend than 91.55% of the companies in the same industry.
HII's Dividend Yield is slightly below the S&P500 average, which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.55% |
5.2 History
The dividend of HII is nicely growing with an annual growth rate of 7.82%!
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 37.08% of its income as dividend. This is a sustainable payout ratio.
The dividend of HII is growing, but earnings are growing more, so the dividend growth is sustainable.
DP37.08%
EPS Next 2Y12.72%
EPS Next 3Y14.33%
349.75
+9.68 (+2.85%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners96.95%
Inst Owner Change-2.78%
Ins Owners0.65%
Ins Owner Change-2.56%
Market Cap13.72B
Revenue(TTM)12.01B
Net Income(TTM)569.00M
Analysts70.67
Price Target346.41 (-0.95%)
Short Float %3.8%
Short Ratio3.15
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.55% |
Yearly Dividend5.23
Dividend Growth(5Y)7.82%
DP37.08%
Div Incr Years12
Div Non Decr Years12
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)12.59%
Min EPS beat(2)8.55%
Max EPS beat(2)16.62%
EPS beat(4)3
Avg EPS beat(4)10.84%
Min EPS beat(4)-10.56%
Max EPS beat(4)28.76%
EPS beat(8)6
Avg EPS beat(8)12.17%
EPS beat(12)9
Avg EPS beat(12)9.26%
EPS beat(16)11
Avg EPS beat(16)9.39%
Revenue beat(2)2
Avg Revenue beat(2)5.51%
Min Revenue beat(2)4.23%
Max Revenue beat(2)6.79%
Revenue beat(4)2
Avg Revenue beat(4)1.34%
Min Revenue beat(4)-3.02%
Max Revenue beat(4)6.79%
Revenue beat(8)4
Avg Revenue beat(8)2.07%
Revenue beat(12)8
Avg Revenue beat(12)2.32%
Revenue beat(16)10
Avg Revenue beat(16)1.63%
PT rev (1m)3.05%
PT rev (3m)19.63%
EPS NQ rev (1m)-0.21%
EPS NQ rev (3m)-3.29%
EPS NY rev (1m)0.85%
EPS NY rev (3m)0.68%
Revenue NQ rev (1m)0.03%
Revenue NQ rev (3m)-3.56%
Revenue NY rev (1m)0.52%
Revenue NY rev (3m)0.93%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.15 | ||
| Fwd PE | 19.72 | ||
| P/S | 1.14 | ||
| P/FCF | 24.73 | ||
| P/OCF | 14.65 | ||
| P/B | 2.75 | ||
| P/tB | 8.5 | ||
| EV/EBITDA | 18 |
EPS(TTM)14.48
EY4.14%
EPS(NY)17.74
Fwd EY5.07%
FCF(TTM)14.14
FCFY4.04%
OCF(TTM)23.88
OCFY6.83%
SpS306.12
BVpS127.01
TBVpS41.13
PEG (NY)2.61
PEG (5Y)N/A
Graham Number203.42
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.62% | ||
| ROE | 11.42% | ||
| ROCE | 5.7% | ||
| ROIC | 4.72% | ||
| ROICexc | 4.87% | ||
| ROICexgc | 7.65% | ||
| OM | 4.56% | ||
| PM (TTM) | 4.74% | ||
| GM | 12.52% | ||
| FCFM | 4.62% |
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%
ROICexgc growth 3Y-7.33%
ROICexgc 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 Turnover0.98
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | 4.86 | ||
| Debt/EBITDA | 3.09 | ||
| Cap/Depr | 117.18% | ||
| Cap/Sales | 3.18% | ||
| Interest Coverage | 4.53 | ||
| Cash Conversion | 107.21% | ||
| Profit Quality | 97.54% | ||
| Current Ratio | 1.14 | ||
| Quick Ratio | 1.06 | ||
| Altman-Z | 2.86 |
F-Score4
WACC9.4%
ROIC/WACC0.5
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)-18.24%
EPS 3Y1.07%
EPS 5Y-0.09%
EPS Q2Q%43.75%
EPS Next Y9.27%
EPS Next 2Y12.72%
EPS Next 3Y14.33%
EPS Next 5Y12.29%
Revenue 1Y (TTM)2.6%
Revenue growth 3Y6.59%
Revenue growth 5Y5.33%
Sales Q2Q%16.11%
Revenue Next Year4.21%
Revenue Next 2Y4.79%
Revenue Next 3Y5.06%
Revenue Next 5Y4.74%
EBIT growth 1Y-20.58%
EBIT growth 3Y1.12%
EBIT growth 5Y-8.14%
EBIT Next Year67.33%
EBIT Next 3Y28.31%
EBIT Next 5Y19.33%
FCF growth 1Y-25%
FCF growth 3Y-60.72%
FCF growth 5Y-41.08%
OCF growth 1Y-7.14%
OCF growth 3Y-19.73%
OCF growth 5Y-15.2%
HUNTINGTON INGALLS INDUSTRIE / HII FAQ
What is the fundamental rating for HII stock?
ChartMill assigns a fundamental rating of 4 / 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 4 / 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 37.08%.