A Holistic Look At Huntington Ingalls Industries Inc (NYSE:HII)

Huntington Ingalls Industries Inc (NYSE:HII) is a stock with outstanding fundamental characteristics. When we build an investment case, we need to look at the stock with a holistic perspective. In the case of HII, it is a company with great financial health as well as a a great track record of performance. Below is a brief commentary on these key aspects. For those interested in digger a bit deeper into my commentary, read the full report on Huntington Ingalls Industries here.

Proven track record with adequate balance sheet

Over the past few years, HII has demonstrated a proven ability to generate robust returns of 36% Unsurprisingly, HII surpassed the Aerospace & Defense industry return of 15%, which gives us more confidence of the company’s capacity to drive earnings going forward. HII’s ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This suggests prudent control over cash and cost by management, which is an important determinant of the company’s health. HII appears to have made good use of debt, producing operating cash levels of 0.69x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.

NYSE:HII Income Statement Export November 6th 18
NYSE:HII Income Statement Export November 6th 18

Next Steps:

For Huntington Ingalls Industries, there are three key aspects you should further research:

  1. Future Outlook: What are well-informed industry analysts predicting for HII’s future growth? Take a look at our free research report of analyst consensus for HII’s outlook.
  2. Valuation: What is HII worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether HII is currently mispriced by the market.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of HII? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.