NYSE:HII

Stock Analysis Report

Huntington Ingalls Industries

Executive Summary

Huntington Ingalls Industries, Inc. engages in the designing, building, overhauling, and repairing military ships in the United States.

Snowflake

Fundamentals

Outstanding track record and fair value.


Similar Companies

Share Price & News

How has Huntington Ingalls Industries's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-1.6%

NYSE:HII

-2.3%

US Aerospace & Defense

0.5%

US Market


1 Year Return

-2.6%

NYSE:HII

0.8%

US Aerospace & Defense

0.8%

US Market

HII underperformed the Aerospace & Defense industry which returned 0.9% over the past year.

HII underperformed the Market in United States of America which returned 0.8% over the past year.


Share holder returns

HIIIndustryMarket
7 Day-1.6%-2.3%0.5%
30 Day3.8%0.3%-0.06%
90 Day3.6%6.8%1.0%
1 Year-1.1%-2.6%2.7%0.8%3.0%0.8%
3 Year39.8%34.5%49.8%41.6%47.3%37.5%
5 Year136.0%121.1%75.3%58.8%54.7%37.5%

Price Volatility Vs. Market

How volatile is Huntington Ingalls Industries's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Huntington Ingalls Industries undervalued based on future cash flows and its price relative to the stock market?

25%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Huntington Ingalls Industries's share price is below the future cash flow value, and at a moderate discount (> 20%).

Huntington Ingalls Industries's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Huntington Ingalls Industries is good value based on earnings compared to the US Aerospace & Defense industry average.

Huntington Ingalls Industries is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

Huntington Ingalls Industries is poor value based on expected growth next year.


Price Based on Value of Assets

Huntington Ingalls Industries is overvalued based on assets compared to the US Aerospace & Defense industry average.


Next Steps

Future Growth

How is Huntington Ingalls Industries expected to perform in the next 1 to 3 years based on estimates from 11 analysts?

0.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Huntington Ingalls Industries's revenue is expected to grow by 2.9% yearly, however this is not considered high growth (20% yearly).

Huntington Ingalls Industries's earnings are expected to grow by 0.7% yearly, however this is not considered high growth (20% yearly).

Huntington Ingalls Industries's revenue growth is positive but not above the United States of America market average.

Huntington Ingalls Industries's earnings growth is positive but not above the United States of America market average.

Huntington Ingalls Industries's earnings growth is positive but not above the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Huntington Ingalls Industries is expected to make outstanding use of shareholders’ funds in the future (Return on Equity greater than 40%).


Next Steps

Past Performance

How has Huntington Ingalls Industries performed over the past 5 years?

17.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Huntington Ingalls Industries's year on year earnings growth rate has been positive over the past 5 years.

Huntington Ingalls Industries's 1-year earnings growth exceeds its 5-year average (54.7% vs 17.6%)

Huntington Ingalls Industries's earnings growth has exceeded the US Aerospace & Defense industry average in the past year (54.7% vs 31.1%).


Return on Equity

Huntington Ingalls Industries made outstanding use of shareholders’ funds last year (Return on Equity greater than 40%).


Return on Assets

Huntington Ingalls Industries used its assets more efficiently than the US Aerospace & Defense industry average last year based on Return on Assets.


Return on Capital Employed

Huntington Ingalls Industries has improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Huntington Ingalls Industries's financial position?


Financial Position Analysis

Huntington Ingalls Industries's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

Huntington Ingalls Industries's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Huntington Ingalls Industries's level of debt (95.7%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (113.9% vs 95.7% today).

Debt is well covered by operating cash flow (53.8%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 24x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 1.3x debt.


Next Steps

Dividend

What is Huntington Ingalls Industries's current dividend yield, its reliability and sustainability?

1.73%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Huntington Ingalls Industries's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.47%).

Huntington Ingalls Industries's dividend is below the markets top 25% of dividend payers in United States of America (3.71%).

Whilst dividend payments have been stable, Huntington Ingalls Industries has been paying a dividend for less than 10 years.

Dividend payments have increased, but Huntington Ingalls Industries only paid a dividend in the past 7 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (5.9x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (4.5x coverage).


Next Steps

Management

What is the CEO of Huntington Ingalls Industries's salary, the management and board of directors tenure and is there insider trading?

4.4yrs

Average management tenure


CEO

Mike Petters (58yo)

8.3yrs

Tenure

US$5,551,979

Compensation

Mr. C. Michael Petters, also known as Mike, has been the Chief Executive Officer of Huntington Ingalls Industries, Inc. since March 31, 2011 and has been its President since November 1, 2004. Mr. Petters s ...


CEO Compensation Analysis

Mike's remuneration is about average for companies of similar size in United States of America.

Mike's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

4.4yrs

Average Tenure

54yo

Average Age

The tenure for the Huntington Ingalls Industries management team is about average.


Board Age and Tenure

5.6yrs

Average Tenure

64yo

Average Age

The tenure for the Huntington Ingalls Industries board of directors is about average.


Insider Trading

Huntington Ingalls Industries insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$275,17003 Jun 19
Jennifer Boykin
EntityIndividual
Role
Executive VP & President of Newport News Shipbuilding
Shares1,345
Max PriceUS$204.59
SellUS$102,23131 May 19
Nicolas Schuck
EntityIndividual
Role
Corporate VP
Shares500
Max PriceUS$204.46
SellUS$394,12022 May 19
William Ermatinger
EntityIndividual
Shares1,863
Max PriceUS$211.55
SellUS$102,83015 May 19
Andy Green
EntityIndividual
Shares500
Max PriceUS$205.66
SellUS$528,49711 Mar 19
Jennifer Boykin
EntityIndividual
Role
Executive VP & President of Newport News Shipbuilding
Shares2,647
Max PriceUS$199.66
SellUS$327,26708 Mar 19
Mitchell Waldman
EntityIndividual
Shares1,581
Max PriceUS$207.00
SellUS$1,244,55106 Mar 19
D. Stabler
EntityIndividual
Shares6,020
Max PriceUS$206.74
SellUS$809,21506 Mar 19
Christopher Kastner
EntityIndividual
Role
Executive VP of Business Management & CFO
Shares3,919
Max PriceUS$206.49
SellUS$242,79322 Feb 19
Dale Wyatt
EntityIndividual
Shares1,100
Max PriceUS$220.72
SellUS$154,40022 Feb 19
Thomas Fargo
EntityIndividual
Role
Chairman of the Board
Shares700
Max PriceUS$220.57

Ownership Breakdown


Management Team

  • Susan Jacobs

    Vice President of Human Resources and Administration

  • Chris Kastner (54yo)

    Executive VP of Business Management & CFO

    • Tenure: 3.3yrs
    • Compensation: $3.19m
  • Jennifer Boykin (54yo)

    Executive VP & President of Newport News Shipbuilding

    • Tenure: 1.9yrs
    • Compensation: $2.51m
  • Mike Petters (58yo)

    President

    • Tenure: 8.3yrs
    • Compensation: $5.55m
  • Matt Needy

    Vice President of Operations

    • Tenure: 1.7yrs
  • Brian Cuccias (61yo)

    Executive VP & President of Ingalls Shipbuilding

    • Tenure: 5.2yrs
    • Compensation: $2.76m
  • Kellye Walker (51yo)

    Executive VP & Chief Legal Officer

    • Tenure: 4.4yrs
    • Compensation: $2.15m
  • Dwayne Blake

    Corporate Vice President of Investor Relations

    • Tenure: 6.4yrs
  • Chad Boudreaux

    Corporate Vice President of Litigation & Chief Compliance Officer

    • Tenure: 6.3yrs
  • Nicolas Schuck (44yo)

    Corporate VP

    • Tenure: 3.8yrs

Board Members

  • John Welch (68yo)

    Independent Non-Executive Director

    • Tenure: 4.3yrs
    • Compensation: $254.63k
  • Thomas Schievelbein (64yo)

    Independent Director

    • Tenure: 8.3yrs
    • Compensation: $267.13k
  • Stasia Kelly (69yo)

    Independent Director

    • Tenure: 8.3yrs
    • Compensation: $257.13k
  • Augustus Collins (60yo)

    Independent Director

    • Tenure: 2.6yrs
    • Compensation: $254.63k
  • Mike Petters (58yo)

    President

    • Tenure: 8.3yrs
    • Compensation: $5.55m
  • Kirkland Donald (64yo)

    Independent Director

    • Tenure: 2.4yrs
    • Compensation: $244.63k
  • Victoria Harker (53yo)

    Independent Director

    • Tenure: 6.8yrs
    • Compensation: $257.13k
  • Philip Bilden (53yo)

    Director

    • Tenure: 1.6yrs
    • Compensation: $244.63k
  • Stephen Wilson (70yo)

    Independent Director

    • Tenure: 3.7yrs
    • Compensation: $254.63k
  • Tom Fargo (69yo)

    Chairman of the Board

    • Tenure: 8.3yrs
    • Compensation: $479.63k

Company Information

Huntington Ingalls Industries, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Huntington Ingalls Industries, Inc.
  • Ticker: HII
  • Exchange: NYSE
  • Founded: 1886
  • Industry: aerospace and defense
  • Sector: capital goods
  • Market Cap: US$8.925b
  • Shares outstanding: 41.55m
  • Website: Click here

Number of Employees


Location

  • Huntington Ingalls Industries, Inc.
  • 4101 Washington Avenue
  • Newport News
  • Virginia
  • 23607
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HIINYSE (New York Stock Exchange)YesNew Common StockUSUSDJan 1970
HI4DB (Deutsche Boerse AG)YesNew Common StockDEEURJan 1970
0J76LSE (London Stock Exchange)YesNew Common StockGBUSDJan 1970

Biography

Huntington Ingalls Industries, Inc. engages in the designing, building, overhauling, and repairing military ships in the United States. It operates through three segments: Ingalls Shipbuilding, Newport New ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/06/16 00:29
End of Day Share Price2019/06/14 00:00
Earnings2019/03/31
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.