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HII

Huntington Ingalls IndustriesNYSE:HII Stock Report

Market Cap

US$7.8b

7D

0.2%

1Y

38.3%

Updated

25 Sep, 2021

Data

Company Financials +
HII fundamental analysis
Snowflake Score
Valuation5/6
Future Growth2/6
Past Performance6/6
Financial Health3/6
Dividends3/6

HII Overview

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

Huntington Ingalls Industries Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Huntington Ingalls Industries
Historical stock prices
Current Share PriceUS$195.37
52 Week HighUS$137.21
52 Week LowUS$224.13
Beta1
1 Month Change-4.43%
3 Month Change-8.40%
1 Year Change38.34%
3 Year Change-23.71%
5 Year Change27.34%
Change since IPO421.13%

Recent News & Updates

Shareholder Returns

HIIUS Aerospace & DefenseUS Market
7D0.2%2.3%0.1%
1Y38.3%25.2%35.3%

Return vs Industry: HII exceeded the US Aerospace & Defense industry which returned 25.2% over the past year.

Return vs Market: HII exceeded the US Market which returned 35.3% over the past year.

Price Volatility

Is HII's price volatile compared to industry and market?
HII volatility
HII Beta1
Industry Beta1.06
Market Beta1

Stable Share Price: HII is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: HII's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
188641,000Mike Pettershttps://www.huntingtoningalls.com

Huntington Ingalls Industries, Inc. engages in designing, building, overhauling, and repairing military ships in the United States. It operates through three segments: Ingalls Shipbuilding, Newport News Shipbuilding, and Technical Solutions. The company is involved in the design and construction of non-nuclear ships comprising amphibious assault ships; expeditionary warfare ships; surface combatants; and national security cutters for the U.S.

Huntington Ingalls Industries Fundamentals Summary

How do Huntington Ingalls Industries's earnings and revenue compare to its market cap?
HII fundamental statistics
Market CapUS$7.84b
Earnings (TTM)US$748.00m
Revenue (TTM)US$9.58b

10.5x

P/E Ratio

0.8x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
HII income statement (TTM)
RevenueUS$9.58b
Cost of RevenueUS$7.93b
Gross ProfitUS$1.65b
ExpensesUS$899.00m
EarningsUS$748.00m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)18.63
Gross Margin17.19%
Net Profit Margin7.81%
Debt/Equity Ratio81.7%

How did HII perform over the long term?

See historical performance and comparison

Dividends

2.3%

Current Dividend Yield

24%

Payout Ratio

Valuation

Is Huntington Ingalls Industries undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HII ($195.37) is trading below our estimate of fair value ($402.71)

Significantly Below Fair Value: HII is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: HII is good value based on its PE Ratio (10.5x) compared to the US Aerospace & Defense industry average (19.6x).

PE vs Market: HII is good value based on its PE Ratio (10.5x) compared to the US market (17.9x).


Price to Earnings Growth Ratio

PEG Ratio: HII is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: HII is overvalued based on its PB Ratio (3.8x) compared to the US Aerospace & Defense industry average (3x).


Future Growth

How is Huntington Ingalls Industries forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

12.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HII's forecast earnings growth (12.1% per year) is above the savings rate (2%).

Earnings vs Market: HII's earnings (12.1% per year) are forecast to grow slower than the US market (14.8% per year).

High Growth Earnings: HII's earnings are forecast to grow, but not significantly.

Revenue vs Market: HII's revenue (5.7% per year) is forecast to grow slower than the US market (9.8% per year).

High Growth Revenue: HII's revenue (5.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: HII's Return on Equity is forecast to be high in 3 years time (28.9%)


Past Performance

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

6.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HII has high quality earnings.

Growing Profit Margin: HII's current net profit margins (7.8%) are higher than last year (5.9%).


Past Earnings Growth Analysis

Earnings Trend: HII's earnings have grown by 6.1% per year over the past 5 years.

Accelerating Growth: HII's earnings growth over the past year (41.7%) exceeds its 5-year average (6.1% per year).

Earnings vs Industry: HII earnings growth over the past year (41.7%) exceeded the Aerospace & Defense industry 1.8%.


Return on Equity

High ROE: HII's Return on Equity (36.2%) is considered high.


Financial Health

How is Huntington Ingalls Industries's financial position?


Financial Position Analysis

Short Term Liabilities: HII's short term assets ($2.3B) exceed its short term liabilities ($2.1B).

Long Term Liabilities: HII's short term assets ($2.3B) do not cover its long term liabilities ($3.9B).


Debt to Equity History and Analysis

Debt Level: HII's debt to equity ratio (81.7%) is considered high.

Reducing Debt: HII's debt to equity ratio has increased from 79.1% to 81.7% over the past 5 years.

Debt Coverage: HII's debt is well covered by operating cash flow (57%).

Interest Coverage: HII's interest payments on its debt are well covered by EBIT (12.5x coverage).


Balance Sheet


Dividend

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

2.33%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: HII's dividend (2.33%) is higher than the bottom 25% of dividend payers in the US market (1.33%).

High Dividend: HII's dividend (2.33%) is low compared to the top 25% of dividend payers in the US market (3.6%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, HII has been paying a dividend for less than 10 years.

Growing Dividend: HII's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (24.1%), HII's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: HII's dividends in 3 years are forecast to be well covered by earnings (24.1% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.7yrs

Average management tenure


CEO

Mike Petters (61 yo)

10.5yrs

Tenure

US$6,440,417

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 its President since March 2011. Mr. Petters served as the Ch...


CEO Compensation Analysis

Compensation vs Market: Mike's total compensation ($USD6.44M) is about average for companies of similar size in the US market ($USD6.40M).

Compensation vs Earnings: Mike's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: HII's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Members

Experienced Board: HII's board of directors are considered experienced (5.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: HII insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Huntington Ingalls Industries, Inc.'s 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$7.842b
  • Shares outstanding: 40.14m
  • Website: https://www.huntingtoningalls.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/25 22:10
End of Day Share Price2021/09/24 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.