Huntington Ingalls Industries
Market Cap
US$9.6b
Last Updated
2020/02/23 02:10 UTC
Data Sources
Company Financials +
Executive Summary
Huntington Ingalls Industries, Inc. operates as a military shipbuilding company in the United States.
Rewards
Risk Analysis
Earnings are forecast to decline by an average of -0.2% per year for the next 3 years
Snowflake Analysis
Acceptable track record with mediocre balance sheet.
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
Stable Share Price: HII has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
-4.1%
HII
-1.5%
US Aerospace & Defense
-1.1%
US Market
1 Year Return
8.7%
HII
23.4%
US Aerospace & Defense
17.9%
US Market
Return vs Industry: HII underperformed the US Aerospace & Defense industry which returned 23.4% over the past year.
Return vs Market: HII underperformed the US Market which returned 17.9% over the past year.
Shareholder returns
| HII | Industry | Market | |
|---|---|---|---|
| 7 Day | -4.1% | -1.5% | -1.1% |
| 30 Day | -14.6% | -0.2% | 1.4% |
| 90 Day | -5.3% | 6.0% | 6.9% |
| 1 Year | 10.1%8.7% | 25.6%23.4% | 20.3%17.9% |
| 3 Year | 13.3%8.8% | 51.9%43.8% | 47.8%38.3% |
| 5 Year | 78.8%67.0% | 91.8%73.7% | 71.9%53.0% |
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
6 days ago | Simply Wall St
Read This Before Buying Huntington Ingalls Industries, Inc. (NYSE:HII) Shares2 weeks ago | Simply Wall St
At US$265, Is Huntington Ingalls Industries, Inc. (NYSE:HII) Worth Looking At Closely?4 weeks ago | Simply Wall St
Here's How P/E Ratios Can Help Us Understand Huntington Ingalls Industries, Inc. (NYSE:HII)Valuation
Is Huntington Ingalls Industries undervalued compared to its fair value and its price relative to the market?
17.8x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: HII ($236.02) is trading above our estimate of fair value ($224.43)
Significantly Below Fair Value: HII is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: HII is good value based on its PE Ratio (17.8x) compared to the Aerospace & Defense industry average (20.8x).
PE vs Market: HII is good value based on its PE Ratio (17.8x) compared to the US market (18.2x).
Price to Earnings Growth Ratio
PEG Ratio: HII's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: HII is overvalued based on its PB Ratio (6.1x) compared to the US Aerospace & Defense industry average (2.9x).
Next Steps
Future Growth
How is Huntington Ingalls Industries forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?
-0.2%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: HII's earnings are forecast to decline over the next 3 years (-0.2% per year).
Earnings vs Market: HII's earnings are forecast to decline over the next 3 years (-0.2% per year).
High Growth Earnings: HII's earnings are forecast to decline over the next 3 years.
Revenue vs Market: HII's revenue (2.8% per year) is forecast to grow slower than the US market (7.6% per year).
High Growth Revenue: HII's revenue (2.8% 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 (31.8%)
Next Steps
Past Performance
How has Huntington Ingalls Industries performed over the past 5 years?
13.9%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: HII has high quality earnings.
Growing Profit Margin: HII's current net profit margins (6.2%) are lower than last year (10.2%).
Past Earnings Growth Analysis
Earnings Trend: HII's earnings have grown by 13.9% per year over the past 5 years.
Accelerating Growth: HII's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: HII had negative earnings growth (-34.3%) over the past year, making it difficult to compare to the Aerospace & Defense industry average (8.1%).
Return on Equity
High ROE: HII's Return on Equity (34.6%) is considered high.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Huntington Ingalls Industries's financial position?
Financial Position Analysis
Short Term Liabilities: HII's short term assets ($1.8B) do not cover its short term liabilities ($1.9B).
Long Term Liabilities: HII's short term assets ($1.8B) do not cover its long term liabilities ($3.6B).
Debt to Equity History and Analysis
Debt Level: HII's debt to equity ratio (81%) is considered high.
Reducing Debt: HII's debt to equity ratio has reduced from 122.4% to 81% over the past 5 years.
Debt Coverage: HII's debt is well covered by operating cash flow (69.7%).
Interest Coverage: HII's interest payments on its debt are well covered by EBIT (15.7x coverage).
Balance Sheet
Inventory Level: HII has a high level of physical assets or inventory.
Debt Coverage by Assets: HII's debt is covered by short term assets (assets are 1.4x debt).
Next Steps
Dividend
What is Huntington Ingalls Industries's current dividend yield, its reliability and sustainability?
1.75%
Current Dividend Yield
Upcoming Dividend Payment
Purchase Huntington Ingalls Industries before the 'Buy Limit' to receive their next dividend payment.
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: HII's dividend (1.75%) is higher than the bottom 25% of dividend payers in the US market (1.45%).
High Dividend: HII's dividend (1.75%) is low compared to the top 25% of dividend payers in the US market (3.73%).
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 7 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (27.2%), 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 (31.1% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
4.5yrs
Average management tenure
CEO
Mike Petters (59yo)
8.9yrs
Tenure
US$5,551,979
Compensation
Mr. C. Michael Petters, also known as Mike, has been the Chief Executive Officer of Huntington Ingalls Industries, Inc. since March 31, 2011 and has been its President since November 1, 2004. Mr. Petters s ...
CEO Compensation Analysis
Compensation vs Market: Mike's total compensation ($USD5.55M) is below average for companies of similar size in the US market ($USD10.81M).
Compensation vs Earnings: Mike's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 8.9yrs | US$5.55m | 1.74% $166.9m | |
| Executive VP & CFO | 3.9yrs | US$3.19m | 0.11% $10.9m | |
| Executive VP & Chief Legal Officer | 5.1yrs | US$2.15m | 0.037% $3.5m | |
| Executive VP & President of Newport News Shipbuilding | 2.6yrs | US$2.51m | 0.017% $1.6m | |
| Executive VP & President of Ingalls Shipbuilding | 5.8yrs | US$2.76m | 0.14% $13.0m | |
| Vice President of Operations | 2.3yrs | no data | no data | |
| Corporate VP | 4.5yrs | no data | 0.0055% $529.1k | |
| Executive VP & Chief Information Officer | 0.08yrs | no data | 0.011% $1.0m | |
| Vice President of Human Resources and Administration | 0yrs | no data | no data | |
| Corporate Vice President of Investor Relations | 7.1yrs | no data | no data |
4.5yrs
Average Tenure
55yo
Average Age
Experienced Management: HII's management team is considered experienced (4.5 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 8.9yrs | US$5.55m | 1.74% $166.9m | |
| Independent Director | 2.3yrs | US$244.63k | 0.027% $2.6m | |
| Independent Director | 8.9yrs | US$257.13k | 0.0041% $391.5k | |
| Independent Non-Executive Director | 5yrs | US$254.63k | 0.0038% $364.6k | |
| Independent Director | 8.9yrs | US$267.13k | 0.0027% $259.7k | |
| Independent Director | 4.3yrs | US$254.63k | 0.0023% $217.4k | |
| Independent Director | 7.5yrs | US$257.13k | 0.0041% $391.5k | |
| Independent Chairman of the Board | 8.9yrs | US$479.63k | 0.0040% $383.8k | |
| Independent Director | 3.3yrs | US$254.63k | no data | |
| Independent Director | 3.1yrs | US$244.63k | no data |
6.3yrs
Average Tenure
65yo
Average Age
Experienced Board: HII's board of directors are considered experienced (6.3 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold 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 company bio, employee growth, exchange listings and data sources
Key Information
- Name: Huntington Ingalls Industries, Inc.
- Ticker: HII
- Exchange: NYSE
- Founded: 2010
- Industry: Aerospace and Defense
- Sector: Capital Goods
- Market Cap: US$9.620b
- Shares outstanding: 40.76m
- Website: https://www.huntingtoningalls.com
Number of Employees
Location
- Huntington Ingalls Industries, Inc.
- 4101 Washington Avenue
- Newport News
- Virginia
- 23607
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| HII | NYSE (New York Stock Exchange) | Yes | New Common Stock | US | USD | Mar 2011 |
| HI4 | DB (Deutsche Boerse AG) | Yes | New Common Stock | DE | EUR | Mar 2011 |
| 0J76 | LSE (London Stock Exchange) | Yes | New Common Stock | GB | USD | Mar 2011 |
| HI4 | BRSE (Berne Stock Exchange) | Yes | New Common Stock | CH | CHF | Mar 2011 |
| H1II34 | BOVESPA (Bolsa de Valores de Sao Paulo) | BDR EACH 4 REPR 1 COM | BR | BRL | Jan 2020 |
Biography
Huntington Ingalls Industries, Inc. operates as a military shipbuilding company 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 that include deck amphibious ships and transport dock ships; surface combatants; and national security cutters for the U.S. Navy and U.S. Coast Guard. It also provides nuclear-powered ships, such as aircraft carriers and submarines, as well as refueling and overhaul, and inactivation services. In addition, the company offers naval nuclear support services, including fleet services comprising design, construction, maintenance, and disposal activities for in service U.S. Navy nuclear ships; and maintenance services on nuclear reactor prototypes. Further, it provides fleet support services comprising ship technical and waterfront; naval architecture and marine engineering; integrated logistics support; technical documentation development; warehousing, asset management, and material readiness; operational and maintenance training development and delivery; software design and development; IT infrastructure support, and data delivery and management; and cyber security and information assurance services, as well as undersea vehicle and specialized craft development and prototyping services. Additionally, the company offers IT and mission-based solutions; nuclear and environmental services; engineering, procurement, and construction management services to the oil and gas industry; and nuclear management and operations, and environmental management services to the Department of Energy, Department of Defense, local governments, and the private sector. The company was incorporated in 2010 and is headquartered in Newport News, Virginia.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/23 02:10 |
| End of Day Share Price | 2020/02/21 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
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.