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

Adequate balance sheet 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

3.7%

HII

1.8%

US Aerospace & Defense

3.4%

US Market


1 Year Return

-8.5%

HII

6.2%

US Aerospace & Defense

5.4%

US Market

Return vs Industry: HII underperformed the US Aerospace & Defense industry which returned 6.2% over the past year.

Return vs Market: HII underperformed the US Market which returned 5.4% over the past year.


Shareholder returns

HIIIndustryMarket
7 Day3.7%1.8%3.4%
30 Day-4.3%-1.5%-1.0%
90 Day-7.3%4.8%-0.4%
1 Year-7.0%-8.5%8.3%6.2%7.7%5.4%
3 Year39.5%34.0%61.1%52.3%46.2%36.8%
5 Year137.0%121.5%100.7%81.7%65.6%47.5%

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 compared to its fair value and its price relative to the market?

27.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: HII ($213.19) is trading below our estimate of fair value ($292.17)

Significantly Undervalued: HII is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: HII is good value based on its PE Ratio (13.1x) compared to the Aerospace & Defense industry average (22.4x).

PE vs Market: HII is good value based on its PE Ratio (13.1x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: HII is poor value based on its PEG Ratio (4x)


Price to Book Ratio

PB vs Industry: HII is overvalued based on its PB Ratio (5.4x) compared to the US Aerospace & Defense industry average (2.3x).


Next Steps

Future Growth

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

3.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HII's forecast earnings growth (3.3% per year) is above the savings rate (2.7%).

Earnings vs Market: HII's earnings (3.3% per year) are forecast to grow slower than the US market (14.3% per year).

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

Revenue vs Market: HII's revenue (3.1% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: HII's revenue (3.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: HII's Return on Equity is forecast to be high in 3 years time (39.9%)


Next Steps

Past Performance

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

16.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: HII's earnings have grown by 16.8% per year over the past 5 years.

Accelerating Growth: HII's earnings growth over the past year (13%) is below its 5-year average (16.8% per year).

Earnings vs Industry: HII earnings growth over the past year (13%) exceeded the Aerospace & Defense industry 12.2%.


Return on Equity

High ROE: Whilst HII's Return on Equity (42.2%) is outstanding, this metric is skewed due to their high level of debt.


Return on Assets

ROA vs Industry: HII has a higher Return on Assets than the Aerospace & Defense industry average last year.


Return on Capital Employed

ROCE Improving: HII's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Huntington Ingalls Industries's financial position?


Financial Position Analysis

Short Term Liabilities: HII's short term assets ($2.1B) exceeds its short term liabilities ($1.9B)

Long Term Liabilities: HII's short term assets (2.1B) do not cover its long term liabilities (3.7B)


Debt to Equity History and Analysis

Debt Level: HII's debt to equity ratio (104.3%) is considered high

Reducing Debt: HII's debt to equity ratio has reduced from 112.4% to 104.3% over the past 5 years.

Debt Coverage: HII's debt is well covered by operating cash flow (30.7%).

Interest Coverage: HII's interest payments on its debt are well covered by EBIT (21.5x 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 1.250290x debt).


Next Steps

Dividend

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

1.61%

Current Dividend Yield


Dividend Yield vs Market

company1.6%marketbottom25%1.5%markettop25%3.8%industryaverage1.8%forecastin3Years1.8%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: HII's dividend (1.61%) is higher than the bottom 25% of dividend payers in the US market (1.46%).

High Dividend: HII's dividend (1.61%) is low compared to the top 25% of dividend payers in the US market (3.77%).

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 low payout ratio (20.3%), 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 (23% payout ratio).


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?

4.8yrs

Average management tenure


CEO

Mike Petters (59yo)

8.6yrs

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 ($USD5.55M) is about average for companies of similar size in the US market ($USD6.81M).

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


Management Age and Tenure

4.8yrs

Average Tenure

55yo

Average Age

Experienced Management: HII's management team is considered experienced (4.8 years average tenure).


Board Age and Tenure

5.9yrs

Average Tenure

65yo

Average Age

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


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$275,17003 Jun 19
Jennifer Boykin
EntityIndividual
Role
Senior Key Executive
Executive Vice President
Shares1,345
Max PriceUS$204.59
SellUS$102,23131 May 19
Nicolas Schuck
EntityIndividual
Role
Chief Accounting Officer
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
Senior Key Executive
Executive Vice President
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
Chief Financial Officer
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
Independent Chairman of the Board
Shares700
Max PriceUS$220.57

Ownership Breakdown


Management Team

  • Mike Petters (59yo)

    President

    • Tenure: 8.6yrs
    • Compensation: US$5.55m
  • Kellye Walker (52yo)

    Executive VP & Chief Legal Officer

    • Tenure: 4.8yrs
    • Compensation: US$2.15m
  • Jennifer Boykin (55yo)

    Executive Vice President

    • Tenure: 2.3yrs
    • Compensation: US$2.51m
  • Matt Needy

    Vice President of Operations

    • Tenure: 2yrs
  • Chris Kastner (55yo)

    Executive VP of Business Management & CFO

    • Tenure: 3.6yrs
    • Compensation: US$3.19m
  • Dwayne Blake

    Corporate Vice President of Investor Relations

    • Tenure: 6.8yrs
  • Chad Boudreaux

    Corporate Vice President of Litigation & Chief Compliance Officer

    • Tenure: 6.7yrs
  • Brian Cuccias (62yo)

    Executive VP & President of Ingalls Shipbuilding

    • Tenure: 5.5yrs
    • Compensation: US$2.76m
  • Nicolas Schuck (45yo)

    Corporate VP

    • Tenure: 4.2yrs
  • Susan Jacobs

    Vice President of Human Resources and Administration

    • Tenure: 0yrs

Board Members

  • Philip Bilden (54yo)

    Independent Director

    • Tenure: 1.9yrs
    • Compensation: US$244.63k
  • Stasia Kelly (70yo)

    Independent Director

    • Tenure: 8.6yrs
    • Compensation: US$257.13k
  • John Welch (69yo)

    Independent Non-Executive Director

    • Tenure: 4.7yrs
    • Compensation: US$254.63k
  • Mike Petters (59yo)

    President

    • Tenure: 8.6yrs
    • Compensation: US$5.55m
  • Thomas Schievelbein (65yo)

    Independent Director

    • Tenure: 8.6yrs
    • Compensation: US$267.13k
  • Stephen Wilson (71yo)

    Independent Director

    • Tenure: 4yrs
    • Compensation: US$254.63k
  • Victoria Harker (54yo)

    Independent Director

    • Tenure: 7.2yrs
    • Compensation: US$257.13k
  • Tom Fargo (70yo)

    Independent Chairman of the Board

    • Tenure: 8.6yrs
    • Compensation: US$479.63k
  • Augustus Collins (61yo)

    Independent Director

    • Tenure: 2.9yrs
    • Compensation: US$254.63k
  • Kirkland Donald (65yo)

    Independent Director

    • Tenure: 2.8yrs
    • Compensation: US$244.63k

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$8.812b
  • Shares outstanding: 41.33m
  • Website: https://www.huntingtoningalls.com

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 StockUSUSDMar 2011
HI4DB (Deutsche Boerse AG)YesNew Common StockDEEURMar 2011
0J76LSE (London Stock Exchange)YesNew Common StockGBUSDMar 2011

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 Analysis2019/10/16 00:11
End of Day Share Price2019/10/15 00:00
Earnings2019/06/30
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.