Huntington Ingalls Industries, Inc.
Huntington Ingalls Industries, Inc. Fundamental Analysis
Huntington Ingalls Industries, Inc. (HII) shows moderate financial fundamentals with a PE ratio of 28.56, profit margin of 4.85%, and ROE of 12.28%. The company generates $12.5B in annual revenue with moderate year-over-year growth of 8.23%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 58.6/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze HII's fundamental strength across five key dimensions:
Efficiency Score
WeakHII struggles to generate sufficient returns from assets.
Valuation Score
WeakHII trades at a premium to fair value.
Growth Score
ExcellentHII delivers strong and consistent growth momentum.
Financial Health Score
ExcellentHII maintains a strong and stable balance sheet.
Profitability Score
WeakHII struggles to sustain strong margins.
Key Financial Metrics
Is HII Expensive or Cheap?
P/E Ratio
HII trades at 28.56 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, HII's PEG of 4.60 indicates potential overvaluation.
Price to Book
The market values Huntington Ingalls Industries, Inc. at 3.41 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 12.29 times EBITDA. This signals the market has high growth expectations.
How Well Does HII Make Money?
Net Profit Margin
For every $100 in sales, Huntington Ingalls Industries, Inc. keeps $4.85 as profit after all expenses.
Operating Margin
Core operations generate 5.07 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $12.28 in profit for every $100 of shareholder equity.
ROA
Huntington Ingalls Industries, Inc. generates $4.75 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Huntington Ingalls Industries, Inc. generates limited operating cash flow of $1.19B, signaling weaker underlying cash strength.
Free Cash Flow
Huntington Ingalls Industries, Inc. produces free cash flow of $1.06B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $27.02 in free cash annually.
FCF Yield
HII converts 6.15% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
28.56
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
4.60
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.41
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.38
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.62
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.13
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.12
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.07
vs 25 benchmark
How HII Stacks Against Its Sector Peers
| Metric | HII Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 28.56 | 26.49 | Neutral |
| ROE | 12.28% | 1307.00% | Weak |
| Net Margin | 4.85% | -5131.00% (disorted) | Weak |
| Debt/Equity | 0.62 | 0.81 | Strong (Low Leverage) |
| Current Ratio | 1.13 | 10.48 | Neutral |
| ROA | 4.75% | -1549793.00% (disorted) | Weak |
HII outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Huntington Ingalls Industries, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
37.77%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
-10.20%
Industry Style: Cyclical, Value, Infrastructure
DecliningFCF CAGR
13.04%
Industry Style: Cyclical, Value, Infrastructure
High Growth