(HII) Huntington Ingalls - Overview
Sector: Industrials | Industry: Aerospace & Defense | Exchange: NYSE (USA) | Market Cap: 12.634m USD | Total Return: 43.4% in 12m
Avg Turnover: 177M
EPS Trend: -5.7%
Qual. Beats: 0
Rev. Trend: 85.9%
Qual. Beats: 0
Warnings
Below Avwap Earnings
Tailwinds
No distinct edge detected
Huntington Ingalls Industries (HII) is the largest military shipbuilder in the United States, specializing in the design, construction, and lifecycle support of non-nuclear and nuclear-powered vessels. Operating through its Ingalls, Newport News, and Mission Technologies segments, the company serves as the sole builder of U.S. Navy aircraft carriers and one of only two companies capable of constructing nuclear-powered submarines.
The business model is characterized by high barriers to entry and long-term government contracts, which provide significant revenue visibility. Beyond traditional shipbuilding, HII has expanded into Mission Technologies, focusing on high-growth defense areas such as artificial intelligence, electronic warfare, and uncrewed autonomous systems. This diversification aligns with the Department of Defense’s shift toward integrated digital and autonomous naval capabilities.
Investors can further evaluate these defense contract trends and valuation metrics on ValueRay.
- U.S. Navy shipbuilding budget allocations drive long term backlog and revenue growth
- Labor shortages and rising material costs pressure fixed price contract margins
- Multi-year aircraft carrier refueling and overhaul schedules dictate steady cash flow
- Expansion of Mission Technologies segment diversifies revenue into high margin defense tech
- Geopolitical tensions increase demand for nuclear powered submarines and surface combatants
| Net Income: 605.0m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.08 > 0.02 and ΔFCF/TA 7.68 > 1.0 |
| NWC/Revenue: 4.01% < 20% (prev 1.62%; Δ 2.39% < -1%) |
| CFO/TA 0.10 > 3% & CFO 1.20b > Net Income 605.0m |
| Net Debt (2.94b) to EBITDA (1.20b): 2.45 < 3 |
| Current Ratio: 1.19 > 1.5 & < 3 |
| Outstanding Shares: last quarter (39.3m) vs 12m ago 0.0% < -2% |
| Gross Margin: 12.44% > 18% (prev 0.13%; Δ 1.23k% > 0.5%) |
| Asset Turnover: 104.3% > 50% (prev 94.72%; Δ 9.59% > 0%) |
| Interest Coverage Ratio: 8.86 > 6 (EBITDA TTM 1.20b / Interest Expense TTM 99.0m) |
| A: 0.04 (Total Current Assets 3.22b - Total Current Liabilities 2.70b) / Total Assets 12.5b |
| B: 0.44 (Retained Earnings 5.58b / Total Assets 12.5b) |
| C: 0.07 (EBIT TTM 877.0m / Avg Total Assets 12.3b) |
| D: 0.75 (Book Value of Equity 5.53b / Total Liabilities 7.39b) |
| Altman-Z'' = 2.98 = A |
| DSRI: 0.14 (Receivables 406.0m/2.56b, Revenue 12.8b/11.5b) |
| GMI: 1.03 (GM 12.44% / 12.81%) |
| AQI: 1.02 (AQ_t 0.44 / AQ_t-1 0.44) |
| SGI: 1.12 (Revenue 12.8b / 11.5b) |
| TATA: -0.05 (NI 605.0m - CFO 1.20b) / TA 12.5b) |
| Beneish M = -3.66 (Cap -4..+1) = AAA |
As of May 26, 2026, the stock is trading at USD 320.63 with a total of 286,500 shares traded.
Over the past week, the price has changed by -1.70%,
over one month by -10.54%,
over three months by -26.16% and
over the past year by +43.35%.
Huntington Ingalls has received a consensus analysts rating of 3.38. Therefore, it is recommended to hold HII.
- StrongBuy: 2
- Buy: 2
- Hold: 8
- Sell: 1
- StrongSell: 0
| Analysts Target Price | 388.3 | 21.1% |
P/E Trailing = 20.8337
P/E Forward = 17.6991
P/S = 0.9833
P/B = 2.4547
P/EG = 1.1717
Revenue TTM = 12.8b USD
EBIT TTM = 877.0m USD
EBITDA TTM = 1.20b USD
Long Term Debt = 2.70b USD (from longTermDebt, last quarter)
Short Term Debt = unknown (none)
Debt = 3.16b USD (from shortLongTermDebtTotal, last quarter) + Leases 230.0m
Net Debt = 2.94b USD (calculated: Debt 3.16b - CCE 216.0m)
Enterprise Value = 15.6b USD (12.6b + Debt 3.16b - CCE 216.0m)
Interest Coverage Ratio = 8.86 (Ebit TTM 877.0m / Interest Expense TTM 99.0m)
EV/FCF = 14.70x (Enterprise Value 15.6b / FCF TTM 1.06b)
FCF Yield = 6.80% (FCF TTM 1.06b / Enterprise Value 15.6b)
FCF Margin = 8.25% (FCF TTM 1.06b / Revenue TTM 12.8b)
Net Margin = 4.71% (Net Income TTM 605.0m / Revenue TTM 12.8b)
Gross Margin = 12.44% ((Revenue TTM 12.8b - Cost of Revenue TTM 11.2b) / Revenue TTM)
Gross Margin QoQ = 13.17% (prev 11.57%)
Tobins Q-Ratio = 1.24 (Enterprise Value 15.6b / Total Assets 12.5b)
Interest Expense / Debt = 3.13% (Interest Expense 99.0m / Debt 3.16b)
Taxrate = 20.74% (39.0m / 188.0m)
NOPAT = 695.1m (EBIT 877.0m * (1 - 20.74%))
Current Ratio = 1.19 (Total Current Assets 3.22b / Total Current Liabilities 2.70b)
Debt / Equity = 0.61 (Debt 3.16b / totalStockholderEquity, last quarter 5.15b)
Debt / EBITDA = 2.45 (Net Debt 2.94b / EBITDA 1.20b)
Debt / FCF = 2.78 (Net Debt 2.94b / FCF TTM 1.06b)
Total Stockholder Equity = 5.02b (last 4 quarters mean from totalStockholderEquity)
RoA = 4.91% (Net Income 605.0m / Total Assets 12.5b)
RoE = 12.05% (Net Income TTM 605.0m / Total Stockholder Equity 5.02b)
RoCE = 11.36% (EBIT 877.0m / Capital Employed (Equity 5.02b + L.T.Debt 2.70b))
RoIC = 7.23% (NOPAT 695.1m / Invested Capital 9.62b)
WACC = 6.14% (E(12.6b)/V(15.8b) * Re(7.05%) + D(3.16b)/V(15.8b) * Rd(3.13%) * (1-Tc(0.21)))
Discount Rate = 7.05% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -53.20 | Cagr: -0.45%
[DCF] Terminal Value 77.97% ; FCFF base≈673.6m ; Y1≈772.2m ; Y5≈1.14b
[DCF] Fair Price = 359.3 (EV 17.1b - Net Debt 2.94b = Equity 14.2b / Shares 39.4m; r=8.35% [WACC [floored]]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: -5.66 | EPS CAGR: -0.81% | SUE: 0.12 | # QB: 0
Revenue Correlation: 85.86 | Revenue CAGR: 4.44% | SUE: 0.48 | # QB: 0
EPS current Quarter (2026-06-30): EPS=3.87 | Chg30d=-10.08% | Revisions=-64% | Analysts=10
EPS next Quarter (2026-09-30): EPS=4.66 | Chg30d=+4.36% | Revisions=+45% | Analysts=10
EPS current Year (2026-12-31): EPS=17.46 | Chg30d=+0.34% | Revisions=+9% | GrowthEPS=+13.4% | GrowthRev=+4.1%
EPS next Year (2027-12-31): EPS=20.41 | Chg30d=+0.31% | Revisions=-9% | GrowthEPS=+16.9% | GrowthRev=+6.2%
[Analyst] Revisions Ratio: -64%