HUNTINGTON INGALLS INDUSTRIE (HII) Stock Fundamental Analysis
NYSE:HII - US4464131063 - Common Stock
270.79 USD
-4.48 (-1.63%)
270 USD
-0.79 (-0.29%)
Taking everything into account, HII scores 4 out of 10 in our fundamental rating. HII was compared to 69 industry peers in the Aerospace & Defense industry. HII has an average financial health and profitability rating. HII is valued correctly, but it does not seem to be growing. Finally HII also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
HII had positive earnings in the past year.
HII had a positive operating cash flow in the past year.
HII had positive earnings in each of the past 5 years.
HII had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
HII has a better Return On Assets (4.34%) than 63.77% of its industry peers.
HII's Return On Equity of 10.75% is fine compared to the rest of the industry. HII outperforms 69.57% of its industry peers.
HII has a Return On Invested Capital (4.15%) which is in line with its industry peers.
HII had an Average Return On Invested Capital over the past 3 years of 5.76%. This is below the industry average of 8.50%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.34% | ||
| ROE | 10.75% | ||
| ROIC | 4.15% |
ROA(3y)5.31%
ROA(5y)5.92%
ROE(3y)15.01%
ROE(5y)20.2%
ROIC(3y)5.76%
ROIC(5y)6.54%
1.3 Margins
HII's Profit Margin of 4.54% is in line compared to the rest of the industry. HII outperforms 52.17% of its industry peers.
HII's Profit Margin has declined in the last couple of years.
HII has a Operating Margin of 4.05%. This is comparable to the rest of the industry: HII outperforms 43.48% of its industry peers.
HII's Operating Margin has declined in the last couple of years.
The Gross Margin of HII (12.38%) is worse than 76.81% of its industry peers.
HII's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.05% | ||
| PM (TTM) | 4.54% | ||
| GM | 12.38% |
OM growth 3Y-5.13%
OM growth 5Y-12.78%
PM growth 3Y-5.84%
PM growth 5Y-5.02%
GM growth 3Y-4.35%
GM growth 5Y-6.08%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so HII is destroying value.
The number of shares outstanding for HII has been reduced compared to 1 year ago.
HII has less shares outstanding than it did 5 years ago.
HII has a worse debt/assets ratio than last year.
2.2 Solvency
HII has an Altman-Z score of 2.60. This is not the best score and indicates that HII is in the grey zone with still only limited risk for bankruptcy at the moment.
HII has a Altman-Z score of 2.60. This is comparable to the rest of the industry: HII outperforms 42.03% of its industry peers.
HII has a debt to FCF ratio of 4.05. This is a neutral value as HII would need 4.05 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.05, HII is in the better half of the industry, outperforming 79.71% of the companies in the same industry.
HII has a Debt/Equity ratio of 0.55. This is a neutral value indicating HII is somewhat dependend on debt financing.
HII has a Debt to Equity ratio (0.55) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 4.05 | ||
| Altman-Z | 2.6 |
ROIC/WACC0.44
WACC9.48%
2.3 Liquidity
HII has a Current Ratio of 1.08. This is a normal value and indicates that HII is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of HII (1.08) is worse than 79.71% of its industry peers.
HII has a Quick Ratio of 1.00. This is a normal value and indicates that HII is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.00, HII is doing worse than 68.12% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.08 | ||
| Quick Ratio | 1 |
3. Growth
3.1 Past
HII shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -29.12%.
The Earnings Per Share has been decreasing by -0.09% on average over the past years.
HII shows a decrease in Revenue. In the last year, the revenue decreased by -1.75%.
Measured over the past years, HII shows a small growth in Revenue. The Revenue has been growing by 5.33% on average per year.
EPS 1Y (TTM)-29.12%
EPS 3Y1.07%
EPS 5Y-0.09%
EPS Q2Q%-11.87%
Revenue 1Y (TTM)-1.75%
Revenue growth 3Y6.59%
Revenue growth 5Y5.33%
Sales Q2Q%3.53%
3.2 Future
Based on estimates for the next years, HII will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.15% on average per year.
Based on estimates for the next years, HII will show a small growth in Revenue. The Revenue will grow by 4.37% on average per year.
EPS Next Y8.12%
EPS Next 2Y11.36%
EPS Next 3Y12.53%
EPS Next 5Y11.15%
Revenue Next Year3.26%
Revenue Next 2Y3.92%
Revenue Next 3Y4.38%
Revenue Next 5Y4.37%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 20.27, HII is valued on the expensive side.
Based on the Price/Earnings ratio, HII is valued cheaply inside the industry as 89.86% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.08. HII is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 15.64 indicates a correct valuation of HII.
Based on the Price/Forward Earnings ratio, HII is valued cheaper than 92.75% of the companies in the same industry.
HII is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.72, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.27 | ||
| Fwd PE | 15.64 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HII is valued a bit cheaper than the industry average as 78.26% of the companies are valued more expensively.
97.10% of the companies in the same industry are more expensive than HII, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.93 | ||
| EV/EBITDA | 16.29 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
HII's earnings are expected to grow with 12.53% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.5
PEG (5Y)N/A
EPS Next 2Y11.36%
EPS Next 3Y12.53%
5. Dividend
5.1 Amount
HII has a Yearly Dividend Yield of 1.96%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.65, HII pays a better dividend. On top of this HII pays more dividend than 94.20% of the companies listed in the same industry.
HII's Dividend Yield is comparable with the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.96% |
5.2 History
On average, the dividend of HII grows each year by 7.82%, which is quite nice.
HII has been paying a dividend for at least 10 years, so it has a reliable track record.
HII has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)7.82%
Div Incr Years12
Div Non Decr Years12
5.3 Sustainability
HII pays out 40.00% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of HII is growing, but earnings are growing more, so the dividend growth is sustainable.
DP40%
EPS Next 2Y11.36%
EPS Next 3Y12.53%
270.79
-4.48 (-1.63%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners96.81%
Inst Owner Change-83.65%
Ins Owners0.76%
Ins Owner Change-2.94%
Market Cap10.63B
Analysts71.76
Price Target297.86 (10%)
Short Float %3.59%
Short Ratio2.89
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.96% |
Yearly Dividend5.23
Dividend Growth(5Y)7.82%
DP40%
Div Incr Years12
Div Non Decr Years12
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)22.69%
Min EPS beat(2)16.62%
Max EPS beat(2)28.76%
EPS beat(4)2
Avg EPS beat(4)0.13%
Min EPS beat(4)-34.31%
Max EPS beat(4)28.76%
EPS beat(8)6
Avg EPS beat(8)12.03%
EPS beat(12)8
Avg EPS beat(12)8.51%
EPS beat(16)11
Avg EPS beat(16)10.16%
Revenue beat(2)1
Avg Revenue beat(2)0.61%
Min Revenue beat(2)-3.02%
Max Revenue beat(2)4.23%
Revenue beat(4)1
Avg Revenue beat(4)-1.61%
Min Revenue beat(4)-5.04%
Max Revenue beat(4)4.23%
Revenue beat(8)4
Avg Revenue beat(8)1.57%
Revenue beat(12)7
Avg Revenue beat(12)1.48%
Revenue beat(16)9
Avg Revenue beat(16)1.02%
PT rev (1m)13.37%
PT rev (3m)21.78%
EPS NQ rev (1m)-3.24%
EPS NQ rev (3m)-3.41%
EPS NY rev (1m)2.84%
EPS NY rev (3m)2.59%
Revenue NQ rev (1m)-0.27%
Revenue NQ rev (3m)1.11%
Revenue NY rev (1m)0.46%
Revenue NY rev (3m)0.62%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.27 | ||
| Fwd PE | 15.64 | ||
| P/S | 0.92 | ||
| P/FCF | 15.93 | ||
| P/OCF | 10.3 | ||
| P/B | 2.18 | ||
| P/tB | 7.16 | ||
| EV/EBITDA | 16.29 |
EPS(TTM)13.36
EY4.93%
EPS(NY)17.31
Fwd EY6.39%
FCF(TTM)17
FCFY6.28%
OCF(TTM)26.3
OCFY9.71%
SpS294.83
BVpS124.41
TBVpS37.84
PEG (NY)2.5
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.34% | ||
| ROE | 10.75% | ||
| ROCE | 5.02% | ||
| ROIC | 4.15% | ||
| ROICexc | 4.31% | ||
| ROICexgc | 6.92% | ||
| OM | 4.05% | ||
| PM (TTM) | 4.54% | ||
| GM | 12.38% | ||
| FCFM | 5.77% |
ROA(3y)5.31%
ROA(5y)5.92%
ROE(3y)15.01%
ROE(5y)20.2%
ROIC(3y)5.76%
ROIC(5y)6.54%
ROICexc(3y)6.16%
ROICexc(5y)7.06%
ROICexgc(3y)11.25%
ROICexgc(5y)12.66%
ROCE(3y)6.97%
ROCE(5y)7.91%
ROICexcg growth 3Y-7.33%
ROICexcg growth 5Y-15.7%
ROICexc growth 3Y-2%
ROICexc growth 5Y-16.81%
OM growth 3Y-5.13%
OM growth 5Y-12.78%
PM growth 3Y-5.84%
PM growth 5Y-5.02%
GM growth 3Y-4.35%
GM growth 5Y-6.08%
F-Score4
Asset Turnover0.96
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 4.05 | ||
| Debt/EBITDA | 3.39 | ||
| Cap/Depr | 111.28% | ||
| Cap/Sales | 3.15% | ||
| Interest Coverage | 5.1 | ||
| Cash Conversion | 129.49% | ||
| Profit Quality | 127.05% | ||
| Current Ratio | 1.08 | ||
| Quick Ratio | 1 | ||
| Altman-Z | 2.6 |
F-Score4
WACC9.48%
ROIC/WACC0.44
Cap/Depr(3y)92.02%
Cap/Depr(5y)106.39%
Cap/Sales(3y)2.8%
Cap/Sales(5y)3.13%
Profit Quality(3y)62.51%
Profit Quality(5y)74.54%
High Growth Momentum
Growth
EPS 1Y (TTM)-29.12%
EPS 3Y1.07%
EPS 5Y-0.09%
EPS Q2Q%-11.87%
EPS Next Y8.12%
EPS Next 2Y11.36%
EPS Next 3Y12.53%
EPS Next 5Y11.15%
Revenue 1Y (TTM)-1.75%
Revenue growth 3Y6.59%
Revenue growth 5Y5.33%
Sales Q2Q%3.53%
Revenue Next Year3.26%
Revenue Next 2Y3.92%
Revenue Next 3Y4.38%
Revenue Next 5Y4.37%
EBIT growth 1Y-40.1%
EBIT growth 3Y1.12%
EBIT growth 5Y-8.14%
EBIT Next Year68.93%
EBIT Next 3Y27.03%
EBIT Next 5Y18.07%
FCF growth 1Y84.25%
FCF growth 3Y-60.72%
FCF growth 5Y-41.08%
OCF growth 1Y57.56%
OCF growth 3Y-19.73%
OCF growth 5Y-15.2%