HUNTINGTON INGALLS INDUSTRIE (HII) Stock Fundamental Analysis
USA - NYSE:HII - US4464131063 - Common Stock
313.97 USD
+1.3 (+0.42%)
313.97 USD
0 (0%)
Taking everything into account, HII scores 4 out of 10 in our fundamental rating. HII was compared to 72 industry peers in the Aerospace & Defense industry. Both the profitability and the financial health of HII get a neutral evaluation. Nothing too spectacular is happening here. HII is not valued too expensively and it also shows a decent growth rate. Finally HII also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year HII was profitable.
In the past year HII had a positive cash flow from operations.
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 (4.62%) than 65.28% of its industry peers.
HII's Return On Equity of 11.42% is fine compared to the rest of the industry. HII outperforms 76.39% of its industry peers.
HII has a Return On Invested Capital (4.72%) which is in line with its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for HII is below the industry average of 8.50%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.62% | ||
| ROE | 11.42% | ||
| ROIC | 4.72% |
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
With a Profit Margin value of 4.74%, HII perfoms like the industry average, outperforming 56.94% of the companies in the same industry.
In the last couple of years the Profit Margin of HII has declined.
With a Operating Margin value of 4.56%, HII perfoms like the industry average, outperforming 45.83% of the companies in the same industry.
In the last couple of years the Operating Margin of HII has declined.
Looking at the Gross Margin, with a value of 12.52%, HII is doing worse than 76.39% of the companies in the same industry.
In the last couple of years the Gross Margin of HII has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.56% | ||
| PM (TTM) | 4.74% | ||
| GM | 12.52% |
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
HII has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for HII has been reduced compared to 1 year ago.
The number of shares outstanding for HII has been reduced compared to 5 years ago.
The debt/assets ratio for HII is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.78 indicates that HII is not a great score, but indicates only limited risk for bankruptcy at the moment.
HII has a Altman-Z score (2.78) which is comparable to the rest of the industry.
The Debt to FCF ratio of HII is 4.86, which is a neutral value as it means it would take HII, 4.86 years of fcf income to pay off all of its debts.
HII has a better Debt to FCF ratio (4.86) than 70.83% of its industry peers.
HII has a Debt/Equity ratio of 0.54. This is a neutral value indicating HII is somewhat dependend on debt financing.
HII has a Debt to Equity ratio (0.54) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | 4.86 | ||
| Altman-Z | 2.78 |
ROIC/WACC0.5
WACC9.47%
2.3 Liquidity
A Current Ratio of 1.14 indicates that HII should not have too much problems paying its short term obligations.
The Current ratio of HII (1.14) is worse than 80.56% of its industry peers.
HII has a Quick Ratio of 1.06. 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 1.06, HII is doing worse than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.14 | ||
| Quick Ratio | 1.06 |
3. Growth
3.1 Past
HII shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -18.24%.
The Earnings Per Share has been decreasing by -0.09% on average over the past years.
Looking at the last year, HII shows a small growth in Revenue. The Revenue has grown by 2.60% in the last year.
HII shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.33% yearly.
EPS 1Y (TTM)-18.24%
EPS 3Y1.07%
EPS 5Y-0.09%
EPS Q2Q%43.75%
Revenue 1Y (TTM)2.6%
Revenue growth 3Y6.59%
Revenue growth 5Y5.33%
Sales Q2Q%16.11%
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 11.63% on average per year.
HII is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.50% yearly.
EPS Next Y8.35%
EPS Next 2Y11.88%
EPS Next 3Y13.23%
EPS Next 5Y11.63%
Revenue Next Year3.67%
Revenue Next 2Y4.28%
Revenue Next 3Y4.59%
Revenue Next 5Y4.5%
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
HII is valuated rather expensively with a Price/Earnings ratio of 21.68.
86.11% of the companies in the same industry are more expensive than HII, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 25.89. HII is around the same levels.
The Price/Forward Earnings ratio is 17.97, which indicates a rather expensive current valuation of HII.
HII's Price/Forward Earnings ratio is rather cheap when compared to the industry. HII is cheaper than 86.11% of the companies in the same industry.
HII is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 34.59, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.68 | ||
| Fwd PE | 17.97 |
4.2 Price Multiples
77.78% of the companies in the same industry are more expensive than HII, based on the Enterprise Value to EBITDA ratio.
90.28% 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 | 22.2 | ||
| EV/EBITDA | 16.77 |
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 13.23% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.6
PEG (5Y)N/A
EPS Next 2Y11.88%
EPS Next 3Y13.23%
5. Dividend
5.1 Amount
HII has a Yearly Dividend Yield of 1.81%. Purely for dividend investing, there may be better candidates out there.
HII's Dividend Yield is rather good when compared to the industry average which is at 1.12. HII pays more dividend than 95.83% of the companies in the same industry.
HII's Dividend Yield is slightly below the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.81% |
5.2 History
On average, the dividend of HII grows each year by 7.82%, which is quite nice.
HII has paid a dividend for at least 10 years, which is 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
37.08% of the earnings are spent on dividend by HII. This is a low number and sustainable payout ratio.
The dividend of HII is growing, but earnings are growing more, so the dividend growth is sustainable.
DP37.08%
EPS Next 2Y11.88%
EPS Next 3Y13.23%
313.97
+1.3 (+0.42%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners98.27%
Inst Owner Change-0.69%
Ins Owners0.66%
Ins Owner Change-2.47%
Market Cap12.32B
Revenue(TTM)12.01B
Net Income(TTM)569.00M
Analysts70.67
Price Target304.12 (-3.14%)
Short Float %3.98%
Short Ratio3.61
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.81% |
Yearly Dividend5.23
Dividend Growth(5Y)7.82%
DP37.08%
Div Incr Years12
Div Non Decr Years12
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)12.59%
Min EPS beat(2)8.55%
Max EPS beat(2)16.62%
EPS beat(4)3
Avg EPS beat(4)10.84%
Min EPS beat(4)-10.56%
Max EPS beat(4)28.76%
EPS beat(8)6
Avg EPS beat(8)12.17%
EPS beat(12)9
Avg EPS beat(12)9.26%
EPS beat(16)11
Avg EPS beat(16)9.39%
Revenue beat(2)2
Avg Revenue beat(2)5.51%
Min Revenue beat(2)4.23%
Max Revenue beat(2)6.79%
Revenue beat(4)2
Avg Revenue beat(4)1.34%
Min Revenue beat(4)-3.02%
Max Revenue beat(4)6.79%
Revenue beat(8)4
Avg Revenue beat(8)2.07%
Revenue beat(12)8
Avg Revenue beat(12)2.32%
Revenue beat(16)10
Avg Revenue beat(16)1.63%
PT rev (1m)1.66%
PT rev (3m)6.15%
EPS NQ rev (1m)-6.56%
EPS NQ rev (3m)-6.62%
EPS NY rev (1m)-0.17%
EPS NY rev (3m)3.05%
Revenue NQ rev (1m)-3.78%
Revenue NQ rev (3m)-5.39%
Revenue NY rev (1m)0.36%
Revenue NY rev (3m)0.86%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.68 | ||
| Fwd PE | 17.97 | ||
| P/S | 1.03 | ||
| P/FCF | 22.2 | ||
| P/OCF | 13.15 | ||
| P/B | 2.47 | ||
| P/tB | 7.63 | ||
| EV/EBITDA | 16.77 |
EPS(TTM)14.48
EY4.61%
EPS(NY)17.47
Fwd EY5.57%
FCF(TTM)14.14
FCFY4.5%
OCF(TTM)23.88
OCFY7.61%
SpS306.12
BVpS127.01
TBVpS41.13
PEG (NY)2.6
PEG (5Y)N/A
Graham Number203.42
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.62% | ||
| ROE | 11.42% | ||
| ROCE | 5.7% | ||
| ROIC | 4.72% | ||
| ROICexc | 4.87% | ||
| ROICexgc | 7.65% | ||
| OM | 4.56% | ||
| PM (TTM) | 4.74% | ||
| GM | 12.52% | ||
| FCFM | 4.62% |
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%
ROICexgc growth 3Y-7.33%
ROICexgc 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 Turnover0.98
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | 4.86 | ||
| Debt/EBITDA | 3.09 | ||
| Cap/Depr | 117.18% | ||
| Cap/Sales | 3.18% | ||
| Interest Coverage | 4.53 | ||
| Cash Conversion | 107.21% | ||
| Profit Quality | 97.54% | ||
| Current Ratio | 1.14 | ||
| Quick Ratio | 1.06 | ||
| Altman-Z | 2.78 |
F-Score4
WACC9.47%
ROIC/WACC0.5
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)-18.24%
EPS 3Y1.07%
EPS 5Y-0.09%
EPS Q2Q%43.75%
EPS Next Y8.35%
EPS Next 2Y11.88%
EPS Next 3Y13.23%
EPS Next 5Y11.63%
Revenue 1Y (TTM)2.6%
Revenue growth 3Y6.59%
Revenue growth 5Y5.33%
Sales Q2Q%16.11%
Revenue Next Year3.67%
Revenue Next 2Y4.28%
Revenue Next 3Y4.59%
Revenue Next 5Y4.5%
EBIT growth 1Y-20.58%
EBIT growth 3Y1.12%
EBIT growth 5Y-8.14%
EBIT Next Year70.45%
EBIT Next 3Y28%
EBIT Next 5Y18.65%
FCF growth 1Y-25%
FCF growth 3Y-60.72%
FCF growth 5Y-41.08%
OCF growth 1Y-7.14%
OCF growth 3Y-19.73%
OCF growth 5Y-15.2%
HUNTINGTON INGALLS INDUSTRIE / HII FAQ
What is the fundamental rating for HII stock?
ChartMill assigns a fundamental rating of 4 / 10 to HII.
What is the valuation status for HII stock?
ChartMill assigns a valuation rating of 5 / 10 to HUNTINGTON INGALLS INDUSTRIE (HII). This can be considered as Fairly Valued.
What is the profitability of HII stock?
HUNTINGTON INGALLS INDUSTRIE (HII) has a profitability rating of 4 / 10.
What is the expected EPS growth for HUNTINGTON INGALLS INDUSTRIE (HII) stock?
The Earnings per Share (EPS) of HUNTINGTON INGALLS INDUSTRIE (HII) is expected to grow by 8.35% in the next year.
Can you provide the dividend sustainability for HII stock?
The dividend rating of HUNTINGTON INGALLS INDUSTRIE (HII) is 7 / 10 and the dividend payout ratio is 37.08%.