HUNTINGTON INGALLS INDUSTRIE (HII) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:HII • US4464131063
420.51 USD
-7.32 (-1.71%)
At close: Jan 30, 2026
417 USD
-3.51 (-0.83%)
After Hours: 1/30/2026, 8:04:00 PM
We assign a fundamental rating of 5 out of 10 to HII. HII was compared to 73 industry peers in the Aerospace & Defense industry. HII has only an average score on both its financial health and profitability. HII has a correct valuation and a medium growth rate. HII also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- In the past year HII was profitable.
- HII had a positive operating cash flow in the past year.
- HII had positive earnings in each of the past 5 years.
- In the past 5 years HII always reported a positive cash flow from operatings.
1.2 Ratios
- HII's Return On Assets of 4.62% is fine compared to the rest of the industry. HII outperforms 67.12% of its industry peers.
- With a decent Return On Equity value of 11.42%, HII is doing good in the industry, outperforming 72.60% of the companies in the same industry.
- HII has a Return On Invested Capital of 4.72%. This is comparable to the rest of the industry: HII outperforms 47.95% of 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 8.55%.
| 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
- The Profit Margin of HII (4.74%) is comparable to the rest of the industry.
- In the last couple of years the Profit Margin of HII has declined.
- Looking at the Operating Margin, with a value of 4.56%, HII is in line with its industry, outperforming 47.95% of the companies in the same industry.
- HII's Operating Margin has declined in the last couple of years.
- HII's Gross Margin of 12.52% is on the low side compared to the rest of the industry. HII is outperformed by 73.97% of its industry peers.
- 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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so HII is destroying value.
- Compared to 1 year ago, HII has less shares outstanding
- HII has less shares outstanding than it did 5 years ago.
- The debt/assets ratio for HII is higher compared to a year ago.
2.2 Solvency
- HII has an Altman-Z score of 3.15. This indicates that HII is financially healthy and has little risk of bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 3.15, HII is in line with its industry, outperforming 41.10% of the companies in the same 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.
- With a decent Debt to FCF ratio value of 4.86, HII is doing good in the industry, outperforming 71.23% of the companies in the same industry.
- 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 | 3.15 |
ROIC/WACC0.48
WACC9.79%
2.3 Liquidity
- HII has a Current Ratio of 1.14. 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 (1.14) is worse than 82.19% 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.
- The Quick ratio of HII (1.06) is worse than 69.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.14 | ||
| Quick Ratio | 1.06 |
3. Growth
3.1 Past
- The earnings per share for HII have decreased strongly by -18.24% in the last year.
- Measured over the past years, HII shows a decrease in Earnings Per Share. The EPS has been decreasing by -0.09% on average per year.
- HII shows a small growth in Revenue. In the last year, the Revenue has grown by 2.60%.
- The Revenue has been growing slightly by 5.33% on average over the past years.
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 12.34% on average per year.
- Based on estimates for the next years, HII will show a small growth in Revenue. The Revenue will grow by 4.78% on average per year.
EPS Next Y9.22%
EPS Next 2Y12.99%
EPS Next 3Y14.6%
EPS Next 5Y12.34%
Revenue Next Year4.19%
Revenue Next 2Y4.77%
Revenue Next 3Y5.12%
Revenue Next 5Y4.78%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
- The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 29.04, which means the current valuation is very expensive for HII.
- HII's Price/Earnings ratio is rather cheap when compared to the industry. HII is cheaper than 83.56% of the companies in the same industry.
- HII is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.30, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 23.59, HII is valued on the expensive side.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of HII indicates a rather cheap valuation: HII is cheaper than 89.04% of the companies listed in the same industry.
- HII is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 25.57, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.04 | ||
| Fwd PE | 23.59 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, HII is valued a bit cheaper than the industry average as 72.60% of the companies are valued more expensively.
- 90.41% 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 | 29.73 | ||
| EV/EBITDA | 21.94 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates HII does not grow enough to justify the current Price/Earnings ratio.
- A more expensive valuation may be justified as HII's earnings are expected to grow with 14.60% in the coming years.
PEG (NY)3.15
PEG (5Y)N/A
EPS Next 2Y12.99%
EPS Next 3Y14.6%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.29%, HII has a reasonable but not impressive dividend return.
- HII's Dividend Yield is rather good when compared to the industry average which is at 0.34. HII pays more dividend than 90.41% of the companies in the same industry.
- HII's Dividend Yield is slightly below the S&P500 average, which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.29% |
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.
- HII's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP37.08%
EPS Next 2Y12.99%
EPS Next 3Y14.6%
HUNTINGTON INGALLS INDUSTRIE / HII FAQ
What is the fundamental rating for HII stock?
ChartMill assigns a fundamental rating of 5 / 10 to HII.
Can you provide the valuation status for HUNTINGTON INGALLS INDUSTRIE?
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.
Can you provide the financial health for HII stock?
The financial health rating of HUNTINGTON INGALLS INDUSTRIE (HII) is 5 / 10.
Is the dividend of HUNTINGTON INGALLS INDUSTRIE sustainable?
The dividend rating of HUNTINGTON INGALLS INDUSTRIE (HII) is 7 / 10 and the dividend payout ratio is 37.08%.