HUNTINGTON INGALLS INDUSTRIE (HII) Stock Fundamental Analysis
NYSE:HII - New York Stock Exchange, Inc. - US4464131063 - Common Stock - Currency: USD
HII gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 64 industry peers in the Aerospace & Defense industry. HII has a medium profitability rating, but doesn't score so well on its financial health evaluation. HII is valued correctly, but it does not seem to be growing. 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.
In the past 5 years HII has always been profitable.
Each year in the past 5 years HII had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.51%, HII is in the better half of the industry, outperforming 60.94% of the companies in the same industry.
With a decent Return On Equity value of 11.44%, HII is doing good in the industry, outperforming 73.44% of the companies in the same industry.
HII has a Return On Invested Capital of 4.40%. This is comparable to the rest of the industry: HII outperforms 45.31% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for HII is below the industry average of 7.94%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.51% | ||
| ROE | 11.44% | ||
| ROIC | 4.4% |
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
Looking at the Profit Margin, with a value of 4.76%, HII is in line with its industry, outperforming 53.13% of the companies in the same industry.
In the last couple of years the Profit Margin of HII has declined.
HII has a Operating Margin (4.29%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of HII has declined.
HII's Gross Margin of 12.81% is on the low side compared to the rest of the industry. HII is outperformed by 79.69% of its industry peers.
In the last couple of years the Gross Margin of HII has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.29% | ||
| PM (TTM) | 4.76% | ||
| GM | 12.81% |
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%
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.
HII has less shares outstanding than it did 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 2.43. 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.
With a Altman-Z score value of 2.43, HII is not doing good in the industry: 64.06% of the companies in the same industry are doing better.
A Debt/Equity ratio of 0.57 indicates that HII is somewhat dependend on debt financing.
HII has a Debt to Equity ratio (0.57) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.43 |
ROIC/WACC0.46
WACC9.57%
2.3 Liquidity
HII has a Current Ratio of 1.07. This is a normal value and indicates that HII is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.07, HII is not doing good in the industry: 84.38% of the companies in the same industry are doing better.
A Quick Ratio of 0.99 indicates that HII may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.99, HII is doing worse than 70.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.07 | ||
| Quick Ratio | 0.99 |
3. Growth
3.1 Past
The earnings per share for HII have decreased strongly by -21.76% in the last year.
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 -1.04%.
The Revenue has been growing slightly by 5.33% on average over the past years.
EPS 1Y (TTM)-21.76%
EPS 3Y1.07%
EPS 5Y-0.09%
EPS Q2Q%-2.07%
Revenue 1Y (TTM)-1.04%
Revenue growth 3Y6.59%
Revenue growth 5Y5.33%
Sales Q2Q%-2.53%
3.2 Future
HII is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.92% yearly.
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 Y5.4%
EPS Next 2Y11.42%
EPS Next 3Y12.69%
EPS Next 5Y11.92%
Revenue Next Year2.63%
Revenue Next 2Y3.54%
Revenue Next 3Y4.32%
Revenue Next 5Y4.37%
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.
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 correctly with a Price/Earnings ratio of 16.43.
90.63% of the companies in the same industry are more expensive than HII, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.60, HII is valued a bit cheaper.
HII is valuated correctly with a Price/Forward Earnings ratio of 13.16.
Based on the Price/Forward Earnings ratio, HII is valued cheaply inside the industry as 96.88% of the companies are valued more expensively.
HII is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.43, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.43 | ||
| Fwd PE | 13.16 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HII is valued a bit cheaper than the industry average as 78.13% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 14.67 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
A more expensive valuation may be justified as HII's earnings are expected to grow with 12.69% in the coming years.
PEG (NY)3.04
PEG (5Y)N/A
EPS Next 2Y11.42%
EPS Next 3Y12.69%
5. Dividend
5.1 Amount
HII has a Yearly Dividend Yield of 2.37%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.34, HII pays a better dividend. On top of this HII pays more dividend than 95.31% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, HII has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.37% |
5.2 History
The dividend of HII is nicely growing with an annual growth rate of 7.82%!
HII has been paying a dividend for at least 10 years, so it has a reliable track record.
HII has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)7.82%
Div Incr Years12
Div Non Decr Years12
5.3 Sustainability
HII pays out 38.10% of its income as dividend. This is a sustainable payout ratio.
The dividend of HII is growing, but earnings are growing more, so the dividend growth is sustainable.
DP38.1%
EPS Next 2Y11.42%
EPS Next 3Y12.69%
228.02
-1.33 (-0.58%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners95.25%
Inst Owner Change3.87%
Ins Owners0.61%
Ins Owner Change4.58%
Market Cap8.95B
Analysts70.59
Price Target244.59 (7.27%)
Short Float %3.82%
Short Ratio1.92
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.37% |
Yearly Dividend5.23
Dividend Growth(5Y)7.82%
DP38.1%
Div Incr Years12
Div Non Decr Years12
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)9.1%
Min EPS beat(2)-10.56%
Max EPS beat(2)28.76%
EPS beat(4)2
Avg EPS beat(4)0.96%
Min EPS beat(4)-34.31%
Max EPS beat(4)28.76%
EPS beat(8)6
Avg EPS beat(8)10.41%
EPS beat(12)8
Avg EPS beat(12)9.74%
EPS beat(16)11
Avg EPS beat(16)10.78%
Revenue beat(2)0
Avg Revenue beat(2)-2.82%
Min Revenue beat(2)-3.02%
Max Revenue beat(2)-2.63%
Revenue beat(4)1
Avg Revenue beat(4)-1.77%
Min Revenue beat(4)-5.04%
Max Revenue beat(4)3.62%
Revenue beat(8)4
Avg Revenue beat(8)1.44%
Revenue beat(12)7
Avg Revenue beat(12)1.19%
Revenue beat(16)9
Avg Revenue beat(16)0.86%
PT rev (1m)15.67%
PT rev (3m)9.17%
EPS NQ rev (1m)-4.48%
EPS NQ rev (3m)-5.92%
EPS NY rev (1m)4.21%
EPS NY rev (3m)1.77%
Revenue NQ rev (1m)-2.55%
Revenue NQ rev (3m)-2.42%
Revenue NY rev (1m)-0.38%
Revenue NY rev (3m)-1.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.43 | ||
| Fwd PE | 13.16 | ||
| P/S | 0.78 | ||
| P/FCF | N/A | ||
| P/OCF | 44.74 | ||
| P/B | 1.87 | ||
| P/tB | 6.55 | ||
| EV/EBITDA | 14.67 |
EPS(TTM)13.88
EY6.09%
EPS(NY)17.33
Fwd EY7.6%
FCF(TTM)-4.05
FCFYN/A
OCF(TTM)5.1
OCFY2.24%
SpS292.15
BVpS121.64
TBVpS34.79
PEG (NY)3.04
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.51% | ||
| ROE | 11.44% | ||
| ROCE | 5.32% | ||
| ROIC | 4.4% | ||
| ROICexc | 4.48% | ||
| ROICexgc | 7.17% | ||
| OM | 4.29% | ||
| PM (TTM) | 4.76% | ||
| GM | 12.81% | ||
| FCFM | N/A |
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 Turnover0.95
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3.3 | ||
| Cap/Depr | 110.46% | ||
| Cap/Sales | 3.13% | ||
| Interest Coverage | 4.97 | ||
| Cash Conversion | 24.48% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.07 | ||
| Quick Ratio | 0.99 | ||
| Altman-Z | 2.43 |
F-Score4
WACC9.57%
ROIC/WACC0.46
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)-21.76%
EPS 3Y1.07%
EPS 5Y-0.09%
EPS Q2Q%-2.07%
EPS Next Y5.4%
EPS Next 2Y11.42%
EPS Next 3Y12.69%
EPS Next 5Y11.92%
Revenue 1Y (TTM)-1.04%
Revenue growth 3Y6.59%
Revenue growth 5Y5.33%
Sales Q2Q%-2.53%
Revenue Next Year2.63%
Revenue Next 2Y3.54%
Revenue Next 3Y4.32%
Revenue Next 5Y4.37%
EBIT growth 1Y-35.01%
EBIT growth 3Y1.12%
EBIT growth 5Y-8.14%
EBIT Next Year64.4%
EBIT Next 3Y26.19%
EBIT Next 5Y17.42%
FCF growth 1Y-128.6%
FCF growth 3Y-60.72%
FCF growth 5Y-41.08%
OCF growth 1Y-76.19%
OCF growth 3Y-19.73%
OCF growth 5Y-15.2%