HUNTINGTON INGALLS INDUSTRIE (HII) Stock Fundamental Analysis
NYSE:HII - New York Stock Exchange, Inc. - US4464131063 - Common Stock - Currency: USD
Overall HII gets a fundamental rating of 4 out of 10. We evaluated HII against 67 industry peers in the Aerospace & Defense industry. HII has only an average score on both its financial health and profitability. HII has a valuation in line with the averages, but it does not seem to be growing. 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.
Each year in the past 5 years HII had a positive operating cash flow.
1.2 Ratios
HII has a Return On Assets of 4.34%. This is in the better half of the industry: HII outperforms 64.18% of its industry peers.
HII has a better Return On Equity (10.75%) than 68.66% of its industry peers.
HII has a Return On Invested Capital (4.15%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for HII is below the industry average of 8.58%.
| 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
With a Profit Margin value of 4.54%, HII perfoms like the industry average, outperforming 52.24% of the companies in the same industry.
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 44.78% of its industry peers.
In the last couple of years the Operating Margin of HII has declined.
With a Gross Margin value of 12.38%, HII is not doing good in the industry: 77.61% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of HII has declined.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), HII is destroying value.
HII has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, HII has less shares outstanding
HII has a worse debt/assets ratio than last year.
2.2 Solvency
HII has an Altman-Z score of 2.58. 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 (2.58) which is comparable to the rest of the industry.
The Debt to FCF ratio of HII is 4.05, which is a neutral value as it means it would take HII, 4.05 years of fcf income to pay off all of its debts.
HII has a better Debt to FCF ratio (4.05) than 79.10% of its industry peers.
A Debt/Equity ratio of 0.55 indicates that HII is somewhat dependend on debt financing.
HII's Debt to Equity ratio of 0.55 is in line compared to the rest of the industry. HII outperforms 52.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 4.05 | ||
| Altman-Z | 2.58 |
ROIC/WACC0.42
WACC9.77%
2.3 Liquidity
A Current Ratio of 1.08 indicates that HII should not have too much problems paying its short term obligations.
HII has a Current ratio of 1.08. This is in the lower half of the industry: HII underperforms 79.10% of its industry peers.
A Quick Ratio of 1.00 indicates that HII should not have too much problems paying its short term obligations.
HII's Quick ratio of 1.00 is on the low side compared to the rest of the industry. HII is outperformed by 67.16% of its industry peers.
| 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%.
HII shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -0.09% yearly.
Looking at the last year, HII shows a decrease in Revenue. The Revenue has decreased by -1.75% in the last year.
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
HII is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.29% yearly.
Based on estimates for the next years, HII will show a small growth in Revenue. The Revenue will grow by 4.35% on average per year.
EPS Next Y5.14%
EPS Next 2Y10.29%
EPS Next 3Y12.05%
EPS Next 5Y11.29%
Revenue Next Year2.79%
Revenue Next 2Y3.63%
Revenue Next 3Y4.27%
Revenue Next 5Y4.35%
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
A Price/Earnings ratio of 19.81 indicates a rather expensive valuation of HII.
HII's Price/Earnings ratio is rather cheap when compared to the industry. HII is cheaper than 89.55% of the companies in the same industry.
HII's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.48.
With a Price/Forward Earnings ratio of 15.59, HII is valued correctly.
Based on the Price/Forward Earnings ratio, HII is valued cheaper than 94.03% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 34.04. HII is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.81 | ||
| Fwd PE | 15.59 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HII indicates a somewhat cheap valuation: HII is cheaper than 79.10% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, HII is valued cheaply inside the industry as 98.51% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.57 | ||
| EV/EBITDA | 15.99 |
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 12.05% in the coming years.
PEG (NY)3.86
PEG (5Y)N/A
EPS Next 2Y10.29%
EPS Next 3Y12.05%
5. Dividend
5.1 Amount
HII has a Yearly Dividend Yield of 2.03%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.19, HII pays a better dividend. On top of this HII pays more dividend than 95.52% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.39, HII has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.03% |
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
40.00% of the earnings are spent on dividend by HII. This is a bit on the high side, but may be sustainable.
HII's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP40%
EPS Next 2Y10.29%
EPS Next 3Y12.05%
264.69
-1.76 (-0.66%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners96.81%
Inst Owner Change-1.84%
Ins Owners0.76%
Ins Owner Change4.36%
Market Cap10.39B
Analysts71.76
Price Target286.51 (8.24%)
Short Float %3.88%
Short Ratio3.24
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.03% |
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)15.75%
PT rev (3m)17.14%
EPS NQ rev (1m)-1.65%
EPS NQ rev (3m)-2.2%
EPS NY rev (1m)0%
EPS NY rev (3m)3.96%
Revenue NQ rev (1m)-0.5%
Revenue NQ rev (3m)0.88%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.81 | ||
| Fwd PE | 15.59 | ||
| P/S | 0.9 | ||
| P/FCF | 15.57 | ||
| P/OCF | 10.06 | ||
| P/B | 2.13 | ||
| P/tB | 6.99 | ||
| EV/EBITDA | 15.99 |
EPS(TTM)13.36
EY5.05%
EPS(NY)16.98
Fwd EY6.42%
FCF(TTM)17
FCFY6.42%
OCF(TTM)26.3
OCFY9.94%
SpS294.83
BVpS124.41
TBVpS37.84
PEG (NY)3.86
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 | 2.58 |
F-Score4
WACC9.77%
ROIC/WACC0.42
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 Y5.14%
EPS Next 2Y10.29%
EPS Next 3Y12.05%
EPS Next 5Y11.29%
Revenue 1Y (TTM)-1.75%
Revenue growth 3Y6.59%
Revenue growth 5Y5.33%
Sales Q2Q%3.53%
Revenue Next Year2.79%
Revenue Next 2Y3.63%
Revenue Next 3Y4.27%
Revenue Next 5Y4.35%
EBIT growth 1Y-40.1%
EBIT growth 3Y1.12%
EBIT growth 5Y-8.14%
EBIT Next Year68.93%
EBIT Next 3Y27.03%
EBIT Next 5Y18.04%
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%