HUNTINGTON INGALLS INDUSTRIE (HII)
US4464131063 - Common Stock
HII gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 64 industry peers in the Aerospace & Defense industry. HII has an average financial health and profitability rating. HII has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year HII was profitable.
HII had a positive operating cash flow in the past year.
Each year in the past 5 years HII has been profitable.
Each year in the past 5 years HII had a positive operating cash flow.
1.2 Ratios
The Return On Assets of HII (6.07%) is better than 75.00% of its industry peers.
Looking at the Return On Equity, with a value of 16.64%, HII belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
HII's Return On Invested Capital of 7.29% is fine compared to the rest of the industry. HII outperforms 71.88% of its industry peers.
HII had an Average Return On Invested Capital over the past 3 years of 5.70%. This is below the industry average of 8.55%.
The 3 year average ROIC (5.70%) for HII is below the current ROIC(7.29%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.07% | ||
| ROE | 16.64% | ||
| ROIC | 7.29% |
ROA(3y)5.51%
ROA(5y)6.57%
ROE(3y)17.54%
ROE(5y)24.76%
ROIC(3y)5.7%
ROIC(5y)7.81%
1.3 Margins
Looking at the Profit Margin, with a value of 5.95%, HII is in the better half of the industry, outperforming 65.63% 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 6.50%. This is comparable to the rest of the industry: HII outperforms 56.25% of its industry peers.
In the last couple of years the Operating Margin of HII has declined.
The Gross Margin of HII (14.37%) is worse than 73.44% of its industry peers.
In the last couple of years the Gross Margin of HII has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.5% | ||
| PM (TTM) | 5.95% | ||
| GM | 14.37% |
OM growth 3Y-7.45%
OM growth 5Y-10.68%
PM growth 3Y-7.18%
PM growth 5Y-10.28%
GM growth 3Y-6.96%
GM growth 5Y-8.09%
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.
The number of shares outstanding for HII has been reduced compared to 5 years ago.
The debt/assets ratio for HII has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.74 indicates that HII is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of HII (2.74) is comparable to the rest of the industry.
HII has a debt to FCF ratio of 3.61. This is a good value and a sign of high solvency as HII would need 3.61 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.61, HII belongs to the top of the industry, outperforming 82.81% 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.
With a Debt to Equity ratio value of 0.54, HII perfoms like the industry average, outperforming 45.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | 3.61 | ||
| Altman-Z | 2.74 |
ROIC/WACC0.84
WACC8.69%
2.3 Liquidity
A Current Ratio of 0.95 indicates that HII may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.95, HII is doing worse than 84.38% of the companies in the same industry.
HII has a Quick Ratio of 0.95. This is a bad value and indicates that HII is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.89, HII is doing worse than 67.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.89 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 18.34% over the past year.
HII shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -2.20% yearly.
The Revenue has been growing slightly by 7.29% in the past year.
Measured over the past years, HII shows a small growth in Revenue. The Revenue has been growing by 6.98% on average per year.
EPS 1Y (TTM)18.34%
EPS 3Y3.71%
EPS 5Y-2.2%
EPS growth Q2Q124.76%
Revenue 1Y (TTM)7.29%
Revenue growth 3Y6.96%
Revenue growth 5Y6.98%
Revenue growth Q2Q12.98%
3.2 Future
The Earnings Per Share is expected to grow by 10.11% on average over the next years. This is quite good.
The Revenue is expected to grow by 4.63% on average over the next years.
EPS Next Y-2.21%
EPS Next 2Y6.74%
EPS Next 3Y7.64%
EPS Next 5Y10.11%
Revenue Next Year5.61%
Revenue Next 2Y4.49%
Revenue Next 3Y4.11%
Revenue Next 5Y4.63%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 16.20, HII is valued correctly.
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 24.92, HII is valued a bit cheaper.
HII is valuated correctly with a Price/Forward Earnings ratio of 16.56.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HII indicates a rather cheap valuation: HII is cheaper than 90.63% of the companies listed in the same industry.
HII's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.49.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.2 | ||
| Fwd PE | 16.56 |
4.2 Price Multiples
HII's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. HII is cheaper than 89.06% of the companies in the same industry.
HII's Price/Free Cash Flow ratio is rather cheap when compared to the industry. HII is cheaper than 93.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.18 | ||
| EV/EBITDA | 11.9 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y6.74%
EPS Next 3Y7.64%
5. Dividend
5.1 Amount
HII has a Yearly Dividend Yield of 1.88%.
HII's Dividend Yield is rather good when compared to the industry average which is at 1.34. HII pays more dividend than 90.63% of the companies in the same industry.
Compared to the average S&P500 Dividend Yield of 2.41, HII is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.88% |
5.2 History
The dividend of HII is nicely growing with an annual growth rate of 10.61%!
HII has paid a dividend for at least 10 years, which is a reliable track record.
HII has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)10.61%
Div Incr Years11
Div Non Decr Years11
5.3 Sustainability
HII pays out 29.37% of its income as dividend. This is a sustainable payout ratio.
The dividend of HII is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP29.37%
EPS Next 2Y6.74%
EPS Next 3Y7.64%
HUNTINGTON INGALLS INDUSTRIE
NYSE:HII (4/26/2024, 7:04:00 PM)
After market: 276.97 0 (0%)276.97
+0.99 (+0.36%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap10.97B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.88% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.2 | ||
| Fwd PE | 16.56 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.07% | ||
| ROE | 16.64% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 6.5% | ||
| PM (TTM) | 5.95% | ||
| GM | 14.37% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.02
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.89 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)18.34%
EPS 3Y3.71%
EPS 5Y
EPS growth Q2Q
EPS Next Y-2.21%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)7.29%
Revenue growth 3Y6.96%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y