Huntington Ingalls Industries, Inc. (HII) stock analysis
Close on Nov 13, 2026Market cap $12.07BP/E 16.5Yield 1.77%
StockData Score
Prices as of Nov 13, 2026How the score works
Solid15 of 30 checks passed
Huntington Ingalls Industries passes 15 of the 30 checks behind our score; 6 could not be run for lack of data and count as not passed. Each dot in the shape is one check — hover it for the numbers.
- Valuation
- 4/6
- Growth
- 2/6
- Past performance
- 2/6
- Financial health
- 3/6
- Dividend
- 4/6
What stands out
Trading below fair value
The share price of $306.24 is below our fair value estimate of $312.57.
Earnings growth accelerating
Net income grew 28.8% over the last twelve months, against a 5-year average of -2.8% a year.
Interest well covered
Operating income covers interest expense 7.8 times.
Debt covered by cash flow
Operating cash flow over the last twelve months equals 27.7% of total debt.
What to watch
Margin of safety under 20%
The price is 2.0% below fair value, less than the 20% cushion we look for.
Earnings shrank over 5 years
Net income shrank 2.8% a year on average over the last five fiscal years.
Revenue growing under 10% a year
Revenue grew 5.4% a year over the last three fiscal years, short of the 10% we look for.
EPS growing under 10% a year
Diluted EPS grew 2.1% a year over the last three fiscal years.
Valuation4/6
P/E above its 5-year median
Huntington Ingalls Industries's P/E of 16.5 is above its own 5-year median of 16.1.
P/E below the industry
Huntington Ingalls Industries's P/E of 16.5 is below the Transportation Equipment median of 20.0.
EV/EBITDA below its 5-year median
Huntington Ingalls Industries's EV/EBITDA of 13.1 is below its 5-year median of 17.0.
P/S below the industry
Huntington Ingalls Industries's price-to-sales of 0.89 is below the Transportation Equipment median of 0.92 (book value is negative, so we use sales).
Trading below fair value
The share price of $306.24 is below our fair value estimate of $312.57.
Margin of safety under 20%
The price is 2.0% below fair value, less than the 20% cushion we look for.
Growth2/6
Revenue growing under 10% a year
Revenue grew 5.4% a year over the last three fiscal years, short of the 10% we look for.
EPS growing under 10% a year
Diluted EPS grew 2.1% a year over the last three fiscal years.
Earnings growth accelerating
Net income grew 28.8% over the last twelve months, against a 5-year average of -2.8% a year.
Growing faster than the industry
Revenue grew 12.6% over the last twelve months; the Transportation Equipment median is 9.5%.
Guidance lowered
Huntington Ingalls Industries lowered its FY26 Mission Technologies revenue outlook on Oct 29, 2026.
Gross margin trend
This company does not report gross profit.
Past performance2/6
Return on equity
Needs positive equity and five years of results.
Return on invested capital
Needs operating income and invested capital.
Return on equity against the industry
Needs positive equity.
Earnings shrank over 5 years
Net income shrank 2.8% a year on average over the last five fiscal years.
Net margin above its 5-year average
Net margin was 5.4% over the last twelve months, against a 5-year average of 5.3%.
Net margin above the industry
Huntington Ingalls Industries's net margin of 5.4% is above the Transportation Equipment median of 1.9%.
Financial health3/6
Debt level
Needs debt and equity figures.
Debt trend
Needs a balance sheet from five years ago with positive equity.
Debt covered by cash flow
Operating cash flow over the last twelve months equals 27.7% of total debt.
Interest well covered
Operating income covers interest expense 7.8 times.
Short-term assets cover short-term debts
Current assets are 1.26 times current liabilities.
Bankruptcy risk in the grey zone
The Altman Z-score is 2.91; above 3 is the safe zone and below 1.8 the distress zone.
Dividend4/6
Pays a dividend
Huntington Ingalls Industries paid dividends worth 1.8% of the share price over the last twelve months.
Yield below Treasuries
The 1.8% yield is below the 4.7% on a 1-year Treasury.
Yield below the top quarter
The top quarter of US dividend payers yield 3.8% or more; Huntington Ingalls Industries yields 1.8%.
Dividend not cut
The dividend per share has not fallen by more than 10% in any of the last 10 fiscal years.
Covered by earnings
Dividends take 29.6% of net income.
Covered by free cash flow
Dividends take 66.4% of free cash flow.
Fair value
How we estimate itOur estimate per share
$312.57
The share price is 2% below this estimate.
| Method | Multiple used | Own 5Y median | Industry median | Value per share | Weight |
|---|---|---|---|---|---|
| P/E | 18.0× | 16.1× | 20.0× | $335.48 | 44% |
| EV/EBITDA | 14.7× | 17.0× | 12.4× | $351.89 | 39% |
| Earnings power | 8.5% cost of equity | – | – | $159.73 | 17% |
| Fair value | $312.57 | 100% | |||
Valuation over time
Using the earnings and balance sheet published at each date, not today's.
- P/E at month end
- Own 5-year median 16.1
- Transportation Equipment median 20.0
An estimate from reported numbers and market multiples, not a price target or investment advice. It can be far off for companies whose profits are about to change sharply.
Market risk
From the past year of daily prices.
Liquidity
Low risk
- Average value traded per day
- $161.83M
- Value traded per 1% price move
- $101.48M
Downside
Medium risk
- Typical loss in a bad month
- 18.9%
- Volatility (annualized)
- 41%
- Sharpe ratio, 1 year
- -0.20
- Beta to the S&P 500 (5Y)
- 0.69
Typical bad-month loss, week by week
Margins
Share of revenue, fiscal years 2011 to 2025
Gross margin
Operating margin
Net margin
Growth rates
Compound annual growth to fiscal 2025
| Per year | 1 year | 3 years | 5 years | 10 years | Five-year pace |
|---|---|---|---|---|---|
| Revenue | +8.2% | +5.4% | +5.9% | +5.9% | |
| Operating income | +22.8% | +5.2% | -3.8% | -1.6% | |
| Net income | +10.0% | +1.5% | -2.8% | +4.1% | |
| EPS, diluted | +10.2% | +2.1% | -2.1% | +6.3% | |
| Free cash flow | +2953.8% | +18.1% | +1.4% | +1.7% | |
| Dividend per share | +3.4% | +4.3% | +5.1% | +12.3% |
Returns and balance sheet
10 fiscal years. Hover a measure to see how it is calculated.
| Measure | FY2016 | FY2020 | FY2025 | Trend |
|---|---|---|---|---|
| Return on equity | 36.5% | 39.9% | 12.4% | |
| Return on assets | 9.3% | 9.2% | 4.9% | |
| Current ratio | 1.59 | 1.10 | 1.13 | |
| Debt to equity | 0.77 | 0.89 | 0.53 | |
| Net debt to EBITDA | 0.53× | 1.12× | 1.95× | |
| Interest coverage | 11.8× | 7.0× | 6.3× | |
| Capex to revenue | 4.0% | 3.8% | 3.2% | |
| Diluted shares | 47M | 41M | 39M |
Where the cash went
Fiscal 2021 to 2025, five years combined
Huntington Ingalls Industries generated $4.09B from operations and spent $3.06B on capital expenditure, dividends and share buybacks. 55% of that went back into the business.
DuPont analysis
Return on equity split into margin, efficiency and leverage
| Fiscal year | Net margin | Asset turnover | Equity multiplier | Return on equity |
|---|---|---|---|---|
| FY2025 | 4.8% | 1.00× | 2.56× | 12.4% |
| FY2024 | 4.8% | 0.99× | 2.67× | 12.6% |
| FY2023 | 5.9% | 1.04× | 2.91× | 18.0% |
| FY2022 | 5.4% | 0.99× | 3.41× | 18.4% |
| FY2021 | 5.7% | 1.01× | 3.99× | 23.1% |
| FY2020 | 7.4% | 1.23× | 4.35× | 39.9% |
| FY2019 | 6.2% | 1.33× | 4.32× | 35.4% |
| FY2018 | 10.2% | 1.28× | 3.90× | 51.1% |
| FY2017 | 6.4% | 1.17× | 3.73× | 28.1% |
| FY2016 | 8.1% | 1.14× | 3.94× | 36.5% |
Piotroski F-Score
Nine tests of profitability, balance sheet and efficiency, fiscal 2025 against fiscal 2024
- ProfitableNet income above zero$605.00M
- Cash generatingOperating cash flow above zero$1.20B
- Return on assets improvedROA up on the prior year4.9% → 5.0%
- Earnings backed by cashOperating cash flow above net income$1.20B vs $605.00M
- Less leverageLong-term debt to assets fell22.2% → 21.2%
- Better liquidityCurrent ratio rose1.08 → 1.13
- No dilutionShare count did not rise39M → 39M
- Gross margin improvedGross margin up on the prior year– → –
- More efficientAsset turnover rose1.03 → 1.03
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