Huntington Ingalls Industries (HII) has disclosed a new risk, in the Debt & Financing category.
Huntington Ingalls Industries faces significant financial risk due to its level of indebtedness and the necessity to service this debt. The company’s capacity to manage and refinance its obligations hinges on generating sufficient cash flow, a process vulnerable to unpredictable economic and industry-specific conditions. An inability to meet these financial demands may compel Huntington Ingalls to take detrimental measures, such as asset sales or cutting essential funding, which could weaken its competitive position in the defense sector. A default on any debt obligations could have a cascading effect, potentially accelerating other debts and exacerbating financial instability.
The average HII stock price target is $249.75, implying -6.74% downside potential.
To learn more about Huntington Ingalls Industries’ risk factors, click here.
