Huntington Ingalls (HII) AI Stock Analysis

• Market Cap: $12.40B
• Dividend Yield: 1.88%
• Average Volume (3M): 458.45K
• Price to Earnings (P/E): 21.8
• Beta (1Y): 0.85
• Revenue Growth: 2.60%
• EPS Growth: -18.22%
• Country: US
• Employees: 44,000
• Sector: Industrials
• Sector Strength: 72
• Industry: Aerospace & Defense
• EPS (TTM): 3.68
• Shares Outstanding: 39,241,432
• 10 Day Avg. Volume: 513,746
• 30 Day Avg. Volume: 458,451
• PEG Ratio: -0.74
• Price to Book (P/B): 1.60
• Price to Sales (P/S): 0.65
• P/FCF Ratio: 286.36
• Enterprise Value/Market Cap: 1.13
• Enterprise Value/Revenue: 1.16
• Enterprise Value/Gross Profit: 9.28
• Enterprise Value/Ebitda: 12.22
• 1Y Price Target: $314.40
• Price Target Upside: -0.47% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 5
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: $357.00 ▲(13.01% Upside)

Huntington Ingalls' stock score is driven by strong financial performance and positive earnings call highlights, including record sales and strategic partnerships. Technical analysis shows bullish momentum, although overbought conditions suggest caution. The valuation indicates potential overvaluation, which slightly tempers the overall score.

Positive Factors

Strong Contract Awards

The significant contract awards ensure a robust revenue pipeline, enhancing financial stability and supporting long-term growth in the defense sector.

Strategic Partnership

This partnership could enhance HII's competitive position by leveraging international collaboration, potentially leading to new opportunities and market expansion.

Operational Initiatives

Cost reduction initiatives can improve margin sustainability and operational efficiency, strengthening the company's long-term profitability.

Negative Factors

Operating Income and Margin Decline

Declining margins indicate potential challenges in cost management and operational efficiency, which could impact profitability if not addressed.

Supply Chain Risks

Persistent supply chain risks could disrupt production schedules and increase costs, affecting the company's ability to meet contract obligations.

Free Cash Flow Decline

A decline in free cash flow growth may limit the company's ability to invest in new projects or return capital to shareholders, impacting future growth.

Huntington Ingalls Business Overview & Revenue Model

Company Description

Huntington Ingalls Industries (HII) is the largest military shipbuilding company in the United States, specializing in the design, construction, and maintenance of ships for the U.S. Navy and Coast Guard. The company operates primarily through two segments: Newport News Shipbuilding and Ingalls Shipbuilding. HII's core products include aircraft carriers, submarines, surface combatants, and other naval vessels, as well as providing services in fleet support and modernization.

How the Company Makes Money

HII generates revenue primarily through government contracts with the U.S. Department of Defense, which include fixed-price and cost-plus contracts for shipbuilding and related services. Key revenue streams include the construction of nuclear-powered aircraft carriers and submarines, as well as surface combatants. The company also earns revenue from maintenance and modernization services for existing fleets. Significant partnerships with the U.S. Navy and long-term contracts play a crucial role in HII's financial stability, providing a steady stream of income. Additionally, HII benefits from its involvement in various defense programs and initiatives that align with national security priorities.

Huntington Ingalls Financial Statement Overview

Summary

Huntington Ingalls demonstrates strong revenue growth and improved gross profit margins, indicating positive operational trends. The balance sheet shows improved leverage, but the overall debt level remains a concern. Cash flow generation is robust relative to net income, but the decline in free cash flow growth requires attention. Overall, the company is on a stable financial footing with areas for potential improvement in cost management and cash flow growth.

Income Statement

Huntington Ingalls shows a solid revenue growth rate of 3.83% in the TTM, indicating a positive trajectory. The gross profit margin improved significantly to 27.63% from 12.57% in the previous year, suggesting enhanced operational efficiency. However, the net profit margin remains relatively stable at 4.74%, indicating room for improvement in cost management. The EBIT and EBITDA margins have decreased slightly, reflecting potential challenges in maintaining operational profitability.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.59 in the TTM from 0.73 in the previous year, indicating better leverage management. Return on equity remains stable at around 11.79%, showing consistent profitability. The equity ratio is not explicitly calculated, but the improvement in debt management suggests a strengthening balance sheet. However, the overall leverage is still a potential risk factor.

Cash Flow

Free cash flow has declined by 10.54% in the TTM, which is a concern for liquidity. The operating cash flow to net income ratio is 0.35, indicating moderate cash conversion efficiency. The free cash flow to net income ratio is strong at 87.83%, suggesting good cash generation relative to earnings. However, the decline in free cash flow growth poses a risk to future cash availability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	12.01B	11.54B	11.45B	10.68B	9.52B	9.36B
Gross Profit	1.50B	1.45B	1.65B	1.44B	1.37B	1.67B
EBITDA	1.14B	1.06B	1.29B	1.18B	1.00B	1.15B
Net Income	569.00M	550.00M	681.00M	579.00M	544.00M	696.00M
Balance Sheet
Total Assets	12.31B	12.14B	11.21B	10.86B	10.63B	8.16B
Cash, Cash Equivalents and Short-Term Investments	312.00M	831.00M	430.00M	467.00M	627.00M	512.00M
Total Debt	2.93B	3.41B	2.67B	3.15B	3.49B	1.84B
Total Liabilities	7.33B	7.47B	7.12B	7.37B	7.82B	6.26B
Stockholders Equity	4.98B	4.67B	4.09B	3.49B	2.81B	1.90B
Cash Flow
Free Cash Flow	823.00M	26.00M	678.00M	482.00M	429.00M	740.00M
Operating Cash Flow	937.00M	393.00M	970.00M	766.00M	760.00M	1.09B
Investing Cash Flow	-497.00M	-348.00M	-236.00M	-268.00M	-1.95B	-759.00M
Financing Cash Flow	-138.00M	356.00M	-771.00M	-658.00M	1.31B	103.00M

Huntington Ingalls Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 315.90
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HII, the sentiment is Positive. The current price of 315.9 is above the 20-day moving average (MA) of 295.41, above the 50-day MA of 283.60, and above the 200-day MA of 235.91, indicating a bullish trend. The MACD of 9.57 indicates Negative momentum. The RSI at 67.90 is Neutral, neither overbought nor oversold. The STOCH value of 75.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HII.

Huntington Ingalls Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GD	80 Outperform	$92.78B	22.26	17.78%	1.72%	11.86%	17.39%
NOC	75 Outperform	$82.37B	20.72	26.15%	1.51%	-0.14%	72.35%
HII	74 Outperform	$12.40B	21.82	12.39%	1.88%	2.60%	-18.22%
LMT	70 Outperform	$112.22B	27.07	62.78%	2.72%	2.88%	-35.15%
LHX	70 Neutral	$54.45B	31.26	9.13%	1.64%	2.83%	47.00%
TXT	67 Neutral	$14.06B	17.55	11.46%	0.10%	1.83%	-0.73%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Huntington Ingalls Corporate Events

Huntington Ingalls Industries Reports Strong Q3 2025 Results

Huntington Ingalls Industries (HII) is a leading global defense provider specializing in military shipbuilding and all-domain solutions, with a rich history of advancing U.S. national security through the delivery of powerful ships and innovative technologies. Headquartered in Virginia, HII employs a workforce of 44,000 dedicated to protecting peace and freedom worldwide.

Huntington Ingalls Industries Reports Q2 2025 Earnings

Huntington Ingalls Industries (HII) is a leading global defense provider, specializing in military shipbuilding and all-domain defense solutions, with a significant focus on advancing U.S. national security through its extensive range of capabilities.

HII Earnings Call: Strong Growth Amid Challenges

Huntington Ingalls Industries (HII) recently held its earnings call, showcasing a positive sentiment driven by strong revenue growth and significant contract awards. The company demonstrated operational progress and improvements in labor and retention metrics, although challenges in segment operating income and supply chain risks remain. Overall, the results align with expectations, indicating positive momentum for the company.