Huntington Ingalls Industries, Inc.

Industrials
Marine Transportation
www.huntingtoningalls.com

Earnings Score
Moat Score
Safety Score

Market Cap $7.35B
PE 10
Debt $1.71B
Cash $10.00M
EV $9.05B
FCF $183.00M

Earnings

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Sales & Net Margins

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Earnings	$701.00M
EBIT	$844.00M
ROE	17%
ROA	8%
FCF	$183.00M
Equity	$4.20B
Growth Stability	78%
PE	10.49
PEG	5.19
PB	1.75
P/FCF	40.19
P/S	0.63
Price/Cash	0
Debt/Equity	0.41
Debt/FCF	9.34
Net Margins	5%
Op. Margins	7%
Earnings CAGR	3%
Sales Growth YoY	-2%
Sales Growth QoQ	-8%
Sales CAGR	7%
FCF CAGR	-2%
Equity CAGR	12%
Earnings Stability	0.2
Earnings Growth YoY	-32%
Earnings Growth QoQ	-42%
Earnings CAGR 5Y	2%

Sales CAGR 5Y	7%
FCF CAGR 5Y	-11%
Equity CAGR 5Y	26%
Earnings CAGR 3Y	8%
Sales CAGR 3Y	8%
FCF CAGR 3Y	-1%
Equity CAGR 3Y	18%
Market Cap	$7.35B
Revenue	$11.71B
Dividend Yield	3%
Payout Ratio	29%
Assets	$11.08B
Total Debt	$1.71B
Cash	$10.00M
Shares Outstanding	39.13M
EV	9.05B
Earnings Score	8%
Moat Score	86%
Safety Score	77%
Final Score	57%
Working Capital	-707M
Current Ratio	0.79
Shares Growth 3y	-1%
Equity Growth QoQ	1%
Equity Growth YoY	13%

Assets & ROA

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Stockholders Equity & ROE

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Huntington Ingalls Industries was created from the spinoff of Northrop Grumman's shipbuilding business. The company is the largest independent military shipbuilder. The company has three segments, two of which are shipyards. Ingalls produces non-nuclear-powered ships, particularly the America-class amphibious assault ship and the Arleigh Burke-class destroyer. The Newport News segment produces nuclear-powered ships, is the sole-source contractor for the Gerald R. Ford-class aircraft carrier, and is a major subcontractor to the Columbia-class attack submarine. The company's technical solutions segment produces uncrewed undersea vehicles as well as provides various IT services for the government.

SEC Filings

Direct access to Huntington Ingalls Industries, Inc. (HII) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2022
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31

Sector Comparison

How does Huntington Ingalls Industries, Inc. compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Huntington Ingalls Industries, Inc. compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 3%

Stability 20%

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Huntington Ingalls Industries, Inc. Discounted Cash Flow

Fully customizable DCF calculator online for Huntington Ingalls Industries, Inc..

Years

Calculation mode

= $1.6B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$183M	$180M	$177M	$174M	$171M	$168M	$166M	$163M	$160M	$158M	$155M	$1.6B
DCF		$164M	$146M	$131M	$117M	$105M	$94M	$84M	$75M	$67M	$60M	$598M
Value	$1.6B

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Net Margins	5%	6%	8%	6%	10%	6%	7%	6%	5%	6%	5%
ROA	-	13%	14%	14%	15%	10%	10%	6%	7%	8%	8%
ROE	-	27%	35%	27%	55%	35%	37%	19%	17%	17%	17%

Bad Net Margins (5.01%)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Debt over FCF	-	1.99	2.38	2.96	2.84	3.51	2.28	7.69	6.85	3.95	9.34
Debt over Equity	1.32	0.85	0.77	0.73	0.85	0.81	0.89	1.17	0.95	0.65	0.41
Growth Stability	-	-	-	100%	100%	87%	100%	78%	97%	100%	78%

Bad Debt/FCF ratio (9.34)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Good Debt/Equity ratio (0.41)

The company is not overleveraged and has a good balance between equity and debt.

Bad Graham’s Stability (78%)

The company has a bad stability in its earnings, which is a sign of a bad competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	CAGR 5Y
Revenue YoY growth	-	1%	1%	5%	10%	9%	5%	2%	12%	7%	7%
Earnings YoY growth	-	20%	42%	-16%	75%	-34%	27%	-22%	6%	18%	2%
Equity YoY growth	-	9%	11%	6%	-14%	5%	20%	48%	24%	17%	26%
FCF YoY growth	-	16%	-16%	-20%	4%	-19%	102%	-42%	12%	41%	-11%