HII Intrinsic Valuation and Fundamental Analysis - Huntington Ingalls Industries Inc - Alpha Spread

Huntington Ingalls Industries Inc
NYSE:HII

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Huntington Ingalls Industries Inc Logo
Huntington Ingalls Industries Inc
NYSE:HII
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Price: 259.06 USD -0.13%
Market Cap: 10.2B USD
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Intrinsic Value

The intrinsic value of one HII stock under the Base Case scenario is 334.55 USD. Compared to the current market price of 259.06 USD, Huntington Ingalls Industries Inc is Undervalued by 23%.

The Intrinsic Value is calculated as the average of DCF and Relative values:

HII Intrinsic Value
334.55 USD
Undervaluation 23%
Intrinsic Value
Price
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Base Case
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Huntington Ingalls Industries Inc

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Backtest Conclusion
Very Attractive
Current Valuation
+45%
Avg Valuation
-12%
Worst Valuation
-49%
Best Valuation
+45%

Stock is trading at its lowest valuation over the past 5 years.

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Fundamental Analysis

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Business Breakdown

Huntington Ingalls Industries Inc. (HII) stands as a titan in the defense and shipbuilding sector, primarily serving the U.S. Navy and other governmental entities. Founded in 2011 as a spin-off from Northrop Grumman, HII carved its niche by focusing on designing and manufacturing nuclear-powered aircraft carriers, submarines, and surface combatants. With its facilities located strategically along the U.S. East Coast and Gulf Coast, the company leverages years of expertise and innovation to deliver advanced maritime vessels and technologies. By doing so, HII not only ensures national security but also plays a vital role in maintaining the operational readiness of the U.S. naval fleet. For inv...

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Financials
Annual
Quarterly
TTM
Annual
Quarterly
TTM

Balance Sheet Decomposition
Huntington Ingalls Industries Inc

Current Assets 2.9B
Cash & Short-Term Investments 11m
Receivables 2.6B
Other Current Assets 304m
Non-Current Assets 8.4B
PP&E 3.6B
Intangibles 3.5B
Other Non-Current Assets 1.3B
Current Liabilities 3.6B
Accounts Payable 652m
Accrued Liabilities 579m
Other Current Liabilities 2.3B
Non-Current Liabilities 3.6B
Long-Term Debt 1.7B
Other Non-Current Liabilities 1.9B
Efficiency

Earnings Waterfall
Huntington Ingalls Industries Inc

Revenue
11.8B USD
Cost of Revenue
-10.1B USD
Gross Profit
1.7B USD
Operating Expenses
-931m USD
Operating Income
783m USD
Other Expenses
-35m USD
Net Income
748m USD

Free Cash Flow Analysis
Huntington Ingalls Industries Inc

Last Value
3-Years Average
FCF Margin
Conversion Rate
Earnings Calls

In Q2 2024, HII posted record revenue of $3 billion, a 6.8% increase year-over-year, with diluted EPS rising to $4.38 from $3.27. The Mission Technologies division led growth, with a 19% revenue increase to $765 million. Despite slight shifts in ship delivery schedules, shipbuilding margins improved to 7.4%. New contracts worth $3.1 billion raised the backlog to $48.5 billion. The company raised its Mission Technologies revenue guidance for the year by $50 million, citing robust performance and a promising $83 billion pipeline. Free cash flow for 2024 is projected at $600-$700 million.

What is Earnings Call?
Fundamental Scores

HII Profitability Score
Profitability Due Diligence

Huntington Ingalls Industries Inc's profitability score is 50/100. The higher the profitability score, the more profitable the company is.

Positive 3-Year Average ROE
Positive Free Cash Flow
Positive ROE
Positive 3-Years Revenue Growth
50/100
Profitability
Score

Huntington Ingalls Industries Inc's profitability score is 50/100. The higher the profitability score, the more profitable the company is.

HII Solvency Score
Solvency Due Diligence

Huntington Ingalls Industries Inc's solvency score is 45/100. The higher the solvency score, the more solvent the company is.

Low D/E
Long-Term Solvency
Average Altman Z-Score
Short-Term Solvency
45/100
Solvency
Score

Huntington Ingalls Industries Inc's solvency score is 45/100. The higher the solvency score, the more solvent the company is.

Wall St
Price Targets

HII Price Targets Summary
Huntington Ingalls Industries Inc

Wall Street analysts forecast HII stock price to rise over the next 12 months.

According to Wall Street analysts, the average 1-year price target for HII is 291.73 USD with a low forecast of 223.21 USD and a high forecast of 338.1 USD.

Lowest
Price Target
223.21 USD
14% Downside
Average
Price Target
291.73 USD
13% Upside
Highest
Price Target
338.1 USD
31% Upside
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Dividends

Dividend Yield
Lowest
Average
Highest
Dividend Per Share
N/A
Growth 3Y
Growth 5Y
Growth 10Y
Dividend Safety Score
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Unsafe
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Safe
0
25
50
75
100
Previous Payment
-
Today
Next Payment
-
Today
Oct 14, 2024
Previous Payment
-
Next Payment
-
Ex-Dividend Date
-
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Shareholder Yield

Current shareholder yield for HII is .

Shareholder yield represents the total return a company provides to its shareholders, calculated as the sum of dividend yield, buyback yield, and debt paydown yield. What is shareholder yield?

Shareholder Yield
Dividend Yield
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Average
Highest
Buyback Yield
Lowest
Average
Highest
Debt Paydown Yield
Lowest
Average
Highest

Ownership

HII Insider Trading
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Cumulative Transactions Amount
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Profile

Huntington Ingalls Industries Inc Logo
Huntington Ingalls Industries Inc

Country

United States of America

Industry

Aerospace & Defense

Market Cap

10.1B USD

Dividend Yield

2.01%

Description

Huntington Ingalls Industries, Inc. engages in the shipbuilding business. The company is headquartered in Newport News, Virginia and currently employs 44,000 full-time employees. The company went IPO on 2011-03-19. The firm's business consists of the design, construction, repair and maintenance of nuclear-powered ships and non-nuclear ships for the United States Navy and coastal defense surface ships for the United States Coast Guard, as well as the refueling and overhaul and inactivation of nuclear-powered ships for the United States Navy. Its segments include Ingalls Shipbuilding (Ingalls), Newport News Shipbuilding (Newport News) and Technical Solutions. Ingalls segment includes its non-nuclear ship design, construction, repair and maintenance businesses. Newport News includes all of its nuclear ship design, construction, overhaul, refueling, and repair and maintenance businesses. Technical Solutions segment provides professional services, including defense and federal solutions (DFS), nuclear and environmental services and unmanned systems.

Contact

VIRGINIA
Newport News
909-7, 7J2, 4101 Washington Avenue
+17573802000.0
www.huntingtoningalls.com

IPO

2011-03-19

Employees

44 000

Officers

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What is the Intrinsic Value of one HII stock?

The intrinsic value of one HII stock under the Base Case scenario is 334.55 USD.

Is HII stock undervalued or overvalued?

Compared to the current market price of 259.06 USD, Huntington Ingalls Industries Inc is Undervalued by 23%.

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