Huntington Ingalls (HII) AI Stock Analysis

• Market Cap: $10.30B
• Dividend Yield: 2.07%
• Average Volume (3M): 454.43K
• Price to Earnings (P/E): 18.9
• Beta (1Y): 0.91
• Revenue Growth: -1.04%
• EPS Growth: -21.80%
• Country: US
• Employees: 44,000
• Sector: Industrials
• Sector Strength: 93
• Industry: Aerospace & Defense
• EPS (TTM): 3.86
• Shares Outstanding: 39,239,136
• 10 Day Avg. Volume: 392,422
• 30 Day Avg. Volume: 454,426
• PEG Ratio: -33.26
• Price to Book (P/B): 2.18
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 110.55
• Enterprise Value/Market Cap: 1.32
• Enterprise Value/Revenue: 0.48
• Enterprise Value/Gross Profit: 8.77
• Enterprise Value/Ebitda: 3.57
• 1Y Price Target: $264.56
• Price Target Upside: 2.34% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9

• Rating: 71 Outperform
• Price Target: $288.00 ▲(11.40%Upside)

Huntington Ingalls' overall score is driven by stable financial performance and strong technical indicators. While the valuation is fair, and the recent board appointment is strategic, challenges in cash flow and shipbuilding delays need attention. The company's guidance and strategic contract wins provide a positive outlook.

Positive Factors

Analyst Recommendation

Analyst's recommendation for HII's stock has been upgraded to Buy from Hold due to strong U.S. Navy ship demand and improved execution.

Contract Opportunities

HII is in promising talks for new contracts that could significantly increase its ship backlog and provide protection against uncontrollable costs.

Financial Stability

Emerging Navy contract terms may reduce HII's financial risk profile, indicating potential for financial stability.

Negative Factors

Execution Challenges

HII's stock fell significantly after reporting earnings, highlighting concerns about its execution challenges.

Profitability Issues

Shipbuilding problems linger with negative profit adjustments driven by labor and supply chain bottlenecks.

Schedule Concerns

There is concern over HII’s 'ever-deferring' schedule of milestones, leading to cautious investor sentiment.

Huntington Ingalls Business Overview & Revenue Model

Company Description

Huntington Ingalls Industries, Inc. engages in designing, building, overhauling, and repairing military ships in the United States. It operates through three segments: Ingalls Shipbuilding, Newport News Shipbuilding, and Technical Solutions. The company is involved in the design and construction of non-nuclear ships comprising amphibious assault ships; expeditionary warfare ships; surface combatants; and national security cutters for the U.S. Navy and U.S. Coast Guard. It also provides nuclear-powered ships, such as aircraft carriers and submarines, as well as refueling and overhaul, and inactivation services of ships. In addition, the company offers naval nuclear support services, including fleet services comprising design, construction, maintenance, and disposal activities for in-service the U.S. Navy nuclear ships; and maintenance services on nuclear reactor prototypes. Further, it provides life-cycle sustainment services to the U.S. Navy fleet and other maritime customers; high-end information technology and mission-based solutions for Department of Defense (DoD), intelligence, and federal civilian customers; nuclear management and operations and environmental management services for the Department of Energy, DoD, state and local governments, and private sector companies; defense and federal solutions; and unmanned systems. Huntington Ingalls Industries, Inc. was founded in 1886 and is headquartered in Newport News, Virginia.

How the Company Makes Money

Huntington Ingalls Industries generates revenue primarily through its shipbuilding contracts with the U.S. Department of Defense. HII's Newport News and Ingalls Shipbuilding divisions construct and overhaul aircraft carriers, submarines, and other naval vessels, which are substantial projects typically secured through long-term government contracts. These contracts often include fixed-price or cost-plus arrangements, providing a steady income stream. Additionally, HII's Technical Solutions division offers services such as fleet support, mission-driven innovative solutions, and nuclear and environmental services, further diversifying its revenue sources. Strategic partnerships with government agencies and industry stakeholders also play a crucial role in securing and executing these contracts, contributing significantly to the company's earnings.

Huntington Ingalls Financial Statement Overview

Summary

Huntington Ingalls demonstrates strong profitability with consistent gross and net profit margins. The balance sheet is moderately leveraged but improving, with stable return on equity. Cash flow generation presents challenges, with a decline in operating cash flow and negative free cash flow growth, indicating room for improvement.

Income Statement

Huntington Ingalls demonstrates strong profitability with a consistent gross profit margin around 25% to 26% over the years. The net profit margin has remained stable, observed at approximately 4.8% in the TTM. Revenue growth has been moderate, showing a compound annual growth rate of about 3.3% since 2020. EBIT and EBITDA margins suggest a stable operational performance, though there is a slight decline in EBIT margin in recent periods. Overall, the company shows steady profitability with room for improvement in revenue growth.

Balance Sheet

The balance sheet reflects moderate leverage with a debt-to-equity ratio of 0.71 in the TTM, showing a reduction from previous years. The equity ratio is improving, reaching 39.4% in the TTM, indicating an increasing equity base. Return on equity is solid at around 11.4% in the TTM, down from previous highs, suggesting some pressure on profitability. The company maintains a stable financial position, though continued focus on reducing debt could enhance financial flexibility.

Cash Flow

The cash flow analysis reveals a decline in operating cash flow over recent periods, with the operating cash flow to net income ratio dropping to 0.37 in the TTM. Free cash flow has fluctuated, showing negative growth, which impacts the free cash flow to net income ratio. Despite these fluctuations, the company is maintaining positive free cash flow. Improving operational efficiency could strengthen cash flow metrics further.

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

Huntington Ingalls Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 258.52
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 258.52 is above the 20-day moving average (MA) of 256.36, above the 50-day MA of 240.30, and above the 200-day MA of 211.14, indicating a bullish trend. The MACD of 6.10 indicates Positive momentum. The RSI at 59.24 is Neutral, neither overbought nor oversold. The STOCH value of 56.80 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
LHX	77 Outperform	$50.95B	30.40	8.90%	1.72%	2.93%	43.29%
GD	76 Outperform	$84.22B	21.02	17.91%	1.87%	11.85%	16.12%
HII	71 Outperform	$10.30B	18.92	12.27%	2.07%	-1.04%	-21.80%
NOC	71 Outperform	$81.42B	20.91	26.50%	1.48%	-0.65%	77.20%
LMT	64 Neutral	$98.09B	23.65	73.06%	3.12%	1.09%	-35.50%
Sector *	58 Neutral	HK$14.89B	4.69	-2.78%	5.83%	3.80%	-54.55%
BA	56 Neutral	$178.25B	―	-162.23%	―	2.41%	-193.57%

Huntington Ingalls Corporate Events

Huntington Ingalls Appoints Nick Stanage to Board

On July 29, 2025, Huntington Ingalls Industries (HII) announced the election of Nick L. Stanage to its Board of Directors, expanding the board from twelve to thirteen members. Stanage, with extensive leadership experience in industrial manufacturing, particularly in the aerospace, automotive, and construction equipment industries, is expected to contribute significantly to HII’s growth. His appointment is seen as a strategic move to enhance HII’s operations and industry positioning, leveraging his expertise from previous roles at Hexcel Corporation, Honeywell, and Dana Holding Corporation.

The most recent analyst rating on (HII) stock is a Buy with a $235.00 price target. To see the full list of analyst forecasts on Huntington Ingalls stock, see the HII Stock Forecast page.