Huntington Ingalls (HII) AI Stock Analysis

• Market Cap: $10.41B
• Dividend Yield: 1.98%
• Average Volume (3M): 465.06K
• Price to Earnings (P/E): 19.9
• Beta (1Y): 0.88
• Revenue Growth: -1.75%
• EPS Growth: -29.19%
• Country: US
• Employees: 44,000
• Sector: Industrials
• Sector Strength: 76
• Industry: Aerospace & Defense
• EPS (TTM): 3.86
• Shares Outstanding: 39,240,630
• 10 Day Avg. Volume: 376,638
• 30 Day Avg. Volume: 465,059
• 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: 1.16
• Enterprise Value/Revenue: 1.04
• Enterprise Value/Gross Profit: 8.44
• Enterprise Value/Ebitda: 13.14
• 1Y Price Target: $279.78
• Price Target Upside: 3.63% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 8

• Rating: 77 Outperform
• Price Target: $304.00 ▲(12.60% Upside)

Huntington Ingalls Industries demonstrates a robust financial position with strong cash flow management and stable revenue growth. The technical indicators support a positive trend, while the earnings call and recent board appointment highlight strategic advancements and future opportunities. Valuation metrics suggest the stock is fairly valued, with a modest dividend yield enhancing its appeal.

Positive Factors

Financial Guidance

HII raised its free cash flow guidance by $150 million, partly due to changes in R&D amortization.

New Contract Potential

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

Shipbuilding Demand

HII is up almost 40% on a strong backdrop for shipbuilding, highlighting its strategic importance as one of only two major nuclear submarine shipbuilders in the US.

Negative Factors

Contract Award Slowdown

HII’s Mission Technologies segment faces headwinds from slowing award activity and continued restructuring of contracts, impacting the segment's future performance.

Production Delays

HII saw another milestone deferral as it pushed expected delivery of the CVN 79 carrier to 2027, indicating ongoing challenges in meeting production schedules.

Profitability Challenges

Despite strong shipbuilding volumes, profitability remains the key hurdle, and there are challenges in improving execution across labor and the supply base.

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 maintains a strong financial position with solid cash flow management and stable revenue growth, despite a slight decline in net income margins. The robust free cash flow growth and efficient balance sheet management are key strengths.

Income Statement

Huntington Ingalls demonstrates a stable financial performance with a steady revenue growth trajectory. The TTM gross profit margin is approximately 27%, while the net profit margin is 4.54%. EBIT and EBITDA margins are solid at 4.46% and 6.77%, respectively. However, the slight decline in net income over the TTM period compared to the previous year indicates a need for margin improvement.

Balance Sheet

The company's balance sheet reflects a manageable debt-to-equity ratio of about 0.60, indicating a balanced leverage position. The equity ratio stands at approximately 40.37%, demonstrating a strong equity base relative to total assets. Return on equity is stable at 10.75%, suggesting effective use of shareholder equity, though there is room for improvement in profitability.

Cash Flow

Huntington Ingalls showcases strong cash flow management with a robust free cash flow growth rate of approximately 4034.62% over the TTM period. The operating cash flow to net income ratio is high at 1.96, indicating efficient conversion of earnings into cash. The free cash flow to net income ratio is also favorable at 2.06, highlighting solid cash generation capabilities.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	11.57B	11.54B	11.45B	10.68B	9.52B	9.36B
Gross Profit	1.43B	1.45B	1.65B	1.44B	1.37B	1.67B
EBITDA	919.00M	1.06B	1.29B	1.18B	1.00B	1.15B
Net Income	525.00M	550.00M	681.00M	579.00M	544.00M	696.00M
Balance Sheet
Total Assets	12.10B	12.14B	11.21B	10.86B	10.63B	8.16B
Cash, Cash Equivalents and Short-Term Investments	343.00M	831.00M	430.00M	467.00M	627.00M	512.00M
Total Debt	2.91B	3.41B	2.67B	3.15B	3.49B	1.84B
Total Liabilities	7.22B	7.47B	7.12B	7.37B	7.82B	6.26B
Stockholders Equity	4.88B	4.67B	4.09B	3.49B	2.81B	1.90B
Cash Flow
Free Cash Flow	920.00M	26.00M	678.00M	482.00M	429.00M	740.00M
Operating Cash Flow	1.03B	393.00M	970.00M	766.00M	760.00M	1.09B
Investing Cash Flow	-477.00M	-348.00M	-236.00M	-268.00M	-1.95B	-759.00M
Financing Cash Flow	-223.00M	356.00M	-771.00M	-658.00M	1.31B	103.00M

Huntington Ingalls Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 269.98
• 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 269.98 is above the 20-day moving average (MA) of 267.00, above the 50-day MA of 254.99, and above the 200-day MA of 213.20, indicating a bullish trend. The MACD of 3.45 indicates Positive momentum. The RSI at 59.19 is Neutral, neither overbought nor oversold. The STOCH value of 57.03 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	79 Outperform	$85.11B	21.25	17.91%	1.83%	11.85%	16.12%
LHX	78 Outperform	$51.66B	30.83	8.90%	1.71%	2.93%	43.29%
HII	77 Outperform	$10.41B	19.88	11.59%	1.98%	-1.75%	-29.19%
Sector *	71 Outperform	¥266.69B	15.10	8.31%	2.75%	6.08%	11.04%
NOC	71 Outperform	$83.94B	21.56	26.50%	1.43%	-0.65%	77.20%
LMT	64 Neutral	$102.98B	24.83	73.06%	2.92%	1.09%	-35.50%
BA	53 Neutral	$170.14B	―	-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.