Huntington Ingalls (HII) AI Stock Analysis

• Market Cap: $11.77B
• Dividend Yield: 1.88%
• Average Volume (3M): 457.85K
• Price to Earnings (P/E): 22.5
• Beta (1Y): 0.85
• Revenue Growth: -1.75%
• EPS Growth: -29.19%
• Country: US
• Employees: 44,000
• Sector: Industrials
• Sector Strength: 72
• Industry: Aerospace & Defense
• EPS (TTM): 3.86
• Shares Outstanding: 39,240,630
• 10 Day Avg. Volume: 410,706
• 30 Day Avg. Volume: 457,851
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.03
• Enterprise Value/Revenue: 1.04
• Enterprise Value/Gross Profit: 8.44
• Enterprise Value/Ebitda: 11.48
• 1Y Price Target: $288.50
• Price Target Upside: -3.56% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 6

• Rating: 79 Outperform
• Price Target: $343.00 ▲(14.66% Upside)

Huntington Ingalls' strong financial performance and positive earnings call are the most significant factors driving the stock score. The company shows robust cash flow management and strategic growth initiatives. Technical analysis supports a bullish outlook, though valuation concerns slightly temper the overall score.

Positive Factors

Strong Contract Awards

The substantial contract awards secure future revenue streams and reinforce HII's position as a key supplier to the U.S. Navy, ensuring long-term business stability and growth potential.

Cash Flow Management

Robust cash flow management enhances financial flexibility, allowing HII to invest in growth initiatives, reduce debt, and return capital to shareholders, supporting sustainable business operations.

Strategic Board Appointment

The addition of a seasoned leader like Nick Stanage to the board strengthens HII's strategic direction and operational efficiency, potentially driving long-term growth and competitive advantage.

Negative Factors

Operating Income and Margin Decline

Declining operating margins indicate potential profitability challenges, which could affect HII's ability to invest in future growth and maintain competitive pricing.

Supply Chain Risks

Persistent supply chain risks could disrupt production schedules, increase costs, and impact HII's ability to deliver on contracts, potentially affecting long-term operational efficiency.

Challenges with Pre-COVID Contracts

Ongoing issues with pre-COVID contracts may strain resources and limit HII's ability to capitalize on new opportunities, potentially hindering long-term growth and profitability.

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 stable revenue growth and effective cash flow management. The company exhibits moderate leverage with a solid equity base, though there's potential for improving net income margins.

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	1.05B	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: 299.14
• 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 299.14 is above the 20-day moving average (MA) of 287.52, above the 50-day MA of 278.15, and above the 200-day MA of 232.36, indicating a bullish trend. The MACD of 4.65 indicates Negative momentum. The RSI at 66.15 is Neutral, neither overbought nor oversold. The STOCH value of 79.51 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	―	$94.35B	22.73	17.78%	1.67%	11.86%	17.39%
HII	―	$11.77B	22.46	11.59%	1.88%	-1.75%	-29.19%
NOC	―	$86.43B	21.74	26.15%	1.47%	-0.14%	72.35%
LHX	―	$54.86B	32.74	8.90%	1.64%	2.93%	43.29%
LMT	―	$112.32B	27.10	62.78%	2.71%	2.88%	-35.15%
TXT	―	$14.31B	17.87	11.46%	0.10%	1.83%	-0.73%
Sector *	―	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Huntington Ingalls Corporate Events

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.

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.