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Huntington Ingalls Industries Inc (HII)

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$168.49
Delayed price
Profit since last BUY-17.88%
upturn advisory
SELL
SELL since 1 day
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Upturn Advisory Summary

02/07/2025: HII (1-star) is a SELL. SELL since 1 days. Profits (-17.88%). Updated daily EoD!

Upturn Star Rating

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Not Recommended Performance

These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.

AI Based Fundamental Rating

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Below Average Performance

These Stocks/ETFs, based on Upturn Advisory, often underperform the market, warranting careful consideration before investing.

Analysis of Past Performance

Type Stock
Historic Profit -21.58%
Avg. Invested days 41
Today’s Advisory SELL
Upturn Star Rating Upturn stock ratingUpturn stock rating
Upturn Advisory Performance Upturn Advisory Performance 2.0
Stock Returns Performance Upturn Returns Performance 1.0
Upturn Profits based on simulationUpturn Profits based on simulation Profits based on simulation
Upturn Profits based on simulationUpturn Profits based on simulation Last Close 02/07/2025

Key Highlights

Company Size Mid-Cap Stock
Market Capitalization 6.31B USD
Price to earnings Ratio 11.52
1Y Target Price 203.26
Price to earnings Ratio 11.52
1Y Target Price 203.26
Volume (30-day avg) 539734
Beta 0.56
52 Weeks Range 158.88 - 294.57
Updated Date 02/14/2025
52 Weeks Range 158.88 - 294.57
Updated Date 02/14/2025
Dividends yield (FY) 3.36%
Basic EPS (TTM) 14

Revenue by Products

Product revenue - Year on Year

Earnings Date

Report Date 2025-01-30
When Before Market
Estimate 3.63
Actual 3.15

Profitability

Profit Margin 4.77%
Operating Margin (TTM) 4.69%

Management Effectiveness

Return on Assets (TTM) 3.56%
Return on Equity (TTM) 12.56%

Valuation

Trailing PE 11.52
Forward PE 14.47
Enterprise Value 8869912813
Price to Sales(TTM) 0.55
Enterprise Value 8869912813
Price to Sales(TTM) 0.55
Enterprise Value to Revenue 0.77
Enterprise Value to EBITDA 8.34
Shares Outstanding 39130200
Shares Floating 38895773
Shares Outstanding 39130200
Shares Floating 38895773
Percent Insiders 1
Percent Institutions 91.33

AI Summary

Huntington Ingalls Industries Inc: Comprehensive Overview

Company Profile

Detailed History and Background:

Huntington Ingalls Industries Inc. (HII) is a leading American shipbuilding and defense company. With roots dating back to the early 19th century, the company was formed in 2011 through the merger of Northrop Grumman Shipbuilding and Huntington Ingalls Industries. Today, HII is a leader in the design, construction, and maintenance of various naval vessels, including nuclear-powered aircraft carriers, nuclear submarines, amphibious ships, surface combatants, and auxiliary ships.

Core Business Areas:

HII operates three business segments:

  • Newport News Shipbuilding: Focused on building high-tech nuclear-powered aircraft carriers and submarines.
  • Ingalls Shipbuilding: Specializes in constructing surface combatants and amphibious ships.
  • Technical Solutions: Provides a broad range of services such as engineering, training, and ship modernization and repair.

Leadership and Corporate Structure:

The current leadership team of HII includes:

  • President and CEO: Michael Petters.
  • Executive Vice President and CFO: Peter A. Lourandos.
  • President, Ingalls Shipbuilding: Kari M. Wilkinson.
  • President, Newport News Shipbuilding: Jennifer Boykin.

HII follows a decentralized governance structure, with each business segment operating semi-autonomously within the overall corporation.

Top Products and Market Share:

Top Products:

  • Gerald R. Ford-class nuclear aircraft carriers: HII holds a monopoly on the construction of these highly complex aircraft carriers.
  • Virginia-class nuclear submarines: HII competes with General Dynamics Electric Boat in building these technologically advanced submarines.
  • San Antonio-class amphibious transport docks: HII is the sole producer of these versatile amphibious warships.
  • Arleigh Burke-class destroyers: HII produces a significant portion of these workhorse surface combatants alongside General Dynamics Bath Iron Works.

Market Share:

  • Nuclear Aircraft Carriers: 100% (monopoly) in the US
  • Nuclear Submarines: ~40% in the US, competing with General Dynamics Electric Boat
  • Amphibious Ships: 100% (monopoly) in the US
  • Surface Combatants: ~30-40% in the US, competing with General Dynamics Bath Iron Works and Austal USA

Product Comparison:

HII consistently receives accolades for the performance and quality of its vessels. For example, the Ford-class carrier boasts advanced technologies and enhanced operational capabilities compared to its predecessors. However, HII sometimes faces criticism regarding delivery delays and cost overruns on certain projects.

Total Addressable Market:

HII primarily serves the US Navy, which constitutes a vast and relatively stable market. The global shipbuilding market for naval vessels is valued at approximately $130 billion, offering potential for future growth.

Financial Performance:

(Based on company reports for fiscal year 2022, ending on September 30, 2022)

  • Revenue: $6.8 billion (up 10% year-over-year)
  • Net Income: $511 million (up 11% year-over-year)
  • Profit Margin: 7.5%
  • Earnings per Share (EPS): $5.41
  • Cash Flow: Strong with consistent positive operating cash flow.
  • Balance Sheet: Healthy with moderate debt-to-equity ratio.

Dividend and Shareholder Returns:

  • Dividend History: HII has a consistent record of paying dividends, offering a current dividend yield of around 2%.
  • Shareholder Returns: Over the past 5 years, HII total shareholder return is estimated at roughly 60%, exceeding the S&P 500 performance during the same period.

Growth Trajectory:

  • Historical Growth: HII has witnessed steady revenue and profit growth over the past five years.
  • Future Growth Projections: HII anticipates continued moderate growth fueled by a robust backlog of orders and increased defense spending globally.
  • Recent Initiatives: HII is actively expanding its service capabilities and exploring strategic partnerships for future market expansion and technology integration.

Market Dynamics:

The shipbuilding industry is characterized by long-term contracts, high capital requirements, and sensitivity to geopolitical factors. HII benefits from a stable relationship with the US Navy but needs to continuously adapt to evolving technological demands and global security threats.

Competitors:

  • General Dynamics (GD)
  • Lockheed Martin (LMT)
  • Bath Iron Works (a subsidiary of General Dynamics)
  • Austal USA

HII holds competitive advantages with its access to nuclear shipbuilding capabilities and established contracts with the US Navy. However, rivals like General Dynamics possess comparable shipbuilding expertise and offer diverse defense-related products.

Potential Challenges and Opportunities:

Key Challenges:

  • Supply chain disruptions and increasing material costs.
  • Competition from domestic and international shipbuilders.
  • Potential budget cuts in government defense spending.

Potential Opportunities:

  • Expanding service offerings and exploring new technologies.
  • Entering international markets and pursuing export contracts.
  • Strengthening collaboration with allies for joint shipbuilding projects.

Recent Acquisitions (last 3 years):

  • HII acquired Hydroid Inc. in 2021: A leading manufacturer of autonomous underwater vehicles (AUVs), this strategic acquisition strengthens HII's unmanned maritime systems capabilities.
  • HII acquired BAE Systems Southeast Shipyards and Detyens Shipyards in 2022: The purchase of these shipyards expands HII's repair and maintenance services and increases its access to strategic East Coast ports.

AI-Based Fundamental Rating:

(On a scale of 1 to 10, with 10 being the most favorable)

Rating: 8

Justification:

HII exhibits strong financial health with consistent growth, healthy cash flow, and moderate debt. The company enjoys a favorable market position as a leading US Navy contractor with access to advanced technologies and specialized capabilities. Future opportunities for expansion into adjacent segments and international markets present exciting growth prospects. However, certain challenges like supply chain issues and competition require constant strategic attention.

Sources:

  • Huntington Ingalls Industries Official Website (hii.com)
  • U.S. Securities and Exchange Commission (SEC)
  • Company financial statements and filings
  • Industry market reports and news articles

Disclaimer:

The information provided in this overview is for general knowledge purposes only and should not be considered as investment advice. Before making any investment decisions, consult with a financial professional for personalized guidance considering your individual financial situation and risk tolerance.

About Huntington Ingalls Industries Inc

Exchange NYSE
Headquaters Newport News, VA, United States
IPO Launch date 2011-03-22
President, CEO & Director Mr. Christopher D. Kastner
Sector Industrials
Industry Aerospace & Defense
Full time employees 44000
Full time employees 44000

Huntington Ingalls Industries, Inc. designs, builds, overhauls, and repairs military ships in the United States. It operates through three segments: Ingalls, Newport News, and Mission Technologies. 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 nuclear-powered aircraft carriers. 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, the company provides C5ISR systems and operations; application of artificial intelligence and machine learning to battlefield decisions; defensive and offensive cyberspace strategies and electronic warfare; live, virtual, and constructive solutions; unmanned, autonomous systems; and fleet sustainment; and critical nuclear operations. Huntington Ingalls Industries, Inc. was founded in 1886 and is headquartered in Newport News, Virginia.

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