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Huntington Ingalls Industries

NYSE:HII
Snowflake Description

Acceptable track record with mediocre balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
HII
NYSE
$7B
Market Cap
  1. Home
  2. US
  3. Capital Goods
Company description

Huntington Ingalls Industries, Inc. operates as a military shipbuilding company in the United States. The last earnings update was 51 days ago. More info.


Add to Portfolio Compare Print
  • Huntington Ingalls Industries has significant price volatility in the past 3 months.
HII Share Price and Events
7 Day Returns
-2.5%
NYSE:HII
-14.4%
US Aerospace & Defense
-2%
US Market
1 Year Returns
-14.9%
NYSE:HII
-23.1%
US Aerospace & Defense
-15.1%
US Market
HII Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Huntington Ingalls Industries (HII) -2.5% -13.7% -31.3% -14.9% -11.2% 27.5%
US Aerospace & Defense -14.4% -31.2% -37.5% -23.1% -11.4% 10.4%
US Market -2% -19.7% -23.2% -15.1% 3.7% 14.4%
1 Year Return vs Industry and Market
  • HII outperformed the Aerospace & Defense industry which returned -23.1% over the past year.
  • HII matched the United States of America Market (-15.1%) over the past year.
Price Volatility
HII
Industry
5yr Volatility vs Market

HII Value

 Is Huntington Ingalls Industries undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Huntington Ingalls Industries to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Huntington Ingalls Industries.

NYSE:HII Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 9 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7%
Perpetual Growth Rate 10-Year US Government Bond Rate 1.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:HII
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 1.7%
Equity Risk Premium S&P Global 5.4%
Aerospace & Defense Unlevered Beta Simply Wall St/ S&P Global 0.82
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.821 (1 + (1- 21%) (20.14%))
0.968
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.97
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.74% + (0.968 * 5.44%)
7%

Discounted Cash Flow Calculation for NYSE:HII using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Huntington Ingalls Industries is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

NYSE:HII DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 7%)
2020 555.60 Analyst x5 519.24
2021 600.80 Analyst x5 524.73
2022 686.25 Analyst x4 560.13
2023 726.00 Analyst x2 553.79
2024 632.00 Analyst x1 450.53
2025 579.07 Est @ -8.37% 385.79
2026 548.15 Est @ -5.34% 341.28
2027 530.52 Est @ -3.22% 308.69
2028 521.35 Est @ -1.73% 283.50
2029 517.76 Est @ -0.69% 263.12
Present value of next 10 years cash flows $4,190.00
NYSE:HII DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $517.76 × (1 + 1.74%) ÷ (7% – 1.74%)
$10,008.02
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $10,008.02 ÷ (1 + 7%)10
$5,085.93
NYSE:HII Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $4,190.00 + $5,085.93
$9,275.93
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $9,275.93 / 40.72
$227.78
NYSE:HII Discount to Share Price
Calculation Result
Value per share (USD) From above. $227.78
Current discount Discount to share price of $181.04
= -1 x ($181.04 - $227.78) / $227.78
20.5%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Huntington Ingalls Industries is available for.
Intrinsic value
21%
Share price is $181.04 vs Future cash flow value of $227.78
Current Discount Checks
For Huntington Ingalls Industries to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Huntington Ingalls Industries's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Huntington Ingalls Industries's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Huntington Ingalls Industries's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Huntington Ingalls Industries's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:HII PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in USD $13.26
NYSE:HII Share Price ** NYSE (2020-04-03) in USD $181.04
United States of America Aerospace & Defense Industry PE Ratio Median Figure of 39 Publicly-Listed Aerospace & Defense Companies 12.78x
United States of America Market PE Ratio Median Figure of 2,947 Publicly-Listed Companies 12.4x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Huntington Ingalls Industries.

NYSE:HII PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:HII Share Price ÷ EPS (both in USD)

= 181.04 ÷ 13.26

13.65x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Huntington Ingalls Industries is overvalued based on earnings compared to the US Aerospace & Defense industry average.
  • Huntington Ingalls Industries is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Huntington Ingalls Industries's expected growth come at a high price?
Raw Data
NYSE:HII PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 13.65x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 9 Analysts
-0.1%per year
United States of America Aerospace & Defense Industry PEG Ratio Median Figure of 31 Publicly-Listed Aerospace & Defense Companies 1.65x
United States of America Market PEG Ratio Median Figure of 2,010 Publicly-Listed Companies 0.89x

*Line of best fit is calculated by linear regression .

NYSE:HII PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 13.65x ÷ -0.1%

-154.57x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Huntington Ingalls Industries earnings are not expected to grow next year, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Huntington Ingalls Industries's assets?
Raw Data
NYSE:HII PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in USD $38.92
NYSE:HII Share Price * NYSE (2020-04-03) in USD $181.04
United States of America Aerospace & Defense Industry PB Ratio Median Figure of 53 Publicly-Listed Aerospace & Defense Companies 1.7x
United States of America Market PB Ratio Median Figure of 5,144 Publicly-Listed Companies 1.2x
NYSE:HII PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:HII Share Price ÷ Book Value per Share (both in USD)

= 181.04 ÷ 38.92

4.65x

* Primary Listing of Huntington Ingalls Industries.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Huntington Ingalls Industries is overvalued based on assets compared to the US Aerospace & Defense industry average.
X
Value checks
We assess Huntington Ingalls Industries's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Aerospace & Defense industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Aerospace & Defense industry average (and greater than 0)? (1 check)
  5. Huntington Ingalls Industries has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

HII Future Performance

 How is Huntington Ingalls Industries expected to perform in the next 1 to 3 years based on estimates from 9 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
-0.1%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Huntington Ingalls Industries expected to grow at an attractive rate?
  • Huntington Ingalls Industries's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 1.7%.
Growth vs Market Checks
  • Huntington Ingalls Industries's earnings are expected to decrease over the next 1-3 years, this is below the United States of America market average.
  • Huntington Ingalls Industries's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:HII Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:HII Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 9 Analysts -0.1%
NYSE:HII Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 9 Analysts 2.8%
United States of America Aerospace & Defense Industry Earnings Growth Rate Market Cap Weighted Average 10.7%
United States of America Aerospace & Defense Industry Revenue Growth Rate Market Cap Weighted Average 4.1%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.4%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.1%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:HII Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:HII Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2024-12-31 10,390 996 678 1
2023-12-31 9,936 973 610 2
2022-12-31 9,578 928 594 6
2021-12-31 9,249 858 578 8
2020-12-31 8,965 949 829 9
2020-04-04
NYSE:HII Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-12-31 8,899 896 549
2019-09-30 8,686 978 612
2019-06-30 8,550 522 687
2019-03-31 8,382 805 798
2018-12-31 8,176 914 836
2018-09-30 7,973 700 688
2018-06-30 7,753 889 608
2018-03-31 7,591 836 516
2017-12-31 7,441 814 479
2017-09-30 7,367 725 612
2017-06-30 7,187 883 570
2017-03-31 7,029 866 556

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Huntington Ingalls Industries's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • Huntington Ingalls Industries's revenue is expected to grow by 2.8% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:HII Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below

All data from Huntington Ingalls Industries Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:HII Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2024-12-31 19.76 19.76 19.76 1.00
2023-12-31 17.10 17.10 17.10 1.00
2022-12-31 15.72 16.99 13.25 6.00
2021-12-31 14.59 16.45 12.03 8.00
2020-12-31 20.35 21.50 18.13 9.00
2020-04-04
NYSE:HII Past Financials Data
Date (Data in USD Millions) EPS *
2019-12-31 13.26
2019-09-30 14.65
2019-06-30 16.22
2019-03-31 18.58
2018-12-31 19.09
2018-09-30 15.49
2018-06-30 13.53
2018-03-31 11.38
2017-12-31 10.48
2017-09-30 13.33
2017-06-30 12.31
2017-03-31 11.92

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Huntington Ingalls Industries is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Huntington Ingalls Industries's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Huntington Ingalls Industries has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

HII Past Performance

  How has Huntington Ingalls Industries performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Huntington Ingalls Industries's growth in the last year to its industry (Aerospace & Defense).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Huntington Ingalls Industries's year on year earnings growth rate has been positive over the past 5 years.
  • Huntington Ingalls Industries's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Huntington Ingalls Industries's 1-year earnings growth is negative, it can't be compared to the US Aerospace & Defense industry average.
Earnings and Revenue History
Huntington Ingalls Industries's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Huntington Ingalls Industries Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:HII Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 8,899.00 549.00 776.00
2019-09-30 8,686.00 612.00 800.00
2019-06-30 8,550.00 687.00 783.00
2019-03-31 8,382.00 798.00 791.00
2018-12-31 8,176.00 836.00 797.00
2018-09-30 7,973.00 688.00 775.00
2018-06-30 7,753.00 608.00 771.00
2018-03-31 7,591.00 516.00 767.00
2017-12-31 7,441.00 479.00 775.00
2017-09-30 7,367.00 612.00 741.00
2017-06-30 7,187.00 570.00 703.00
2017-03-31 7,029.00 556.00 668.00
2016-12-31 7,068.00 573.00 786.00
2016-09-30 7,051.00 426.00 631.00
2016-06-30 7,168.00 430.00 634.00
2016-03-31 7,213.00 453.00 656.00
2015-12-31 7,020.00 404.00 669.00
2015-09-30 7,042.00 406.00 676.00
2015-06-30 6,959.00 391.00 700.00
2015-03-31 6,933.00 335.00 683.00
2014-12-31 6,957.00 338.00 726.00
2014-09-30 6,968.00 377.00 664.00
2014-06-30 6,888.00 350.00 676.00
2014-03-31 6,852.00 307.00 705.00
2013-12-31 6,820.00 261.00 739.00
2013-09-30 6,705.00 220.00 774.00
2013-06-30 6,664.00 164.00 752.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Huntington Ingalls Industries has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • Huntington Ingalls Industries used its assets more efficiently than the US Aerospace & Defense industry average last year based on Return on Assets.
  • Huntington Ingalls Industries's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Huntington Ingalls Industries's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Aerospace & Defense industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Huntington Ingalls Industries has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

HII Health

 How is Huntington Ingalls Industries's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Huntington Ingalls Industries's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Huntington Ingalls Industries's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Huntington Ingalls Industries's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Huntington Ingalls Industries's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 1.4x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Huntington Ingalls Industries Company Filings, last reported 3 months ago.

NYSE:HII Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 1,588.00 1,286.00 75.00
2019-09-30 1,705.00 1,549.00 32.00
2019-06-30 1,628.00 1,698.00 29.00
2019-03-31 1,563.00 1,496.00 51.00
2018-12-31 1,516.00 1,283.00 240.00
2018-09-30 1,825.00 1,282.00 68.00
2018-06-30 1,699.00 1,281.00 398.00
2018-03-31 1,718.00 1,280.00 528.00
2017-12-31 1,758.00 1,279.00 701.00
2017-09-30 1,712.00 1,282.00 499.00
2017-06-30 1,650.00 1,281.00 553.00
2017-03-31 1,638.00 1,280.00 608.00
2016-12-31 1,653.00 1,278.00 720.00
2016-09-30 1,652.00 1,277.00 957.00
2016-06-30 1,612.00 1,276.00 852.00
2016-03-31 1,521.00 1,275.00 793.00
2015-12-31 1,490.00 1,273.00 894.00
2015-09-30 1,490.00 1,305.00 671.00
2015-06-30 1,485.00 1,679.00 960.00
2015-03-31 1,380.00 1,700.00 904.00
2014-12-31 1,365.00 1,670.00 990.00
2014-09-30 1,662.00 1,743.00 769.00
2014-06-30 1,569.00 1,765.00 592.00
2014-03-31 1,561.00 1,779.00 742.00
2013-12-31 1,521.00 1,779.00 1,043.00
2013-09-30 935.00 1,808.00 895.00
2013-06-30 873.00 1,817.00 623.00
  • Huntington Ingalls Industries's level of debt (81%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (122.4% vs 81% today).
  • Debt is well covered by operating cash flow (69.7%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 15.7x coverage).
X
Financial health checks
We assess Huntington Ingalls Industries's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Huntington Ingalls Industries has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

HII Dividends

 What is Huntington Ingalls Industries's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.28%
Current annual income from Huntington Ingalls Industries dividends. Estimated to be 2.5% next year.
If you bought $2,000 of Huntington Ingalls Industries shares you are expected to receive $46 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Huntington Ingalls Industries's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (2.05%).
  • Huntington Ingalls Industries's dividend is below the markets top 25% of dividend payers in United States of America (5.71%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:HII Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below
United States of America Aerospace & Defense Industry Average Dividend Yield Market Cap Weighted Average of 19 Stocks 2.8%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 1938 Stocks 3.1%
United States of America Minimum Threshold Dividend Yield 10th Percentile 1.1%
United States of America Bottom 25% Dividend Yield 25th Percentile 2.1%
United States of America Top 25% Dividend Yield 75th Percentile 5.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:HII Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2024-12-31
2023-12-31
2022-12-31 4.87 3.00
2021-12-31 4.62 5.00
2020-12-31 4.25 5.00
2020-04-04
NYSE:HII Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2020-02-06 4.120 2.042
2019-11-05 4.120 1.594
2019-07-30 3.440 1.619
2019-04-30 3.440 1.574
2019-02-06 3.440 1.624
2018-11-07 3.440 1.705
2018-07-24 2.880 1.198
2018-02-08 2.880 1.217
2017-11-07 2.880 1.215
2017-07-25 2.400 1.093
2017-05-03 2.400 1.240
2017-02-17 2.400 1.158
2016-11-02 2.400 1.303
2016-07-27 2.000 1.238
2016-04-29 2.000 1.248
2016-02-22 2.000 1.452
2015-10-29 2.000 1.568
2015-08-04 1.600 1.434
2015-05-01 1.600 1.348
2015-02-25 1.600 1.145
2014-10-30 1.600 1.406
2014-08-06 0.800 0.795
2014-05-01 0.800 0.830
2014-02-25 0.800 0.787
2013-10-31 0.800 0.928
2013-08-09 0.400 0.592
2013-05-02 0.400 0.696
2013-02-04 0.400 0.806
2012-11-08 0.400 0.945

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, Huntington Ingalls Industries has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but Huntington Ingalls Industries only paid a dividend in the past 7 years.
Current Payout to shareholders
What portion of Huntington Ingalls Industries's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (3.7x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (3.2x coverage).
X
Income/ dividend checks
We assess Huntington Ingalls Industries's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Huntington Ingalls Industries afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Huntington Ingalls Industries has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

HII Management

 What is the CEO of Huntington Ingalls Industries's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Mike Petters
COMPENSATION $8,641,992
AGE 59
TENURE AS CEO 9.1 years
CEO Bio

Mr. C. Michael Petters, also known as Mike, has been the Chief Executive Officer of Huntington Ingalls Industries, Inc. since March 31, 2011 and has been its President since November 1, 2004. Mr. Petters served as the Chief Executive Officer of Northrop Grumman Shipbuilding, Inc. and served as its President since November 2004. He served as the President of Shipbuilding of Northrop Grumman Corp. since January 2008, Corporate Vice President since 2004 and served as its Member of Corporate Policy Council. He serves as Chief Executive Officer and President of New Ships Inc. Mr. Petters served as the Chief Operating Officer at Northrop Grumman Shipbuilding, Inc. since November 2004. Mr. Petters served as the President and Chief Operating Officer of Northrop Grumman Newport News since November 1, 2004 and served as its Vice President of Human Resources, Administration and Trades from 2001 to November 1, 2004. Mr. Petters oversaw human resources operations and employment, environmental, health and safety; labor relations; trades management; community relations, security, training, EEO and diversity and benefits and employee services. He served as Vice President of Contracts Management of Newport News Sector from 2000 to 2001 and Vice President & General Manager of Aircraft Carrier Programs from 1998 to 2000. Mr. Petters was responsible for the design, construction and maintenance of the most sophisticated ships in the world nuclear-powered aircraft carriers and submarines. Mr. Petters' responsibilities include the Virginia-class submarine program; George H.W. Bush (CVN 77) and CVN 21 aircraft carrier programs; aircraft carrier overhaul and refueling; submarine fleet maintenance; commercial and naval ship repair; and business and technology development. After completing nuclear propulsion training, he was assigned to the USS George Bancroft where he held progressively responsible leadership positions, including reactor controls assistant, communications officer and refueling officer. After joining the Naval Reserve in 1988, he participated in three NATO exercises as submarine control officer. Mr. Petters joined Newport News in 1987 in the Los Angeles-class submarine construction division. He has held a number of increasingly responsible positions throughout the organization. He is the Vice Chairman for the American Shipbuilding Association and Director for the Naval Submarine League & the Virginia Chamber of Commerce. Mr. Petters was appointed by Virginia Governor Mark Warner to serve on the State Board of Community Colleges. Mr. Petters has been a Director of Huntington Ingalls Industries, Inc. since March 30, 2011. He serves on the board of trustees for the Mariners' Museum and the Virginia Living Museum. He was the Chairman of the 2003 campaign for the United Way of the Virginia Peninsula. Mr. Petters holds a Bachelor of Science Degree in Physics from the United States Naval Academy in 1982. In 1993, he has a Master of Business Administration degree from the College of William and Mary.

CEO Compensation
  • Mike's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
  • Mike's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Huntington Ingalls Industries management team in years:

4.1
Average Tenure
55
Average Age
  • The tenure for the Huntington Ingalls Industries management team is about average.
Management Team

Mike Petters

TITLE
President
COMPENSATION
$9M
AGE
59
TENURE
9.1 yrs

Chris Kastner

TITLE
Executive VP & CFO
COMPENSATION
$4M
AGE
55
TENURE
4.1 yrs

Jennifer Boykin

TITLE
Executive VP & President of Newport News Shipbuilding
COMPENSATION
$4M
AGE
55
TENURE
2.8 yrs

Andy Green

TITLE
Executive VP & President of Technical Solutions
COMPENSATION
$2M
AGE
53
TENURE
3.3 yrs

Brian Cuccias

TITLE
Executive VP & President of Ingalls Shipbuilding
COMPENSATION
$4M
AGE
62
TENURE
6 yrs

Matt Needy

TITLE
Vice President of Operations
TENURE
2.5 yrs

Nicolas Schuck

TITLE
Corporate VP
AGE
45
TENURE
4.7 yrs

Bharat Amin

TITLE
Executive VP & Chief Information Officer
AGE
64
TENURE
0.3 yrs

Susan Jacobs

TITLE
Vice President of Human Resources and Administration

Dwayne Blake

TITLE
Corporate Vice President of Investor Relations
TENURE
7.3 yrs
Board of Directors Tenure

Average tenure and age of the Huntington Ingalls Industries board of directors in years:

6.4
Average Tenure
65
Average Age
  • The tenure for the Huntington Ingalls Industries board of directors is about average.
Board of Directors

Tom Fargo

TITLE
Independent Chairman of the Board
COMPENSATION
$479K
AGE
70
TENURE
9.1 yrs

Mike Petters

TITLE
President
COMPENSATION
$9M
AGE
59
TENURE
9.1 yrs

Thomas Schievelbein

TITLE
Independent Director
COMPENSATION
$267K
AGE
65
TENURE
9.1 yrs

Stephen Wilson

TITLE
Independent Director
COMPENSATION
$254K
AGE
71
TENURE
4.5 yrs

Victoria Harker

TITLE
Independent Director
COMPENSATION
$257K
AGE
54
TENURE
7.7 yrs

John Welch

TITLE
Independent Non-Executive Director
COMPENSATION
$254K
AGE
69
TENURE
5.2 yrs

Stasia Kelly

TITLE
Independent Director
COMPENSATION
$257K
AGE
70
TENURE
9.1 yrs

Augustus Collins

TITLE
Independent Director
COMPENSATION
$254K
AGE
61
TENURE
3.4 yrs

Kirk Donald

TITLE
Independent Chairman
COMPENSATION
$244K
AGE
65
TENURE
3.3 yrs

Philip Bilden

TITLE
Independent Director
COMPENSATION
$244K
AGE
54
TENURE
2.4 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Huntington Ingalls Industries individual insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
09. Mar 20 Buy Philip Bilden Individual 06. Mar 20 06. Mar 20 500 $204.60 $101,900
09. Mar 20 Sell Nicolas Schuck Individual 05. Mar 20 05. Mar 20 -650 $214.62 $-139,502
05. Mar 20 Sell Jennifer Boykin Individual 03. Mar 20 03. Mar 20 -1,564 $215.01 $-336,280
03. Mar 20 Buy Thomas Schievelbein Individual 02. Mar 20 02. Mar 20 4,000 $208.74 $831,665
26. Feb 20 Sell Dale Wyatt Individual 25. Feb 20 25. Feb 20 -1,150 $235.31 $-270,607
13. Nov 19 Sell Dale Wyatt Individual 11. Nov 19 11. Nov 19 -550 $250.88 $-137,986
13. Nov 19 Sell Nicolas Schuck Individual 11. Nov 19 11. Nov 19 -400 $250.00 $-100,000
03. Jun 19 Sell Jennifer Boykin Individual 31. May 19 31. May 19 -1,345 $204.59 $-275,170
31. May 19 Sell Nicolas Schuck Individual 30. May 19 30. May 19 -500 $204.46 $-102,231
22. May 19 Sell William Ermatinger Individual 21. May 19 21. May 19 -1,863 $211.55 $-394,120
15. May 19 Sell Andy Green Individual 14. May 19 14. May 19 -500 $205.66 $-102,830
X
Management checks
We assess Huntington Ingalls Industries's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Huntington Ingalls Industries has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

HII News

Simply Wall St News

An Intrinsic Calculation For Huntington Ingalls Industries, Inc. (NYSE:HII) Suggests It's 29% Undervalued

Generally we assume that a dollar today is more valuable than a dollar in the future, and so the sum of these future cash flows is then discounted to today's value: 10-year free cash flow (FCF) forecast 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Levered FCF ($, Millions) $599.7m $671.0m $734.0m $777.5m $815.2m $849.6m $881.6m $912.1m $941.6m $970.7m Growth Rate Estimate Source Analyst x7 Analyst x4 Analyst x2 Analyst x2 Est @ 4.85% Est @ 4.21% Est @ 3.77% Est @ 3.46% Est @ 3.24% Est @ 3.09% Present Value ($, Millions) Discounted @ 8.78% $551.3 $567.0 $570.2 $555.2 $535.2 $512.7 $489.1 $465.1 $441.4 $418.3 ("Est" = FCF growth rate estimated by Simply Wall St) Present Value of 10-year Cash Flow (PVCF)= $5.1b After calculating the present value of future cash flows in the intial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage. … Terminal Value (TV) = FCF2029 × (1 + g) ÷ (r – g) = US$971m × (1 + 2.7%) ÷ (8.8% – 2.7%) = US$16b Present Value of Terminal Value (PVTV) = TV / (1 + r)10 = $US$16b ÷ ( 1 + 8.8%)10 = $7.10b The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is $12.21b. … NYSE:HII Intrinsic value, September 2nd 2019 Important assumptions We would point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows.

Simply Wall St -

With EPS Growth And More, Huntington Ingalls Industries (NYSE:HII) Is Interesting

So if you're like me, you might be more interested in profitable, growing companies, like Huntington Ingalls Industries (NYSE:HII). … For companies with market capitalizations between US$4.0b and US$12b, like Huntington Ingalls Industries, the median CEO pay is around US$6.9m. … Although Huntington Ingalls Industries certainly looks good to me, I would like it more if insiders were buying up shares.

Simply Wall St -

Is Huntington Ingalls Industries, Inc. (NYSE:HII) A High Quality Stock To Own?

The formula for return on equity is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Huntington Ingalls Industries: 42% = US$687m ÷ US$1.6b (Based on the trailing twelve months to June 2019.) Most readers would understand what net profit is, but it’s worth explaining the concept of shareholders’ equity. … In the latter case, the debt required for growth will boost returns, but will not impact the shareholders' equity. … Combining Huntington Ingalls Industries's Debt And Its 42% Return On Equity Huntington Ingalls Industries clearly uses a significant amount of debt to boost returns, as it has a debt to equity ratio of 1.04.

Simply Wall St -

Can You Imagine How Chuffed Huntington Ingalls Industries's (NYSE:HII) Shareholders Feel About Its 113% Share Price Gain?

During five years of share price growth, Huntington Ingalls Industries achieved compound earnings per share (EPS) growth of 18% per year. … As it happens, Huntington Ingalls Industries's TSR for the last 5 years was 127%, which exceeds the share price return mentioned earlier. … A Different Perspective Investors in Huntington Ingalls Industries had a tough year, with a total loss of 9.5% (including dividends), against a market gain of about 3.3%.

Simply Wall St -

Do Institutions Own Shares In Huntington Ingalls Industries, Inc. (NYSE:HII)?

Check out our latest analysis for Huntington Ingalls Industries NYSE:HII Ownership Summary, July 31st 2019 What Does The Institutional Ownership Tell Us About Huntington Ingalls Industries? … We can see that Huntington Ingalls Industries does have institutional investors; and they hold 87% of the stock. … Insider Ownership Of Huntington Ingalls Industries The definition of an insider can differ slightly between different countries, but members of the board of directors always count.

Simply Wall St -

Huntington Ingalls Industries (NYSE:HII) Seems To Use Debt Quite Sensibly

NYSE:HII Historical Debt, July 20th 2019 How Strong Is Huntington Ingalls Industries's Balance Sheet? … Either way, since Huntington Ingalls Industries does have more debt than cash, it's worth keeping an eye on its balance sheet. … In the last three years, Huntington Ingalls Industries's free cash flow amounted to 49% of its EBIT, less than we'd expect.

Simply Wall St -

Have Insiders Been Selling Huntington Ingalls Industries, Inc. (NYSE:HII) Shares?

As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.' See our latest analysis for Huntington Ingalls Industries Huntington Ingalls Industries Insider Transactions Over The Last Year The , D. … NYSE:HII Recent Insider Trading, July 11th 2019 Insiders at Huntington Ingalls Industries Have Sold Stock Recently The last quarter saw substantial insider selling of Huntington Ingalls Industries shares. … Insider Ownership of Huntington Ingalls Industries I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders.

Simply Wall St -

Why Huntington Ingalls Industries, Inc. (NYSE:HII) Is A Dividend Rockstar

Dividend paying stocks like Huntington Ingalls Industries, Inc. … With a 1.5% yield and a seven-year payment history, investors probably think Huntington Ingalls Industries looks like a reliable dividend stock. … Looking at the data, we can see that Huntington Ingalls Industries has been paying a dividend for the past seven years.

Simply Wall St -

Is It Too Late To Consider Buying Huntington Ingalls Industries, Inc. (NYSE:HII)?

Let’s take a look at Huntington Ingalls Industries’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change. … What’s more interesting is that, Huntington Ingalls Industries’s share price is quite volatile, which gives us more chances to buy since the share price could sink lower (or rise higher) in the future. … If you are no longer interested in Huntington Ingalls Industries, you can use our free platform to see my list of over 50 other stocks with a high growth potential.

Simply Wall St -

How Much is Huntington Ingalls Industries, Inc.'s (NYSE:HII) CEO Getting Paid?

See our latest analysis for Huntington Ingalls Industries How Does Mike Petters's Compensation Compare With Similar Sized Companies? … You can see, below, how CEO compensation at Huntington Ingalls Industries has changed over time. … NYSE:HII CEO Compensation, June 10th 2019 Is Huntington Ingalls Industries, Inc.

Simply Wall St -

HII Company Info

Description

Huntington Ingalls Industries, Inc. operates as a military shipbuilding company 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 that include deck amphibious ships and transport dock 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. In addition, the company offers naval nuclear support services, including fleet services comprising design, construction, maintenance, and disposal activities for in service U.S. Navy nuclear ships; and maintenance services on nuclear reactor prototypes. Further, it provides fleet support services comprising ship technical and waterfront; naval architecture and marine engineering; integrated logistics support; technical documentation development; warehousing, asset management, and material readiness; operational and maintenance training development and delivery; software design and development; IT infrastructure support, and data delivery and management; and cyber security and information assurance services, as well as undersea vehicle and specialized craft development and prototyping services. Additionally, the company offers IT and mission-based solutions; nuclear and environmental services; engineering, procurement, and construction management services to the oil and gas industry; and nuclear management and operations, and environmental management services to the Department of Energy, Department of Defense, local governments, and the private sector. The company was incorporated in 2010 and is headquartered in Newport News, Virginia.

Details
Name: Huntington Ingalls Industries, Inc.
HII
Exchange: NYSE
Founded: 2010
$7,372,650,873
40,723,878
Website: http://www.huntingtoningalls.com
Address: Huntington Ingalls Industries, Inc.
4101 Washington Avenue,
Newport News,
Virginia, 23607,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE HII New Common Stock New York Stock Exchange US USD 22. Mar 2011
DB HI4 New Common Stock Deutsche Boerse AG DE EUR 22. Mar 2011
LSE 0J76 New Common Stock London Stock Exchange GB USD 22. Mar 2011
BRSE HI4 New Common Stock Berne Stock Exchange CH CHF 22. Mar 2011
BOVESPA H1II34 BDR EACH 4 REPR 1 COM Bolsa de Valores de Sao Paulo BR BRL 27. Jan 2020
Number of employees
Current staff
Staff numbers
42,000
Huntington Ingalls Industries employees.
Industry
Aerospace and Defense
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/04/04 05:54
End of day share price update: 2020/04/03 00:00
Last estimates confirmation: 2020/03/27
Last earnings filing: 2020/02/13
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.