One-glance verdict
Undervalued
$437.72 our estimate vs market $278.09
Wall Street consensus: $368.42 (-15.8% lower than our fair-value estimate)
36% below our estimate, below the bear case
Fundamentals snapshot
Huntington Ingalls Industries, Inc.
HII · NYQ · Industrials · Aerospace & Defense
Current price
$278.09
52-week range
$263.62 - $460.00
Market cap
$10.96B
Balance sheet
Watch
5.82x Adequate
Net debt $2.92B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
0 Risks
3 rewards · 0 risks
- Reward Revenue grew 5.6% last year.
- Reward Returns 13.0% on equity, ahead of 33% of its peers.
- Reward Free cash flow was positive in 10/10 years.
What this company does
Huntington Ingalls Industries, Inc.
Huntington Ingalls Industries is the largest military shipbuilder in the United States, specializing in building and servicing complex warships like aircraft carriers and nuclear submarines for the U.S. Navy. Because they are the sole builder for all U.S. Navy aircraft carriers and one of only two for nuclear submarines, their business is funded by massive, long-term government contracts. This unique position provides a highly predictable stream of revenue (the total money a company brings in from its sales) from a very stable customer.
How the company got here
Huntington Ingalls Industries (HII) was formed in 2011 when it was spun off from Northrop Grumman, but its roots go back much further. The company's name comes from the founders of its two main shipbuilding divisions: Collis Potter Huntington, who started Newport News Shipbuilding in 1886, and Robert Ingersoll Ingalls Sr., who founded Ingalls Shipbuilding in 1938. These two historic shipyards, one in Virginia and the other in Mississippi, joined forces to create the largest military shipbuilding company in the United States. Over the years, HII has built more ships in more classes than any other U.S. naval shipbuilder and later expanded by creating a third division, Mission Technologies, to provide a wider range of services beyond just building ships.
What it actually does
Think of Huntington Ingalls Industries as the company that builds the giant ships for the U.S. military. They design, construct, and repair ships for the U.S. Navy and Coast Guard. This includes massive aircraft carriers that act as floating airports, submarines that operate silently underwater, and other warships that protect the country's interests at sea. Beyond just building new ships, they also handle the complex job of refueling nuclear-powered vessels and provide a range of technology and support services for national security missions.
Newport News Shipbuilding
This is the part of the company that handles all things nuclear-powered for the U.S. Navy. Newport News is the only company in the United States that builds and refuels nuclear-powered aircraft carriers. It is also one of only two companies capable of building nuclear-powered submarines. This division, located in Virginia, has a long history of building these incredibly complex vessels and is a major employer in the state.
Ingalls Shipbuilding
Located in Mississippi, this division focuses on building powerful, non-nuclear ships. They construct a variety of vessels for the U.S. Navy and Coast Guard, including amphibious assault ships, which are like small aircraft carriers for helicopters and landing craft, and surface combatants like destroyers. Ingalls is the largest manufacturing employer in Mississippi and is known for building multiple classes of ships at the same time.
Mission Technologies
This is the company's newer and more technology-focused arm, providing a wide range of services to the government and military. This segment doesn't build the giant ships itself but provides the high-tech systems and support that make them effective. This includes things like unmanned systems (like underwater drones), cybersecurity, and artificial intelligence applications for battlefield decisions. This part of the business represents HII's effort to grow beyond its traditional shipbuilding roots.
What management is betting on now
Management is focused on improving the efficiency of its shipyards to build and deliver ships more quickly and cost-effectively. They are investing in digital technologies, like 3-D printing of metal parts, and expanding their facilities to increase their production capacity. The company is also working to strengthen its supply chain (the network of companies that provide parts and materials) and hire and train a skilled workforce. Another key priority is growing the Mission Technologies division, particularly in high-tech areas like unmanned systems and artificial intelligence, to diversify the company's business beyond traditional shipbuilding.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$136.00M
FY2024 Q4
$277.00M
FY2025 Q1
$-462.00M
FY2025 Q2
$730.00M
FY2025 Q3
$16.00M
FY2025 Q4
$516.00M
FY2026 Q1
$-464.00M
FY2026 Q2
$-150.00M
Revenue
$3.42B
Net income
$208.00M
Diluted EPS
5.27
Operating cash flow
$-31.00M
Free cash flow
$-150.00M
Fetching…
Sources
Revenue
$3.10B
Net income
$149.00M
Diluted EPS
3.79
Operating cash flow
$-390.00M
Free cash flow
$-464.00M
Fetching…
Sources
Revenue
$3.48B
Net income
$159.00M
Diluted EPS
4.06
Operating cash flow
$650.00M
Free cash flow
$516.00M
Fetching…
Sources
Revenue
$3.19B
Net income
$145.00M
Diluted EPS
3.68
Operating cash flow
$118.00M
Free cash flow
$16.00M
Fetching…
Sources
Revenue
$3.08B
Net income
$152.00M
Diluted EPS
3.86
Operating cash flow
$823.00M
Free cash flow
$730.00M
Fetching…
Sources
Revenue
$2.73B
Net income
$149.00M
Diluted EPS
3.79
Operating cash flow
$-395.00M
Free cash flow
$-462.00M
Fetching…
Sources
Revenue
$3.00B
Net income
$123.00M
Diluted EPS
3.15
Operating cash flow
$391.00M
Free cash flow
$277.00M
Fetching…
Sources
Revenue
$2.75B
Net income
$101.00M
Diluted EPS
2.56
Operating cash flow
$213.00M
Free cash flow
$136.00M
Fetching…
Sources
Is it cheap or expensive?
Fair value $437.72 vs current price $278.09
Wall Street consensus is the average analyst price target: $368.42 (-15.8% lower than our fair-value estimate).
Our most-likely fair value is $437.72 a share — about 57.4% above today's price of $278.09, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Watch
Net debt $2.9B. Interest coverage 5.8x.
Net debt
$2.92B
Interest coverage
5.82x
Huntington Ingalls Industries, Inc.'s profit covers its interest bill about 5.8 times over. which is stronger than most peers shown here.
Watch
Worse cushion
Baseline
Better cushion
HII
BASELINE
Huntington Ingalls Industries, Inc.
Total debt $2.94B Interest coverage 5.82x This is the baseline the peer rows are being compared against.
Total debt $9.48B Interest coverage 13.32x +129% vs HII Carries about 2.3x more debt cushion than HII.
Total debt $20.54B Interest coverage 6.92x +19% vs HII Carries about 1.2x more debt cushion than HII.
Total debt $17.05B Interest coverage 6.44x +11% vs HII Has roughly the same debt cushion as HII.
Total debt $38.86B Interest coverage 5.07x -13% vs HII Has roughly the same debt cushion as HII.
Total debt $11.00B Interest coverage 3.60x -38% vs HII Carries about 1.6x less debt cushion than HII.
What you should know
The case for and against HII
3 Rewards
0 Risks
Rewards
-
Revenue grew 5.6% last year.
-
Returns 13.0% on equity, ahead of 33% of its peers.
-
Free cash flow was positive in 10/10 years.
Risks
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
16.64x
Forward P/E
13.35x
P/B
2.06x
P/S
0.83x
EV/EBITDA
11.86x
PEG ratio
0.86x
Profitability
How much profit each dollar creates
Gross margin
12.4%
Operating margin
7.1%
Net margin
5.0%
ROE
13.0%
ROA
4.3%
Health
Liquidity and balance-sheet strength
Debt / equity
0.55x
Current ratio
1.23x
Quick ratio
1.10x
Total debt
$2.94B
Total cash
$12.00M
Growth
How the business has been compounding
Revenue TTM
$13.19B
Revenue 5Y CAGR
7.0%
EPS TTM
16.71
EPS 5Y CAGR
2.1%
Cash flow
How much cash the business throws off
Operating CF TTM
$347.00M
Free CF TTM
$794.00M
FCF margin
6.0%
Dividend
Shareholder payout
Yield
2.0%
Payout ratio
32.7%
Last ex-div date
2026-08-28