
Huntington Ingalls Industries HII
367.25 USD (+40.9%)
12 analysts
What does it do?
Huntington Ingalls Industries is the largest military shipbuilder in the United States, dedicated to the design, construction, and maintenance of aircraft carriers, submarines, and other warships for the U.S.
Key points
from its scores- ✓Favourable backdrop8.6
- ✓Strong growth7.7
- ✕Little competitive advantage3.4
- !Weak share-price trend5.1
- !Balance sheet could be stronger5.7
AI analysis
bottom line, main risk, context and newsThe company has attractive growth and a reasonable valuation, but dependence on government spending and weak free cash flow generation warrant caution.
Navy. Huntington Ingalls shows solid growth (revenue +10.9%, earnings +36.5%) backed by defense demand, with a reasonable valuation (P/E 15.5) and a healthy balance sheet (ND/EBITDA 2.5x), although its free cash flow conversion is negative and its business depends on a single client, the Pentagon.
Concentration of revenue in the U.S. government (Pentagon) and the potential for delays or cancellations in naval construction programs are the biggest specific risk for Huntington Ingalls.
Context and risks
Huntington Ingalls is the largest U.S. military shipbuilder and its business depends on the federal government's defense budgets. Although defense demand is structurally high, revenue concentration in a single client (the Pentagon) and exposure to budget policy and potential delays in key programs are specific risks to its business model that financial metrics do not capture.
Is Huntington Ingalls Industries stock cheap or expensive?
at the analysis dateOn P/E and EV / EBITDA, it trades 30% below the Industrials median on average.
| Multiple | Company | Sector | Difference |
|---|---|---|---|
| P/E | 15.5 | 25.4 | −39% |
| EV / EBITDA | 11.4 | 14.5 | −21% |
| Price / book | 1.9 | 4.1 | −52% |
| Price / sales | 0.8 | 2.1 | −62% |
Sector: median of the 388 Industrials companies analysed. In bold, the multiples used for the comparison.
Valuation score: 6.0 out of 10 (median for Industrials: 5.0).
Average analyst target: 367.25 USD, +40.9% versus the price.
A discount may reflect more risk or slower growth than its sector: Financial health 5.7 (sector 6.4), Growth 7.7 (sector 6.6).
Classic formulas with standard assumptions (10.0% growth, 8-9% discount rate). Indicative only: they change a lot with the assumptions and are not a recommendation.
Work out its fair value yourself →How much would you have made investing every month? →
Comparing it with its sector does not say whether it is a good buy: this is not investment advice.
Score by category
0 to 10 · hover overtap each one to see what it measuresKey metrics
at the analysis date · compared with the Industrials medianValuation
- P/E
- 15.5
- Forward P/E
- 12.5
- EV / EBITDA
- 11.4
- Price / book
- 1.9
- Price / sales
- 0.8
- PEG
- 0.81
- Market cap
- 10.3B USD
- Enterprise value
- 13.3B USD
Profitability
- ROE
- 13.0%
- ROA
- 4.3%
- ROIC (approx.)
- 11.3%
- Gross margin
- 12.4%
- Operating margin
- 7.1%
- Net margin
- 5.0%
- Free cash flow
- −300.2M USD
- FCF yield
- −2.9%
- Cash conversion
- −26%
Solvency
- Total debt
- 2.9B USD
- Net debt
- 2.9B USD
- Cash
- 12.0M USD
- EBITDA
- 1.2B USD
- Net debt / EBITDA
- 2.50
- Debt / equity
- 55.25
- Current ratio
- 1.23
- Quick ratio
- 1.10
Growth
- Revenue growth
- +10.9%
- Earnings growth
- +36.5%
- EPS (TTM)
- 16.78 USD
- EPS (forward)
- 20.88 USD
Dividend
- Dividend yield
- 2.1%
- Payout
- 32.7%
Risk and market
- Beta
- 0.21
- Analyst consensus
- Buy (12)
- Target price
- 367.25 USD
- 52-week range
- 256.79 – 460.00
Recent news
All HII news →Compare it with its sector
All 388 in Industrials →Frequently asked questions about Huntington Ingalls Industries
Is Huntington Ingalls Industries stock cheap or expensive?
On P/E and EV / EBITDA, it trades 30% below the Industrials median on average. Valuation score: 6.0 out of 10 (median for Industrials: 5.0). Average analyst target: 367.25 USD, +40.9% versus the price. This is not investment advice.
What score does Huntington Ingalls Industries get on MeridIAn Screener?
It scores 5.9 out of 10, rank 1,073 of 2,130 (better than 47% of the companies analysed). Its strongest category is Risk & Context (8.6) and its weakest, Quality / Moat (3.4). Analysis of 08/10/2026.
What is Huntington Ingalls Industries's P/E ratio?
Its P/E is 15.5: the share price equals 15.5 times earnings per share over the last 12 months. The Industrials median is 25.4. Based on the earnings analysts expect, the forward P/E is 12.5.
How much is Huntington Ingalls Industries worth on the stock market?
Its market capitalisation is 10.3B USD and its enterprise value, debt included, is 13.3B USD.
How much debt does Huntington Ingalls Industries have?
Its net debt (debt minus cash) is 2.9B USD. That is 2.50 times its EBITDA; the Industrials median is 1.58.
Does Huntington Ingalls Industries pay a dividend?
Yes: its dividend yield is 2.12% and it pays out 33% of its earnings.
How has Huntington Ingalls Industries stock performed over the last year?
It has fallen 6.4% over the last year, excluding dividends. Over the last 52 weeks it has traded between 256.79 and 460.00 USD. Past performance does not guarantee future results.
What do analysts think of Huntington Ingalls Industries?
12 analysts cover it; their average recommendation is “Buy” and their average target is 367.25 USD (+40.9% versus the price). It is an estimate, not market data.
