Huntington Ingalls Industries, Inc. (HII) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

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Huntington Ingalls Industries, Inc.

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Textron, Inc.

Axon Enterprise, Inc.

TransDigm Group, Inc.

Why is Huntington Ingalls Industries, Inc. ?

The company has declared Negative results for the last 3 consecutive quarters

NET PROFIT(9M) At USD 424 MM has Grown at -29.33%
ROCE(HY) Lowest at 11.59%
RAW MATERIAL COST(Y) Grown by 12.51% (YoY)

With ROCE of 6.17%, it has a fair valuation with a 1.91 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 70.59%, its profits have fallen by -22.6%

Market Beating Performance

The stock has generated a return of 70.59% in the last 1 year, much higher than market (S&P 500) returns of 14.11%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Huntington Ingalls Industries, Inc. should be less than 10%
Overall Portfolio exposure to Aerospace & Defense should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Aerospace & Defense)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Huntington Ingalls Industries, Inc. for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Huntington Ingalls Industries, Inc.

100.61%

0.86

37.05%

S&P 500

16.41%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

5.93%

EBIT Growth (5y)

-4.52%

EBIT to Interest (avg)

5.51

Debt to EBITDA (avg)

2.85

Net Debt to Equity (avg)

0.64

Sales to Capital Employed (avg)

1.63

Tax Ratio

15.48%

Dividend Payout Ratio

35.27%

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

10.74%

ROE (avg)

19.48%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

4.31

EV to EBIT

39.26

EV to EBITDA

25.48

EV to Capital Employed

3.38

EV to Sales

1.91

PEG Ratio

3.74

Dividend Yield

0.98%

ROCE (Latest)

8.62%

ROE (Latest)

11.93%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

Bullish

OBV

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

12What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 1,196 MM

DIVIDEND PER SHARE(HY)

Highest at USD 5.57

RAW MATERIAL COST(Y)

Fallen by -9.08% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at 43.5 %

DEBTORS TURNOVER RATIO(HY)

Highest at 5.57 times

NET SALES(Q)

Highest at USD 3,476 MM

OPERATING PROFIT(Q)

Highest at USD 244 MM

PRE-TAX PROFIT(Q)

At USD 198 MM has Grown at 51.15%

NET PROFIT(Q)

Highest at USD 159 MM

EPS(Q)

Highest at USD 4.04

-2What is not working for the Company

INTEREST(Q)

At USD 26 MM has Grown at 13.04%

Here's what is working for Huntington Ingalls Industries, Inc.

Dividend per share

Highest at USD 5.57 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Operating Cash Flow

Highest at USD 1,196 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Net Sales

Highest at USD 3,476 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Operating Profit

Highest at USD 244 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (USD MM)

Pre-Tax Profit

At USD 198 MM has Grown at 51.15%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (USD MM)

Net Profit

Highest at USD 159 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (USD MM)

EPS

Highest at USD 4.04

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (USD)

Debt-Equity Ratio

Lowest at 43.5 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Debtors Turnover Ratio

Highest at 5.57 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -9.08% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at USD 87 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Here's what is not working for Huntington Ingalls Industries, Inc.

Interest

At USD 26 MM has Grown at 13.04%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)