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Huntington Ingalls Industries Inc (HII) Fair Value & Analysis

Industrials · US · Market cap $10.6B · ISIN US4464131063

What is Huntington Ingalls Industries Inc really worth?

HI Huntington Ingalls Industries Inc logo Huntington Ingalls Industries Inc HII · US
Price$290.73
Fair Value$248.93
Upside−14.4%
Quality58/100

A solid business, but trading 17% above our fair value of $248.93.

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Strengths

Healthy Growth (revenue 5y +5.9 %/yr)
Moderate debt · generates free cash flow
Ranks above peers (12/15)

Risks

!Thin margins · 4.7% net margin
!Narrow moat 43/100
!Weak on valuation: 14 out of 100

For context

·1.88% dividend yield
Evidence: High Range $171.65 – $326.22

Fair value as of: Sep 2, 2026

From 26 valuation models · updated 2 days ago

Share price −10.0% over the past month.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

What matters now

  • Solid but not exceptional quality (58/100) and above fair value, neither a clear bargain nor a standout compounder.
  • A fairly wide model range ($171.65 to $326.22) leaves room in how you read the outcome.

Price vs Fair Value (5 years)

$451.78 $154.94 Fair Value $248.93 Jun 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Sep 2, 2026.

How to read this chart

60‑month range $154.94 – $451.78 · fair‑value band $171.65 – $326.22 · the $290.73 price screens above the $248.93 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Sep 2, 2026.

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Analysis

Huntington Ingalls Industries Inc (HII) currently trades at $290.73, while our model-based Fair Value estimate is $248.93, implying the stock looks roughly 16.8% overvalued today. The Quality Score stands at 58/100 (solid quality), in the Industrials sector. Bull case: the Growth Earnings group reads highest at a median of $274.40 per share, and 1 of the 26 models we run sit above the $290.73 price. Bear case: the Economic Profit group reads lowest at $74.06, and 25 of the 26 models stay below the price. Evidence for this calculation is high.

Over the trailing twelve months, Huntington Ingalls Industries Inc generated revenue of $12.8B at a net margin of 4.7%. Revenue grew 13.4% year over year. It earns a return on equity of 12.2%. Net debt stands at $2.4B. Fundamentals as of Sep 2, 2026

Our scenario range runs from $171.65 (bear case) to $326.22 (bull case); at $290.73, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 37% below its 52-week high and 37% above its 52-week low, currently below its 200-day average. For context, the median of 10 Industrials peers we cover trades at −44% fair-value upside, at −14%, HII screens cheaper than that median.

Fair Value models

This estimate rests on fiscal year 2025 figures, and about 8 months have passed since. In that time the company retained roughly $6.75 per share, which is 2.7 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small. Every input is real reported data, nothing guessed.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
FCF DCF $173.29 $285.19 $450.73 79
Growth DCF $178.36 $279.60 $421.48 78
Owner Earnings $99.98 $174.95 $285.87 74
All 26 models by family
DCF Models
FCF DCF $173.29 $285.19 $450.73 79
Owner Earnings $99.98 $174.95 $285.87 74
5Y Revenue Exit $115.68 $194.81 $292.57 72
5Y EBITDA Exit $162.05 $279.57 $413.07 74
5Y P/E Exit $167.73 $289.95 $414.69 70
10Y Revenue Exit $130.65 $206.70 $302.62 66
10Y EBITDA Exit $164.10 $264.82 $392.66 68
10Y P/E Exit $167.69 $271.94 $393.86 63
Earnings-Based
Graham-Dodd $104.41 $287.94 $378.05 65
Lynch FV $57.39 $81.99 $106.59 61
PEG = 1.0 $57.39 $81.99 $106.59 57
EPV $56.50 $74.06 $89.43 74
Dividend Discount
Gordon GGM $49.63 $103.20 $163.71 66
DDM Multi-Stage $49.63 $78.00 $108.04 66
Multiples
P/E Multiple $241.82 $322.43 $403.04 63
P/S Multiple $195.76 $261.01 $326.27 58
P/B Multiple $195.76 $261.01 $326.27 55
EV/EBIT $147.85 $213.43 $279.01 65
EV/EBITDA $182.97 $260.25 $337.54 67
EV/Revenue $91.53 $151.71 $211.89 52
Asset-Based
NCAV (Graham) $64.37 $86.26 $128.74 54
Growth DCF
Growth DCF $178.36 $279.60 $421.48 78
Rev-Margin DCF $115.68 $197.17 $288.66 72
Economic Profit
Residual Income $119.10 $140.27 $271.45 72
ROIC Compounder $56.50 $74.06 $89.43 72
Growth Earnings
Growth-Adj P/E $192.08 $274.40 $356.72 67

Widest divergence: Growth Earnings ($274.40) versus Economic Profit ($74.06). Highest evidence: FCF DCF (79).

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Key figures & financial health

P/E ratio 18.9
P/S ratio 0.92 P/E × margin
EPS (TTM) $15.39 price ÷ EPS = P/E 18.9
Dividend yield 1.9% payout 35.5%
Net margin 4.8% FY2025
Return on equity 12.2% TTM
More key figures
Profitability
Return on assets (EBIT) 5.2% avg 5y
Operating margin 6.6% TTM
Growth
Revenue (TTM) $12.8B TTM
Revenue growth (YoY) +13.4% 3y avg +5.4%
Balance sheet & cash flow
Free cash flow $794M FY2025
Net debt $2.4B FY2025 · ≈ 3.0 yrs of FCF

Figures from reported company fundamentals · as of Sep 2, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 58/100

Of which business quality 58 · Market factors (momentum, volatility) 45

Profitability 43
Margins and returns on capital today
Quality Growth 53
Are margins and returns improving?
Cashflow 58
Earnings quality: real cash, not paper profit
Fin. Strength 53
Balance sheet, leverage, solvency risk
Investment 66
Disciplined investing over empire-building
Low Volatility 74
Calm price path (market factor)
Momentum 34
Price trend over the last 3–12 months (market factor)
52W Momentum 32
Distance to the 52-week high (market factor)
Net Issuance 86
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

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.

Full company description

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, 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; uncrewed autonomous systems; live, virtual, and constructive solutions; platform modernization; and critical nuclear operations. Huntington Ingalls Industries, Inc. was founded in 1886 and is headquartered in Newport News, Virginia.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Huntington Ingalls Industries Inc reported revenue of $12.5B in FY2025 versus $9.5B in FY2021, a compound +7.0%/yr. Reported net income was $605M in FY2025, compounding +2.7%/yr from FY2021.

Growth Quality 71/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
$12.5B
Latest YoY
+8.2%
Avg. revenue growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+5.4%
Avg. revenue growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+5.9%
Avg. revenue growth/yr (16Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+4.4%
Value creation/yr (5Y) Earnings growth per share (CAGR 5 years, adjusted) plus dividend yield: value created per share and year.
+3.9% (2.0 + 1.9)
Revenue +7.0%/yr
FY21 $9.5B
FY22 $10.7B
FY23 $11.5B
FY24 $11.5B
FY25 $12.5B
Net income +2.7%/yr
FY21 $544M
FY22 $579M
FY23 $681M
FY24 $550M
FY25 $605M
Character of growth · EPS growth decomposed (2014-2025) +6.1 % p.a.
Revenue per share +8.3 %

of which total revenue +6.0 % · buybacks/dilution +2.2 %

EBIT margin −8.3 %
Tax rate +1.9 %
Residual (interest, one-offs) +4.8 %

Annual growth per factor. These are factors, not summands: multiplied they give the EPS growth rate, added they do not quite. Start and end points are 3-year averages (details on hover).

HII screens 17% overvalued. Compare with General Electric Company →

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Cite: Fair Value Calculator (2026). "Huntington Ingalls Industries Inc Fair Value". https://www.fairvalue-calculator.com/stock/HII

Recent news

External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.

Peer Group

Aerospace & Defense · 229 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 58 · Above median
Fair Value upside −14% · Top 25%
Return on equity (TTM) 12% · Above median
Return on assets 4% · Above median
Net margin (TTM) 5% · Below median
Operating margin (TTM) 7% · Below median
Revenue growth 13% · Above median
Dividend yield (TTM) 1.9% · Top 25%
Debt / equity 0.53× · Higher than 75% of peers

Valuation Multiples vs Aerospace & Defense median · lower = cheaper

P/E (TTM) 18.9× · Cheaper than 75% of peers
P/B 2.09× · Cheaper than median
P/S (TTM) 0.83× · Cheaper than 75% of peers
P/FCF 13.4× · Cheaper than median
EV/EBITDA 11.1× · Cheaper than 75% of peers
PEG 0.98× · Cheaper than median

Strength profile in five axes (Snowflake)

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE14 · sector 0
FUTURE67 · sector 50
PAST49 · sector 38
HEALTH73 · sector 93
DIVIDEND38 · sector 16

Insider activity: 44/100

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

Weapons Defense

Similar stocks

10 more Aerospace & Defense stocks, each showing price versus our Fair Value estimate (as of Sep 2, 2026).

Stock Price Fair Value vs Fair Value
General Electric Company GE $335.71 $116.71 −65%
RTX Corporation RTX $212.08 $88.37 −58%
Airbus SE AIR €213.00 €117.01 −45%
Lockheed Martin Corporation LMT $565.89 $419.01 −26%
Howmet Aerospace Inc HWM $264.85 $50.43 −81%
General Dynamics Corporation GD $379.32 $274.32 −28%
Northrop Grumman Corporation NOC $545.57 $356.59 −35%
TransDigm Group TDG $1,235 $571.03 −54%
L3Harris Technologies, Inc LHX $262.82 $146.55 −44%
Thales S.A HO €243.70 €171.13 −30%

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Frequently asked questions

Is Huntington Ingalls Industries Inc (HII) overvalued or undervalued?
As of Sep 2, 2026, our model estimates a fair value of $248.93 versus a price of $290.73, about −14% upside (overvalued).
What is the fair value of HII?
Our model-based fair value for Huntington Ingalls Industries Inc is $248.93 (as of Sep 2, 2026), built from audited fundamentals. The current price: $290.73.
What is the quality score of HII?
Huntington Ingalls Industries Inc has a Quality Score of 58/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Huntington Ingalls Industries Inc (HII)?
Huntington Ingalls Industries Inc reported trailing-twelve-month revenue of about $12.8B (latest available figure, as of Sep 2, 2026).
What is the net profit margin of HII?
The net profit margin of Huntington Ingalls Industries Inc is about 4.7%, meaning it keeps roughly 4.7% of revenue as net income. Based on the latest reported figures.
Does Huntington Ingalls Industries Inc pay a dividend?
Huntington Ingalls Industries Inc currently shows a dividend yield of about 1.88% relative to its recent price (as of Sep 2, 2026).
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