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Huntington Ingalls Industries (HII) Stock Fundamentals, Analysis & Risk Signals

Health score, competitive moat, risk signals, and key metrics at a glance.

NYSE•Industrials•Aerospace & Defense
B
GoodMetricSide Score: 65/100
ProfitabilityProfit15/30
GrowthGrowth25/25
Balance SheetBalance19/25
Cash QualityCash6/20
Price & Volume
Market Cap $11.46B

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.

Moat Signals

Competitive analysis based on 60 quarters of fundamental data

Pricing Power

Moderate Moat

Operating margins are positive at ~4.9% on average, but show some variability — pricing power may be sensitive to market conditions.

Competitive Advantage

Moderate Moat

ROE is positive at ~13.0% on average, adequate but below the threshold typically associated with wide moats.

Cash Generation

Moderate Moat

5 of the last 8 quarters generated positive FCF. The company generally funds itself but has occasional cash consumption quarters.

Demand Durability

Moderate Moat

Revenue shows resilience with 4 of 7 quarters posting growth — demand is generally stable but has seen some soft patches.

Risk Signals

Data-driven red flags and warnings across 60 quarters

Low Risk

Margin Pressure

Healthy

Margins are stable or improving at ~5.1% — no sign of cost or pricing stress.

Earnings Quality

Watch

FCF/Net Income has dropped below 0.7x in 4 quarters — monitor for earnings quality deterioration.

Leverage Risk

Healthy

D/E ratio is 0.5 — conservative capital structure with low financial risk.

Revenue Decline

Healthy

Revenue is stable or growing over recent quarters — demand appears durable.

Cash Burn

Watch

FCF turned negative in 3 of the last 8 quarters — occasional cash consumption.

Share Dilution

Healthy

Share count is stable — no significant dilution or buyback activity.

Metrics at a Glance

as of March 2026

Revenue & Profit

Revenue, EBITDA, operating income, net income, EPS, and shares

TTM Revenue
$12.85B
12.1%
Q. Revenue
$3.10B
TTM EBITDA
$977.00M
3.2%
TTM Op. Income
$651.00M
20.1%
Q. Op. Income
$155.00M
TTM Net Income
$605.00M
10.8%
Q. Net Income
$149.00M
EPS
$3.79
Shares Out.
$39.30M
$12.85B in TTM revenue grew 12.1% YoY, reaching $3.10B last quarter. TTM EBITDA of $977.00M and TTM operating income of $651.00M shows growth is flowing through. Net income of $605.00M TTM confirms the company is converting revenue into profit. Revenue is growing at a healthy pace — a signal to hold.

Margins

Gross, EBITDA, operating, and net margin trends

EBITDA Margin
7.5%
Op. Margin
5.0%
15.1%
Net Margin
4.8%
11.8%
Op. margin of 5.0% is down 0.9% YoY — costs are rising relative to revenue. Net margin at 4.8%.

Price Ratios

P/E, P/S, P/B, EV/EBITDA, FCF yield, and earnings yield

P/E Ratio
18.9x
P/S Ratio
0.9x
P/B Ratio
2.2x
At 18.9x P/E, the stock trades in line with market averages — fairly valued. P/S of 0.9x and P/B of 2.2x provide additional context. Assess whether the current multiple is justified by the company's growth and profitability trajectory.

Assets & Liabilities

Total assets, cash, debt, book value, and leverage

Total Assets
$12.53B
Cash
$216.00M
Long-Term Debt
$2.70B
Book Value
$5.15B
D/E Ratio
0.5
Debt/EBITDA
11.7
With $12.53B in assets and $2.70B in long-term debt, the D/E of 0.5and book value of $5.15B — shows a conservative capital structure — the company has a strong financial cushion to weather downturns.

Cash Flow

Operating cash flow, free cash flow, FCF margin, and earnings quality

Op. Cash Flow
$-390.00M
Free Cash Flow
$-464.00M
0.4%
FCF Margin
-3.6%
FCF / Net Income
-3.1
FCF of $-464.00M on $-390.00M in operating cash flow. The FCF / Net Income ratio of -0.8x shows cash consumption — the business is not yet self-funding.

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