Huntington Ingalls Industries, Inc. (HII) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+143.0%

$762.29

vs $313.64 price

Levered DCF

$552.42

After debt service

Piotroski score

7 / 9

Strong

Altman Z-score

2.99

Grey zone

Rating

A-

Overall 4 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	22.1×	13.54×	15.21×	15.98×	13.83×	9.95×	18.92×	9.97×
P/B	2.63×	1.6×	2.53×	2.65×	2.68×	3.64×	6.54×	5.5×
P/S	1.07×	0.65×	0.9×	0.87×	0.79×	0.74×	1.17×	1.02×
EV / EBITDA	12.99×	9.42×	9.73×	10.12×	10.35×	7.18×	12×	7.61×
Gross margin	12.7%	12.6%	14.4%	13.5%	14.4%	17.8%	17.2%	21.9%
Operating margin	4.9%	4.6%	6.8%	5.3%	5.4%	8.2%	8.3%	11.3%
Net margin	4.8%	4.8%	5.9%	5.4%	5.7%	7.4%	6.2%	10.2%
Current ratio	1.13×	1.08×	0.95×	0.95×	1.15×	1.1×	0.94×	0.95×
Debt / equity	0.62×	0.73×	0.65×	0.9×	1.24×	0.97×	0.91×	0.85×
Interest coverage	5.79×	5.63×	8.22×	5.54×	5.76×	6.72×	10.61×	15.86×
Dividend yield	1.6%	2.8%	1.9%	2.1%	2.5%	2.5%	1.4%	1.6%
Payout ratio	35.2%	37.5%	29.4%	33.2%	34.2%	24.7%	27.1%	15.8%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	11.9%	11.8%	16.6%	16.6%	19.4%	36.6%	34.6%	55.1%
Return on invested capital	9.0%	4.7%	7.4%	5.4%	5.5%	11.1%	11.6%	17.4%
Return on assets	4.7%	4.5%	6.1%	5.3%	5.1%	8.5%	7.8%	13.1%
Free cash flow yield	5.9%	0.3%	6.5%	5.2%	5.7%	10.7%	3.5%	5.4%
Earnings yield	4.5%	7.4%	6.6%	6.3%	7.2%	10.1%	5.3%	10.0%
Enterprise value	$15.7B	$10B	$12.6B	$11.9B	$10.4B	$8.3B	$11.8B	$9.4B
Net debt / EBITDA	1.96×	2.42×	1.73×	2.28×	2.85×	1.16×	1.4×	0.85×
Cash conversion cycle (days)	58	52	56	52	55	48	42	31