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Huntington Ingalls Industries, Inc (HII) Fair Value & Analysis

Industrials · US · Market cap $10.6B

HI Huntington Ingalls Industries, Inc logo Huntington Ingalls Industries, Inc HII · US
Price$321.76
Fair Value$261.01
Upside-18.9%
Quality55/100
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Healthy Growth
Thin margins · 4.7% net margin
Moderate debt · generates free cash flow
2.01% dividend yield
Ranks above peers (12/15)
Narrow moat 43/100
Evidence: High Range $177.29 – $326.27 Share as image

Fair value as of: Jul 20, 2026

From 26 valuation models · updated 18 days ago

Share price +11.2% over the past month.

A solid business, but screening 19% overvalued on our models.

What matters now

  • Solid but not exceptional quality (55/100) and above fair value, neither a clear bargain nor a standout compounder.
  • A fairly wide model range ($177.29 to $326.27) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

$451.78 $154.94 Fair Value $261.01 May 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 20, 2026.

How to read this chart

60‑month range $154.94 – $451.78 · fair‑value band $177.29 – $326.27 · the $321.76 price screens above the $261.01 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 20, 2026.

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Analysis

Huntington Ingalls Industries, Inc (HII) currently trades at $321.76, while our model-based Fair Value estimate is $261.01, implying the stock looks roughly 18.9% overvalued today. We read business quality at 55/100 (solid quality), in the Industrials sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: 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 Jul 20, 2026

Our scenario range runs from $177.29 (bear case) to $326.27 (bull case); at $321.76, 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 30% below its 52-week high and 52% above its 52-week low, currently below its 200-day average. For context, the median of 10 Industrials peers we cover trades at -55% fair-value upside, at -19%, HII screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted 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.

Model BearBaseBull Evidence
Highest evidence
Growth DCF $178.36 $279.60 $421.48 80
Residual Income $119.10 $140.27 $271.45 76
Rev-Margin DCF $115.68 $197.17 $288.66 74
All 26 models by family
DCF Models
FCF DCF $173.29 $285.19 $450.73 38
Owner Earnings $99.98 $174.95 $285.87 31
5Y Revenue Exit $115.68 $194.81 $292.57 39
5Y EBITDA Exit $162.05 $279.57 $413.07 41
5Y P/E Exit $161.17 $277.96 $397.07 38
10Y Revenue Exit $130.65 $206.70 $302.62 36
10Y EBITDA Exit $164.10 $264.82 $392.66 37
10Y P/E Exit $163.55 $263.72 $380.70 35
Earnings-Based
Graham-Dodd $104.41 $287.94 $378.05 54
Lynch FV $57.39 $81.99 $106.59 50
PEG = 1.0 $57.39 $81.99 $106.59 46
EPV $56.50 $74.06 $89.43 59
Dividend Discount
Gordon GGM $49.63 $103.20 $163.71 70
DDM Multi-Stage $49.63 $78.00 $108.04 61
Multiples
P/E Multiple $230.31 $307.08 $383.84 63
P/S Multiple $195.76 $261.01 $326.27 58
P/B Multiple $195.76 $261.01 $326.27 55
EV/EBIT $159.43 $228.86 $298.29 53
EV/EBITDA $182.97 $260.25 $337.54 54
EV/Revenue $91.53 $151.71 $211.89 43
Asset-Based
NCAV (Graham) $64.37 $86.26 $128.74 50
Growth DCF
Growth DCF $178.36 $279.60 $421.48 80
Rev-Margin DCF $115.68 $197.17 $288.66 74
Economic Profit
Residual Income $119.10 $140.27 $271.45 76
ROIC Compounder $56.50 $74.06 $89.43 72
Growth Earnings
Growth-Adj P/E $183.75 $262.51 $341.26 68

Widest divergence: DCF Models ($263.72) versus Economic Profit ($74.06). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) $12.8B
Revenue growth (YoY) +13.4%
Net margin 4.7%
Return on equity 12.2%
Free cash flow $794M FY2025
P/E ratio 17.5
More key figures
Operating margin 6.6%
EPS (TTM) $15.39
Dividend yield 2.0%
Net debt $2.4B FY2025

Figures from reported company fundamentals · as of Jul 20, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 55/100

Of which business quality 58 · Market factors (momentum, volatility) 48

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 31
Price trend over the last 3–12 months (market factor)
52W Momentum 46
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.

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. growth/yr (3Y)
+5.4%
Avg. growth/yr (5Y)
+5.9%
Avg. growth/yr (16Y)
+4.4%
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

HII screens 19% 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

Peer Group

Aerospace & Defense · 227 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 55 · Above median
Fair Value upside −19% · 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) 2.0% · Top 25%
Debt / equity 0.53× · Higher than 75% of peers

Valuation Multiples vs Aerospace & Defense median · lower = cheaper

P/E (TTM) 17.5× · 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

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.

VALUE 8 · sector 0
FUTURE 67 · sector 47
PAST 49 · sector 39
HEALTH 73 · sector 93
DIVIDEND 40 · sector 15

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

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Aerospace & Defense stocks, each showing price versus our Fair Value estimate (as of Jul 20, 2026).

Stock Price Fair Value vs Fair Value
General Electric Company GE $381.22 $116.71 -69%
RTX Corporation RTX $195.93 $88.37 -55%
Airbus SE 1AIR €206.30 €92.85 -55%
The Boeing Company BA $217.11 $48.20 -78%
China CSSC Holdings 600150 ¥34.31 ¥21.90 -36%
HD Hyundai Heavy Industries Co 329180 466,000 KRW 272,966 KRW -41%
Hanwha Aerospace Co 012450 967,000 KRW 573,468 KRW -41%
ASELSAN Elektronik Sanayi ve Ticaret Anonim Sirketi ASELS 337.50 TRY 130.70 TRY -61%
Saab AB SAABB kr 520.40 kr 212.84 -59%
Kongsberg Gruppen ASA KOG kr 277.50 kr 106.93 -61%

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Frequently asked questions

Is Huntington Ingalls Industries, Inc (HII) overvalued or undervalued?
As of Jul 20, 2026, our model estimates a fair value of $261.01 versus a price of $321.76, about −19% (overvalued).
What is the fair value of HII?
Our model-based fair value for Huntington Ingalls Industries, Inc is $261.01 (as of Jul 20, 2026), built from audited fundamentals. The current price is $321.76.
What is the quality score of HII?
Huntington Ingalls Industries, Inc has a Quality Score of 55/100. It combines two groups: business quality (profitability, growth, cash flow, balance-sheet strength) and market factors (price momentum, distance to the 52-week high, volatility). Both subtotals 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 Jul 20, 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 1.90% relative to its recent price (as of Jul 20, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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