Huntington Ingalls Industries
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 ass…
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. The company has a strategic partnership with HD Hyundai Heavy Industries to implement intelligent mechanized welding systems at Huntington Ingalls Industries, Inc.'s Ingalls Shipbuilding division. Huntington Ingalls Industries, Inc. was founded in 1886 and is headquartered in Newport News, Virginia.Priced within the modelled range
5-year outlook: Not shown because confidence is low: Earnings-based DCF is somewhat apart.
Other models: USD 216.58–301.07 (median 284.23). The recommended value is in line with them.
Why: Free cash flow is positive and in line with earnings, and the dividend is small, so a cash-flow DCF fits best.
Details and the full model are below.
Market price within modeled range
Free-cash-flow DCF using a three-year average of free cash flow, because the latest figure is depressed by heavy investment or one-off items, with cash, debt, and shares from the latest report. Base assumptions are 6.49% growth, 2.7% terminal growth, and 10% discount. Low/high cases vary growth by 2 and terminal growth/discount by 1 percentage point; this illustrative range is not a statistical confidence interval or investment advice.
Assumptions: growth 6.49%, discount rate 10%, terminal growth 2.70% (sector defaults). See a worked example.
Blended growth assumption: 6.5% (sector default 6.2%, own revenue history 7.0%, analyst revenue consensus 6.4%).
Analyst consensus expects revenue growth of 6.4% a year; the growth assumption used is 6.5%.
Adjust assumptions
Why this model: Free cash flow is positive and in line with earnings, and the dividend is small, so a cash-flow DCF fits best.
Compare models- Recommended: Free-cash-flow DCF — USD 314.54 (+8.7%)
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EPS-based Gordon proxy
— USD 216.58 (-25.2%)
Not used: Treats all earnings as if paid out and ignores the cash kept for reinvestment, so it overstates value for companies that retain most profit.
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DCF (trailing free cash flow)
— USD 333.44 (+15.2%)
Not used: Not chosen: Free-cash-flow DCF ranks ahead of it for this company.
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FCFF (steady state)
— USD 284.23 (-1.8%)
Not used: Assumes only the long-run terminal growth rate from today, so it ignores the near-term growth expected.
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EV/EBITDA (12x)
— USD 301.07 (+4.0%)
Not used: Used only when free cash flow is far below earnings even after averaging three years; a fixed 12x multiple also ignores sector differences.
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Fade DCF (10-year growth fade)
— USD 331.67 (+14.6%)
Not used: An alternative growth path (fading over 10 years) shown for comparison; the automatic choice does not use it.
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EV/Sales (Rule of 40)
— USD 914.10 (+215.9%)
Not used: Used only for technology and communication companies whose cash-flow value is far below the price.
| Bear USD 233.84 | -23.8% |
| Base USD 314.54 | 8.0% |
| Bull USD 458.22 | 36.8% |
Margin = (value − price) / value, so it is measured against the value and reads lower than the upside to value, which is measured against the price. Positive means the price is below that case.
At USD 289.41 the market implies about this annual free-cash-flow growth for 5 years (terminal 2.7%, discount 10.0%).
Compare: the market implies 4.5% a year, this model assumes 6.5%. The model is more optimistic than the price, which is why it reads as undervalued.
How the Free-cash-flow DCF value changes with growth (rows) and discount rate (columns). Green cells are above the current price.
| Growth \ Discount | 8.0% | 9.0% | 10.0% | 11.0% | 12.0% |
|---|---|---|---|---|---|
| 2.5% | 365.89 | 307.87 | 265.73 | 233.75 | 208.65 |
| 4.5% | 399.46 | 335.61 | 289.26 | 254.10 | 226.50 |
| 6.5% | 435.57 | 365.43 | 314.54 | 275.94 | 245.66 |
| 8.5% | 474.36 | 397.45 | 341.66 | 299.36 | 266.19 |
| 10.5% | 515.98 | 431.78 | 370.72 | 324.44 | 288.16 |
Track record: see the methodology page for how this model has performed historically, including its limits. Treat it as a screen, not a forecast.
Price history and fair value
No chartable saved daily price history is available for this range. The chart uses stored EODHD prices only and will appear after history is saved.
More detail: quality, peers, price history, dividends and financials
Quality score: 75 / 100
Five equal checks on reported history: profitability, cash generation, revenue growth, balance sheet and margins. It describes business quality, not whether the price is attractive.
| Profitability | 5 of 5 years profitable | 20 / 20 |
| Cash generation | free cash flow positive in 5 of 5 years | 20 / 20 |
| Growth | revenue +7.0% a year | 20 / 20 |
| Margins | EBITDA margin 8% | 0 / 20 |
Peers in Industrials
Same-sector companies with a valuation, most undervalued first. Compare the margin of safety, yield and quality score side by side.
| Company | Price | Margin of safety | P/E | P/B | Yield | Quality |
|---|---|---|---|---|---|---|
| HII (this company) | USD 289.41 | 8.0% | 18.8 | 2.2 | 1.9% | 75 |
| EZJ.L easyJet plc | GBP 6.88 | 74.3% | 10.6 | 1.5 | 1.7% | 78 |
| WAWI.OL Wallenius Wilhelmsen ASA | NOK 160.80 | 64.5% | 7.1 | 2.2 | 0.3% | 100 |
| IAG.L International Consolidated Airlines Group S.A. | GBP 4.37 | 58.9% | 8.0 | 3.5 | 1.8% | 92 |
| TPK.L Travis Perkins plc | GBP 6.54 | 54.7% | – | 0.8 | 2.1% | 46 |
| SRP.L Serco Group plc | GBP 2.77 | 46.2% | 19.7 | 3.3 | 1.5% | 82 |
| DFDS.CO DFDS A/S | DKK 157.30 | 45.9% | – | 0.6 | – | 64 |
| DG.PA VINCI SA | EUR 111.75 | 42.2% | 12.9 | 2.1 | 4.2% | 90 |
| MPCC.OL MPC Container Ships ASA | NOK 24.23 | 33.5% | 5.5 | 1.1 | 0.7% | 80 |
| Peer median | 9.3 | 1.8 | ||||
Dividends
Paid in the last 12 months: USD 5.52 per share · yield 1.91% at the current price.
| Year | Dividends per share |
|---|---|
| 2026 (so far) | 4.140 |
| 2025 | 5.430 |
| 2024 | 5.250 |
| 2023 | 5.020 |
| 2022 | 4.780 |
| 2021 | 4.600 |
Annual financial statement
Saved annual report · Fiscal year 2025 · SEC EDGAR annual filings · period ended 31 Dec 2025
| Revenue | USD 12,484,000,000 |
|---|---|
| EBITDA | USD 986,000,000 |
| EBIT | USD 657,000,000 |
| Net income | USD 605,000,000 |
| Free cash flow | USD 794,000,000 |
| Capital expenditures | USD -402,000,000 |
| Debt | USD |
| Cash | USD |
| Working capital | USD 406,000,000 |
| Shares outstanding | 39,300,000 |
| Reported dividends per share | USD 5.4300 |