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.Looks overvalued
Other models: USD 69.39–271.57 (median 260.41). 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 above modeled range
Free-cash-flow DCF using TTM through 30 Sep 2026 reported free cash flow, 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. Low confidence: the modelled value is far from the market price, which usually means the model does not capture this company well (for example expected growth well above its history).
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%).
5-year outlook: relative outlook of about 6.4% a year (Medium confidence), anchored to a 7% market return and adjusted for how this company ranks against others. A ranking aid, not a prediction. See the full forecast.
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 92.51 (-68.0%)
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EPS-based Gordon proxy
— USD 260.41 (-10.0%)
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 92.51 (-68.0%)
Not used: Not chosen: Free-cash-flow DCF ranks ahead of it for this company.
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FCFF (steady state)
— USD 69.39 (-76.0%)
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 271.57 (-6.2%)
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 91.68 (-68.3%)
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 938.89 (+224.4%)
Not used: Used only for technology and communication companies whose cash-flow value is far below the price.
| Bear USD 52.31 | -453.3% |
| Base USD 92.51 | -212.8% |
| Bull USD 164.09 | -76.4% |
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 27.4% a year, this model assumes 6.5%. The market expects more than this model does, which is why it reads as overvalued.
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% | 118.10 | 89.19 | 68.20 | 52.26 | 39.76 |
| 4.5% | 134.82 | 103.01 | 79.92 | 62.40 | 48.65 |
| 6.5% | 152.81 | 117.87 | 92.51 | 73.28 | 58.20 |
| 8.5% | 172.13 | 133.82 | 106.02 | 84.95 | 68.42 |
| 10.5% | 192.87 | 150.92 | 120.50 | 97.44 | 79.37 |
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: 70 / 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 +6.1% a year | 20 / 20 |
| Balance sheet | net debt 2.3x EBITDA | 10 / 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 | -212.8% | 15.6 | 2.1 | 1.9% | 70 |
| EZJ.L easyJet plc | GBP 6.88 | 74.3% | 10.6 | 1.5 | 1.7% | 78 |
| WAWI.OL Wallenius Wilhelmsen ASA | NOK 160.80 | 64.6% | 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 |
| HAFNI.OL Hafnia Limited | NOK 89.00 | 40.8% | 7.2 | 1.8 | 1.2% | 100 |
| Peer median | 9.3 | 1.9 | ||||
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 |
Trailing 12-month financials
TTM through 30 Sep 2026 · quarterly EODHD data · data downloaded 06 Nov 2026 12:40
| Revenue | USD 13,530,000,000 |
|---|---|
| EBITDA | USD 1,108,000,000 |
| EBIT | USD 1,016,000,000 |
| Net income | USD 733,000,000 |
| Free cash flow | USD 376,000,000 |
| Capital expenditures | USD 418,000,000 |
| Debt | USD 2,929,000,000 |
| Cash | USD 387,000,000 |
| Working capital | USD 725,000,000 |
| Shares outstanding | 39,600,000 |
| Reported dividends per share | USD 5.4798 |