Huntington Ingalls Industries Inc (HII) Stock Analysis
Verdict: HOLD
Massive $54B backlog and low-beta defense defensiveness are currently overshadowed by Q1 margin compression and labor-related cost overruns.
Investment score: 62/100
Analysis as of
Is Huntington Ingalls Industries Inc stock worth reviewing? AI model thesis
HII is a classic 'bad news in a good business' setup. The model sees a core naval monopolist trading at a significant discount to historical and sector averages after a margin-led selloff.
7-factor investment score
- Valuation: 75/100 (weight 20%)
- Financial Health: 50/100 (weight 15%)
- Technical Momentum: 35/100 (weight 15%)
- Earnings Quality: 85/100 (weight 15%)
- Insider Sentiment: 40/100 (weight 10%)
- Analyst Consensus: 80/100 (weight 10%)
- Risk-Adjusted Return: 70/100 (weight 15%)
Huntington Ingalls Industries Inc opportunities and risks
What speaks for HII
- Massive Backlog Visibility
What speaks against HII
- Sustained Margin Compression
Peers and competitors
| Ticker | P/E | P/S | EV/EBITDA | Gross margin | Net margin | FCF yield |
|---|---|---|---|---|---|---|
| HII | 21.2x | 1.0x | 14.5x | 26.0% | 4.7% | 8.8% |
| ATI | 49.6x | 4.6x | 26.9x | 22.5% | 9.3% | 2.6% |
| BWXT | 54.8x | 5.6x | 39.1x | 16.8% | 10.2% | 1.7% |
| TXT | 17.3x | 1.1x | 11.4x | 14.4% | 6.1% | 4.4% |
| Peer median | 49.6x | 4.6x | 26.9x | 16.8% | 9.3% | 2.6% |
Frequently asked questions about Huntington Ingalls Industries Inc (HII)
Is HII stock a good investment?
The cached TradeMates AI model rates Huntington Ingalls Industries Inc as HOLD with an investment score of 62/100. HII is a classic 'bad news in a good business' setup. The model sees a core naval monopolist trading at a significant discount to historical and sector averages after a margin-led selloff. This is algorithmic model output, not personal investment advice.
Is HII stock a buy?
The TradeMates model verdict for HII is HOLD with an investment score of 62/100. Treat this as a model signal to review, not a personal buy recommendation.