Huntington Ingalls Industries, Inc. (HII)

FairStock Score: 53/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach HII as a defense shipbuilder with a narrow but durable moat tied to U.S. Navy and Coast Guard programs. It designs, builds, overhauls, and repairs military ships, including nuclear-powered aircraft carriers and submarines. In fiscal Q2 2026, the quarter ended 2026-06-30, it reported revenue of $3.4B, net income of $208.0M, and diluted EPS of $5.27. That improved on fiscal Q2 2025, the quarter ended 2025-06-30, when revenue was $3.1B, net income $152.0M, and diluted EPS $3.86. In fiscal year 2025, the period ended 2025-12-31, revenue was $12.5B, net income $605.0M, and diluted EPS $15.39, up from fiscal year 2024 revenue of $11.5B, net income $550.0M, and diluted EPS $13.96. But fiscal year 2023 showed net income of $681.0M and diluted EPS $17.07 on $11.5B revenue, so profit has not marched steadily upward. FairStock labels it a slow grower with shrinking profits, citing a -2.8% annual profit decline over five years. The balance sheet carries debt-to-equity of 0.55, and trailing free cash flow is -$85.0M. Returns are middling, with ROE 12.97% and ROCE 4.28%. At the 2026-10-13 close of $257.84, FairStock's P/E is 15.37, P/B is 1.91, dividend yield is 2.02%, and its Graham Number is $225.60, leaving a -14.29% margin of safety. Altman Z-Score is 1.84 and Piotroski F-Score is 5/9. The price sits near the 52-week low of $255.36, far below the $460.00 high. This is a steady franchise, but not a bargain by Graham's math.

In plain English: Huntington Ingalls builds and repairs military ships for the U.S. Navy and Coast Guard. The business is profitable, with $208.0 million of net income in fiscal Q2 2026, but it has not been generating spare cash lately and profits have moved unevenly over several years. At the 2026-10-13 close of $257.84, the shares look closer to fair than cheap when compared with the company's earnings and asset value.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer