HII Intrinsic Value – Huntington Ingalls Industries Awarded U.S. Navy Contract Worth up to $185M
November 22, 2023
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Huntington Ingalls Industries ($NYSE:HII), a leading defense company dedicated to providing innovative technology and services for the U.S. Navy and its other customers, has been awarded a contract from the U.S. Navy estimated to be worth up to $185M. The company, which is headquartered in Newport News, Virginia, is the sole designer, builder, and refueler of U.S. nuclear-powered aircraft carriers and one of two providers of U.S. Navy aircraft carriers. It also provides a wide range of products and services to the U.S. government and its defense-related partners.
Huntington Ingalls Industries stock is traded on the New York Stock Exchange under the symbol HII. The contract awarded by the U.S. Navy will support Ingalls Shipbuilding, a division of Huntington Ingalls Industries, with the design, fabrication, test and trials of the U.S. Navy’s Arleigh Burke-class guided missile destroyers and an undisclosed international customer’s surface combatant shipbuilding program.
Market Price
On Monday, Huntington Ingalls Industries (HII) stock opened at $237.7 and closed at $239.6, up by 1.2% from its previous closing price of 236.8. The contract includes complex overhaul work and the repair of any corrosion, damage or defects caused by fatigue or vibration, in addition to the installation of new equipment such as navigation and communication systems. HII will also do any necessary testing and inspections. HII is one of the largest shipbuilding companies in the United States and currently has a number of contracts with the U.S. Navy and other military organizations. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for HII. More…
| Total Revenues | Net Income | Net Margin |
| 11.09k | 530 | 4.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for HII. More…
| Operations | Investing | Financing |
| 1.01k | -201 | -816 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for HII. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 10.62k | 6.89k | 93.63 |
Key Ratios Snapshot
Some of the financial key ratios for HII are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 7.1% | -7.1% | 7.0% |
| FCF Margin | ROE | ROA |
| 6.7% | 13.1% | 4.5% |
Analysis – HII Intrinsic Value
At GoodWhale, we have conducted a thorough analysis of the fundamentals of HUNTINGTON INGALLS INDUSTRIES. After careful consideration, we have determined that the intrinsic value of HUNTINGTON INGALLS INDUSTRIES share is approximately $222.9, based on our proprietary Valuation Line. Right now, HUNTINGTON INGALLS INDUSTRIES stock is being traded at $239.6, meaning that it is being sold for a fair price slightly overvalued by 7.5%. More…
Peers
The competition between Huntington Ingalls Industries Inc and its competitors is fierce. Each company is trying to gain market share and increase profits. The competition is good for consumers because it keeps prices down and forces companies to innovate.
– Textron Inc ($NYSE:TXT)
Textron Inc is a publicly traded company with a market cap of 12.89B as of 2022. The company has a return on equity of 9.94%. Textron Inc is a diversified industrial company that operates in a variety of businesses, including aircraft, defense, industrial and commercial products. The company’s products include Bell helicopters, Cessna aircraft, and E-Z-Go golf carts.
– Penguin International Ltd ($SGX:BTM)
Penguin International Ltd is a Singapore-based company that is engaged in the design, manufacture, and marketing of a range of inflatable products, including inflatable boats, marine products, and industrial products. The company has a market capitalization of 160.72 million as of 2022 and a return on equity of 7.36%. Penguin International Ltd is a leading provider of inflatable products and solutions with a strong focus on quality, innovation, and customer service. The company has a wide range of products that are suitable for a variety of applications, including recreation, fishing, diving, rescue, and industrial.
– Airbus SE ($OTCPK:EADSF)
Airbus SE is a leading aircraft manufacturer with a market cap of 78.35B as of 2022. The company has a strong Return on Equity of 34.09%. Airbus SE is known for its innovative aircraft designs and manufacturing capabilities. The company has delivered over 11,000 aircraft to over 500 operators worldwide.
Summary
Huntington Ingalls Industries (HII) recently secured a U.S. Navy contract with a potential value of $185 million. This contract, involving the refueling and complex overhaul of the aircraft carrier USS Harry S. Truman, is further evidence of HII’s position as the largest military shipbuilding company in the United States. Analysts suggest that this contract could pay long-term dividends for HII shareholders in the form of increased share price and higher earnings per share.
It also signals to investors that HII is well-positioned to continue to win new contracts and maintain its leadership position in the military shipbuilding sector. As such, it is recommended that investors consider HII for long-term growth opportunities.
