HII Stock Intrinsic Value – Huntington Ingalls Secures Over $283M Navy Contract Modification
January 6, 2024
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Huntington Ingalls Industries ($NYSE:HII) (HII) is a leading U.S. military shipbuilding company and provider of professional services to government and commercial customers worldwide. Recently, they have secured a modification to their existing Navy contract, worth $283.94 million. This modification will be used to provide additional research, development and technical services to the U.S. Navy and Air Force. The awarded modification will enable HII to provide the necessary support services in order to keep the Defense Department’s nuclear enterprise ready and able to respond to any mission requirements.
This includes engineering development, system studies, technical assessments, risk management, and technical integration. HII’s services are critical for the Navy’s shipbuilding programs, which directly enable their mission to protect the nation’s security and interests.
Stock Price
On Friday, Huntington Ingalls Industries (HII) stock opened at $254.9 and closed at $252.5, down by 1.5% from last closing price of 256.3. The modification calls for additional detail design and engineering services for the construction of the next generation of nuclear-powered aircraft carriers. The contract will be executed by the company’s Newport News Shipbuilding division, which is the sole designer, builder, and refueler of U.S. nuclear-powered aircraft carriers and one of two providers of U.S. nuclear powered submarines. HII will use its extensive technical expertise to provide the required modifications for the construction of the U.S. Navy’s new nuclear-powered aircraft carriers.
The contract modification is a major milestone for HII, as it will help them stay ahead of their competition and bolster their reputation as a leading provider of naval services. With this contract modification, HII will be able to further increase its presence in the naval engineering and construction market. 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 Stock Intrinsic Value
At GoodWhale, we provide in-depth fundamental analysis of HUNTINGTON INGALLS INDUSTRIES. After carefully reviewing the company’s financials, we believe its fair value to be around $224.8. This is based on our proprietary Valuation Line which takes into consideration multiple factors to determine a company’s value. Currently, HUNTINGTON INGALLS INDUSTRIES stock is trading at $252.5, which is a premium of 12.3%. This suggests that the stock may be overvalued in the current market and investors should proceed with caution. However, it is important to note that market conditions are always subject to change, so investors should keep an eye on HUNTINGTON INGALLS INDUSTRIES stock and stay informed about any potential changes in valuation. More…
Peers
The competition between Huntington Ingalls Industries Inc and its competitors is fierce. Each company is trying to gain market share and increase profits. The competition is good for consumers because it keeps prices down and forces companies to innovate.
– Textron Inc ($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), a leading defense contractor, recently secured a $283.94M Navy contract modification. HII has a strong track record for delivering high quality products on time and on budget. According to analysts, HII is well-positioned to meet future demand for its products.
With a diversified portfolio of services and a strong balance sheet, HII is considered a good long-term investment opportunity. Analysts recommend investors look to add HII to their portfolios for the potential for continued growth.
