Huntington Ingalls Industries, Inc. (HII) — Fundamental Analysis & Key Financial Ratios

Kaplio's reading: Huntington Ingalls Industries, Inc.

Updated on October 19, 2026 · accounts published on July 30, 2026

Reading of October 16, 2026: A growing, cash-generative business whose margins and returns lag its own past

Huntington Ingalls Industries trades at a P/E of 16.2 over the last 12 months, 38 % below its sector median and near its ten-year median.

• Is Huntington Ingalls Industries expensive or cheap? At a P/E of 16.2, it sits 38 % below the sector median of 26.1 and just 2 % above its own decade median.
• How is the business doing? Revenue grew 8 % and EPS 10 % over the last 12 months, but the 5.2 % operating margin trails its 8.5 % 2014-2025 average.
• How strong is the balance sheet? Net debt is 2.0× EBITDA in fiscal 2025, under the 3× limit, and the dividend has risen 11 years in a row.
• What to expect from the next earnings? On October 29, 2026, analysts expect EPS of $4.36; the fiscal 2026 consensus held at $18.65 over the last 30 days.
• Does it turn its margin into cash, and at what multiple of the cycle does it trade? Free cash flow was 131 % of net income in fiscal 2025, well above the 85 % bar, while EV/EBITDA of 11.4× tops its 10.3× average.

Is Huntington Ingalls Industries expensive or cheap?

Over the last 12 months Huntington Ingalls Industries trades at a P/E of 16.2, 38 % below the median of 406 industrial peers (26.1). Against its own history the picture is neutral. The decade median is 16.0, the stock has traded lower 54 % of the time, and the range ran from 9.4 to 31.8. EV/EBITDA of 11.4× sits above its seven-year average of 10.3×, so on that measure it is not cheap. A free cash flow yield of 10.3 % is the strongest valuation signal. The shares are down 3 % over 12 months and 40 % below their 52-week high of $453.73.

How is the business doing?

Growth is healthy. Revenue rose 8.2 % and EPS 10.2 % over the last 12 months, and revenue per share grew 6.6 % a year in fiscal 2020-2025, above the 6 % bar for industrials. Profitability is the weak spot. The operating margin of 5.2 % over the last 12 months is well below the 8.5 % average of fiscal 2014-2025 and far from the 12 % the sector treats as healthy. ROIC of 5.3 % is 3.7 points below the sector median of 9.0 %. It topped 10 % in only 5 of the last 10 fiscal years and bottomed at 4.7 % in 2024. A Piotroski score of 8 of 9 points to improving fundamentals.

How strong is the balance sheet?

Debt is manageable. Net debt of $63.03 per share in fiscal 2025 equals 23 % of the current price and 2.0× EBITDA, inside the 3× ceiling considered healthy for industrials. Over the last 12 months debt-to-equity is 0.55 and the current ratio 1.23. The Altman Z of 2.8 sits in the grey zone, just short of the 2.99 safe line, which leaves little room for a weak year. Shareholder returns are steady: a 2.0 % dividend yield, 11 consecutive fiscal years of increases through 2025 and a payout of 35 % of earnings, which leaves room to keep raising it.

What to expect from the next earnings?

Huntington Ingalls Industries reports on October 29, 2026, and analysts expect EPS of $4.36 for the quarter. Its track record suggests the target is within reach. The company beat EPS estimates in 6 of the last 8 quarters, and on July 30, 2026 it posted $5.27 against $3.79 expected, a 39 % surprise and the largest of those eight quarters. Even so, over the last 30 days the fiscal 2026 EPS consensus barely moved, from $18.66 to $18.65 among 10 analysts, and revenue estimates were flat. Of 27 analysts, 11 recommend buying, 15 holding and 1 selling, which reads as lukewarm.

Does it turn its margin into cash, and at what multiple of the cycle does it trade?

Industrials are semi-cyclical, so investors look at order books, operating margin and cash conversion more than at a single year's earnings. Cash conversion is the bright spot here: free cash flow equalled 131 % of net income in fiscal 2025, against a healthy level of 85 %. The cycle-adjusted EV/EBITDA of 11.4× over the last 12 months sits about 11 % above its seven-year average of 10.3×, just past the 110 % line that marks it as expensive. Capex at 3.2 % of revenue in fiscal 2025 falls below the 4 % to 8 % range. Low investment flatters free cash flow, and conversion would narrow if spending returns to that range.

How this was prepared: the data comes from companies' official filings, collected by a professional provider, and from Kaplio's analysis engine (trailing-12-month ratios, 10 years of history and sector medians computed across US-listed companies). The text is written from that data alone, every figure is checked against it before publication, and it is reviewed when the company reports results. This is not investment advice.