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Huntington Ingalls Industries Rated High by Value Investor Model

Positive outlook: Huntington Ingalls Industries Inc. scores 57% under the Value Investor strategy, showing solid long-term EPS growth despite some weaknesses in debt management. Investors may find potential in this stock.

Date: 
AI Rating:   6

Huntington Ingalls Industries Inc Analysis

The report reveals that Huntington Ingalls Industries Inc (HII) scored 57% under the Value Investor model based on fundamental metrics. This rating reflects the stock's underlying fundamentals and valuation, indicating some investor interest. A score above 80% ordinarily suggests stronger interest, thus positioning HII in the mid-range for potential investment attractiveness.

Among the criteria evaluated:

  • Sector: Pass
  • Sales: Pass
  • Current Ratio: Fail
  • Long-Term Debt in Relation to Net Current Assets: Fail
  • Long-Term EPS Growth: Pass
  • P/E Ratio: Pass
  • Price/Book Ratio: Fail

While HII's strengths include sales growth and long-term earnings per share (EPS) growth, its failures in debt management metrics may raise red flags for potential investors. The passing of the long-term EPS growth indicates that the company is expected to see improved profitability over time, which is a positive signal to investors.

Considering that investors typically seek companies with strong financial fundamentals, the mixed results highlight both opportunities for long-term growth and the need for caution regarding its current liabilities and debt levels. The strong ratings in long-term EPS growth and P/E ratio suggest that the stock might offer good value relative to its earnings, despite the negative assessments regarding debt management.