Huntington Ingalls Industries Shows Strong Value Investor Ratings

Huntington Ingalls Industries Inc (HII) scores highly in value investing, achieving 71% according to the Value Investor model. This rating indicates solid fundamentals and positive long-term earnings growth potential for HII shares.

Date: 18-02-2025

AI Rating: 7

Valuation Insights

Huntington Ingalls Industries Inc (HII) showcases a favorable rating of 71% based on the Value Investor model inspired by Benjamin Graham. This indicates a solid position within its sector, specifically in Aerospace & Defense, and highlights the company's potential for investors looking for value.

Key Metrics

The analysis reveals that HII passes tests for the sector, sales, P/E ratio, price/book ratio, and long-term EPS growth. Such metrics are important for investors as they indicate that HII is not only valued correctly but also demonstrates long-term earnings potential. A passing score in these areas usually reflects good investment fundamentals.

However, it is noteworthy that the current ratio and long-term debt relative to net current assets have failed, which could raise concerns about liquidity and financial stability in the long run. These failures could potentially offset some of the positive signals derived from other metrics.

Long-term Earnings Growth

HII's successful pass on the long-term EPS growth indicates that the company is likely to continue generating increasing earnings over time, serving as a positive factor that could attract investors seeking growth alongside value.

The combination of passing critical ratios such as P/E and price/book, along with long-term earnings growth, suggests that HII could experience upward movement in stock price if these trends continue and if the issues with debt and ratios can be addressed effectively.

Stocks: HII