---
title: Huntington Ingalls Industries (HII) — intrinsic value and fair price
canonical: https://sweetvaluelab.com/stocks/hii
ticker: HII
as_of: 2026-10-17
sector: Industrials
industry: Aerospace & Defense
---
# Huntington Ingalls Industries (HII)

Huntington Ingalls Industries (HII) closed at $272.00 on Oct 16, 2026, undervalued by 40% vs its model value of $452.82 (from a five-year discounted cash flow).

## Key figures

| Figure | Value |
| --- | ---: |
| Last close | $272.00 (Oct 16, 2026) |
| Model value (from a five-year discounted cash flow) | $452.82 |
| Price vs model | undervalued by 40% vs model |
| Range of that model | $230.18 – $864.85 |
| Market value | $10.7B |
| P/E (fiscal 2025) | 17.7 |
| Net margin (fiscal 2025) | 4.8% |
| Free cash flow (fiscal 2025) | $794.0M |
| Dividend yield (trailing twelve months) | 2.03% |
| Beta | 0.21 |
| Cost of capital (WACC) | 6.42% |
| Business classification | Mature & Stable (Low/slowing growth (~4% recent), Thin margins (4.8% net margin), Pays dividends, Highly cyclical earnings, Strong FCF yield (7.4%)) |

## On the stock lists

| List | Place | Figure | Page |
| --- | ---: | ---: | --- |
| Near 52-week lows | #39 | +5.8% | https://sweetvaluelab.com/lists/near-52-week-lows |

## Dividends

| Figure | Value |
| --- | ---: |
| Trailing dividend yield | 2.03% |
| Dividends per share, last 12 months | $5.52 |
| Dividends / free cash flow (fiscal 2025) | 26.8% |
| Raised | 12 years in a row |
| Growth over 5 years | 3.9% a year |
| Latest payment | $1.38, ex-date Aug 28, 2026, paid Sep 11, 2026 |

| Year of payments | Dividends per share |
| --- | ---: |
| To Aug 26, 2021 | $4.56 |
| To Aug 25, 2022 | $4.72 |
| To Aug 24, 2023 | $4.96 |
| To Aug 30, 2024 | $5.20 |
| To Aug 29, 2025 | $5.40 |
| Trailing twelve months (to Aug 28, 2026) | $5.52 |

## Valuation models

Each model's value per share and the role the engine gave it for this business. The headline above is one model's value; every other model is listed with its own, and each has a page of its own under the valuation. Computed Oct 17, 2026.

| Model | Role | Value per share | Low | High |
| --- | --- | ---: | ---: | ---: |
| DCF · Perpetuity growth · 5y | primary | $452.82 | $230.18 | $864.85 |
| DCF · Perpetuity growth · 10y | cross check | $497.30 | $262.26 | $971.72 |
| DCF · EBITDA exit · 5y | cross check | $862.89 | $684.22 | $1,071.58 |
| DCF · EBITDA exit · 10y | cross check | $875.37 | $645.30 | $1,176.68 |
| P/E · peers | cross check | $998.72 | $998.72 | $998.72 |
| P/E · own history | cross check | $270.72 | $250.28 | $306.36 |
| PEG | sanity check | $275.99 | $275.99 | $275.99 |
| EV/EBITDA · peers | cross check | $702.70 | $702.70 | $702.70 |
| EV/Revenue · peers | cross check | $614.20 | $614.20 | $614.20 |
| Earnings power value | cross check | $238.95 | $184.42 | $326.75 |
| Dividend discount | cross check | $172.46 | $105.23 | $376.24 |

## Insider activity (SEC Form 4)

Past 90 days: 0 open-market buys ($0) and 2 open-market sales ($4.5M); 10b5-1 plan sales included.

| Date | Insider | Relationship | Transaction | Shares | Value |
| --- | --- | --- | --- | ---: | ---: |
| Oct 1, 2026 | DENAULT LEO P | Director | Grant / award | 177 | $48,556.4 |
| Oct 1, 2026 | McKibben Tracy B | Director | Grant / award | 177 | $48,556.4 |
| Oct 1, 2026 | Faller Craig S. | Director | Grant / award | 177 | $48,556.4 |
| Oct 1, 2026 | Stanage Nick L | Director | Grant / award | 177 | $48,556.4 |
| Oct 1, 2026 | Jimenez Frank R | Director | Grant / award | 177 | $48,556.4 |

## Recent SEC filings

| Filed | Form | What | Filing |
| --- | --- | --- | --- |
| Jul 30, 2026 | 10-Q | Quarterly report | https://www.sec.gov/Archives/edgar/data/1501585/000150158526000047/hii-20260630.htm |
| Jul 30, 2026 | 8-K | 2.02 Results of Operations (Earnings); 9.01 Financial Statements and Exhibits | https://www.sec.gov/Archives/edgar/data/1501585/000150158526000045/hii-20260730.htm |
| May 5, 2026 | 10-Q | Quarterly report | https://www.sec.gov/Archives/edgar/data/1501585/000150158526000029/hii-20260331.htm |
| May 5, 2026 | 8-K | 2.02 Results of Operations (Earnings); 9.01 Financial Statements and Exhibits | https://www.sec.gov/Archives/edgar/data/1501585/000150158526000027/hii-20260505.htm |
| May 1, 2026 | 8-K | 5.07 Submission of Matters to a Shareholder Vote; 9.01 Financial Statements and Exhibits | https://www.sec.gov/Archives/edgar/data/1501585/000150158526000022/hii-20260429.htm |

## Superinvestors holding it (latest 13F)

| Manager | Quarter | Shares | Value |
| --- | --- | ---: | ---: |
| Thomas Gayner | 2026-06-30 | 27,500 | $7.7M |
| Bridgewater | 2026-06-30 | 2,057 | $575,734 |

2 tracked managers in all.

## About

Huntington Ingalls Industries, Inc. (HII) stands as a prominent American enterprise specializing in the comprehensive lifecycle management of military vessels, encompassing their design, construction, modernization, and maintenance. The company's diverse operations are segmented into three core divisions: Ingalls Shipbuilding, Newport News Shipbuilding, and Technical Solutions. HII is a primary builder of non-nuclear ships, delivering amphibious assault ships, expeditionary warfare vessels, surface combatants, and national security cutters to both the U.S. Navy and U.S. Coast Guard. Furthermore, it plays a critical role in providing nuclear-powered ships, including aircraft carriers and submarines, along with essential associated services such as refueling, extensive overhauls, and inactivation procedures. Beyond direct shipbuilding, Huntington Ingalls Industries offers specialized naval…

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Source: https://sweetvaluelab.com/stocks/hii (SweetValueLab, free, no account). Prices and statements from Financial Modeling Prep; filings from SEC EDGAR. Research and educational data, not investment advice; nothing here is a recommendation to buy, sell or hold any security.