What is Huntington Ingalls Industries, Inc. (HII) DCF Fair Value and Intrinsic Value in 2026?

Huntington Ingalls Industries, Inc. (HII) intrinsic value is calculated using conservative multi-stage Discounted Cash Flow (DCF) models, 5-year free cash flow trajectories, Graham Numbers, and owner earnings multiples. LocalAlpha tracks real-time margin of safety against live market prices.

What is Huntington Ingalls Industries, Inc.'s historical Return on Invested Capital (ROIC) and Moat Rating?

Huntington Ingalls Industries, Inc. operates in the Industrials sector (Aerospace & Defense) with an economic moat rating of WIDE. LocalAlpha tracks 5-year audited quarterly ROIC, operating margin stability, and balance sheet solvency ratios.

What is Huntington Ingalls Industries, Inc.'s financial health rating and Piotroski F-Score?

Huntington Ingalls Industries, Inc.'s balance sheet quality is evaluated using the 9-point Piotroski F-Score, Altman Z-Score solvency model, debt-to-equity ratio, and quick/current liquidity coverage to guard against financial distress.

How does LocalAlpha monitor Huntington Ingalls Industries, Inc. (HII) for quarterly SEC filing thesis breaks?

LocalAlpha audits Huntington Ingalls Industries, Inc.'s 10-K, 10-Q, and 8-K regulatory filings on SEC EDGAR within 15 minutes of release. If reported metrics breach an investor's custom ROIC floor, operating margin boundary, or qualitative risk criteria, an autonomous breach audit is dispatched immediately.

StocksHII

HII

Huntington Ingalls Industries, Industrials / Aerospace & DefenseINTACT

Huntington Ingalls Industries, Inc. designs, builds, overhauls, and repairs military ships in the United States. It operates through three segments: Ingalls, Newport News, and Mission Technologies. The company is involved in the design and construction of non-nuclear ships comprising amphibious assault ships, surface combatants, and national security cutters for the U.S. Navy and U.S. Coast Guard. It also provides nuclear-powered ships, such as aircraft carriers and submarines, as well as refueling and overhaul, and inactivation services of nuclear-powered aircraft carriers. In addition, the company offers naval nuclear support services, including fleet services comprising design, construction, maintenance, and disposal activities for in-service the U.S. Navy nuclear ships; and maintenance services on nuclear reactor prototypes. Further, the company provides C5ISR systems and operations; application of artificial intelligence and machine learning to battlefield decisions; defensive and offensive cyberspace strategies and electronic warfare; uncrewed autonomous systems; live, virtual, and constructive solutions; platform modernization; and critical nuclear operations. The company has a strategic partnership with HD Hyundai Heavy Industries to implement intelligent mechanized welding systems at Huntington Ingalls Industries, Inc.'s Ingalls Shipbuilding division. Huntington Ingalls Industries, Inc. was founded in 1886 and is headquartered in Newport News, Virginia.

Share Price

$279.23

52W: $263.62 - $460

DCF Fair Value

$0.00

0% Premium

Thesis Hub

P/E (TTM)

16.6x

ROIC

Operating Margin

7.1%

FCF Yield

-2.7%

Debt / Equity

0.55x

Piotroski Score

5/9

Altman Z-Score

4.89

Market Cap

$11B

Price vs. Intrinsic Value Corridor

Fair Value Range

Historical market price overlaid against conservative DCF Fair Value & Benjamin Graham Margin of Safety bands.

Period Return (1Y)

—()

Period Range

$— - $—

Valuation Overlays:0 Revised Graham ($253.95) Graham Number ($225.67)

2-Stage Discounted Cash Flow (DCF) Workbench

Conservative intrinsic value model based on owner cash generation over a 10-year investment horizon. Opens with LocalAlpha's baseline assumptions (matching the fair value shown above) — adjust any input to stress-test.

Current Market Price

$279.23

DCF Fair Value

$0.00

-100% Premium

Starting Free Cash Flow ($M)$100M

$100M$-300M (Reported)$50,000M

Stage 1 Growth (Years 1-5)5.3%

-5%10% (Target)35%

Stage 2 Growth (Years 6-10)4.5%

0%5%20%

Discount Rate (WACC / Hurdle)9.0%

6%9% (Standard)15% (High Risk)

Terminal Perpetual Growth2.5%

1% (GDP Floor)2.5% (Inflation)4.0%

Net Debt ($M)$2,900M

-$100B CashBalance Sheet+$150B Debt

10-Yr PV of Cash Flows

$0.8B

PV of Terminal Value

$1.1B

Implied Enterprise Value

$1.9B

Implied Equity Value

$-1.0B

Year	Yr 1	Yr 2	Yr 3	Yr 4	Yr 5	Yr 6	Yr 7	Yr 8	Yr 9	Yr 10
Projected FCF ($M)	$105	$111	$117	$123	$129	$135	$141	$148	$154	$161
Present Value (PV)	$97	$93	$90	$87	$84	$81	$77	$74	$71	$68

Benjamin Graham & Buffett Value Models

Classical deep value metrics based on asset backing, normalized earnings power, and owner cash yield.

Graham Number-23.7% Premium

$225.67

Calculated as √(22.5 × EPS × BVPS). The maximum theoretical price a defensive investor should pay based purely on asset book value and current earnings.

EPS: $16.79BVPS: $134.81

Revised Graham Formula-10% Premium

$253.95

Formula: V = (EPS × (8.5 + 2g) × 4.4) / Y where g is the conservative 7-10 yr growth rate and Y is AAA Bond Yield.

Growth Rate (g%)

Bond Yield (Y%)

Buffett Owner Earnings-2.6% Yield

$-7.31 / share

True distributable cash flow: Net Income + D&A - Maintenance CapEx. Reflects the cash Buffett would extract without hurting unit volume.

Total: $-0.3BYield: -2.6%

Reverse DCF: Market Growth Expectation

EXTREMELY LOW BARRIER

0.0% CAGR (Next 10 Yrs)

At the current price of $279.23, the market is assuming the business will compound Free Cash Flow at 0.0% per year for the next decade with a 9% hurdle rate.

Value Investor Verdict

✓ Low market hurdle: Easy for a wide-moat compounder to beat.

Autonomous Thesis Underwriting

Surveil HII with Mathematical Margin of Safety Rules

Set non-negotiable floor rules for Huntington Ingalls Industries, . If a newly filed quarterly 10-Q breaks your ROIC floor, operating margin boundary, or balance sheet leverage rules, receive an autonomous breach audit within 15 minutes.

Buffett Quality

ROIC > 15% • Margin > 15% • D/E < 0.5x

Margin Floor Guard

Current Margin 7.1% • Floor > 10%

Solvency Guard

Altman-Z > 2.6 • Current Ratio > 1.5x

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Frequently Asked Questions: Huntington Ingalls Industries, (HII) Intrinsic Valuation

Audited fundamentals, DCF intrinsic value sensitivity, and thesis break detection parameters for Huntington Ingalls Industries, .

Based on institutional multi-stage Discounted Cash Flow (DCF) modeling on audited SEC cash flows, Huntington Ingalls Industries, has an estimated DCF intrinsic fair value of $0.00 per share compared to its current market price of $279.23. This represents an estimated 0.0% margin of safety (trading below fair value). Additionally, its classic Benjamin Graham Number stands at $225.67.