Huntington Ingalls Industries, Inc. (HII) Company Bio
Huntington Ingalls Industries provides engineering, manufacturing and management services to the nuclear energy, oil and gas markets. The company was incorporated in 2010 and is based in Newport News, Virginia.
HII Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Huntington Ingalls Industries Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Huntington Ingalls Industries Inc ranked in the 58th percentile in terms of potential gain offered. Moreover, under all the scenarios we modelled, the output consistently forecasted positive returns. As for the metrics that stood out in our discounted cash flow analysis of Huntington Ingalls Industries Inc, consider:
As a business, HII is generating more cash flow than 82.8% of positive cash flow stocks in the Industrials.
Huntington Ingalls Industries Inc's weighted average cost of capital (WACC) is 7%; for context, that number is higher than only 10.08% of tickers in our DCF set.
HII's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than only 10.08% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Industrials that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as HII, try AGCO, ICFI, RBC, VMI, and KSU.
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SA PRO Interviews on Seeking Alpha | September 29, 2020
Thesis While many are concerned about HII’s current profitability and revenue hits, its status as the sole supplier for the US Navy’s highly valuable aircraft carriers and currently cheap price make the company a prime long-term value play. Overview and Price Action Huntington Ingalls Industries (HII) is an American defense...
Himansh Bishnoi on Seeking Alpha | September 22, 2020
On CNBC's "Mad Money Lightning Round," Jim Cramer said he likes Plug Power Inc's (NASDAQ: PLUG ) acquisitions and its story, but he prefers Linde PLC (NYSE: LIN ). He finds Plug Power a little speculative. Cramer does not want to endorse Huntington Ingalls Industries Inc (NYSE: HII ). Gilead … Full story available on Benzinga.com