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:
Below please find a table outlining a discounted cash flow forecast for HII, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Huntington Ingalls Industries Inc ranked in the 25th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. In terms of the factors that were most noteworthy in this DCF analysis for HII, they are:
The company has produced more trailing twelve month cash flow than 76.13% of its sector Industrials.
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 37.62% of tickers in our DCF set.
Huntington Ingalls Industries Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at 10.76. This coverage rate is greater than that of 74.48% of stocks we're observing for the purpose of forecasting via discounted cash flows.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
LMB, ADP, FORR, HQI, and IEX can be thought of as valuation peers to HII, in the sense that they are in the Industrials sector and have a similar price forecast based on DCF valuation.