HIIHuntington Ingalls Industries
Is the business good?
The checks split: nothing decisive, though thin cash backing (0.6×).
Operating profit outpaces operating cash flow, watch accruals and working capital. Conversion is worsening vs a year ago.
Positive operating leverage, operating profit is growing faster than sales, so margins widen as the business scales.
A balanced mix of margins, efficiency, and leverage. ROE 12% = margin × turnover × leverage.
Unless marked, from derived.
Against the whole market›
Percentile against every name Ryufin tracks. Higher is better; the tick marks the middle of the market. Context, not one of the checks above.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is HII?
Huntington Ingalls Industries earns 6.9% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
Return on invested capital · cost of capital 9.0% · 2.1 points below what the capital costs: growth destroys value
- Operating margin
- 5.3%
Operating margin · Aerospace & Defense median 9.6% · 12 months to Q2 2026
- Cash conversion
- 0.64×
Cash conversion · 2.35× a year ago · the operating profit has not turned into cash yet
- Share count, year on year
- +0.25%
Share count, year on year · flat: no meaningful dilution
| Year | Operating margin |
|---|---|
| FY2020 | 8.5% |
| FY2021 | 5.4% |
| FY2022 | 5.3% |
| FY2023 | 6.8% |
| FY2024 | 4.6% |
| FY2025 | 5.3% |
Details›
- Operating margin12 months to Q2 2026
- 5.3%
- Net margin12 months to Q2 2026
- 5.0%
- Free cash flow margin
- −0.62%
- Revenue, trailing twelve months
- $13.2B
- Free cash flow, trailing twelve months
- −$82M
- Net income, trailing twelve months
- $661M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 6.9%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Aerospace & Defense
The closest names by size in the same industry