Stock fact sheet · data as of
Huntington Ingalls Industries, Inc. (HII): fair value, margin of safety and Wheel Score
Industrials · Aerospace & Defense · United States · Defensive
Is HII undervalued?
HII closed at 267.22 on 16 Oct 2026 against a GLS average fair value of 290.42 - 8.0% below fair value, which our screens read as "fairly priced". 2 of 9 models are above the current price. There is no discount to lean on here, so the margin of safety is not the reason to look at the stock.
The 9 models disagree widely: DDM gives 81.22 while DCF gives 714.96. A spread that wide means the average is sensitive to which methods you trust; the model table below shows where each one lands, and the Quote page lets you switch any of them off.
The nightly engine files HII under Defensive: a low beta, a dividend and positive earnings.
Nine valuation models for HII
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 714.96 | +168% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 225.02 | -16% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 492.92 | +84% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 180.94 | -32% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 230.95 | -14% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 258.08 | -3% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 243.76 | -9% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 81.22 | -70% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 185.94 | -30% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -107.22 | -140% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 357.00 | +34% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Financial health is average - HII passes 6 of the nine Piotroski tests, which passes the Sunday Scan's "6 or more" rule. The Financials tab on the Quote page shows which tests fail. The GLS Moat score is low at 4.3 out of 10, which says the ten-year record of revenue, earnings, margins and returns on capital has been inconsistent - growth and shocks rather than steady compounding.
Returns on capital are moderate - ROIC 7.4%, ROE 11.9%, ROA 4.7% - with debt at 0.62 times equity and a free-cash-flow yield of 3.6%.
The dividend yield is 2.07% at a payout ratio of 33%; for a wheel trader holding assigned shares the dividend adds to the covered-call premium, and the ex-dividend date is worth knowing before a call is sold. Revenue comes mainly from Newport News Shipbuilding 54%, Ingalls 25%, Mission Technologies 22% (quarter Q2 FY2026).
Institutional ownership scores 10/10, insider activity 1/10 and Congressional trading 1/10 on the GLS smart-money scales.
| Piotroski F-score | 6 / 9 | ROIC | 7.4% |
|---|---|---|---|
| GLS Moat | 4.3 / 10 | ROE | 11.9% |
| Debt / equity | 0.62 | ROA | 4.7% |
| Free-cash-flow yield | 3.6% | Payout ratio | 33% |
| Institutions | 10 / 10 | Insiders · Congress | 1 · 1 / 10 |
Wheel Score 72: Good
HII scores 72 out of 100 on the Wheel Score (Good band, 65-79). The score blends the margin of safety (Value, 16/25), Piotroski health (13/20), the GLS moat (6/15), the option premium on offer (20/20) and how easily the stock trades (16/20). Moat (6/15) is the part holding the score back.
Implied volatility is 45% on the near-the-money contracts 20-60 days out - inside the 35-60% range the Wheel Score pays full marks for: enough premium to be worth selling, not so much that the risk is unpaid. Chain open interest is 4,840 contracts across all expiries - enough for the wheel at normal size.
Volume runs at 481k shares a day on a market cap of $10.5B, with a beta of 0.21 - a low beta, so day-to-day moves are smaller than the market's; the Stability part of the Wheel Score gives that 16 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 16 / 25 | 8% margin of safety | |
| Health | 13 / 20 | Piotroski 6/9 | |
| Moat | 6 / 15 | moat 4.3/10 | |
| Premium | 20 / 20 | implied volatility 45% | |
| Stability | 16 / 20 | 481k shares/day, $10.5B cap, beta 0.21 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
Huntington Ingalls Industries, Inc. reports earnings on 29 Oct 2026 (before the open) - inside the 14-day window the Sunday Scan avoids, because a put sold now would carry the report's gap risk.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Aerospace & Defense
The 12 companies below are the closest to Huntington Ingalls Industries, Inc. by market cap within the Aerospace & Defense industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| DRS Leonardo DRS, Inc. | 35.47 | 29.97 | -18% | 68Good | $9.5B |
| BWXT BWX Technologies, Inc. | 137.20 | 74.35 | -85% | 61Fair | $12.6B |
| TXT Textron Inc. | 73.80 | 67.48 | -9% | 70Good | $12.7B |
| EMBJ Embraer S.A. | 72.10 | 164.45 | +56% | 88Prime | $13.2B |
| CAE CAE Inc. | 23.91 | 24.87 | +4% | 76Good | $7.7B |
| KTOS Kratos Defense & Security Solutions, Inc. | 40.74 | 5.79 | -604% | 55Fair | $7.6B |
| HXL Hexcel Corporation | 89.86 | 53.30 | -69% | 58Fair | $6.8B |
| FTAIM FTAI Aviation Ltd. | 26.41 | 27.14 | +3% | 39No options | $16.7B |
| SARO StandardAero, Inc. | 19.76 | 25.77 | +23% | 87Prime | $6.5B |
| FTAI FTAI Aviation Ltd. | 168.56 | 132.21 | -27% | 53Fair | $17.3B |
| AVAV AeroVironment, Inc. | 123.22 | 3.54 | -3378% | 45Weak | $6.3B |
| CW Curtiss-Wright Corporation | 501.49 | 304.81 | -65% | 67Good | $18.5B |
Screen the whole market the same way
A free GLS Equity account gets you nightly fair value and the Wheel Score on ~7,400 US stocks, a watchlist, the scanner preview and the Sunday Scan - the same eight-rule screen, emailed every week. Pro adds the full put and call scanners, unlimited watchlists with alerts and the trade journal.
Start free See the Sunday ScanQuestions about HII
Is HII undervalued right now?
Not meaningfully: at 267.22 the stock trades within a few percent of the GLS average fair value of 290.42 (8.0% below fair value, data as of 16 Oct 2026).
What is the Wheel Score of HII and what does it mean?
HII scores 72 out of 100 (Good). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for HII?
290.42 per share as of 16 Oct 2026 - the simple average of the 9 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Huntington Ingalls Industries, Inc. report earnings next?
The next earnings report is due on 29 Oct 2026 (before the open), 13 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does HII have listed options, and how liquid are they?
Yes. The nightly snapshot found 340 listed contracts with 4,840 open interest across all expiries and implied volatility of 45% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.