Recent News
On October 26, 2025 HII and HD Hyundai Heavy Industries signed a memorandum of agreement to pursue joint construction of U.S. Navy auxiliary vessels and potential U.S. yard investments. On October 20, 2025 HII hosted HD Hyundai leaders at Ingalls Shipbuilding to advance the companies’ earlier collaboration. On July 30, 2025 HII’s board declared a quarterly cash dividend of $1.35 per share payable September 12, 2025 to shareholders of record as of August 29, 2025. On September 10, 2025 HII announced completion and delivery milestones for REMUS unmanned undersea vehicles at DSEI.
Technical Analysis
ADX at 17.29 indicates no established trend strength; momentum depends on directional indicators and price structure rather than a dominant trend.
DI+ shows a dip & reversal (DI+ = 24.58), and DI- shows a peak & reversal (DI- = 17.90); both signals align toward a bullish directional tilt for near-term price movement.
MACD trades at 3.76 with a dip & reversal and sits above its signal line at 3.49, a bullish momentum confirmation that supports the introductory constructive bias.
MRO reads -14.62 (negative), indicating price sits below the model target and implies upward pressure toward the target over time, reinforcing the near-term potential for appreciation.
RSI at 60.34 with a dip & reversal shows regained buying pressure without extended overbought readings, consistent with momentum signals and supporting a measured bullish outlook.
Price closed at $299.91, above the 20-day average $287.13, 50-day average $277.41 and 200-day average $231.78; the price/MA configuration and the 12-day EMA dip & reversal indicate renewed upward bias with the supertrend lower support at $279.79.
Fundamental Analysis
Revenue totaled $3,082,000,000 with trailing revenue growth of 12.73% and a reported year-over-year revenue growth of 107.58%; quarter-to-quarter revenue change showed contraction. QoQ revenue growth declined by 241.62% as reported, reflecting period-to-period variability.
Operating income measured $155,000,000 and operating margin stood at 5.03%, down 36.05% QoQ and down 37.62% YoY; EBIT equaled $216,000,000 and EBIT margin reached 7.01%, a decline of 10.87% QoQ and 13.07% YoY. The EBIT margin sits below the industry peer mean of 12.526% and below the industry peer median of 11.677%.
Net income totaled $152,000,000 and EPS came in at $3.86 versus an estimate of $3.43, delivering a $0.43 upside and an EPS surprise of 12.54% for the reported period.
Cash flow and capital metrics provide balance: free cash flow reached $727,000,000 with a free cash flow yield of 7.30%, notably above the industry peer mean of 0.32%. Operating cash flow reached $823,000,000 and end-period cash totaled $343,000,000, supporting the company’s dividend capacity (dividend rate $1.35065; dividend payout ratio 34.87%).
Leverage presents mixed signals: total debt $2,909,000,000, net debt $2,360,000,000, debt-to-EBITDA roughly 9.73x and debt-to-equity 0.596. Interest coverage at 7.71 exceeds the industry peer mean of 5.63, while debt-to-equity sits slightly below the industry peer mean of 0.629, indicating manageable interest service but elevated leverage relative to cash flow multiples.
Valuation multiples run high on earnings expectations: P/E at 61.94 sits marginally below the industry peer mean of 64.11 but below the industry peer median of 82.30; price-to-book at 2.04 sits below the industry peer mean of 7.55 and median of 5.10. PEG and forward-PE metrics (PEG 33.54; forward PE 56.59) remain elevated relative to the industry peer mean, implying stretched growth expectations priced into forward earnings estimates.
WMDST values the stock as under-valued based on its cash flow generation and relative multiples, with the company’s sizable free cash flow and raised dividend supporting that valuation conclusion.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-06-30 |
| REPORT DATE: | 2025-07-31 |
| NEXT REPORT DATE: | 2025-10-29 |
| CASH FLOW | Begin Period Cash Flow | $ 167.0 M |
| Operating Cash Flow | $ 823.0 M | |
| Capital Expenditures | $ -96.00 M | |
| Change In Working Capital | $ 588.0 M | |
| Dividends Paid | $ -53.00 M | |
| Cash Flow Delta | $ 176.0 M | |
| End Period Cash Flow | $ 343.0 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 3.1 B | |
| Forward Revenue | $ 779.7 M | |
| COSTS | ||
| Cost Of Revenue | $ 2.7 B | |
| Depreciation | $ 56.0 M | |
| Depreciation and Amortization | $ 83.0 M | |
| Research and Development | — | |
| Total Operating Expenses | $ 2.9 B | |
| PROFITABILITY | ||
| Gross Profit | $ 395.0 M | |
| EBITDA | $ 299.0 M | |
| EBIT | $ 216.0 M | |
| Operating Income | $ 155.0 M | |
| Interest Income | — | |
| Interest Expense | $ 28.0 M | |
| Net Interest Income | $ -28.00 M | |
| Income Before Tax | $ 188.0 M | |
| Tax Provision | $ 36.0 M | |
| Tax Rate | 19.149 % | |
| Net Income | $ 152.0 M | |
| Net Income From Continuing Operations | $ 152.0 M | |
| EARNINGS | ||
| EPS Estimate | $ 3.43 | |
| EPS Actual | $ 3.86 | |
| EPS Difference | $ 0.43 | |
| EPS Surprise | 12.536 % | |
| Forward EPS | $ 3.92 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 12.1 B | |
| Intangible Assets | $ 3.4 B | |
| Net Tangible Assets | $ 1.5 B | |
| Total Current Assets | $ 3.0 B | |
| Cash and Short-Term Investments | $ 343.0 M | |
| Cash | $ 343.0 M | |
| Net Receivables | $ 377.0 M | |
| Inventory | $ 215.0 M | |
| Long-Term Investments | $ 418.0 M | |
| LIABILITIES | ||
| Accounts Payable | $ 650.0 M | |
| Short-Term Debt | $ 3.0 M | |
| Total Current Liabilities | $ 2.8 B | |
| Net Debt | $ 2.4 B | |
| Total Debt | $ 2.9 B | |
| Total Liabilities | $ 7.2 B | |
| EQUITY | ||
| Total Equity | $ 4.9 B | |
| Retained Earnings | $ 5.3 B | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 124.41 | |
| Shares Outstanding | 39.240 M | |
| Revenue Per-Share | $ 78.54 | |
| VALUATION | Market Capitalization | $ 10.0 B |
| Enterprise Value | $ 12.5 B | |
| Enterprise Multiple | 41.874 | |
| Enterprise Multiple QoQ | 9.88 % | |
| Enterprise Multiple YoY | 22.73 % | |
| Enterprise Multiple IPRWA | high: 323.415 mean: 113.884 median: 74.477 HII: 41.874 low: -67.542 |
|
| EV/R | 4.062 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 2.478 | |
| Asset To Liability | 1.677 | |
| Debt To Capital | 0.373 | |
| Debt To Assets | 0.24 | |
| Debt To Assets QoQ | -14.558 % | |
| Debt To Assets YoY | 188.69 % | |
| Debt To Assets IPRWA | high: 0.871 mean: 0.301 median: 0.295 HII: 0.24 low: 0.0 |
|
| Debt To Equity | 0.596 | |
| Debt To Equity QoQ | -16.499 % | |
| Debt To Equity YoY | 164.275 % | |
| Debt To Equity IPRWA | high: 1.727 median: 0.653 mean: 0.629 HII: 0.596 low: -0.606 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 2.039 | |
| Price To Book QoQ | 22.185 % | |
| Price To Book YoY | -14.7 % | |
| Price To Book IPRWA | high: 19.536 mean: 7.546 median: 5.1 HII: 2.039 low: -3.173 |
|
| Price To Earnings (P/E) | 61.941 | |
| Price To Earnings QoQ | 15.329 % | |
| Price To Earnings YoY | 6.653 % | |
| Price To Earnings IPRWA | high: 273.833 median: 82.296 mean: 64.107 HII: 61.941 low: -168.63 |
|
| PE/G Ratio | 33.536 | |
| Price To Sales (P/S) | 3.23 | |
| Price To Sales QoQ | 10.865 % | |
| Price To Sales YoY | -3.723 % | |
| Price To Sales IPRWA | high: 84.443 mean: 13.993 median: 9.287 HII: 3.23 low: 1.02 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 56.589 | |
| Forward PE/G | 30.639 | |
| Forward P/S | 12.766 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 0.037 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.255 | |
| Asset Turnover Ratio QoQ | 12.929 % | |
| Asset Turnover Ratio YoY | -3.847 % | |
| Asset Turnover Ratio IPRWA | high: 0.392 HII: 0.255 mean: 0.168 median: 0.146 low: 0.0 |
|
| Receivables Turnover | 8.068 | |
| Receivables Turnover Ratio QoQ | -11.617 % | |
| Receivables Turnover Ratio YoY | 92.961 % | |
| Receivables Turnover Ratio IPRWA | HII: 8.068 high: 7.23 mean: 3.509 median: 2.312 low: 0.002 |
|
| Inventory Turnover | 12.498 | |
| Inventory Turnover Ratio QoQ | 12.96 % | |
| Inventory Turnover Ratio YoY | -2.523 % | |
| Inventory Turnover Ratio IPRWA | HII: 12.498 high: 5.2 mean: 1.531 median: 0.929 low: 0.051 |
|
| Days Sales Outstanding (DSO) | 11.31 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | -4.717 | |
| Cash Conversion Cycle Days QoQ | 46.637 % | |
| Cash Conversion Cycle Days YoY | -183.928 % | |
| Cash Conversion Cycle Days IPRWA | high: 425.979 mean: 132.269 median: 73.581 HII: -4.717 low: -296.124 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 13.821 | |
| CapEx To Revenue | -0.031 | |
| CapEx To Depreciation | -1.714 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 7.6 B | |
| Net Invested Capital | $ 7.6 B | |
| Invested Capital | $ 7.6 B | |
| Net Tangible Assets | $ 1.5 B | |
| Net Working Capital | $ 223.0 M | |
| LIQUIDITY | ||
| Cash Ratio | 0.125 | |
| Current Ratio | 1.081 | |
| Current Ratio QoQ | 1.498 % | |
| Current Ratio YoY | 32.277 % | |
| Current Ratio IPRWA | high: 8.966 mean: 1.555 median: 1.286 HII: 1.081 low: 0.225 |
|
| Quick Ratio | 1.003 | |
| Quick Ratio QoQ | 1.319 % | |
| Quick Ratio YoY | 31.664 % | |
| Quick Ratio IPRWA | high: 4.407 HII: 1.003 mean: 0.997 median: 0.833 low: 0.28 |
|
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 9.729 | |
| Cost Of Debt | 0.717 % | |
| Interest Coverage Ratio | 7.714 | |
| Interest Coverage Ratio QoQ | 0.465 % | |
| Interest Coverage Ratio YoY | -22.857 % | |
| Interest Coverage Ratio IPRWA | high: 34.5 HII: 7.714 mean: 5.633 median: 5.25 low: -78.651 |
|
| Operating Cash Flow Ratio | 0.107 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 24.411 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | 2.868 | |
| Dividend Payout Ratio | 0.349 | |
| Dividend Rate | $ 1.35 | |
| Dividend Yield | 0.005 | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | -0.041 % | |
| Revenue Growth | 12.729 % | |
| Revenue Growth QoQ | -241.622 % | |
| Revenue Growth YoY | 107.583 % | |
| Revenue Growth IPRWA | high: 47.672 % HII: 12.729 % mean: 7.351 % median: 6.279 % low: -58.801 % |
|
| Earnings Growth | 1.847 % | |
| Earnings Growth QoQ | -90.909 % | |
| Earnings Growth YoY | -85.984 % | |
| Earnings Growth IPRWA | high: 153.061 % mean: 36.078 % median: 6.122 % HII: 1.847 % low: -91.045 % |
|
| MARGINS | ||
| Gross Margin | 12.816 % | |
| Gross Margin QoQ | -11.068 % | |
| Gross Margin YoY | -11.681 % | |
| Gross Margin IPRWA | high: 98.953 % mean: 24.584 % median: 20.996 % HII: 12.816 % low: -30.868 % |
|
| EBIT Margin | 7.008 % | |
| EBIT Margin QoQ | -10.885 % | |
| EBIT Margin YoY | -13.074 % | |
| EBIT Margin IPRWA | high: 46.133 % mean: 12.526 % median: 11.677 % HII: 7.008 % low: -171.354 % |
|
| Return On Sales (ROS) | 5.029 % | |
| Return On Sales QoQ | -36.05 % | |
| Return On Sales YoY | -37.621 % | |
| Return On Sales IPRWA | high: 46.714 % mean: 11.653 % median: 10.007 % HII: 5.029 % low: -147.434 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 727.0 M | |
| Free Cash Flow Yield | 7.303 % | |
| Free Cash Flow Yield QoQ | -225.914 % | |
| Free Cash Flow Yield YoY | -836.932 % | |
| Free Cash Flow Yield IPRWA | HII: 7.303 % high: 2.193 % median: 0.491 % mean: 0.32 % low: -11.984 % |
|
| Free Cash Growth | -257.359 % | |
| Free Cash Growth QoQ | -3.534 % | |
| Free Cash Growth YoY | 300.496 % | |
| Free Cash Growth IPRWA | high: 522.826 % mean: -64.246 % median: -91.266 % HII: -257.359 % low: -646.535 % |
|
| Free Cash To Net Income | 4.783 | |
| Cash Flow Margin | 9.507 % | |
| Cash Flow To Earnings | 1.928 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.03 | |
| Return On Assets (ROA) | 1.256 % | |
| Return On Assets QoQ | 2.197 % | |
| Return On Assets YoY | -18.389 % | |
| Return On Assets IPRWA | high: 6.423 % HII: 1.256 % median: 1.11 % mean: 1.084 % low: -22.89 % |
|
| Return On Capital Employed (ROCE) | 2.311 % | |
| Return On Equity (ROE) | 0.031 | |
| Return On Equity QoQ | -0.288 % | |
| Return On Equity YoY | -24.825 % | |
| Return On Equity IPRWA | high: 0.185 mean: 0.052 median: 0.043 HII: 0.031 low: -0.361 |
|
| DuPont ROE | 3.149 % | |
| Return On Invested Capital (ROIC) | 2.302 % | |
| Return On Invested Capital QoQ | 7.169 % | |
| Return On Invested Capital YoY | -88.852 % | |
| Return On Invested Capital IPRWA | high: 10.128 % HII: 2.302 % mean: 2.246 % median: 2.101 % low: -18.67 % |
|