Important note
This AI stock analysis for Huntington Ingalls Industries is not up to date. Creating and accessing our AI stock Analysis (powered by our data and Chat GPT) is only available for our premium users. Sign up to get access today!
Huntington Ingalls Industries - AI Stock Analysis
Analysis generated February 24, 2025
Huntington Ingalls Industries (HII) is America’s largest military shipbuilding company and a provider of professional services to partners in government and industry. HII’s expertise spans nuclear and non-nuclear shipbuilding, and they design, build, and maintain some of the most complex and technologically advanced warships in the U.S. Navy’s fleet. Over the years, HII has diversified its portfolio to offer capabilities in unmanned systems, defense electronics, and engineering and manufacturing services.
Fundamental Analysis
In the most recent quarter, HII reported revenue of $2.75 billion. This represents a decrease of 7.66% compared to the previous quarter, and a decrease of 2.38% compared to the same quarter last year. Such a decrease in revenue can signify contracting business activities or operational inefficiencies, both of which are areas requiring management's attention.
Additionally, the net income for the last quarter was $101 million, marking a worrying decline of 41.62% compared to the previous quarter. Compared to the same quarter last year, net income has decreased by 31.76%. This substantial drop in profitability suggests potential cost management issues or declining demand for the company’s products and services.
The EBITDA for the last quarter stood at $163 million, experiencing a decrease of 38.95% from the previous quarter, and a 32.92% drop when compared to the same quarter the previous year. This indicates that the company’s core operational performance has deteriorated significantly over the short and medium terms.
The current Price to Earnings (P/E) ratio is 12.2, which falls within a typical range, suggesting that the stock is neither overvalued nor undervalued based on industry standards.
Technical Analysis
Currently, the stock is priced at $168.81, experiencing a 16.73% drop from a month ago and a concerning 40.44% decrease over the past year. These figures suggest long-term struggles and potentially waning investor confidence.
Despite the significant price drop, the trend appears to be bullish. The SMA10 is 168.49, which is slightly higher than the previous SMA10 of 167.73. This slight upward movement indicates a potential rally, albeit in a short-term perspective.
The Relative Strength Index (RSI) sits at 62.9, underscoring a neutral condition. This suggests that the stock isn’t currently overbought or oversold, providing no strong indication of an imminent reversal in trend.
Alternative Data Analysis
Huntington Ingalls Industries currently has 783 open positions according to leading job boards, reflecting a 7% decrease in job postings over the past couple of months. This reduction in hiring can be interpreted as the company’s attempt to control costs or a response to a reduced workload.
Employee sentiment toward Huntington Ingalls Industries remains neutral, indicating neither heightened enthusiasm nor significant dissatisfaction.
The company’s web traffic saw an estimated 97,000 visitors, down by 18% in the past couple of months. Such a decline in web visitors is concerning as it might signal a loss of customer interest or engagement.
On social media, HII has 10,000 followers on their Twitter page, with no significant changes in recent months. This static engagement level provides little insight into shifts in public perception or momentum.
According to AltIndex’s AI score that synthesizes fundamental, technical, and alternative data, Huntington Ingalls Industries receives a score of 44, indicating a hold signal.
Conclusion
Based on the data analysis across different perspectives, Huntington Ingalls Industries is going through some challenging times marked by declining financial performance, falling stock prices, and reducing engagement from prospective employees and customers. The technical indicators offer some optimism for short-term improvements, but the long-term outlook remains uncertain. The AltIndex’s AI score further reinforces a wait-and-see approach. Potential investors are advised to hold or consider a cautious stance until more consistent positive signs emerge.
Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.
