Latest news with #HuntingtonIngalls
CNBC
2 days ago
- Business
- CNBC
Lightning Round: Huntington Ingalls is a buy, says Jim Cramer
'Mad Money' host Jim Cramer weighs in on stocks including: Huntington Ingalls, Rocket Lab, Eli Lilly, TSS Inc, Conagra Brands, NXP Semiconductors, and more.
Forbes
4 days ago
- Business
- Forbes
U.S. Navy To Make Do With 10 Flattops As Latest Carrier Running Late
The U.S. Navy's oldest aircraft carrier USS Nimitz is on what is likely her final deployment and her ... More replacement is now running two years behind schedule. (Photo by South Korean Defense Ministry via Getty Images) The future USS John F. Kennedy (CVN-79) is now expected to join the fleet in March 2027, nearly two years later than the previously scheduled date. The second Gerald R. Ford-class nuclear-powered supercarrier was scheduled to have a delivery date of July 2025, but the handover was pushed back to March 2027. The delay is attributed to issues with the Advanced Arresting Gear and Advanced Weapons Elevator, two critical systems on the warship. The carrier's prime contractor, Huntington Ingalls Industries' Newport News Shipbuilding, explained that there have been challenges in implementing improvements to those systems with USS Gerald R. Ford (CVN-78). "Specifically, John F. Kennedy (CVN-79) construction was fairly advanced when many Ford lessons were realized, precluding timely implementation of lessons learned for Kennedy," HII spokesperson Todd Corillo said in a statement to the media. This is the most recent delay for CVN-79, as the carrier previously had an expected delivery date of June 2024, but that was pushed back two years ago. The only good news is that the most recent delays shouldn't further impact the next two Ford-class flattops. "In contrast, Enterprise (CVN-80) and Doris Miller (CVN-81) have been able to incorporate, leverage and capitalize on Ford lessons learned earlier in the construction process," Corillo added. That sugarcoats the fact that CVN-80 had seen its delivery date shifted from September 2029 to July 2030. This resulted from supply chain issues and limited material availability. The lead vessel of the new class of supercarriers, USS Gerald R. Ford, had run about two years behind schedule, but then faced further delays as numerous systems were far from combat-ready. That resulted in initial delays with the USS John F. Kennedy, but problems persist. One Fewer Flattop In Service In the long run, these delays may help HII and even the United States Navy streamline the construction process with this newest class of nuclear-powered supercarriers. Yet, the bigger issue is that the delay will cause some severe near-term headaches for the U.S. Navy. Its oldest nuclear-powered carrier, USS Nimitz (CVN-68), is scheduled to be retired next May. That will reduce the number of carriers in service on paper, but in practice, the situation may be even more dire. USS John C. Stennis (CVN-74) is currently undergoing her Refueling and Complex Overhaul, which was initially scheduled to be completed next month. The RCOH is now running at least 14 months behind schedule, and although it will extend the service life of the carrier by 25 years, CVN-74 won't return to service until October 2026 at the earliest. Then there is the fact that the USS Harry S. Truman (CVN-75) is preparing to begin the same process, which could mean that next year, two carriers are sidelined, while one is taken out of service entirely. "The news of yet another potential delay to the next Gerald R. Ford-class aircraft carrier lands at a precarious moment for the U.S. Navy, and not simply because of a production timeline," explained geopolitical analyst Irina Tsukerman, president of threat assessment firm Scarab Rising. She said it underscores a more profound strategic vulnerability, one of overreliance on aging leviathans and an industrial base increasingly outpaced by geopolitical necessity. "With the USS Nimitz approaching retirement and already deployed in a high-tension theater, the Navy faces a narrowing operational margin at precisely the wrong time," warned Tsukerman. Rotating Carriers To Multiple Hotspots USS Nimitz is now operating in the Red Sea to deter further aggression from Iran and its regional proxies. It isn't alone, as USS Carl Vinson (CVN-70) has been in the Middle Eastern waters since early this spring, relieving CVN-75, which had been deployed to the region last November. The U.S. Navy has rotated multiple carriers to the region. Still, it has also left much of the Indo-Pacific without a carrier on station, even as China has continued to rattle sabers by deploying its two conventionally-powered flattops further into the Pacific. Tsukerman said that the U.S. Navy's growing dependency on a handful of nuclear-powered flattops reflects a kind of strategic inertia. "These ships project overwhelming force and remain indispensable to U.S. power projection, but they are also complex behemoths tethered to an industrial process that is slow, expensive, and prone to disruption," Tsukerman added. "A 20-month delay is not just a schedule slip. It is a signal flare for adversaries and an indictment of a procurement strategy that concentrates capability into a brittle few." She further compared the U.S. Navy's ability to juggle its limited carrier resources to a house of cards, as in it is "visually impressive but easily compromised." Every nuclear-powered supercarrier that is in maintenance following an extended deployment or undergoing a lengthier RCOH represents a void in the sea service's forward presence. That void is increasing measured in years, not weeks. "Operational tempo strains personnel and ships alike, while carrier availability often resembles a shell game: a high-stakes maneuver to maintain appearances without the necessary depth of capacity," Tsukerman noted. "This imbalance exposes critical seams in U.S. naval readiness, particularly in an era when pacing threats are growing more sophisticated and opportunistic." The Cost Of Power Projection It remains true that nothing can do what a carrier can do, notably in terms of moving a vast number of aircraft and personnel to hotspots. However, the most significant selling point of a nuclear-powered carrier is increasingly its greatest weakness. It may have unlimited range and endurance, but it is still dependent on a supply of food, water, and crucially, aviation fuel. Last September, that became crystal clear when the USNS Big Horn, a key oiler, ran aground and partially flooded off the coast of Oman. It briefly left the Abraham Lincoln Carrier Strike Group without its primary fuel source, exposing a significant vulnerability in the U.S. Navy's reliance on aging oilers. Moreover, China has put great effort into developing its so-called "Carrier Killer" intermediate-range ballistic missiles and, more ominously, hypersonic missiles. Such weapons raise questions about whether the U.S. should be building such massive carriers at all. "The cost-benefit calculation for these ships has shifted," said Tsukerman. "Once a cornerstone of deterrence, their price tag now invites hard questions. Are they still the most agile answer to modern threats? Or have they become gilded symbols of a bygone era, perpetually behind schedule and vulnerable to both budgetary politics and technological disruption?" It isn't just the missiles that could strike a carrier; surface and underwater drones could also pose another threat, while satellite targeting has significantly narrowed the operational sanctuary these vessels once enjoyed. "None of this renders carriers obsolete," suggested Tsukerman. "Rather, it demands a doctrinal recalibration. The U.S. Navy cannot afford to tether its global posture to a few slow-turning ships. Diversification, in platforms, propulsion, and deployment models, is no longer a theoretical consideration. It is a strategic imperative. Without it, America risks being outmaneuvered not by lack of will or ingenuity, but by its ponderous designs."
Yahoo
05-07-2025
- Business
- Yahoo
Estimating The Intrinsic Value Of Huntington Ingalls Industries, Inc. (NYSE:HII)
Huntington Ingalls Industries' estimated fair value is US$296 based on 2 Stage Free Cash Flow to Equity With US$252 share price, Huntington Ingalls Industries appears to be trading close to its estimated fair value The US$246 analyst price target for HII is 17% less than our estimate of fair value In this article we are going to estimate the intrinsic value of Huntington Ingalls Industries, Inc. (NYSE:HII) by taking the expected future cash flows and discounting them to today's value. The Discounted Cash Flow (DCF) model is the tool we will apply to do this. Models like these may appear beyond the comprehension of a lay person, but they're fairly easy to follow. We would caution that there are many ways of valuing a company and, like the DCF, each technique has advantages and disadvantages in certain scenarios. If you still have some burning questions about this type of valuation, take a look at the Simply Wall St analysis model. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. We are going to use a two-stage DCF model, which, as the name states, takes into account two stages of growth. The first stage is generally a higher growth period which levels off heading towards the terminal value, captured in the second 'steady growth' period. In the first stage we need to estimate the cash flows to the business over the next ten years. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years. A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we discount the value of these future cash flows to their estimated value in today's dollars: 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Levered FCF ($, Millions) US$505.0m US$572.0m US$660.5m US$652.0m US$652.3m US$658.3m US$668.3m US$681.3m US$696.6m US$713.7m Growth Rate Estimate Source Analyst x6 Analyst x5 Analyst x2 Analyst x1 Est @ 0.05% Est @ 0.92% Est @ 1.52% Est @ 1.95% Est @ 2.25% Est @ 2.45% Present Value ($, Millions) Discounted @ 7.7% US$469 US$493 US$528 US$484 US$450 US$421 US$397 US$376 US$356 US$339 ("Est" = FCF growth rate estimated by Simply Wall St)Present Value of 10-year Cash Flow (PVCF) = US$4.3b The second stage is also known as Terminal Value, this is the business's cash flow after the first stage. The Gordon Growth formula is used to calculate Terminal Value at a future annual growth rate equal to the 5-year average of the 10-year government bond yield of 2.9%. We discount the terminal cash flows to today's value at a cost of equity of 7.7%. Terminal Value (TV)= FCF2035 × (1 + g) ÷ (r – g) = US$714m× (1 + 2.9%) ÷ (7.7%– 2.9%) = US$15b Present Value of Terminal Value (PVTV)= TV / (1 + r)10= US$15b÷ ( 1 + 7.7%)10= US$7.3b The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is US$12b. The last step is to then divide the equity value by the number of shares outstanding. Relative to the current share price of US$252, the company appears about fair value at a 15% discount to where the stock price trades currently. Valuations are imprecise instruments though, rather like a telescope - move a few degrees and end up in a different galaxy. Do keep this in mind. Now the most important inputs to a discounted cash flow are the discount rate, and of course, the actual cash flows. Part of investing is coming up with your own evaluation of a company's future performance, so try the calculation yourself and check your own assumptions. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at Huntington Ingalls Industries as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 7.7%, which is based on a levered beta of 1.106. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business. Check out our latest analysis for Huntington Ingalls Industries Strength Debt is well covered by earnings. Weakness Earnings declined over the past year. Dividend is low compared to the top 25% of dividend payers in the Aerospace & Defense market. Opportunity Annual earnings are forecast to grow for the next 3 years. Good value based on P/E ratio and estimated fair value. Threat Debt is not well covered by operating cash flow. Paying a dividend but company has no free cash flows. Annual earnings are forecast to grow slower than the American market. Valuation is only one side of the coin in terms of building your investment thesis, and it shouldn't be the only metric you look at when researching a company. The DCF model is not a perfect stock valuation tool. Rather it should be seen as a guide to "what assumptions need to be true for this stock to be under/overvalued?" For example, changes in the company's cost of equity or the risk free rate can significantly impact the valuation. For Huntington Ingalls Industries, we've compiled three additional aspects you should look at: Risks: Consider for instance, the ever-present spectre of investment risk. We've identified 3 warning signs with Huntington Ingalls Industries (at least 1 which can't be ignored) , and understanding them should be part of your investment process. Future Earnings: How does HII's growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with our free analyst growth expectation chart. Other High Quality Alternatives: Do you like a good all-rounder? Explore our interactive list of high quality stocks to get an idea of what else is out there you may be missing! PS. Simply Wall St updates its DCF calculation for every American stock every day, so if you want to find the intrinsic value of any other stock just search here. — Investing narratives with Fair Values Suncorp's Next Chapter: Insurance-Only and Ready to Grow By Robbo – Community Contributor Fair Value Estimated: A$22.83 · 0.1% Overvalued Thyssenkrupp Nucera Will Achieve Double-Digit Profits by 2030 Boosted by Hydrogen Growth By Chris1 – Community Contributor Fair Value Estimated: €14.40 · 0.3% Overvalued Tesla's Nvidia Moment – The AI & Robotics Inflection Point By BlackGoat – Community Contributor Fair Value Estimated: $359.72 · 0.1% Overvalued View more featured narratives — Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
18-06-2025
- Business
- Yahoo
Why Huntington Ingalls (HII) is a Top Stock for the Long-Term
If you're a beginner investor, the idea of creating a portfolio from the ground up can feel like an impossible goal to achieve. That's why you should start by looking at stocks that are set to beat the market over the next 12 months, a strategy that's been proven to generate strong returns. Now, let's break down why adding this one exceptional stock, highlighted below, to your portfolio could be a recipe for success. Based in Newport News, VA, Huntington Ingalls Industries designs, builds and maintains nuclear-powered ships such as aircraft carriers and submarines, and non-nuclear ships, such as surface combatants, expeditionary warfare/amphibious assault and coastal defense surface ships for the U.S. Navy and Coast Guard and provides after-market services for military ships around the globe. On May 9, 2016, HII was added to the Zacks Focus List at $155.20 per share. Shares have increased 50.82% to $234.08 since then. Nine analysts revised their earnings estimate higher in the last 60 days for fiscal 2025, while the Zacks Consensus Estimate has increased $0.46 to $14.31. HII also boasts an average earnings surprise of 4.2%. Additionally, Huntington Ingalls' earnings are expected to grow 2.5% for the current fiscal year. It can be very profitable to buy stocks with rising earnings estimates, as stock prices respond to revisions. By adding a Focus List stock like HII, there's a great chance you'll be getting into a company whose future earnings estimates will be raised, which can lead to price momentum. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Huntington Ingalls Industries, Inc. (HII) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Business Insider
18-06-2025
- Business
- Business Insider
TD Cowen Keeps Their Hold Rating on Huntington Ingalls (HII)
In a report released today, Gautam Khanna from TD Cowen maintained a Hold rating on Huntington Ingalls (HII – Research Report), with a price target of $250.00. The company's shares closed yesterday at $234.08. Confident Investing Starts Here: Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter According to TipRanks, Khanna is a top 25 analyst with an average return of 17.0% and a 73.09% success rate. Khanna covers the Industrials sector, focusing on stocks such as Boeing, Booz Allen, and Carpenter Technology. The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Huntington Ingalls with a $241.83 average price target. The company has a one-year high of $285.81 and a one-year low of $158.88. Currently, Huntington Ingalls has an average volume of 612.8K. Based on the recent corporate insider activity of 147 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of HII in relation to earlier this year. Earlier this month, Chad N. Boudreaux, the Ex VP & CLO of HII sold 1,965.00 shares for a total of $449,867.10.
