HII Looks 4.7% Undervalued on GF Value™
Huntington Ingalls Industries (HII) secured a $336.11M contract for USS William J. Clinton materials. HII's P/S ratio is 0.85, below its 5-year median of 0.92. GF Value™ estimates HII as 4.7% undervalued. HII has a GF Score™ of 85/100, with strong profitability and growth but moderate financial strength. Gurus are accumulating shares, while insiders sold $18.8M in the past year.
How this was made
The 30-second read
Why it matters
The contract is a fresh, material catalyst that could lift HII's valuation despite current profitability concerns.
Market read
New defense contract provides a concrete growth driver for HII and may boost the broader defense sector.
What to watch
Long project horizon (completion 2039) delays cash realization; execution risk remains.
Background
GuruFocus analysis highlights HII's modest price‑to‑sales discount and strong GF Score, while noting insider sell‑off and guru buying trends.
Ticker impact
HII secured a $336.11 million contract for advance procurement of long‑lead‑time materials for the USS William J. Clinton.
Potential upside of 5‑10% over the next 3‑6 months as the market prices in the new revenue stream.
Large defense contract, mid‑cap scale, and limited competition suggest material earnings uplift once the program ramps.
Market effects
Strengthens the Aerospace & Defense sector outlook, especially shipbuilding peers.
Positive for U.S. defense contractors and related industrials.
Reinforces U.S. naval procurement momentum, modest global defense market effect.
Counterpoint
Insider selling and cash‑flow negativity could limit upside; investors may wait for further earnings clarity.
Key entities
- CompanyHuntington Ingalls Industries Inc
U.S. naval shipbuilder (ticker HII).
- Government AgencyNaval Sea Systems Command
Awarded the $336.11 M contract.
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