Yahoo Finance Where Huntington Ingalls Industries, Inc. (NYSE:HII) Stands In Terms Of Earnings Growth Against Its Industry
After reading Huntington Ingalls Industries, Inc.'s (NYSE:HII) most recent earnings announcement (30 June 2019), I found it useful to look back at how the company has performed in the past and compare this against the latest numbers. As a long term investor, I pay close attention to earnings trend, rather than the figures published at one point in time. I also compare against an industry benchmark to check whether Huntington Ingalls Industries's performance has been impacted by industry movements. In this article I briefly touch on my key findings.
Check out our latest analysis for Huntington Ingalls Industries
How HII fared against its long-term earnings performance and its industry
HII's trailing twelve-month earnings (from 30 June 2019) of US$687m has jumped 13% compared to the previous year.
However, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 17%, indicating the rate at which HII is growing has slowed down. To understand what's happening, let's look at what's occurring with margins and if the whole industry is feeling the heat.
In terms of returns from investment, Huntington Ingalls Industries has invested its equity funds well leading to a 42% return on equity (ROE), above the sensible minimum of 20%. Furthermore, its return on assets (ROA) of 10% exceeds the US Aerospace & Defense industry of 6.6%, indicating Huntington Ingalls Industries has used its assets more efficiently. However, its return on capital (ROC), which also accounts for Huntington Ingalls Industries’s debt level, has declined over the past 3 years from 17% to 16%.
What does this mean?
While past data is useful, it doesn’t tell the whole story. Positive growth and profitability are what investors like to see in a company’s track record, but how do we properly assess sustainability? I recommend you continue to research Huntington Ingalls Industries to get a better picture of the stock by looking at:
Future Outlook: What are well-informed industry analysts predicting for HII’s future growth? Take a look at our free research report of analyst consensus for HII’s outlook.
Financial Health: Are HII’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.
Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.
NB: Figures in this article are calculated using data from the trailing twelve months from 30 June 2019. This may not be consistent with full year annual report figures.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
