Huntington Ingalls Industries (HII) Stock Analysis & Winston Score
Huntington Ingalls Industries builds large military ships for the United States government. Its two main divisions — Newport News Shipbuilding and Ingalls Shipbuilding — construct nuclear-powered aircraft carriers, submarines, and destroyers for the U.S. Navy and Coast Guard. It is the only company in the United States capable of building and refueling nuclear-powered aircraft carriers. The company earns revenue almost entirely through long-term government contracts, making the U.S. Navy its dominant customer by a wide margin. It operates primarily in Virginia and Mississippi, and its specialized workforce and facilities create a strong competitive moat that is very difficult for rivals to replicate. However, thin margins — reflected in a gross margin below 13% — highlight the main risk: cost overruns on complex, fixed-price contracts can quickly erode profits, and the company's growth depends heavily on the pace of U.S. defense spending and Navy shipbuilding budgets.
Winston Score: 49/100 — Average
Mixed quality — meaningful strengths and weaknesses.
- Quality: Good (17/30)
- Growth: Good (11/20)
- Cash Flow: Weak (2/10)
- Stability: Exceptional (9/10)
- Valuation: Strong (7/10)
- Ownership: Weak (2/15)


