Huntington Ingalls Industries

Methodology

Huntington Ingalls' naval shipbuilding business generates relatively predictable earnings from long-term government contracts for aircraft carriers and submarines. The company's monopoly position in nuclear aircraft carriers provides revenue visibility. This calculation works reasonably well given multi-year contract visibility, though program timing, cost overruns, and contract renegotiations create quarterly volatility in reported results.

Methodology

Huntington Ingalls typically shows moderate PEG ratios reflecting steady but unspectacular growth from naval vessel construction programs. The company's sole-source positions in major platforms provide stability but limit growth potential. Compare to other defense primes to assess whether Huntington's naval shipbuilding franchise justifies valuations despite limited growth from concentrated customer and constrained production capacity.

Methodology

Huntington Ingalls pays a meaningful dividend reflecting predictable cash flows from long-term shipbuilding contracts. The company balances dividends with capital investments in shipyard infrastructure and working capital for major programs. PEGY provides additional context for this defense contractor, where steady dividends complement modest growth from multi-decade naval vessel construction programs.