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Huntington Ingalls Industries, Inc. (0J76.L)

Company Dividend Discount ModelIndustry: Industrial - Capital GoodsSector: Industrials

Valuation Snapshot

Stable Growth$207.34 - $373.95$276.96
Multi-Stage$214.12 - $234.12$223.94
Blended Fair Value$250.45
Current Price$287.91
Upside-13.01%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS6.69%15.44%5.245.094.894.734.383.793.362.932.492.06
YoY Growth--3.00%4.17%3.23%8.14%15.44%12.88%14.78%17.35%20.99%65.31%
Dividend Yield--2.57%1.77%2.36%2.37%2.13%2.08%1.58%1.14%1.25%1.51%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)569.00
(-) Cash Dividends Paid (M)211.00
(=) Cash Retained (M)358.00
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)113.8071.1342.68
Cash Retained (M)358.00358.00358.00
(-) Cash Required (M)-113.80-71.13-42.68
(=) Excess Retained (M)244.20286.88315.33
(/) Shares Outstanding (M)39.3039.3039.30
(=) Excess Retained per Share6.217.308.02
LTM Dividend per Share5.375.375.37
(+) Excess Retained per Share6.217.308.02
(=) Adjusted Dividend11.5812.6713.39
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate3.33%4.33%5.33%
Fair Value$207.34$276.96$373.95
Upside / Downside-27.98%-3.80%29.89%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)569.00593.61619.29646.08674.03703.19724.29
Payout Ratio37.08%47.67%58.25%68.83%79.42%90.00%92.50%
Projected Dividends (M)211.00282.95360.74444.72535.29632.87669.97

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate3.33%4.33%5.33%
Year 1 PV (M)256.87259.36261.84
Year 2 PV (M)297.30303.08308.92
Year 3 PV (M)332.73342.48352.42
Year 4 PV (M)363.57377.85392.55
Year 5 PV (M)390.23409.48429.48
PV of Terminal Value (M)6,774.337,108.557,455.83
Equity Value (M)8,415.028,800.809,201.05
Shares Outstanding (M)39.3039.3039.30
Fair Value$214.12$223.94$234.12
Upside / Downside-25.63%-22.22%-18.68%

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