Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Huntington Ingalls Industries had a gross margin of 12.61% for the quarter that ended in Jun. 2026 => No sustainable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Huntington Ingalls Industries Gross Margin % Related Terms
Huntington Ingalls Industries Gross Margin % Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
LTS:0J76 vs DRS, MOG.A, SARO: Gross Margin % Comparison
For the Aerospace & Defense subindustry, Huntington Ingalls Industries's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Huntington Ingalls Industries Gross Margin % vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Huntington Ingalls Industries's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Huntington Ingalls Industries's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Huntington Ingalls Industries (LTS:0J76) has a Gross Margin % of 12.61% as of Jun. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Huntington Ingalls Industries and its competitors. This is 20% below median its historical median of 15.79. Over the past decade, Huntington Ingalls Industries' Gross Margin % has ranged from 12.40 to 22.96. According to the industry distribution chart, Huntington Ingalls Industries ranks #286 out of 346 companies in the Aerospace & Defense industry, placing it in the top 82.7%.
Is Huntington Ingalls Industries' Gross Margin % too high?
Huntington Ingalls Industries' current Gross Margin % of 12.61% is 20% below median its 10-year median of 15.79. Over the past 10 years, this metric has ranged from a low of 12.40 to a high of 22.96. The Aerospace & Defense industry median Gross Margin % is 26.77. Huntington Ingalls Industries' value of 12.61% is 52.9% below this industry median. Based on the distribution chart, Huntington Ingalls Industries ranks #286 out of 346 companies in the Aerospace & Defense industry, which is in the bottom quartile relative to peers. Overall, Huntington Ingalls Industries has a GF Score™ of 81/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Huntington Ingalls Industries' Gross Margin % compare to DRS and MOG.A?
According to the Aerospace & Defense industry distribution chart, Huntington Ingalls Industries ranks #286 out of 346 companies for Gross Margin %. This places Huntington Ingalls Industries in the lower half of its industry. The industry median Gross Margin % is 26.77. Huntington Ingalls Industries' value of 12.61% is 52.9% below this benchmark. Historically, Huntington Ingalls Industries' own Gross Margin % has ranged from 12.40 to 22.96 over the past decade. While the company's 10-year median is 15.79 vs. the industry median of 26.77, Huntington Ingalls Industries has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for an Aerospace & Defense company?
The median Gross Margin % among Aerospace & Defense companies is 26.77, based on 346 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Huntington Ingalls Industries's current Gross Margin % of 12.61% is 52.9% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Huntington Ingalls Industries and its competitors. For the Aerospace & Defense industry, the median Gross Margin % is 26.77 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Huntington Ingalls Industries's current Gross Margin % is 12.61%, which is 20% below median its own 10-year median of 15.79. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Huntington Ingalls Industries stock overvalued right now?
Based on GuruFocus' analysis, Huntington Ingalls Industries (LTS:0J76) is currently considered Fairly Valued. The stock's GF Value™ is $298.84, compared to a current price of $324.48 — trading 8.6% above its estimated fair value. The current Gross Margin % is 12.61%, which is 20% below median its 10-year median of 15.79 and 52.9% below the Aerospace & Defense industry median of 26.77. Huntington Ingalls Industries' overall GF Score™ is 81/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Huntington Ingalls Industries (LTS:0J76), the current Gross Margin % is 12.61% as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Huntington Ingalls Industries (LTS:0J76) Overvalued in 2026?
Based on GuruFocus' analysis, Huntington Ingalls Industries stock appears to be overvalued.
The current stock price of $324.48 is trading 8.6% above its estimated GF Value™ of $298.84.
GuruFocus considers Huntington Ingalls Industries to be Fairly Valued.
Key valuation signals for LTS:0J76:
Gross Margin %: 12.61% (20% below median its 10-year median of 15.79)
GF Value™: $298.84 vs. price of $324.48 (8.6% above fair value)
Industry Position: 52.9% below the Aerospace & Defense median (#286 of 346)
No single metric tells the full story. See the LTS:0J76 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Huntington Ingalls Industries is the largest independent military shipbuilder in the US, spun out from Northrop Grumman in 2011. It operates three segments, two of which are storied shipyards: Ingalls produces non-nuclear-powered ships, including amphibious landing ships and Arleigh Burke-class destroyers, while Newport News produces nuclear-powered ships as the only producer of Gerald Ford-class aircraft carriers and a major subcontractor on Virginia- and Columbia-class nuclear submarines. HII shares production of destroyers and nuclear submarines with General Dynamics' Bath Iron Works and Electric Boat shipyards, respectively. The company's mission technologies segment produces uncrewed sea vessels and provides a range of IT and other services to US government agencies.
81GF Score
Get the complete analysis for LTS:0J76
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
LTS:0J76 has been successfully added to your 
