Huntington Ingalls IndustriesBSP:H1II34 80 Operating Margin % is 4.84% as of Mar. 2026, which is 34% below its 10-year median of 7.35. GuruFocus rates BSP:H1II34 with a GF Score™ of 80/100 and a GF Value™ of R$19.49 (Fairly Valued). The stock has 6 warning signs investors should review. Among 347 Aerospace & Defense companies, Huntington Ingalls Industries ranks worse than 60.81% on this metric.
Huntington Ingalls Industries Inc operating margin has been in a 5-year decline. The average rate of decline per year is -7.6%.
The historical rank and industry rank for Huntington Ingalls Industries's Operating Margin % or its related term are showing as below:
BSP:H1II34'
s Operating Margin % Range Over the Past 10 Years
Min: 4.21 Med: 7.35 Max: 12.31
Current: 4.77
BSP:H1II34's Operating Margin % is ranked worse than 60.81% of 347
companies
in the Aerospace & Defense industry
Industry Median: 7.75
vs BSP:H1II34: 4.77
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Huntington Ingalls Industries Operating Margin % Related Terms
Huntington Ingalls Industries Operating 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.
BSP:H1II34 vs KTOS, MOG.A, DRS: Operating Margin % Comparison
For the Aerospace & Defense subindustry, Huntington Ingalls Industries's Operating Margin %, along with its competitors' market caps and Operating 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 Operating Margin % vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Huntington Ingalls Industries's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Huntington Ingalls Industries's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
* 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.
Huntington Ingalls Industries (BSP:H1II34) has a Operating Margin % of 4.84% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Huntington Ingalls Industries and its competitors. This is 34% below median its historical median of 7.35. Over the past decade, Huntington Ingalls Industries' Operating Margin % has ranged from 4.21 to 12.31. According to the industry distribution chart, Huntington Ingalls Industries ranks #211 out of 347 companies in the Aerospace & Defense industry, placing it in the top 60.8%.
Is Huntington Ingalls Industries' Operating Margin % too high?
Huntington Ingalls Industries' current Operating Margin % of 4.84% is 34% below median its 10-year median of 7.35. Over the past 10 years, this metric has ranged from a low of 4.21 to a high of 12.31. The Aerospace & Defense industry median Operating Margin % is 7.75. Huntington Ingalls Industries' value of 4.84% is 37.5% below this industry median. Based on the distribution chart, Huntington Ingalls Industries ranks #211 out of 347 companies in the Aerospace & Defense industry, which is below the industry midpoint. Overall, Huntington Ingalls Industries has a GF Score™ of 80/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Huntington Ingalls Industries' Operating Margin % compare to KTOS and MOG.A?
According to the Aerospace & Defense industry distribution chart, Huntington Ingalls Industries ranks #211 out of 347 companies for Operating Margin %. This places Huntington Ingalls Industries in the lower half of its industry. The industry median Operating Margin % is 7.75. Huntington Ingalls Industries' value of 4.84% is 37.5% below this benchmark. Historically, Huntington Ingalls Industries' own Operating Margin % has ranged from 4.21 to 12.31 over the past decade. While the company's 10-year median is 7.35 vs. the industry median of 7.75, 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 Operating Margin % for an Aerospace & Defense company?
The median Operating Margin % among Aerospace & Defense companies is 7.75, based on 347 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Huntington Ingalls Industries's current Operating Margin % of 4.84% is 37.5% 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 Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Huntington Ingalls Industries and its competitors. For the Aerospace & Defense industry, the median Operating Margin % is 7.75 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Huntington Ingalls Industries's current Operating Margin % is 4.84%, which is 34% below median its own 10-year median of 7.35. 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 (BSP:H1II34) is currently considered Fairly Valued. The stock's GF Value™ is R$19.49, compared to a current price of R$19.20 — trading 1.5% below its estimated fair value. The current Operating Margin % is 4.84%, which is 34% below median its 10-year median of 7.35 and 37.5% below the Aerospace & Defense industry median of 7.75. Huntington Ingalls Industries' overall GF Score™ is 80/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Huntington Ingalls Industries (BSP:H1II34), the current Operating Margin % is 4.84% as of Mar. 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 (BSP:H1II34) Overvalued in 2026?
Based on GuruFocus' analysis, Huntington Ingalls Industries stock appears to be undervalued.
The current stock price of R$19.20 is trading 1.5% below its estimated GF Value™ of R$19.49.
GuruFocus considers Huntington Ingalls Industries to be Fairly Valued.
Key valuation signals for BSP:H1II34:
Operating Margin %: 4.84% (34% below median its 10-year median of 7.35)
GF Value™: R$19.49 vs. price of R$19.20 (1.5% below fair value)
Industry Position: 37.5% below the Aerospace & Defense median (#211 of 347)
No single metric tells the full story. See the BSP:H1II34 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Huntington Ingalls Industries Business Description
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.
80GF Score
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