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Huntington Ingalls IndustriesMEX:HII 58 Forward Rate of Return (Yacktman) % is 4.95% as of Jun. 2026, which is 58% below its 10-year median of 11.83. GuruFocus rates MEX:HII with a GF Score™ of 58/100 and a GF Value™ of MXN7,213.94 (Significantly Undervalued). The stock has 5 warning signs investors should review. Among 202 Aerospace & Defense companies, Huntington Ingalls Industries ranks worse than 57.92% on this metric.
Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. Huntington Ingalls Industries's forward rate of return for was 4.95%.
The historical rank and industry rank for Huntington Ingalls Industries's Forward Rate of Return (Yacktman) % or its related term are showing as below:
MEX:HII'
s Forward Rate of Return (Yacktman) % Range Over the Past 10 Years
Min: 3.87 Med: 11.83 Max: 26.54
Current: 4.55
During the past 13 years, Huntington Ingalls Industries's highest Forward Rate of Return was 26.54. The lowest was 3.87. And the median was 11.83.
MEX:HII's Forward Rate of Return (Yacktman) % is ranked worse than 57.92% of 202
companies
in the Aerospace & Defense industry
Industry Median: 9.24
vs MEX:HII: 4.55
Unlike the Earnings Yield %, the Forward Rate of Return uses the normalized Free Cash Flow of the past five years, and considers growth. The forward rate of return can be thought of as the return that investors buying the stock today can expect from it in the future.
Unlike the Earnings Yield, the Forward Rate of Return uses the normalized Free Cash Flow of the past five years, and considers growth. The forward rate of return can be thought of as the return that investors buying the stock today can expect from it in the future.
For the growth part of the Forward Rate of Return calculation, GuruFocus uses the 5-year average growth rate of EBITDA per share as the growth rate, and the growth rate is always capped at 20%. For the Free Cash Flow we use per share data averaged over five years. The reason we use five years is to make it comparable to the growth rate.
Be Aware
In the Forward Rate of Return calculation, the growth rate is added directly to today's free cash flow yield. Therefore the calculation is reliable only if the company can grow at the same rate in the future as it did in the past. Investors should pay close attention to this when researching growth stocks. A more accurate measurement for return is Return on Capital.
Huntington Ingalls Industries Forward Rate of Return (Yacktman) % Related Terms
Huntington Ingalls Industries Forward Rate of Return (Yacktman) % Historical Data
* Premium members only.
The historical data trend for Huntington Ingalls Industries's Forward Rate of Return (Yacktman) % can be seen below:
* 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 Forward Rate of Return (Yacktman) % Chart
MEX:HII vs DRS, MOG.A, SARO: Forward Rate of Return (Yacktman) % Comparison
For the Aerospace & Defense subindustry, Huntington Ingalls Industries's Forward Rate of Return (Yacktman) %, along with its competitors' market caps and Forward Rate of Return (Yacktman) % 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 Forward Rate of Return (Yacktman) % vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Huntington Ingalls Industries's Forward Rate of Return (Yacktman) % distribution charts can be found below:
* The bar in red indicates where Huntington Ingalls Industries's Forward Rate of Return (Yacktman) % falls into.
Huntington Ingalls Industries Forward Rate of Return (Yacktman) % Calculation
Forward Rate of Return is a concept that Don Yacktman uses in his investment approach. Yacktman explained the forward rate of return concept in detail in his interview with GuruFocus. Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. He said in the interview (March 2012, when the S&P 500 was at about 1400):
If the business is stable, this calculation is fairly straightforward. For instance, on the S&P 500 we would normalize earnings. We would then calculate what percentage of those earnings are not reinvested in the underlying businesses and are therefore free. Historically, for the S&P 500, this has been just under 50% of earnings. Currently, we expect the S&P to earn about 70 on a normalized basis, a number which is far below reported earnings due to our adjusting for record high profit margins. $70 X ½ / 1400 gives you a normalized free cash flow yield of approximately 2.5%.
The historical real growth rate of the S&P 500 (companies) is about 1.5%. Assuming an inflation rate of 2.5%, the forward rate of return on an investment in the S&P 500 is about 6.5% today (2.5% free cash flow yield plus 1.5% real growth plus 2.5% inflation).
* 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.
What does a Forward Rate of Return (Yacktman) % of 4.95% mean?
Huntington Ingalls Industries (MEX:HII) has a Forward Rate of Return (Yacktman) % of 4.95% as of Jun. 2026. Yacktman's forward rate of return equals the sum of normalized free-cash-flow yield plus earnings growth. View historical data on Huntington Ingalls Industries and its competitors. This is 58% below median its historical median of 11.83. Over the past decade, Huntington Ingalls Industries' Forward Rate of Return (Yacktman) % has ranged from 3.87 to 26.54. According to the industry distribution chart, Huntington Ingalls Industries ranks #117 out of 202 companies in the Aerospace & Defense industry, placing it in the top 57.9%.
Is Huntington Ingalls Industries' Forward Rate of Return (Yacktman) % too high?
Huntington Ingalls Industries' current Forward Rate of Return (Yacktman) % of 4.95% is 58% below median its 10-year median of 11.83. Over the past 10 years, this metric has ranged from a low of 3.87 to a high of 26.54. The Aerospace & Defense industry median Forward Rate of Return (Yacktman) % is 9.24. Huntington Ingalls Industries' value of 4.95% is 46.4% below this industry median. Based on the distribution chart, Huntington Ingalls Industries ranks #117 out of 202 companies in the Aerospace & Defense industry, which is below the industry midpoint. Overall, Huntington Ingalls Industries has a GF Score™ of 58/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Huntington Ingalls Industries' Forward Rate of Return (Yacktman) % compare to DRS and MOG.A?
According to the Aerospace & Defense industry distribution chart, Huntington Ingalls Industries ranks #117 out of 202 companies for Forward Rate of Return (Yacktman) %. This places Huntington Ingalls Industries in the lower half of its industry. The industry median Forward Rate of Return (Yacktman) % is 9.24. Huntington Ingalls Industries' value of 4.95% is 46.4% below this benchmark. Historically, Huntington Ingalls Industries' own Forward Rate of Return (Yacktman) % has ranged from 3.87 to 26.54 over the past decade. While the company's 10-year median is 11.83 vs. the industry median of 9.24, 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 Forward Rate of Return (Yacktman) % for an Aerospace & Defense company?
The median Forward Rate of Return (Yacktman) % among Aerospace & Defense companies is 9.24, based on 202 companies in the industry. Companies in the top quartile (top 25%) have a Forward Rate of Return (Yacktman) % significantly above this median, while those in the bottom quartile fall well below. However, Forward Rate of Return (Yacktman) % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Huntington Ingalls Industries's current Forward Rate of Return (Yacktman) % of 4.95% is 46.4% 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 Forward Rate of Return (Yacktman) % mean?
A high Forward Rate of Return (Yacktman) % can signal that a stock is expensive relative to its fundamentals. Yacktman's forward rate of return equals the sum of normalized free-cash-flow yield plus earnings growth. View historical data on Huntington Ingalls Industries and its competitors. For the Aerospace & Defense industry, the median Forward Rate of Return (Yacktman) % is 9.24 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Huntington Ingalls Industries's current Forward Rate of Return (Yacktman) % is 4.95%, which is 58% below median its own 10-year median of 11.83. 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 (MEX:HII) is currently considered Significantly Undervalued. The stock's GF Value™ is MXN7,213.94, compared to a current price of MXN4,725.00 — trading 34.5% below its estimated fair value. The current Forward Rate of Return (Yacktman) % is 4.95%, which is 58% below median its 10-year median of 11.83 and 46.4% below the Aerospace & Defense industry median of 9.24. Huntington Ingalls Industries' overall GF Score™ is 58/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Forward Rate of Return (Yacktman) % calculated?
Forward Rate of Return (Yacktman) % is calculated from a company's financial statements. For Huntington Ingalls Industries (MEX:HII), the current Forward Rate of Return (Yacktman) % is 4.95% 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 (MEX:HII) Overvalued in 2026?
Based on GuruFocus' analysis, Huntington Ingalls Industries stock appears to be undervalued.
The current stock price of MXN4,725.00 is trading 34.5% below its estimated GF Value™ of MXN7,213.94.
GuruFocus considers Huntington Ingalls Industries to be Significantly Undervalued.
Key valuation signals for MEX:HII:
Forward Rate of Return (Yacktman) %: 4.95% (58% below median its 10-year median of 11.83)
GF Value™: MXN7,213.94 vs. price of MXN4,725.00 (34.5% below fair value)
Industry Position: 46.4% below the Aerospace & Defense median (#117 of 202)
No single metric tells the full story. See the MEX:HII 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.
58GF Score
Get the complete analysis for MEX:HII
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