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Huntington Ingalls IndustriesLTS:0J76 -0.88%81 Return-on-Tangible-Equity is 43.39% as of Jun. 2026, which is 27% below its 10-year median of 59.46. GuruFocus rates LTS:0J76 with a GF Score™ of 81/100 and a GF Value™ of $298.84 (Fairly Valued). The stock has 5 warning signs investors should review. Among 336 Aerospace & Defense companies, Huntington Ingalls Industries ranks better than 81.85% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Huntington Ingalls Industries's annualized net income for the quarter that ended in Jun. 2026 was $832 Mil. Huntington Ingalls Industries's average shareholder tangible equity for the quarter that ended in Jun. 2026 was $1,918 Mil. Therefore, Huntington Ingalls Industries's annualized Return-on-Tangible-Equity for the quarter that ended in Jun. 2026 was 43.39%.
The historical rank and industry rank for Huntington Ingalls Industries's Return-on-Tangible-Equity or its related term are showing as below:
LTS:0J76'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 38.15 Med: 59.46 Max: 312.39
Current: 38.15
During the past 13 years, Huntington Ingalls Industries's highest Return-on-Tangible-Equity was 312.39%. The lowest was 38.15%. And the median was 59.46%.
LTS:0J76's Return-on-Tangible-Equity is ranked better than 81.85% of 336
companies
in the Aerospace & Defense industry
Industry Median: 8
vs LTS:0J76: 38.15
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Huntington Ingalls Industries Return-on-Tangible-Equity Related Terms
Huntington Ingalls Industries Return-on-Tangible-Equity 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: Return-on-Tangible-Equity Comparison
For the Aerospace & Defense subindustry, Huntington Ingalls Industries's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Huntington Ingalls Industries's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Huntington Ingalls Industries's Return-on-Tangible-Equity 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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Jun. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 43.39% mean?
Huntington Ingalls Industries (LTS:0J76) has a Return-on-Tangible-Equity of 43.39% as of Jun. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Huntington Ingalls Industries and its competitors. This is 27% below median its historical median of 59.46. Over the past decade, Huntington Ingalls Industries' Return-on-Tangible-Equity has ranged from 38.15 to 312.39. According to the industry distribution chart, Huntington Ingalls Industries ranks #61 out of 336 companies in the Aerospace & Defense industry, placing it in the top 18.2%.
Is Huntington Ingalls Industries' Return-on-Tangible-Equity too high?
Huntington Ingalls Industries' current Return-on-Tangible-Equity of 43.39% is 27% below median its 10-year median of 59.46. Over the past 10 years, this metric has ranged from a low of 38.15 to a high of 312.39. The Aerospace & Defense industry median Return-on-Tangible-Equity is 8.00. Huntington Ingalls Industries' value of 43.39% is 442.4% above this industry median. Based on the distribution chart, Huntington Ingalls Industries ranks #61 out of 336 companies in the Aerospace & Defense industry, which is in the top quartile — a strong position 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' Return-on-Tangible-Equity compare to DRS and MOG.A?
According to the Aerospace & Defense industry distribution chart, Huntington Ingalls Industries ranks #61 out of 336 companies for Return-on-Tangible-Equity. This places Huntington Ingalls Industries in the top 18% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 8.00. Huntington Ingalls Industries' value of 43.39% is 442.4% above this benchmark. Historically, Huntington Ingalls Industries' own Return-on-Tangible-Equity has ranged from 38.15 to 312.39 over the past decade. While the company's 10-year median is 59.46 vs. the industry median of 8.00, Huntington Ingalls Industries has consistently been above 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 Return-on-Tangible-Equity for an Aerospace & Defense company?
The median Return-on-Tangible-Equity among Aerospace & Defense companies is 8.00, based on 336 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Huntington Ingalls Industries's current Return-on-Tangible-Equity of 43.39% is 442.4% above 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 Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Huntington Ingalls Industries and its competitors. For the Aerospace & Defense industry, the median Return-on-Tangible-Equity is 8.00 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Huntington Ingalls Industries's current Return-on-Tangible-Equity is 43.39%, which is 27% below median its own 10-year median of 59.46. 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 Return-on-Tangible-Equity is 43.39%, which is 27% below median its 10-year median of 59.46 and 442.4% above the Aerospace & Defense industry median of 8.00. 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 Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Huntington Ingalls Industries (LTS:0J76), the current Return-on-Tangible-Equity is 43.39% 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:
Return-on-Tangible-Equity: 43.39% (27% below median its 10-year median of 59.46)
GF Value™: $298.84 vs. price of $324.48 (8.6% above fair value)
Industry Position: 442.4% above the Aerospace & Defense median (#61 of 336)
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
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