ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Huntington Ingalls Industries's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 4.06%.
As of today (2026-07-02), Huntington Ingalls Industries's WACC % is 6.48%. Huntington Ingalls Industries's ROIC % is 4.16% (calculated using TTM income statement data).
Huntington Ingalls Industries earns returns that do not match up to its cost of capital. It will destroy value as it grows.
ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. The reason book values of debt and equity are used is because the book values are the capital the company received when issuing the debt or receiving the equity investments.
There are four key components to this definition. The first is the use of operating income or EBIT rather than net income in the numerator. The second is the tax adjustment to this operating income or EBIT, computed as a hypothetical tax based on an effective or marginal tax rate. The third is the use of book values for invested capital, rather than market values. The final is the timing difference; the capital invested is from the end of the prior year whereas the operating income or EBIT is the current year's number.
Why is ROIC % important?
Because it costs money to raise capital. A firm that generates higher returns on investment than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.
As of today, Huntington Ingalls Industries's WACC % is 6.48%. Huntington Ingalls Industries's ROIC % is 4.16% (calculated using TTM income statement data).
Huntington Ingalls Industries earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Be Aware
Like ROE % and ROA %, ROIC % is calculated with only 12 months of data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Huntington Ingalls Industries ROIC % Related Terms
Huntington Ingalls Industries ROIC % 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.
For the Aerospace & Defense subindustry, Huntington Ingalls Industries's ROIC %, along with its competitors' market caps and ROIC % 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 ROIC % vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Huntington Ingalls Industries's ROIC % distribution charts can be found below:
* The bar in red indicates where Huntington Ingalls Industries's ROIC % falls into.
Note:
The Operating Income data used here is four times the quarterly (Mar. 2026) data.
The tax rate is limited to between 0% and 100%.
* 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 (HII) has a ROIC % of 4.06% as of Mar. 2026. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Huntington Ingalls Industries and its competitors.
Is Huntington Ingalls Industries' ROIC % too high?
Huntington Ingalls Industries' current ROIC % is 4.06%. The Aerospace & Defense industry median ROIC % is 4.37. Huntington Ingalls Industries' value of 4.06% is 7.1% below this industry median. Overall, Huntington Ingalls Industries has a GF Score™ of 88/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Huntington Ingalls Industries' ROIC % compare to DRS and PL?
Huntington Ingalls Industries' ROIC % of 4.06% can be compared against companies in the Aerospace & Defense industry. The industry median ROIC % is 4.37. Huntington Ingalls Industries' value of 4.06% is 7.1% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROIC % for an Aerospace & Defense company?
The median ROIC % among Aerospace & Defense companies is 4.37, based on 352 companies in the industry. Companies in the top quartile (top 25%) have a ROIC % significantly above this median, while those in the bottom quartile fall well below. However, ROIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Huntington Ingalls Industries's current ROIC % of 4.06% is 7.1% 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 ROIC % mean?
A high ROIC % can signal that a stock is expensive relative to its fundamentals. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Huntington Ingalls Industries and its competitors. For the Aerospace & Defense industry, the median ROIC % is 4.37 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Huntington Ingalls Industries's current ROIC % is 4.06%. 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 (HII) is currently considered Fairly Valued. The stock's GF Value™ is $287.93, compared to a current price of $291.63 — trading 1.3% above its estimated fair value. The current ROIC % is 4.06% and 7.1% below the Aerospace & Defense industry median of 4.37. Huntington Ingalls Industries' overall GF Score™ is 88/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROIC % calculated?
ROIC % is calculated from a company's financial statements. For Huntington Ingalls Industries (HII), the current ROIC % is 4.06% 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 (HII) Overvalued in 2026?
Based on GuruFocus' analysis, Huntington Ingalls Industries stock appears to be overvalued.
The current stock price of $291.63 is trading 1.3% above its estimated GF Value™ of $287.93.
GuruFocus considers Huntington Ingalls Industries to be Fairly Valued.
Key valuation signals for HII:
ROIC %: 4.06%
GF Value™: $287.93 vs. price of $291.63 (1.3% above fair value)
Industry Position: 7.1% below the Aerospace & Defense median
No single metric tells the full story. See the HII 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.
88GF Score
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