2024-04-18 06:04:06 ET
Summary
- Huntington Ingalls Industries is the only company in the US that builds and maintains aircraft carriers, and one of two companies that design and build nuclear-powered submarines.
- The blue-water navy is the cornerstone of the US power. Aircraft carriers and nuclear-powered submarines are its core.
- HII keeps solid financials, with 66% total debt to equity and 63.5% total liabilities/total assets. In FY23, the company delivered 7.3% revenue YoY growth and 17.6% net income YoY growth.
- The company's backlog, net of total liabilities, is $41 billion, or about x4 of its market cap of $10.9 billion. I give HII stock a buy rating.
Thesis
The Navy is the cornerstone of US foreign policy. Its ability to project power across the globe ensures the US's position as a leading world power. The aircraft carriers and nuclear-powered submarines make the US domination over the oceans possible.
Only one company in the US builds and maintains aircraft carriers, and only two companies design and build nuclear-powered submarines. Huntington Ingalls ( HII ) and General Dynamics ( GD ) are the enterprises in question. Today’s article is dedicated to HII....
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For further details see:
Huntington Ingalls: Defense Stock For Moat Seekers