Huntington Beneish M Score

HII
 Stock
  

USD 236.17  2.63  1.13%   

This module uses fundamental data of Huntington Ingalls to approximate the value of its Beneish M Score. Huntington Ingalls M Score tells investors if the company management is likely to be manipulating earnings. The score is calculated using eight financial indicators that are adjusted by a specific multiplier. Please note, the M Score is a probabilistic model and cannot detect companies that manipulate their earnings with 100% accuracy. Please check Huntington Ingalls Piotroski F Score and Huntington Ingalls Altman Z Score analysis.
  
Huntington Ingalls Debt to Equity Ratio is most likely to drop slightly in the upcoming years. The last year's value of Debt to Equity Ratio was reported at 2.79. Huntington Ingalls Calculated Tax Rate is most likely to decrease significantly in the upcoming years. The last year's value of Calculated Tax Rate was reported at 12.54. The current PPandE Turnover is estimated to increase to 3.66, while Accrued Expenses Turnover is projected to decrease to 25.47.
At this time, it appears that Huntington Ingalls is an unlikely manipulator. The earnings manipulation may begin if Huntington Ingalls' top management creates an artificial sense of financial success, forcing the stock price to be traded at a high price-earnings multiple than it should be. In general, excessive earnings management by Huntington Ingalls executives may lead to removing some of the operating profits from subsequent periods to inflate earnings in the following periods. This way, the manipulation of Huntington Ingalls' earnings can lead to misrepresentations of actual financial condition, taking the otherwise loyal stakeholders on to the path of questionable ethical practices and plain fraud.
-2.6
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables1.23Focus
Asset QualityN/AFocus
Expense Coverage1.03Focus
Gross Margin Strengs1.32Focus
Accruals Factor1.03Focus
Depreciation Resistance0.99Focus
Net Sales Growth0.99Focus
Financial Leverage Condition0.98Focus

Huntington Ingalls Beneish M-Score Indicator Trends

The cure to earnings manipulation is the transparency of financial reporting. It will typically remove the temptation of the top executives to inflate earnings (i.e., to promote the idea of 'winning at any cost'). Because a healthy internal audit department can enhance transparency, the board should promote the auditors' access to all the record-keeping systems across the enterprise. For example, if Huntington Ingalls' auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back.
Current ValueLast YearChange From Last Year 10 Year Trend
Revenues9.5 B9.5 B
Slightly Down
Increasing
Slightly volatile
Selling General and Administrative Expense919.7 M898 M
Fairly Up
Increasing
Slightly volatile
Net Cash Flow from Operations821.6 M760 M
Significantly Up
Increasing
Slightly volatile
Depreciation Amortization and Accretion276.8 M293 M
Notably Down
Increasing
Slightly volatile
Total Assets9.6 B10.6 B
Moderately Down
Increasing
Slightly volatile
Property Plant and Equipment Net3.1 B3.3 B
Significantly Down
Increasing
Slightly volatile
Trade and Non Trade Receivables528.1 M433 M
Fairly Up
Decreasing
Slightly volatile
Total Liabilities7.2 B7.8 B
Significantly Down
Increasing
Slightly volatile
Current Assets2.4 B2.8 B
Fairly Down
Decreasing
Very volatile
Assets Non Current6.8 B7.8 B
Fairly Down
Increasing
Slightly volatile
Current Liabilities2.2 B2.4 B
Significantly Down
Increasing
Slightly volatile
Liabilities Non CurrentB5.4 B
Significantly Down
Increasing
Slightly volatile
Total Debt2.8 B3.5 B
Significantly Down
Increasing
Slightly volatile
Debt Current104 M124.2 M
Fairly Down
Increasing
Slightly volatile
Debt Non Current2.8 B3.5 B
Significantly Down
Increasing
Slightly volatile
Operating Income646.3 M513 M
Significantly Up
Increasing
Slightly volatile
Gross Margin0.190.144
Significantly Up
Increasing
Stable

Huntington Ingalls Beneish M-Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to detect the potential manipulation of earnings. Understanding the correlation between Huntington Ingalls' different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Huntington Ingalls in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find Huntington Ingalls' degree of accounting gimmicks and manipulations.

About Huntington Ingalls Beneish M Score

M-Score is one of many grading techniques for value stocks. It was developed by Professor M. Daniel Beneish of the Kelley School of Business at Indiana University and published in 1999 under the paper titled The Detection of Earnings Manipulation. The Beneish score is a multi-factor model that utilizes financial identifiers to compile eight variables used to classify whether a company has manipulated its reported earnings. The variables are built from the officially filed financial statements to create a final score call 'M Score.' The score helps to identify companies that are likely to manipulate their profits if they show deteriorating gross margins, operating expenses, and leverage against growing revenue.

Operating Expenses

907.95 Million

Huntington Ingalls Operating Expenses is most likely to increase significantly in the upcoming years. The last year's value of Operating Expenses was reported at 855 Million

Huntington Ingalls Earnings Manipulation Drivers

Although earnings manipulation is typically not the result of intentional misconduct by the c-level executives, it is still a widespread practice by the senior management of public companies such as Huntington Ingalls. It is usually done by a series of misrepresentations of various accounting rules and operating activities across multiple financial cycles. The best way to spot the manipulation is to examine the historical financial statement to find inconsistencies in earning reports to find trends in assets or liabilities that are not sustainable in the future.
201720182019202020212022 (projected)
Revenues7.44 B8.18 B8.9 B9.36 B9.52 B9.46 B
Total Assets6.37 B6.38 B7.03 B8.16 B10.63 B9.59 B
Current Assets2.19 B1.75 B1.78 B2.44 B2.79 B2.43 B
Assets Non Current4.18 B4.64 B5.25 B5.71 B7.84 B6.79 B
Total Liabilities4.62 B4.87 B5.44 B6.26 B7.82 B7.21 B
Current Liabilities1.39 B1.83 B1.89 B2.23 B2.43 B2.22 B
Total Debt1.28 B1.28 B1.45 B1.84 B3.49 B2.84 B
Debt Non Current1.28 B1.28 B1.45 B1.84 B3.49 B2.83 B
Operating Income881 M951 M736 M799 M513 M646.32 M
Gross Margin0.210.230.220.170.140.19

About Huntington Ingalls Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Huntington Ingalls Industries's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Huntington Ingalls using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Huntington Ingalls Industries based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Huntington Ingalls Industries, Inc. engages in designing, building, overhauling, and repairing military ships in the United States. Huntington Ingalls Industries, Inc. was founded in 1886 and is headquartered in Newport News, Virginia. Huntington Ingalls operates under Aerospace Defense classification in the United States and is traded on New York Stock Exchange. It employs 44000 people.

Be your own money manager

Our tools can tell you how much better you can do entering a position in Huntington Ingalls without increasing your portfolio risk or giving up expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate.risk-adjusted returns of your individual positions relative to your overall portfolio.

Did you try this?

Run Risk-Return Analysis Now

   

Risk-Return Analysis

View associations between returns expected from investment and the risk you assume
All  Next Launch Module

Becoming a Better Investor with Macroaxis

Macroaxis puts the power of mathematics on your side. We analyze your portfolios and positions such as Huntington Ingalls using complex mathematical models and algorithms, but make them easy to understand. There is no real person involved in your portfolio analysis. We perform a number of calculations to compute absolute and relative portfolio volatility, correlation between your assets, value at risk, expected return as well as over 100 different fundamental and technical indicators.

Build Optimal Portfolios

Align your risk with return expectations

Fix your portfolio
By capturing your risk tolerance and investment horizon Macroaxis technology of instant portfolio optimization will compute exactly how much risk is acceptable for your desired return expectations
Please check Huntington Ingalls Piotroski F Score and Huntington Ingalls Altman Z Score analysis. Note that the Huntington Ingalls information on this page should be used as a complementary analysis to other Huntington Ingalls' statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.

Complementary Tools for Huntington Stock analysis

When running Huntington Ingalls price analysis, check to measure Huntington Ingalls' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Huntington Ingalls is operating at the current time. Most of Huntington Ingalls' value examination focuses on studying past and present price action to predict the probability of Huntington Ingalls' future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Huntington Ingalls' price. Additionally, you may evaluate how the addition of Huntington Ingalls to your portfolios can decrease your overall portfolio volatility.
Correlation Analysis
Reduce portfolio risk simply by holding instruments which are not perfectly correlated
Go
Idea Optimizer
Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio
Go
Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites
Go
Portfolio Manager
State of the art Portfolio Manager to monitor and improve performance of your invested capital
Go
Theme Ratings
Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance
Go
CEO Directory
Screen CEOs from public companies around the world
Go
Fundamentals Comparison
Compare fundamentals across multiple equities to find investing opportunities
Go
Companies Directory
Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals
Go
Bond Directory
Find actively traded corporate debentures issued by US companies
Go
Volatility Analysis
Get historical volatility and risk analysis based on latest market data
Go
Is Huntington Ingalls' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Huntington Ingalls. If investors know Huntington will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Huntington Ingalls listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
0.39
Market Capitalization
9.3 B
Quarterly Revenue Growth YOY
0.19
Return On Assets
0.0505
Return On Equity
0.23
The market value of Huntington Ingalls is measured differently than its book value, which is the value of Huntington that is recorded on the company's balance sheet. Investors also form their own opinion of Huntington Ingalls' value that differs from its market value or its book value, called intrinsic value, which is Huntington Ingalls' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Huntington Ingalls' market value can be influenced by many factors that don't directly affect Huntington Ingalls' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Huntington Ingalls' value and its price as these two are different measures arrived at by different means. Investors typically determine Huntington Ingalls value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Huntington Ingalls' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.