Is HII a high-quality business?

AlphaMadera's AlphaQuality grade scores Huntington Ingalls Industries, Inc. on six pillars — profitability, capital efficiency, balance-sheet strength, growth durability, cash generation, and shareholder yield. The composite letter grade reflects how HII compares to a Buffett-style quality bar.

What is Huntington Ingalls Industries, Inc.'s AlphaQuality grade?

AlphaQuality assigns a letter grade (A through F) to HII based on a six-pillar quantitative model. The live page shows the composite grade plus each pillar's individual score with the underlying metrics.

What makes HII a quality stock?

AlphaQuality looks at return on capital, free-cash-flow margins, debt-to-equity, revenue stability, dividend and buyback policy, and operating-margin trend. Stocks scoring well across all six pillars earn higher grades — the methodology favors compounders over cyclicals.

HII - Huntington Ingalls Industries, Inc.

Price: -- -- | CONSENSUS: Hold DETAILS | PRICE TARGET: $420.00 DETAILS

AlphaQuality

Quantitative six-pillar business-quality grade

Cyclical & Capital-Intensive

AlphaQuality — archetype-weighted quantitative grade

B- 67.3 / 100 composite

Composite Grade

Composite of six pillars weighted for cyclical & capital-intensive businesses. Purely quantitative — no stock price or analyst input.

Profitability

Weight: 15%

C- 47.7

5yr Avg ROIC 7.8% 49/100
Operating Margin Trend -0.17 pp/yr 45/100

Capital Efficiency

Weight: 15%

B 70.5

5yr Avg ROE 11.7% 68/100
5yr Share-Count CAGR -0.6% 74/100

Growth Quality

Weight: 10%

B- 66.4

5yr Revenue CAGR 7.0% 70/100
5yr EPS CAGR 3.3% 42/100
Revenue-Growth Years (5) 5/5 100/100

Cash Generation

Weight: 15%

C+ 61.3

5yr FCF Margin 4.3% 47/100
5yr FCF/NI Conversion 0.80x 79/100

Balance Sheet

Weight: 25%

B 74.8

Net Debt / EBITDA 1.96x 71/100
Interest Coverage (EBIT/Int) 8.40x 79/100
Altman Z-Score 2.95 78/100

Stability

Weight: 20%

B+ 75.3

EPS Volatility (σ/μ) 0.22 67/100
Piotroski F-Score 6 67/100
Negative-Revenue Years (5) 0/5 100/100

4 of 4 gurus held; 1 added; 3 trimmed.

Holders: 4
Avg Δ position: +28.7%
New buys: 0
Full exits: 0

Wood increased +260%
Dalio decreased -73%
Cooperman decreased -58%

How this is calculated

AlphaQuality grades six pillars from 0-100 and weights each by archetype:

Profitability (15%) — 5yr Avg ROIC, Operating Margin Trend
Capital Efficiency (15%) — 5yr Avg ROE, 5yr Share-Count CAGR
Growth Quality (10%) — 5yr Revenue CAGR, 5yr EPS CAGR, Revenue-Growth Years (5)
Cash Generation (15%) — 5yr FCF Margin, 5yr FCF/NI Conversion
Balance Sheet (25%) — Net Debt / EBITDA, Interest Coverage (EBIT/Int), Altman Z-Score
Stability (20%) — EPS Volatility (σ/μ), Piotroski F-Score, Negative-Revenue Years (5)

We deliberately ignore stock price, analyst targets, and consensus ratings so the grade is suitable for backtesting forward returns. A minimum of 5 fiscal years of audited statements is required; distressed and highly leveraged infrastructure businesses are declared ungradable rather than forced into a numeric score.