Business Analysis of Huntington Ingalls Industries

 Analyze Historical Performance, Strategic Priorities, And Business Improvement Opportunities of Huntington Ingalls Industries

HUNTINGTON INGALLS INDUSTRIES

Business Overview

Huntington Ingalls Industries, Inc. engages in designing, building, overhauling, and repairing ships in the United States. It operates through three segments: Ingalls Shipbuilding, Newport News Shipbuilding, and Technical Solutions. The company is involved in the design and construction of non-nuclear ships comprising amphibious assault ships that include deck amphibious ships and transport dock ships; surface combatants; and national security cutters for the U.S. Navy and U.S. Coast Guard. It also provides nuclear-powered ships, such as aircraft carriers and submarines, as well as refueling and overhaul, and inactivation services. In addition, the company offers naval nuclear support services, which include fleet services comprising design, construction, maintenance, and disposal activities for in service U.S. Navy nuclear ships; and maintenance services on nuclear reactor prototypes. Further, it provides fleet support services comprising ship technical and waterfront; naval architecture and marine engineering; integrated logistics support; technical documentation development; warehousing, asset management, and material readiness; operational and maintenance training development and delivery; software design and development; IT infrastructure support, and data delivery and management; and cyber security and information assurance services, as well as undersea vehicle and specialized craft development and prototyping services. Additionally, the company offers integrated missions solutions services; nuclear and environmental services; engineering, procurement, and construction management services to the oil and gas industry; environmental, nuclear, and technical consulting and engineering services to the Department of Energy and Department of Defense, as well as to the private sector; and unmanned underwater vehicles designing and building services. Huntington Ingalls Industries, Inc. was incorporated in 2010 and is headquartered in Newport News, Virginia.

Huntington Ingalls Industries

Huntington Ingalls Industries


R&P Rank: 388
Sector: Aerospace and Defense
Industry:Military and Defense
H.Q Location:Virginia
Website: www.huntingtoningalls.com
Company Address:
4101 WASHINGTON AVENUE, 909-7, 7J2, NEWPORT NEWS VA 23607
Ph:757-380-2000

Business Analysis of Huntington Ingalls Industries

The Aerospace and Defense Sector is witnessing a major shakeup, new age business models in the industry are transforming both customers and businesses. Faced with this uncertainity, companies are investing resources to transform their business. An in-depth business analysis is a valuable resource to identify and articulate the need for a business model change. At R&P Research we believe, the starting point for a business analysis is Benchmarking. Business benchmarking can be done at various levels: 1) Industry Benchmarking 2) Peer Benchmarking 3) Disruptors Benchmarking. In this report, we share the snapshot of how Huntington Ingalls Industries compares against the industry on the major performance indicators. This analysis, along with peer group/disruptors benchmarking and revenue model understanding can help identify growth and cost optimization opportunities to maximize the value delivered by Huntington Ingalls Industries to its stakeholders. R&P Research Industry Intelligence Platform provides historical data for last 15 years with an easy to use benchmarking interface for an in-depth comparative business analysis.

Here is the performance snapshot of Huntington Ingalls Industries with an interactive chart.

  1. Revenue Growth: Huntington Ingalls Industries reported a revenue growth of 0.7% year-on-year during 2016. Military and Defense Industry grew at 13.3% in the same period
  2. COGS share of Revenues: As a percentage of revenue, Huntington Ingalls Industries spent 79.3% of its total revenues on COGS. Military and Defense industry average (COGS share of revenue) in the same period was 85.4%
  3. R&D share of Revenues: Huntington Ingalls Industries R&D share of Revenues details are not available because either company does not share the data or we do not have it
  4. SG&A share of Revenues: As a percentage of revenue, Huntington Ingalls Industries spent 8.8% of its total revenues on Sales, Marketing, and General Administration (SG&A). Military and Defense industry average SG&A spending in the same period was 2.9%
  5. Inventory share of Revenues: As a percentage of revenue, Huntington Ingalls Industries spent 3.0% of its total revenues on Inventories. Military and Defense industry average Inventory spending in the same period was 8.9%
  6. Accounts Payable share of Revenues: As a percentage of revenue, Huntington Ingalls Industries invested 4.5% of its total revenues on Accounts Payable (A/P) Military and Defense industry average Accounts Payable investment in the same period was 15.1%
  7. Accounts Receivable share of Revenues: As a percentage of revenue, Huntington Ingalls Industries invested 16.5% of its total revenues on Accounts Receivable (A/R). Military and Defense industry average Accounts Receivable investment in the same period was 18.2%
  8. PP&E share of Revenues: As a percentage of revenue, Huntington Ingalls Industries invested 28.1% of its total revenues on Property, Plants, and Equipments (PP&E). Military and Defense industry average PPE investment in the same period was 17.0%
  9. Intangibles share of Revenues: As a percentage of revenue, Huntington Ingalls Industries invested 25.2% of its total revenues on Intangibles. Military and Defense industry average Intangibles investment in the same period was 32.5%
  10. Net Margins: Huntington Ingalls Industries Net Margins in the year 2016 were 8.1%. Military and Defense industry average Net Margins in the same period were 10.3%

Sector and Industry Association of Huntington Ingalls Industries

For the purpose of performance benchmarking of a company with a sector or industry average, R&P Research associates every company with one sector and one industry. An industry consists of companies with related/similar business models. A sector comprises of a group of related/similar industries. For high-level analysis purposes, related/similar sectors are grouped into sector groups.

Huntington Ingalls Industries is associated with Industrials Sector Group, Aerospace and Defense Sector, and Military and Defense Industry.

Aerospace and Defense sector is comprised of the following industries: Aerospace Products, Parts, Systems and Services; Military and Defense. The definitions for each of the industries is as follows:

  • Aerospace Products, Parts, Systems and Services industry includes manufacturers, assemblers, distributors and service providers of aerospace and aircraft parts primarily used in the commercial or private air transport.
  • Military and Defense industry includes producers of components and equipment for the defense industry, including military aircraft, radar equipment and weapons, drones, space and security systems. Military and Defense companies also offer military shipbuilding, submarines, amphibious assault ships and nuclear services. Arms and weapon companies offering consumer firearms are included in the specialized consumer goods.

Industry Ranking of Huntington Ingalls Industries

With $7.1 billion revenues, Huntington Ingalls Industries ranked number 2 of all the companies in the US Military and Defense industry. There were a total of 7 public companies in the US Military and Defense industry that had revenues greater than $50 million during 2016.

The top companies in the US Military and Defense industry by revenues during 2016 were:

  1. Lockheed Martin ($47.2 billion)
  2. Huntington Ingalls Industries ($7.1 billion)
  3. FLIR Systems ($1.7 billion)
  4. BWX Technologies ($1.6 billion)
  5. Cubic ($1.5 billion)
  6. DigitalGlobe ($725.4 million)
  7. Kratos Defense & Security Solutions ($668.7 million)

Business Model Analysis (BMA) Framework

We use the following framework to assess the business model of a company. Business Model Analysis framework can be used by organizations to articulate growth strategies and identify cost optimization opportunities. Technology and consulting companies can use this framework to identify the value drivers and pain points of their targeted customers. Entrepreneurs can use this framework to understand the language of business and identify promising business opportunities. This framework can be used by any professional aspiring to take up a leadership role to better understand the businesses challenges, articulate growth strategy, and monitor the business improvement requirements for the organization.

Next Steps

  • Conduct a holistic benchmarking; to identify and target additional sources of value
  • Get in touch with us to learn more about Business Model Analysis Framework
  • Get free data, charts, and analysis of Huntington Ingalls Industriesand its peers on select key performance indicators by clicking the reports provided below

Industry Peers and Competitors of huntington-ingalls-industries

Lockheed Martin (LMT) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Lockheed Martin Corp with $47 billion revenues in the year 2016 was the number 1 Military and Defense company. Read this report to know the top competitors of Lockheed Martin and identify growth and cost optimization opportunities of Lockheed Martin

FLIR Systems (FLIR) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

FLIR Systems Inc with $2 billion revenues in the year 2016 was the number 3 Military and Defense company. Read this report to know the top competitors of FLIR Systems and identify growth and cost optimization opportunities of FLIR Systems

BWX Technologies (BWXT) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

BWX Technologies, Inc. with $2 billion revenues in the year 2016 was the number 4 Military and Defense company. Read this report to know the top competitors of BWX Technologies and identify growth and cost optimization opportunities of BWX Technologies

Cubic (CUB) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Cubic Corp with $1 billion revenues in the year 2016 was the number 5 Military and Defense company. Read this report to know the top competitors of Cubic and identify growth and cost optimization opportunities of Cubic

DigitalGlobe (DGI) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

DigitalGlobe Inc. with $725 million revenues in the year 2016 was the number 6 Military and Defense company. Read this report to know the top competitors of DigitalGlobe and identify growth and cost optimization opportunities of DigitalGlobe

Kratos Defense & Security Solutions (KTOS) Business Analysis – Analyze Historical...

Kratos Defense & Security Solutions, Inc. with $669 million revenues in the year 2016 was the number 7 Military and Defense company. Read this report to know the top competitors of Kratos Defense & Security Solutions and identify growth and cost optimization opportunities of Kratos Defense & Security Solutions

Revenues Analysis

Huntington Ingalls Industries (HII) Revenues And Revenue Growth From 2012 To...

This report provides the last five years revenues and revenue growth of Huntington Ingalls Industries, Inc. (HII) from 2012 to 2016. Huntington Ingalls Industries generated a total of $7.1 billion revenues during 2016. Huntington Ingalls Industries reported a revenue growth of 0.7% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

Huntington Ingalls Industries (HII) Revenues And Revenue Growth From 2009 To...

This report provides the last eight years revenues and revenue growth of Huntington Ingalls Industries, Inc. (HII) from 2009 to 2016. Huntington Ingalls Industries generated a total of $7.1 billion revenues during 2016. Huntington Ingalls Industries reported a revenue growth of 0.7% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

Huntington Ingalls Industries (HII) Revenue Growth Comparison With Industry Growth From...

This report provides a comparison of Huntington Ingalls Industries, Inc. (HII) revenue growth with Military and Defense industry growth during the last five years from 2012 to 2016. Huntington Ingalls Industries reported a revenue growth of 0.7% year-over-year during 2016. The Military and Defense industry growth was 13.3% year-over-year during 2016. Huntington Ingalls Industries growth was slower than the industry during 2016.