HIINEUTRAL

HII Gross Margin Analysis

13.2%

Updated 612h ago·SEC filings & market data

Key Takeaway

HII's gross margin of 13.2% means that for every dollar of revenue, the company keeps $0.132 after covering the direct costs of producing its goods or services.

Sector Performance

6th percentile

HII

13.2%

Sector Median

44.6%

Sector Avg

45.5%

Prior Period

11.6%(Apr 2026)

↑ Improving

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Deep Analysis

HII's gross margin of 13.2% means that for every dollar of revenue, the company keeps $0.132 after covering the direct costs of producing its goods or services.

This figure sits far below the sector median of 43.9%, placing HII in the 6th percentile among its industry peers—indicating that the vast majority of competitors achieve far higher cost efficiency. The trend data is not available (N/A), with no year-over-year or quarter-over-quarter change provided, so there is no basis to judge whether margins are improving or deteriorating. The combination of a very low margin and the absence of any trend data implies that investors face a risk that the company's pricing power or cost structure is persistently weak, but also leaves room for a potential turnaround that cannot be confirmed. This metric contradicts the overall NEUTRAL verdict because a gross margin ranking in the 6th percentile typically signals a competitive disadvantage, which would warrant a more cautious stance rather than a neutral outlook.

Frequently Asked Questions

What does the Gross Margin tell investors about HII?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

Who are HII's closest peers by Gross Margin?

The closest peers by Gross Margin include: MSCI (82.7%), SYF (82.7%), EA (82.8%), THC (83.4%), INTU (83.9%).

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Learn More About Gross Margin

Gross Margin vs Net Margin: Why the Gap Between Them Tells You Everything

Gross margin vs net margin: learn what the spread between them reveals about operating leverage, cost structure, and early warning signs in any stock.

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.