NORTHROP GRUMMAN CORP (1NOC.MI) Stock Fundamental Analysis
BIT:1NOC - Euronext Milan - US6668071029 - Common Stock - Currency: EUR
1NOC gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 46 industry peers in the Aerospace & Defense industry. While 1NOC belongs to the best of the industry regarding profitability, there are concerns on its financial health. 1NOC is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year 1NOC was profitable.
In the past year 1NOC had a positive cash flow from operations.
In the past 5 years 1NOC has always been profitable.
In the past 5 years 1NOC always reported a positive cash flow from operatings.
1.2 Ratios
1NOC has a Return On Assets of 7.98%. This is amongst the best in the industry. 1NOC outperforms 91.30% of its industry peers.
1NOC has a Return On Equity of 25.50%. This is amongst the best in the industry. 1NOC outperforms 84.78% of its industry peers.
With a decent Return On Invested Capital value of 9.44%, 1NOC is doing good in the industry, outperforming 63.04% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for 1NOC is in line with the industry average of 9.15%.
The last Return On Invested Capital (9.44%) for 1NOC is above the 3 year average (8.81%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.98% | ||
| ROE | 25.5% | ||
| ROIC | 9.44% |
ROA(3y)8.02%
ROA(5y)9.54%
ROE(3y)24.39%
ROE(5y)31.5%
ROIC(3y)8.81%
ROIC(5y)9.17%
1.3 Margins
1NOC has a Profit Margin of 9.74%. This is in the better half of the industry: 1NOC outperforms 78.26% of its industry peers.
In the last couple of years the Profit Margin of 1NOC has grown nicely.
1NOC has a Operating Margin (9.82%) which is comparable to the rest of the industry.
1NOC's Operating Margin has declined in the last couple of years.
1NOC has a Gross Margin of 19.33%. This is in the lower half of the industry: 1NOC underperforms 71.74% of its industry peers.
1NOC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.82% | ||
| PM (TTM) | 9.74% | ||
| GM | 19.33% |
OM growth 3Y1.14%
OM growth 5Y-1.91%
PM growth 3Y-19.69%
PM growth 5Y8.9%
GM growth 3Y0%
GM growth 5Y-1.02%
2. Health
2.1 Basic Checks
1NOC has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for 1NOC has been reduced compared to 1 year ago.
1NOC has less shares outstanding than it did 5 years ago.
The debt/assets ratio for 1NOC is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.04 indicates that 1NOC is not in any danger for bankruptcy at the moment.
1NOC's Altman-Z score of 3.04 is fine compared to the rest of the industry. 1NOC outperforms 65.22% of its industry peers.
The Debt to FCF ratio of 1NOC is 12.01, which is on the high side as it means it would take 1NOC, 12.01 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 12.01, 1NOC is not doing good in the industry: 69.57% of the companies in the same industry are doing better.
1NOC has a Debt/Equity ratio of 0.98. This is a neutral value indicating 1NOC is somewhat dependend on debt financing.
The Debt to Equity ratio of 1NOC (0.98) is worse than 76.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.98 | ||
| Debt/FCF | 12.01 | ||
| Altman-Z | 3.04 |
ROIC/WACC0.93
WACC10.13%
2.3 Liquidity
A Current Ratio of 1.04 indicates that 1NOC should not have too much problems paying its short term obligations.
1NOC has a Current ratio of 1.04. This is in the lower half of the industry: 1NOC underperforms 67.39% of its industry peers.
A Quick Ratio of 0.93 indicates that 1NOC may have some problems paying its short term obligations.
1NOC's Quick ratio of 0.93 is fine compared to the rest of the industry. 1NOC outperforms 71.74% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.04 | ||
| Quick Ratio | 0.93 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 5.69% over the past year.
Measured over the past 5 years, 1NOC shows a small growth in Earnings Per Share. The EPS has been growing by 4.20% on average per year.
The Revenue has decreased by -0.65% in the past year.
Measured over the past years, 1NOC shows a small growth in Revenue. The Revenue has been growing by 3.93% on average per year.
EPS 1Y (TTM)5.69%
EPS 3Y0.58%
EPS 5Y4.2%
EPS Q2Q%11.79%
Revenue 1Y (TTM)-0.65%
Revenue growth 3Y4.78%
Revenue growth 5Y3.93%
Sales Q2Q%1.3%
3.2 Future
The Earnings Per Share is expected to grow by 7.66% on average over the next years.
1NOC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.20% yearly.
EPS Next Y-2.37%
EPS Next 2Y5.4%
EPS Next 3Y6.26%
EPS Next 5Y7.66%
Revenue Next Year2.05%
Revenue Next 2Y3.65%
Revenue Next 3Y4.13%
Revenue Next 5Y4.2%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 22.34 indicates a rather expensive valuation of 1NOC.
Compared to the rest of the industry, the Price/Earnings ratio of 1NOC indicates a rather cheap valuation: 1NOC is cheaper than 89.13% of the companies listed in the same industry.
1NOC is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.48, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 20.49 indicates a rather expensive valuation of 1NOC.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 1NOC indicates a rather cheap valuation: 1NOC is cheaper than 82.61% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.04, 1NOC is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.34 | ||
| Fwd PE | 20.49 |
4.2 Price Multiples
1NOC's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, 1NOC is valued a bit more expensive than 63.04% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 64.95 | ||
| EV/EBITDA | 18.26 |
4.3 Compensation for Growth
1NOC has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)5.32
EPS Next 2Y5.4%
EPS Next 3Y6.26%
5. Dividend
5.1 Amount
1NOC has a Yearly Dividend Yield of 1.57%.
1NOC's Dividend Yield is a higher than the industry average which is at 1.19.
Compared to the average S&P500 Dividend Yield of 2.40, 1NOC is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.57% |
5.2 History
The dividend of 1NOC is nicely growing with an annual growth rate of 9.14%!
Dividend Growth(5Y)9.14%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
1NOC pays out 31.28% of its income as dividend. This is a sustainable payout ratio.
1NOC's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP31.28%
EPS Next 2Y5.4%
EPS Next 3Y6.26%
BIT:1NOC (8/6/2025, 7:00:00 PM)
509.6
+1.4 (+0.28%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners84.46%
Inst Owner ChangeN/A
Ins Owners0.21%
Ins Owner ChangeN/A
Market Cap72.96B
Analysts75
Price Target527.63 (3.54%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.57% |
Yearly Dividend6.9
Dividend Growth(5Y)9.14%
DP31.28%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.45%
Min EPS beat(2)-4.03%
Max EPS beat(2)3.14%
EPS beat(4)2
Avg EPS beat(4)3.24%
Min EPS beat(4)-4.03%
Max EPS beat(4)14.15%
EPS beat(8)6
Avg EPS beat(8)4.94%
EPS beat(12)8
Avg EPS beat(12)4.51%
EPS beat(16)11
Avg EPS beat(16)4.27%
Revenue beat(2)1
Avg Revenue beat(2)-1.83%
Min Revenue beat(2)-5.46%
Max Revenue beat(2)1.8%
Revenue beat(4)1
Avg Revenue beat(4)-2.58%
Min Revenue beat(4)-5.46%
Max Revenue beat(4)1.8%
Revenue beat(8)5
Avg Revenue beat(8)-0.6%
Revenue beat(12)8
Avg Revenue beat(12)-0.24%
Revenue beat(16)8
Avg Revenue beat(16)-1.07%
PT rev (1m)-1.72%
PT rev (3m)-5.71%
EPS NQ rev (1m)-14.39%
EPS NQ rev (3m)-10.05%
EPS NY rev (1m)-0.03%
EPS NY rev (3m)-10.3%
Revenue NQ rev (1m)-0.52%
Revenue NQ rev (3m)1.86%
Revenue NY rev (1m)0.12%
Revenue NY rev (3m)-0.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.34 | ||
| Fwd PE | 20.49 | ||
| P/S | 2.1 | ||
| P/FCF | 64.95 | ||
| P/OCF | 28.58 | ||
| P/B | 5.49 | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.26 |
EPS(TTM)22.81
EY4.48%
EPS(NY)24.87
Fwd EY4.88%
FCF(TTM)7.85
FCFY1.54%
OCF(TTM)17.83
OCFY3.5%
SpS242.95
BVpS92.8
TBVpS-13.17
PEG (NY)N/A
PEG (5Y)5.32
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.98% | ||
| ROE | 25.5% | ||
| ROCE | 11.05% | ||
| ROIC | 9.44% | ||
| ROICexc | 9.96% | ||
| ROICexgc | 20.68% | ||
| OM | 9.82% | ||
| PM (TTM) | 9.74% | ||
| GM | 19.33% | ||
| FCFM | 3.23% |
ROA(3y)8.02%
ROA(5y)9.54%
ROE(3y)24.39%
ROE(5y)31.5%
ROIC(3y)8.81%
ROIC(5y)9.17%
ROICexc(3y)9.79%
ROICexc(5y)10.31%
ROICexgc(3y)23.55%
ROICexgc(5y)25.56%
ROCE(3y)10.31%
ROCE(5y)10.74%
ROICexcg growth 3Y1.23%
ROICexcg growth 5Y-4.1%
ROICexc growth 3Y4.4%
ROICexc growth 5Y0.96%
OM growth 3Y1.14%
OM growth 5Y-1.91%
PM growth 3Y-19.69%
PM growth 5Y8.9%
GM growth 3Y0%
GM growth 5Y-1.02%
F-Score6
Asset Turnover0.82
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.98 | ||
| Debt/FCF | 12.01 | ||
| Debt/EBITDA | 2.8 | ||
| Cap/Depr | 116.2% | ||
| Cap/Sales | 4.11% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 54.96% | ||
| Profit Quality | 33.16% | ||
| Current Ratio | 1.04 | ||
| Quick Ratio | 0.93 | ||
| Altman-Z | 3.04 |
F-Score6
WACC10.13%
ROIC/WACC0.93
Cap/Depr(3y)122.86%
Cap/Depr(5y)118.97%
Cap/Sales(3y)4.25%
Cap/Sales(5y)4.11%
Profit Quality(3y)64.96%
Profit Quality(5y)63.21%
High Growth Momentum
Growth
EPS 1Y (TTM)5.69%
EPS 3Y0.58%
EPS 5Y4.2%
EPS Q2Q%11.79%
EPS Next Y-2.37%
EPS Next 2Y5.4%
EPS Next 3Y6.26%
EPS Next 5Y7.66%
Revenue 1Y (TTM)-0.65%
Revenue growth 3Y4.78%
Revenue growth 5Y3.93%
Sales Q2Q%1.3%
Revenue Next Year2.05%
Revenue Next 2Y3.65%
Revenue Next 3Y4.13%
Revenue Next 5Y4.2%
EBIT growth 1Y42.82%
EBIT growth 3Y5.98%
EBIT growth 5Y1.94%
EBIT Next Year30.83%
EBIT Next 3Y14.76%
EBIT Next 5Y10.25%
FCF growth 1Y-42.18%
FCF growth 3Y6.79%
FCF growth 5Y-2.88%
OCF growth 1Y-21.85%
OCF growth 3Y7.15%
OCF growth 5Y0.42%