NORTHROP GRUMMAN CORP (1NOC.MI) Stock Fundamental Analysis
Europe - BIT:1NOC - US6668071029 - Common Stock
492.8 EUR
-14.4 (-2.84%)
We assign a fundamental rating of 5 out of 10 to 1NOC. 1NOC was compared to 48 industry peers in the Aerospace & Defense industry. 1NOC scores excellent on profitability, but there are concerns on its financial health. 1NOC has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
1NOC had positive earnings in the past year.
In the past year 1NOC had a positive cash flow from operations.
In the past 5 years 1NOC has always been profitable.
1NOC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
1NOC has a better Return On Assets (7.98%) than 93.75% of its industry peers.
Looking at the Return On Equity, with a value of 25.50%, 1NOC belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 9.44%, 1NOC is in the better half of the industry, outperforming 60.42% of the companies in the same industry.
1NOC had an Average Return On Invested Capital over the past 3 years of 8.81%. This is in line with the industry average of 9.20%.
The 3 year average ROIC (8.81%) for 1NOC is below the current ROIC(9.44%), indicating increased profibility in the last year.
| 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
The Profit Margin of 1NOC (9.74%) is better than 85.42% of its industry peers.
In the last couple of years the Profit Margin of 1NOC has grown nicely.
1NOC has a better Operating Margin (9.82%) than 62.50% of its industry peers.
In the last couple of years the Operating Margin of 1NOC has declined.
1NOC has a worse Gross Margin (19.33%) than 72.92% of its industry peers.
In the last couple of years the Gross Margin of 1NOC has remained more or less at the same level.
| 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.
Compared to 5 years ago, 1NOC has less shares outstanding
Compared to 1 year ago, 1NOC has a worse debt to assets ratio.
2.2 Solvency
1NOC has an Altman-Z score of 3.00. This indicates that 1NOC is financially healthy and has little risk of bankruptcy at the moment.
1NOC has a Altman-Z score of 3.00. This is comparable to the rest of the industry: 1NOC outperforms 58.33% of its industry peers.
1NOC has a debt to FCF ratio of 12.01. This is a negative value and a sign of low solvency as 1NOC would need 12.01 years to pay back of all of its debts.
The Debt to FCF ratio of 1NOC (12.01) is worse than 64.58% of its industry peers.
A Debt/Equity ratio of 0.98 indicates that 1NOC is somewhat dependend on debt financing.
1NOC's Debt to Equity ratio of 0.98 is on the low side compared to the rest of the industry. 1NOC is outperformed by 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.98 | ||
| Debt/FCF | 12.01 | ||
| Altman-Z | 3 |
ROIC/WACC0.99
WACC9.54%
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 64.58% of its industry peers.
1NOC has a Quick Ratio of 1.04. This is a bad value and indicates that 1NOC is not financially healthy enough and could expect problems in meeting its short term obligations.
1NOC has a Quick ratio of 0.93. This is in the better half of the industry: 1NOC outperforms 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.04 | ||
| Quick Ratio | 0.93 |
3. Growth
3.1 Past
1NOC shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.69%.
The Earnings Per Share has been growing slightly by 4.20% on average over the past years.
Looking at the last year, 1NOC shows a decrease in Revenue. The Revenue has decreased by -0.65% in the last 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
Based on estimates for the next years, 1NOC will show a small growth in Earnings Per Share. The EPS will grow by 7.63% on average per year.
The Revenue is expected to grow by 4.21% on average over the next years.
EPS Next Y-1.58%
EPS Next 2Y5.71%
EPS Next 3Y6.77%
EPS Next 5Y7.63%
Revenue Next Year2.05%
Revenue Next 2Y3.59%
Revenue Next 3Y4.03%
Revenue Next 5Y4.21%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 21.81, 1NOC is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of 1NOC indicates a rather cheap valuation: 1NOC is cheaper than 95.83% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.29, 1NOC is valued a bit cheaper.
The Price/Forward Earnings ratio is 19.89, which indicates a rather expensive current valuation of 1NOC.
81.25% of the companies in the same industry are more expensive than 1NOC, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 22.80. 1NOC is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.81 | ||
| Fwd PE | 19.89 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 1NOC indicates a somewhat cheap valuation: 1NOC is cheaper than 70.83% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of 1NOC is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 63.42 | ||
| EV/EBITDA | 17.89 |
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)5.19
EPS Next 2Y5.71%
EPS Next 3Y6.77%
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 1.18.
Compared to the average S&P500 Dividend Yield of 2.38, 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.
The dividend of 1NOC is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP31.28%
EPS Next 2Y5.71%
EPS Next 3Y6.77%
BIT:1NOC (9/16/2025, 7:00:00 PM)
492.8
-14.4 (-2.84%)
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 Cap70.56B
Analysts75
Price Target522.59 (6.05%)
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)8.62%
PT rev (3m)6.67%
EPS NQ rev (1m)0.13%
EPS NQ rev (3m)-9.93%
EPS NY rev (1m)0.81%
EPS NY rev (3m)0.75%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)1.84%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.81 | ||
| Fwd PE | 19.89 | ||
| P/S | 2.05 | ||
| P/FCF | 63.42 | ||
| P/OCF | 27.91 | ||
| P/B | 5.36 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.89 |
EPS(TTM)22.59
EY4.58%
EPS(NY)24.78
Fwd EY5.03%
FCF(TTM)7.77
FCFY1.58%
OCF(TTM)17.66
OCFY3.58%
SpS240.62
BVpS91.91
TBVpS-13.04
PEG (NY)N/A
PEG (5Y)5.19
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 |
F-Score6
WACC9.54%
ROIC/WACC0.99
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-1.58%
EPS Next 2Y5.71%
EPS Next 3Y6.77%
EPS Next 5Y7.63%
Revenue 1Y (TTM)-0.65%
Revenue growth 3Y4.78%
Revenue growth 5Y3.93%
Sales Q2Q%1.3%
Revenue Next Year2.05%
Revenue Next 2Y3.59%
Revenue Next 3Y4.03%
Revenue Next 5Y4.21%
EBIT growth 1Y42.82%
EBIT growth 3Y5.98%
EBIT growth 5Y1.94%
EBIT Next Year31.68%
EBIT Next 3Y14.91%
EBIT Next 5Y12.37%
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%