NORTHROP GRUMMAN CORP (1NOC.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1NOC - US6668071029 - Common Stock
478.5 EUR
-15.6 (-3.16%)
We assign a fundamental rating of 5 out of 10 to 1NOC. 1NOC was compared to 49 industry peers in the Aerospace & Defense industry. While 1NOC has a great profitability rating, there are quite some 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.
1NOC had a positive operating cash flow in the past year.
1NOC had positive earnings in each of the past 5 years.
In the past 5 years 1NOC always reported a positive cash flow from operatings.
1.2 Ratios
1NOC has a better Return On Assets (8.15%) than 89.58% of its industry peers.
The Return On Equity of 1NOC (25.14%) is better than 81.25% of its industry peers.
1NOC has a Return On Invested Capital of 9.57%. This is comparable to the rest of the industry: 1NOC outperforms 58.33% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for 1NOC is in line with the industry average of 9.30%.
The 3 year average ROIC (8.81%) for 1NOC is below the current ROIC(9.57%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.15% | ||
| ROE | 25.14% | ||
| ROIC | 9.57% |
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 9.82%. This is in the better half of the industry: 1NOC outperforms 79.17% of its industry peers.
In the last couple of years the Profit Margin of 1NOC has grown nicely.
The Operating Margin of 1NOC (10.01%) is better than 60.42% of its industry peers.
In the last couple of years the Operating Margin of 1NOC has declined.
1NOC has a worse Gross Margin (19.42%) than 75.00% 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 | 10.01% | ||
| PM (TTM) | 9.82% | ||
| GM | 19.42% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 1NOC is destroying value.
1NOC has less shares outstanding than it did 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
An Altman-Z score of 3.02 indicates that 1NOC is not in any danger for bankruptcy at the moment.
1NOC has a Altman-Z score of 3.02. This is in the better half of the industry: 1NOC outperforms 66.67% of its industry peers.
1NOC has a debt to FCF ratio of 8.56. This is a slightly negative value and a sign of low solvency as 1NOC would need 8.56 years to pay back of all of its debts.
1NOC has a worse Debt to FCF ratio (8.56) than 64.58% of its industry peers.
1NOC has a Debt/Equity ratio of 0.95. This is a neutral value indicating 1NOC is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.95, 1NOC is not doing good in the industry: 72.92% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.95 | ||
| Debt/FCF | 8.56 | ||
| Altman-Z | 3.02 |
ROIC/WACC0.99
WACC9.65%
2.3 Liquidity
A Current Ratio of 1.11 indicates that 1NOC should not have too much problems paying its short term obligations.
The Current ratio of 1NOC (1.11) is worse than 66.67% of its industry peers.
A Quick Ratio of 0.98 indicates that 1NOC may have some problems paying its short term obligations.
1NOC has a Quick ratio of 0.98. This is in the better half of the industry: 1NOC outperforms 70.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.11 | ||
| Quick Ratio | 0.98 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 4.93% 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.
1NOC shows a decrease in Revenue. In the last year, the revenue decreased by -0.14%.
The Revenue has been growing slightly by 3.93% on average over the past years.
EPS 1Y (TTM)4.93%
EPS 3Y0.58%
EPS 5Y4.2%
EPS Q2Q%9.57%
Revenue 1Y (TTM)-0.14%
Revenue growth 3Y4.78%
Revenue growth 5Y3.93%
Sales Q2Q%4.27%
3.2 Future
The Earnings Per Share is expected to grow by 7.69% on average over the next years.
Based on estimates for the next years, 1NOC will show a small growth in Revenue. The Revenue will grow by 4.28% on average per year.
EPS Next Y0.97%
EPS Next 2Y5.85%
EPS Next 3Y6.69%
EPS Next 5Y7.69%
Revenue Next Year1.35%
Revenue Next 2Y3.49%
Revenue Next 3Y4.09%
Revenue Next 5Y4.28%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
A Price/Earnings ratio of 20.47 indicates a rather expensive valuation of 1NOC.
89.58% of the companies in the same industry are more expensive than 1NOC, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.49. 1NOC is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 19.08, 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.
1NOC's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.69.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.47 | ||
| Fwd PE | 19.08 |
4.2 Price Multiples
64.58% of the companies in the same industry are more expensive than 1NOC, based on the Enterprise Value to EBITDA ratio.
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 | 43.36 | ||
| EV/EBITDA | 16.72 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
1NOC has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)21.08
PEG (5Y)4.87
EPS Next 2Y5.85%
EPS Next 3Y6.69%
5. Dividend
5.1 Amount
1NOC has a Yearly Dividend Yield of 1.67%.
1NOC's Dividend Yield is rather good when compared to the industry average which is at 1.18. 1NOC pays more dividend than 81.25% of the companies in the same industry.
1NOC's Dividend Yield is slightly below the S&P500 average, which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.67% |
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 31.43% 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.
DP31.43%
EPS Next 2Y5.85%
EPS Next 3Y6.69%
BIT:1NOC (12/4/2025, 7:00:00 PM)
478.5
-15.6 (-3.16%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners83.46%
Inst Owner ChangeN/A
Ins Owners0.21%
Ins Owner ChangeN/A
Market Cap68.29B
Revenue(TTM)40.93B
Net Income(TTM)4.02B
Analysts74.81
Price Target583.19 (21.88%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.67% |
Yearly Dividend6.9
Dividend Growth(5Y)9.14%
DP31.43%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.39%
Min EPS beat(2)3.14%
Max EPS beat(2)17.64%
EPS beat(4)2
Avg EPS beat(4)4.11%
Min EPS beat(4)-4.03%
Max EPS beat(4)17.64%
EPS beat(8)6
Avg EPS beat(8)6.48%
EPS beat(12)9
Avg EPS beat(12)6.36%
EPS beat(16)11
Avg EPS beat(16)4.78%
Revenue beat(2)1
Avg Revenue beat(2)-0.94%
Min Revenue beat(2)-3.68%
Max Revenue beat(2)1.8%
Revenue beat(4)1
Avg Revenue beat(4)-2.81%
Min Revenue beat(4)-5.46%
Max Revenue beat(4)1.8%
Revenue beat(8)4
Avg Revenue beat(8)-1.19%
Revenue beat(12)8
Avg Revenue beat(12)-0.32%
Revenue beat(16)8
Avg Revenue beat(16)-1.08%
PT rev (1m)10.56%
PT rev (3m)11.6%
EPS NQ rev (1m)-7.46%
EPS NQ rev (3m)-7.51%
EPS NY rev (1m)2.59%
EPS NY rev (3m)2.59%
Revenue NQ rev (1m)-0.31%
Revenue NQ rev (3m)-0.26%
Revenue NY rev (1m)-0.68%
Revenue NY rev (3m)-0.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.47 | ||
| Fwd PE | 19.08 | ||
| P/S | 1.94 | ||
| P/FCF | 43.36 | ||
| P/OCF | 23.13 | ||
| P/B | 4.97 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.72 |
EPS(TTM)23.38
EY4.89%
EPS(NY)25.08
Fwd EY5.24%
FCF(TTM)11.04
FCFY2.31%
OCF(TTM)20.69
OCFY4.32%
SpS246.26
BVpS96.2
TBVpS-10.04
PEG (NY)21.08
PEG (5Y)4.87
Graham Number224.96
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.15% | ||
| ROE | 25.14% | ||
| ROCE | 11.2% | ||
| ROIC | 9.57% | ||
| ROICexc | 10.11% | ||
| ROICexgc | 20.63% | ||
| OM | 10.01% | ||
| PM (TTM) | 9.82% | ||
| GM | 19.42% | ||
| FCFM | 4.48% |
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%
ROICexgc growth 3Y1.23%
ROICexgc 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 Turnover0.83
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.95 | ||
| Debt/FCF | 8.56 | ||
| Debt/EBITDA | 2.72 | ||
| Cap/Depr | 108.38% | ||
| Cap/Sales | 3.92% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 61.64% | ||
| Profit Quality | 45.63% | ||
| Current Ratio | 1.11 | ||
| Quick Ratio | 0.98 | ||
| Altman-Z | 3.02 |
F-Score6
WACC9.65%
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)4.93%
EPS 3Y0.58%
EPS 5Y4.2%
EPS Q2Q%9.57%
EPS Next Y0.97%
EPS Next 2Y5.85%
EPS Next 3Y6.69%
EPS Next 5Y7.69%
Revenue 1Y (TTM)-0.14%
Revenue growth 3Y4.78%
Revenue growth 5Y3.93%
Sales Q2Q%4.27%
Revenue Next Year1.35%
Revenue Next 2Y3.49%
Revenue Next 3Y4.09%
Revenue Next 5Y4.28%
EBIT growth 1Y41.9%
EBIT growth 3Y5.98%
EBIT growth 5Y1.94%
EBIT Next Year33.46%
EBIT Next 3Y15.32%
EBIT Next 5Y10.2%
FCF growth 1Y-12.33%
FCF growth 3Y6.79%
FCF growth 5Y-2.88%
OCF growth 1Y-6.98%
OCF growth 3Y7.15%
OCF growth 5Y0.42%
NORTHROP GRUMMAN CORP / 1NOC.MI FAQ
What is the fundamental rating for 1NOC stock?
ChartMill assigns a fundamental rating of 5 / 10 to 1NOC.MI.
Can you provide the valuation status for NORTHROP GRUMMAN CORP?
ChartMill assigns a valuation rating of 4 / 10 to NORTHROP GRUMMAN CORP (1NOC.MI). This can be considered as Fairly Valued.
Can you provide the profitability details for NORTHROP GRUMMAN CORP?
NORTHROP GRUMMAN CORP (1NOC.MI) has a profitability rating of 7 / 10.
Can you provide the PE and PB ratios for 1NOC stock?
The Price/Earnings (PE) ratio for NORTHROP GRUMMAN CORP (1NOC.MI) is 20.47 and the Price/Book (PB) ratio is 4.97.
What is the financial health of NORTHROP GRUMMAN CORP (1NOC.MI) stock?
The financial health rating of NORTHROP GRUMMAN CORP (1NOC.MI) is 3 / 10.