NORTHROP GRUMMAN CORP (1NOC.MI) Stock Fundamental Analysis
BIT:1NOC - Euronext Milan - US6668071029 - Common Stock - Currency: EUR
Overall 1NOC gets a fundamental rating of 5 out of 10. We evaluated 1NOC against 41 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.
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
With an excellent Return On Assets value of 7.66%, 1NOC belongs to the best of the industry, outperforming 90.70% of the companies in the same industry.
The Return On Equity of 1NOC (24.77%) is better than 86.05% of its industry peers.
1NOC has a Return On Invested Capital of 9.59%. This is in the better half of the industry: 1NOC outperforms 69.77% of its industry peers.
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 9.24%.
The 3 year average ROIC (8.81%) for 1NOC is below the current ROIC(9.59%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.66% | ||
| ROE | 24.77% | ||
| ROIC | 9.59% |
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 9.19%. This is amongst the best in the industry. 1NOC outperforms 83.72% of its industry peers.
1NOC's Profit Margin has improved in the last couple of years.
1NOC has a better Operating Margin (9.59%) than 60.47% of its industry peers.
1NOC's Operating Margin has declined in the last couple of years.
The Gross Margin of 1NOC (19.34%) is worse than 67.44% 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 | 9.59% | ||
| PM (TTM) | 9.19% | ||
| GM | 19.34% |
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.
Compared to 1 year ago, 1NOC has less shares outstanding
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
1NOC has an Altman-Z score of 2.74. This is not the best score and indicates that 1NOC is in the grey zone with still only limited risk for bankruptcy at the moment.
The Altman-Z score of 1NOC (2.74) is better than 62.79% of its industry peers.
1NOC has a debt to FCF ratio of 8.32. This is a slightly negative value and a sign of low solvency as 1NOC would need 8.32 years to pay back of all of its debts.
With a Debt to FCF ratio value of 8.32, 1NOC is not doing good in the industry: 62.79% of the companies in the same industry are doing better.
A Debt/Equity ratio of 0.95 indicates that 1NOC is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.95, 1NOC is doing worse than 69.77% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.95 | ||
| Debt/FCF | 8.32 | ||
| Altman-Z | 2.74 |
ROIC/WACC0.97
WACC9.92%
2.3 Liquidity
A Current Ratio of 0.95 indicates that 1NOC may have some problems paying its short term obligations.
The Current ratio of 1NOC (0.95) is worse than 83.72% of its industry peers.
1NOC has a Quick Ratio of 0.95. 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's Quick ratio of 0.84 is fine compared to the rest of the industry. 1NOC outperforms 60.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.84 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.05% over the past year.
1NOC shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.20% yearly.
Looking at the last year, 1NOC shows a small growth in Revenue. The Revenue has grown by 0.61% in the last year.
The Revenue has been growing slightly by 3.93% on average over the past years.
EPS 1Y (TTM)7.05%
EPS 3Y0.58%
EPS 5Y4.2%
EPS Q2Q%-4.11%
Revenue 1Y (TTM)0.61%
Revenue growth 3Y4.78%
Revenue growth 5Y3.93%
Sales Q2Q%-6.56%
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 7.66% on average per year.
The Revenue is expected to grow by 4.20% on average over the next years.
EPS Next Y-2.31%
EPS Next 2Y5.41%
EPS Next 3Y6.25%
EPS Next 5Y7.66%
Revenue Next Year1.93%
Revenue Next 2Y3.33%
Revenue Next 3Y3.85%
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.
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
Based on the Price/Earnings ratio of 18.49, the valuation of 1NOC can be described as rather expensive.
Based on the Price/Earnings ratio, 1NOC is valued cheaply inside the industry as 93.02% of the companies are valued more expensively.
1NOC's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.43.
The Price/Forward Earnings ratio is 16.47, which indicates a correct 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 88.37% of the companies listed in the same industry.
1NOC's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.17.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.49 | ||
| Fwd PE | 16.47 |
4.2 Price Multiples
1NOC's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. 1NOC is cheaper than 69.77% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as 1NOC.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38.67 | ||
| EV/EBITDA | 15.49 |
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)4.4
EPS Next 2Y5.41%
EPS Next 3Y6.25%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.93%, 1NOC has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.19, 1NOC pays a better dividend. On top of this 1NOC pays more dividend than 90.70% of the companies listed in the same industry.
1NOC's Dividend Yield is comparable with the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.93% |
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
32.47% of the earnings are spent on dividend by 1NOC. This is a low number and sustainable payout ratio.
The dividend of 1NOC is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP32.47%
EPS Next 2Y5.41%
EPS Next 3Y6.25%
BIT:1NOC (5/19/2025, 7:00:00 PM)
420.8
-2 (-0.47%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners84.82%
Inst Owner ChangeN/A
Ins Owners0.2%
Ins Owner ChangeN/A
Market Cap60.57B
Analysts75.17
Price Target489.9 (16.42%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.93% |
Yearly Dividend7.09
Dividend Growth(5Y)9.14%
DP32.47%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-2.17%
Min EPS beat(2)-4.03%
Max EPS beat(2)-0.3%
EPS beat(4)2
Avg EPS beat(4)4.01%
Min EPS beat(4)-4.03%
Max EPS beat(4)14.15%
EPS beat(8)5
Avg EPS beat(8)4.46%
EPS beat(12)8
Avg EPS beat(12)4.56%
EPS beat(16)11
Avg EPS beat(16)4.63%
Revenue beat(2)0
Avg Revenue beat(2)-4.67%
Min Revenue beat(2)-5.46%
Max Revenue beat(2)-3.89%
Revenue beat(4)1
Avg Revenue beat(4)-2.79%
Min Revenue beat(4)-5.46%
Max Revenue beat(4)0.99%
Revenue beat(8)5
Avg Revenue beat(8)-0.65%
Revenue beat(12)7
Avg Revenue beat(12)-0.72%
Revenue beat(16)8
Avg Revenue beat(16)-0.97%
PT rev (1m)-3.98%
PT rev (3m)-7.21%
EPS NQ rev (1m)-7.91%
EPS NQ rev (3m)-2.79%
EPS NY rev (1m)-10.25%
EPS NY rev (3m)-10.12%
Revenue NQ rev (1m)-2.97%
Revenue NQ rev (3m)-3.73%
Revenue NY rev (1m)-0.5%
Revenue NY rev (3m)-1.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.49 | ||
| Fwd PE | 16.47 | ||
| P/S | 1.7 | ||
| P/FCF | 38.67 | ||
| P/OCF | 19.46 | ||
| P/B | 4.58 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.49 |
EPS(TTM)22.76
EY5.41%
EPS(NY)25.54
Fwd EY6.07%
FCF(TTM)10.88
FCFY2.59%
OCF(TTM)21.62
OCFY5.14%
SpS247.35
BVpS91.81
TBVpS-16.49
PEG (NY)N/A
PEG (5Y)4.4
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.66% | ||
| ROE | 24.77% | ||
| ROCE | 11.22% | ||
| ROIC | 9.59% | ||
| ROICexc | 10.08% | ||
| ROICexgc | 21.85% | ||
| OM | 9.59% | ||
| PM (TTM) | 9.19% | ||
| GM | 19.34% | ||
| FCFM | 4.4% |
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 Turnover0.83
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.95 | ||
| Debt/FCF | 8.32 | ||
| Debt/EBITDA | 2.68 | ||
| Cap/Depr | 124.5% | ||
| Cap/Sales | 4.34% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 66.84% | ||
| Profit Quality | 47.86% | ||
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.84 | ||
| Altman-Z | 2.74 |
F-Score6
WACC9.92%
ROIC/WACC0.97
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)7.05%
EPS 3Y0.58%
EPS 5Y4.2%
EPS Q2Q%-4.11%
EPS Next Y-2.31%
EPS Next 2Y5.41%
EPS Next 3Y6.25%
EPS Next 5Y7.66%
Revenue 1Y (TTM)0.61%
Revenue growth 3Y4.78%
Revenue growth 5Y3.93%
Sales Q2Q%-6.56%
Revenue Next Year1.93%
Revenue Next 2Y3.33%
Revenue Next 3Y3.85%
Revenue Next 5Y4.2%
EBIT growth 1Y45.51%
EBIT growth 3Y5.98%
EBIT growth 5Y1.94%
EBIT Next Year30.83%
EBIT Next 3Y14.76%
EBIT Next 5Y10.25%
FCF growth 1Y49.62%
FCF growth 3Y6.79%
FCF growth 5Y-2.88%
OCF growth 1Y31.34%
OCF growth 3Y7.15%
OCF growth 5Y0.42%