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NORTHROP GRUMMAN CORP (NOC) Stock Fundamental Analysis

USA - NYSE:NOC - US6668071029 - Common Stock

605.58 USD
-0.16 (-0.03%)
Last: 10/24/2025, 8:04:01 PM
600.88 USD
-4.7 (-0.78%)
After Hours: 10/24/2025, 8:04:01 PM
Fundamental Rating

5

NOC gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 70 industry peers in the Aerospace & Defense industry. NOC has an excellent profitability rating, but there are concerns on its financial health. NOC is not valued too expensively and it also shows a decent growth rate.


Dividend Valuation Growth Profitability Health

7

1. Profitability

1.1 Basic Checks

In the past year NOC was profitable.
NOC had a positive operating cash flow in the past year.
Each year in the past 5 years NOC has been profitable.
NOC had a positive operating cash flow in each of the past 5 years.
NOC Yearly Net Income VS EBIT VS OCF VS FCFNOC Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B

1.2 Ratios

NOC's Return On Assets of 8.15% is amongst the best of the industry. NOC outperforms 87.14% of its industry peers.
With an excellent Return On Equity value of 25.14%, NOC belongs to the best of the industry, outperforming 94.29% of the companies in the same industry.
NOC has a better Return On Invested Capital (9.57%) than 80.00% of its industry peers.
NOC had an Average Return On Invested Capital over the past 3 years of 8.81%. This is in line with the industry average of 8.41%.
The 3 year average ROIC (8.81%) for NOC is below the current ROIC(9.57%), indicating increased profibility in the last year.
Industry RankSector 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%
NOC Yearly ROA, ROE, ROICNOC Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30 40 50

1.3 Margins

NOC has a Profit Margin of 9.82%. This is in the better half of the industry: NOC outperforms 78.57% of its industry peers.
In the last couple of years the Profit Margin of NOC has grown nicely.
Looking at the Operating Margin, with a value of 10.01%, NOC is in the better half of the industry, outperforming 62.86% of the companies in the same industry.
In the last couple of years the Operating Margin of NOC has declined.
NOC has a worse Gross Margin (19.42%) than 64.29% of its industry peers.
NOC's Gross Margin has been stable in the last couple of years.
Industry RankSector 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%
NOC Yearly Profit, Operating, Gross MarginsNOC Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15 20

3

2. Health

2.1 Basic Checks

NOC has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for NOC has been reduced compared to 1 year ago.
The number of shares outstanding for NOC has been reduced compared to 5 years ago.
Compared to 1 year ago, NOC has a worse debt to assets ratio.
NOC Yearly Shares OutstandingNOC Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M
NOC Yearly Total Debt VS Total AssetsNOC Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10B 20B 30B 40B

2.2 Solvency

NOC has an Altman-Z score of 3.15. This indicates that NOC is financially healthy and has little risk of bankruptcy at the moment.
NOC has a Altman-Z score (3.15) which is comparable to the rest of the industry.
The Debt to FCF ratio of NOC is 8.56, which is on the high side as it means it would take NOC, 8.56 years of fcf income to pay off all of its debts.
NOC has a Debt to FCF ratio of 8.56. This is comparable to the rest of the industry: NOC outperforms 58.57% of its industry peers.
A Debt/Equity ratio of 0.95 indicates that NOC is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.95, NOC is not doing good in the industry: 74.29% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 0.95
Debt/FCF 8.56
Altman-Z 3.15
ROIC/WACC1.02
WACC9.35%
NOC Yearly LT Debt VS Equity VS FCFNOC Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B

2.3 Liquidity

A Current Ratio of 1.11 indicates that NOC should not have too much problems paying its short term obligations.
NOC's Current ratio of 1.11 is on the low side compared to the rest of the industry. NOC is outperformed by 81.43% of its industry peers.
NOC has a Quick Ratio of 1.11. This is a bad value and indicates that NOC is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.98, NOC is not doing good in the industry: 70.00% of the companies in the same industry are doing better.
Industry RankSector Rank
Current Ratio 1.11
Quick Ratio 0.98
NOC Yearly Current Assets VS Current LiabilitesNOC Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B

4

3. Growth

3.1 Past

The Earnings Per Share has been growing slightly by 4.93% over the past year.
The Earnings Per Share has been growing slightly by 4.20% on average over the past years.
NOC shows a decrease in Revenue. In the last year, the revenue decreased by -0.14%.
Measured over the past years, NOC shows a small growth in Revenue. The Revenue has been growing by 3.93% on average per year.
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 7.63% on average over the next years.
The Revenue is expected to grow by 4.21% on average over the next years.
EPS Next Y-1.58%
EPS Next 2Y5.66%
EPS Next 3Y6.68%
EPS Next 5Y7.63%
Revenue Next Year2.12%
Revenue Next 2Y3.58%
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.
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.
NOC Yearly Revenue VS EstimatesNOC Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2031 2032 10B 20B 30B 40B 50B
NOC Yearly EPS VS EstimatesNOC Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 10 20 30

4

4. Valuation

4.1 Price/Earnings Ratio

NOC is valuated rather expensively with a Price/Earnings ratio of 22.24.
Compared to the rest of the industry, the Price/Earnings ratio of NOC indicates a rather cheap valuation: NOC is cheaper than 90.00% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.91. NOC is around the same levels.
Based on the Price/Forward Earnings ratio of 20.81, the valuation of NOC can be described as rather expensive.
Based on the Price/Forward Earnings ratio, NOC is valued cheaper than 82.86% of the companies in the same industry.
NOC is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.92, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 22.24
Fwd PE 20.81
NOC Price Earnings VS Forward Price EarningsNOC Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, NOC is valued a bit cheaper than 74.29% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, NOC is valued a bit cheaper than 70.00% of the companies in the same industry.
Industry RankSector Rank
P/FCF 47.28
EV/EBITDA 18.01
NOC Per share dataNOC EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 50 100 150 200 250

4.3 Compensation for Growth

The decent profitability rating of NOC may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)5.29
EPS Next 2Y5.66%
EPS Next 3Y6.68%

6

5. Dividend

5.1 Amount

NOC has a Yearly Dividend Yield of 1.55%. Purely for dividend investing, there may be better candidates out there.
NOC's Dividend Yield is rather good when compared to the industry average which is at 1.15. NOC pays more dividend than 91.43% of the companies in the same industry.
Compared to the average S&P500 Dividend Yield of 2.34, NOC is paying slightly less dividend.
Industry RankSector Rank
Dividend Yield 1.55%

5.2 History

The dividend of NOC is nicely growing with an annual growth rate of 9.14%!
NOC has paid a dividend for at least 10 years, which is a reliable track record.
NOC has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)9.14%
Div Incr Years21
Div Non Decr Years34
NOC Yearly Dividends per shareNOC Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2 4 6 8

5.3 Sustainability

31.43% of the earnings are spent on dividend by NOC. This is a low number and sustainable payout ratio.
NOC's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP31.43%
EPS Next 2Y5.66%
EPS Next 3Y6.68%
NOC Yearly Income VS Free CF VS DividendNOC Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B
NOC Dividend Payout.NOC Dividend Payout, showing the Payout Ratio.NOC Dividend Payout.PayoutRetained Earnings

NORTHROP GRUMMAN CORP

NYSE:NOC (10/24/2025, 8:04:01 PM)

After market: 600.88 -4.7 (-0.78%)

605.58

-0.16 (-0.03%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)10-21 2025-10-21/bmo
Earnings (Next)01-28 2026-01-28/amc
Inst Owners85.04%
Inst Owner Change0%
Ins Owners0.21%
Ins Owner Change-0.66%
Market Cap86.71B
Revenue(TTM)40.93B
Net Income(TTM)4.02B
Analysts73.85
Price Target616.58 (1.82%)
Short Float %1.1%
Short Ratio2.01
Dividend
Industry RankSector Rank
Dividend Yield 1.55%
Yearly Dividend8.04
Dividend Growth(5Y)9.14%
DP31.43%
Div Incr Years21
Div Non Decr Years34
Ex-Date09-02 2025-09-02 (2.31)
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)0.24%
PT rev (3m)10.05%
EPS NQ rev (1m)0.11%
EPS NQ rev (3m)-12.42%
EPS NY rev (1m)0%
EPS NY rev (3m)0.81%
Revenue NQ rev (1m)0.11%
Revenue NQ rev (3m)-0.32%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)0.16%
Valuation
Industry RankSector Rank
PE 22.24
Fwd PE 20.81
P/S 2.12
P/FCF 47.28
P/OCF 25.22
P/B 5.42
P/tB N/A
EV/EBITDA 18.01
EPS(TTM)27.23
EY4.5%
EPS(NY)29.11
Fwd EY4.81%
FCF(TTM)12.81
FCFY2.12%
OCF(TTM)24.01
OCFY3.97%
SpS285.85
BVpS111.66
TBVpS-11.65
PEG (NY)N/A
PEG (5Y)5.29
Graham Number261.56
Profitability
Industry RankSector 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 RankSector 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 3.15
F-Score6
WACC9.35%
ROIC/WACC1.02
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 Y-1.58%
EPS Next 2Y5.66%
EPS Next 3Y6.68%
EPS Next 5Y7.63%
Revenue 1Y (TTM)-0.14%
Revenue growth 3Y4.78%
Revenue growth 5Y3.93%
Sales Q2Q%4.27%
Revenue Next Year2.12%
Revenue Next 2Y3.58%
Revenue Next 3Y4.03%
Revenue Next 5Y4.21%
EBIT growth 1Y41.9%
EBIT growth 3Y5.98%
EBIT growth 5Y1.94%
EBIT Next Year31.68%
EBIT Next 3Y14.91%
EBIT Next 5Y10.44%
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 / NOC FAQ

What is the fundamental rating for NOC stock?

ChartMill assigns a fundamental rating of 5 / 10 to NOC.


Can you provide the valuation status for NORTHROP GRUMMAN CORP?

ChartMill assigns a valuation rating of 4 / 10 to NORTHROP GRUMMAN CORP (NOC). This can be considered as Fairly Valued.


Can you provide the profitability details for NORTHROP GRUMMAN CORP?

NORTHROP GRUMMAN CORP (NOC) has a profitability rating of 7 / 10.


What is the valuation of NORTHROP GRUMMAN CORP based on its PE and PB ratios?

The Price/Earnings (PE) ratio for NORTHROP GRUMMAN CORP (NOC) is 22.24 and the Price/Book (PB) ratio is 5.42.


What is the financial health of NORTHROP GRUMMAN CORP (NOC) stock?

The financial health rating of NORTHROP GRUMMAN CORP (NOC) is 3 / 10.