NORTHROP GRUMMAN CORP (NOC) Stock Fundamental Analysis
USA - NYSE:NOC - US6668071029 - Common Stock
605.58 USD
-0.16 (-0.03%)
600.88 USD
-4.7 (-0.78%)
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.
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.
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 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
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 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
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.
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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.95 | ||
| Debt/FCF | 8.56 | ||
| Altman-Z | 3.15 |
ROIC/WACC1.02
WACC9.35%
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 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.
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.
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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.24 | ||
| Fwd PE | 20.81 |
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 Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 47.28 | ||
| EV/EBITDA | 18.01 |
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%
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 Rank | Sector 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
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%
605.58
-0.16 (-0.03%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
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 Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.55% |
Yearly Dividend8.04
Dividend Growth(5Y)9.14%
DP31.43%
Div Incr Years21
Div Non Decr Years34
Ex-Date
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 Rank | Sector 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 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 | 3.15 |
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.