NORTHROP GRUMMAN CORP (NOC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:NOC - US6668071029 - Common Stock
666.9 USD
+12.29 (+1.88%)
668 USD
+1.1 (+0.16%)
We assign a fundamental rating of 5 out of 10 to NOC. NOC was compared to 72 industry peers in the Aerospace & Defense industry. While NOC belongs to the best of the industry regarding profitability, there are concerns on its financial health. NOC has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
- In the past year NOC was profitable.
- In the past year NOC had a positive cash flow from operations.
- NOC had positive earnings in each of the past 5 years.
- In the past 5 years NOC always reported a positive cash flow from operatings.
1.2 Ratios
- With an excellent Return On Assets value of 8.15%, NOC belongs to the best of the industry, outperforming 88.89% of the companies in the same industry.
- NOC has a better Return On Equity (25.14%) than 93.06% of its industry peers.
- NOC has a Return On Invested Capital of 9.57%. This is amongst the best in the industry. NOC outperforms 81.94% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for NOC is in line with the industry average of 8.56%.
- 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 79.17% of its industry peers.
- NOC's Profit Margin has improved in the last couple of years.
- NOC has a Operating Margin of 10.01%. This is in the better half of the industry: NOC outperforms 61.11% of its industry peers.
- In the last couple of years the Operating Margin of NOC has declined.
- NOC's Gross Margin of 19.42% is on the low side compared to the rest of the industry. NOC is outperformed by 63.89% of its industry peers.
- In the last couple of years the Gross Margin of NOC 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) just above the Cost of Capital (WACC), NOC is creating some value.
- Compared to 1 year ago, NOC has less shares outstanding
- NOC has less shares outstanding than it did 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 3.31. This indicates that NOC is financially healthy and has little risk of bankruptcy at the moment.
- With a Altman-Z score value of 3.31, NOC perfoms like the industry average, outperforming 43.06% of the companies in the same 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.
- Looking at the Debt to FCF ratio, with a value of 8.56, NOC is in line with its industry, outperforming 55.56% of the companies in the same industry.
- A Debt/Equity ratio of 0.95 indicates that NOC is somewhat dependend on debt financing.
- NOC's Debt to Equity ratio of 0.95 is on the low side compared to the rest of the industry. NOC is outperformed by 73.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.95 | ||
| Debt/FCF | 8.56 | ||
| Altman-Z | 3.31 |
ROIC/WACC1.01
WACC9.43%
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 84.72% 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.
- NOC has a worse Quick ratio (0.98) than 72.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.11 | ||
| Quick Ratio | 0.98 |
3. Growth
3.1 Past
- NOC shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.93%.
- NOC shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.20% yearly.
- NOC shows a decrease in Revenue. In the last year, the revenue decreased by -0.14%.
- NOC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.93% yearly.
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
- Based on estimates for the next years, NOC will show a small growth in Earnings Per Share. The EPS will grow by 7.69% on average per year.
- Based on estimates for the next years, NOC will show a small growth in Revenue. The Revenue will grow by 4.30% on average per year.
EPS Next Y0.91%
EPS Next 2Y5.77%
EPS Next 3Y6.79%
EPS Next 5Y7.69%
Revenue Next Year1.33%
Revenue Next 2Y3.47%
Revenue Next 3Y4.08%
Revenue Next 5Y4.3%
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
- With a Price/Earnings ratio of 24.49, NOC is valued on the expensive side.
- Based on the Price/Earnings ratio, NOC is valued cheaply inside the industry as 90.28% of the companies are valued more expensively.
- The average S&P500 Price/Earnings ratio is at 27.38. NOC is around the same levels.
- A Price/Forward Earnings ratio of 22.87 indicates a rather expensive valuation of NOC.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of NOC indicates a rather cheap valuation: NOC is cheaper than 91.67% of the companies listed in the same industry.
- NOC's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 24.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.49 | ||
| Fwd PE | 22.87 |
4.2 Price Multiples
- NOC's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. NOC is cheaper than 79.17% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, NOC is valued a bit cheaper than the industry average as 69.44% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 51.9 | ||
| EV/EBITDA | 19.53 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- NOC has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)26.91
PEG (5Y)5.83
EPS Next 2Y5.77%
EPS Next 3Y6.79%
5. Dividend
5.1 Amount
- NOC has a Yearly Dividend Yield of 1.41%. 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 0.34. NOC pays more dividend than 94.44% of the companies in the same industry.
- NOC's Dividend Yield is slightly below the S&P500 average, which is at 1.85.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.41% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)9.14%
Div Incr Years21
Div Non Decr Years34
5.3 Sustainability
- NOC pays out 31.43% of its income as dividend. This is a sustainable payout ratio.
- The dividend of NOC is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP31.43%
EPS Next 2Y5.77%
EPS Next 3Y6.79%
666.9
+12.29 (+1.88%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)10-21 2025-10-21/bmo
Earnings (Next)01-27 2026-01-27/amc
Inst Owners83.48%
Inst Owner Change0.08%
Ins Owners0.21%
Ins Owner Change-0.7%
Market Cap95.18B
Revenue(TTM)40.93B
Net Income(TTM)4.02B
Analysts75.71
Price Target676.7 (1.47%)
Short Float %1.08%
Short Ratio2.1
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.41% |
Yearly Dividend8.04
Dividend Growth(5Y)9.14%
DP31.43%
Div Incr Years21
Div Non Decr Years34
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)-0.12%
PT rev (3m)9.75%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-7.47%
EPS NY rev (1m)-0.06%
EPS NY rev (3m)2.53%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.36%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)-0.7%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.49 | ||
| Fwd PE | 22.87 | ||
| P/S | 2.33 | ||
| P/FCF | 51.9 | ||
| P/OCF | 27.68 | ||
| P/B | 5.95 | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.53 |
EPS(TTM)27.23
EY4.08%
EPS(NY)29.17
Fwd EY4.37%
FCF(TTM)12.85
FCFY1.93%
OCF(TTM)24.09
OCFY3.61%
SpS286.77
BVpS112.02
TBVpS-11.69
PEG (NY)26.91
PEG (5Y)5.83
Graham Number261.98
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 | 3.31 |
F-Score6
WACC9.43%
ROIC/WACC1.01
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 Y0.91%
EPS Next 2Y5.77%
EPS Next 3Y6.79%
EPS Next 5Y7.69%
Revenue 1Y (TTM)-0.14%
Revenue growth 3Y4.78%
Revenue growth 5Y3.93%
Sales Q2Q%4.27%
Revenue Next Year1.33%
Revenue Next 2Y3.47%
Revenue Next 3Y4.08%
Revenue Next 5Y4.3%
EBIT growth 1Y41.9%
EBIT growth 3Y5.98%
EBIT growth 5Y1.94%
EBIT Next Year33.48%
EBIT Next 3Y15.42%
EBIT Next 5Y12.34%
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.
What is the valuation status of NORTHROP GRUMMAN CORP (NOC) stock?
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.
Can you provide the PE and PB ratios for NOC stock?
The Price/Earnings (PE) ratio for NORTHROP GRUMMAN CORP (NOC) is 24.49 and the Price/Book (PB) ratio is 5.95.
What is the financial health of NORTHROP GRUMMAN CORP (NOC) stock?
The financial health rating of NORTHROP GRUMMAN CORP (NOC) is 3 / 10.