NORTHROP GRUMMAN CORP (NOC) Fundamental Analysis & Valuation

NYSE:NOC • US6668071029

Current stock price

573.365 USD
-1.91 (-0.33%)
Last:

This NOC fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

7

1. NOC Profitability Analysis

1.1 Basic Checks

  • NOC had positive earnings in the past year.
  • In the past year NOC had a positive cash flow from operations.
  • Each year in the past 5 years NOC has been profitable.
  • In the past 5 years NOC always reported a positive cash flow from operatings.
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 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B

1.2 Ratios

  • NOC has a Return On Assets of 9.15%. This is amongst the best in the industry. NOC outperforms 86.25% of its industry peers.
  • NOC's Return On Equity of 26.74% is amongst the best of the industry. NOC outperforms 90.00% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 10.46%, NOC is in the better half of the industry, outperforming 76.25% of the companies in the same industry.
  • The Average Return On Invested Capital over the past 3 years for NOC is in line with the industry average of 9.41%.
  • The last Return On Invested Capital (10.46%) for NOC is above the 3 year average (8.60%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 9.15%
ROE 26.74%
ROIC 10.46%
ROA(3y)7%
ROA(5y)9.73%
ROE(3y)22.09%
ROE(5y)30.49%
ROIC(3y)8.6%
ROIC(5y)8.86%
NOC Yearly ROA, ROE, ROICNOC Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30 40 50

1.3 Margins

  • The Profit Margin of NOC (10.80%) is better than 82.50% of its industry peers.
  • In the last couple of years the Profit Margin of NOC has grown nicely.
  • NOC has a Operating Margin of 11.08%. This is in the better half of the industry: NOC outperforms 73.75% of its industry peers.
  • In the last couple of years the Operating Margin of NOC has declined.
  • NOC's Gross Margin of 20.52% is in line compared to the rest of the industry. NOC outperforms 42.50% 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 RankSector Rank
OM 11.08%
PM (TTM) 10.8%
GM 20.52%
OM growth 3Y1.22%
OM growth 5Y-1.58%
PM growth 3Y-9.34%
PM growth 5Y2.84%
GM growth 3Y-1%
GM growth 5Y-0.5%
NOC Yearly Profit, Operating, Gross MarginsNOC Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10 15 20

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5

2. NOC Health Analysis

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.
  • Compared to 5 years ago, NOC has less shares outstanding
  • NOC has a better debt/assets ratio than last year.
NOC Yearly Shares OutstandingNOC Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50M 100M 150M
NOC Yearly Total Debt VS Total AssetsNOC Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10B 20B 30B 40B 50B

2.2 Solvency

  • An Altman-Z score of 3.17 indicates that NOC is not in any danger for bankruptcy at the moment.
  • The Altman-Z score of NOC (3.17) is comparable to the rest of the industry.
  • NOC has a debt to FCF ratio of 4.59. This is a neutral value as NOC would need 4.59 years to pay back of all of its debts.
  • The Debt to FCF ratio of NOC (4.59) is better than 72.50% of its industry peers.
  • A Debt/Equity ratio of 0.84 indicates that NOC is somewhat dependend on debt financing.
  • NOC has a worse Debt to Equity ratio (0.84) than 70.00% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.84
Debt/FCF 4.59
Altman-Z 3.17
ROIC/WACC1.08
WACC9.7%
NOC Yearly LT Debt VS Equity VS FCFNOC Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B

2.3 Liquidity

  • NOC has a Current Ratio of 1.15. This is a normal value and indicates that NOC is financially healthy and should not expect problems in meeting its short term obligations.
  • Looking at the Current ratio, with a value of 1.15, NOC is doing worse than 85.00% of the companies in the same industry.
  • NOC has a Quick Ratio of 1.04. This is a normal value and indicates that NOC is financially healthy and should not expect problems in meeting its short term obligations.
  • With a Quick ratio value of 1.04, NOC is not doing good in the industry: 73.75% of the companies in the same industry are doing better.
Industry RankSector Rank
Current Ratio 1.15
Quick Ratio 1.04
NOC Yearly Current Assets VS Current LiabilitesNOC Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

3. NOC Growth Analysis

3.1 Past

  • NOC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.07%, which is quite good.
  • NOC shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.21% yearly.
  • The Revenue has been growing slightly by 4.95% in the past year.
  • The Revenue has been growing slightly by 2.66% on average over the past years.
EPS 1Y (TTM)9.07%
EPS 3Y2.74%
EPS 5Y3.21%
EPS Q2Q%1.32%
Revenue 1Y (TTM)4.95%
Revenue growth 3Y4.65%
Revenue growth 5Y2.66%
Sales Q2Q%4.36%

3.2 Future

  • The Earnings Per Share is expected to grow by 5.90% on average over the next years.
  • The Revenue is expected to grow by 5.34% on average over the next years.
EPS Next Y0.68%
EPS Next 2Y3.79%
EPS Next 3Y5.15%
EPS Next 5Y5.9%
Revenue Next Year4.85%
Revenue Next 2Y5.52%
Revenue Next 3Y5.58%
Revenue Next 5Y5.34%

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 accelerating: in the next years the growth will be better than in the last years.
NOC Yearly Revenue VS EstimatesNOC Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 10B 20B 30B 40B 50B
NOC Yearly EPS VS EstimatesNOC Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 10 20 30

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5

4. NOC Valuation Analysis

4.1 Price/Earnings Ratio

  • NOC is valuated rather expensively with a Price/Earnings ratio of 20.37.
  • 86.25% of the companies in the same industry are more expensive than NOC, based on the Price/Earnings ratio.
  • NOC is valuated rather cheaply when we compare the Price/Earnings ratio to 27.15, which is the current average of the S&P500 Index.
  • NOC is valuated rather expensively with a Price/Forward Earnings ratio of 18.96.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of NOC indicates a rather cheap valuation: NOC is cheaper than 87.50% of the companies listed in the same industry.
  • The average S&P500 Price/Forward Earnings ratio is at 22.12. NOC is around the same levels.
Industry RankSector Rank
PE 20.37
Fwd PE 18.96
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 cheaply inside the industry as 81.25% of the companies are valued more expensively.
  • Based on the Price/Free Cash Flow ratio, NOC is valued cheaper than 87.50% of the companies in the same industry.
Industry RankSector Rank
P/FCF 24.64
EV/EBITDA 15.28
NOC Per share dataNOC EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 100 200

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
  • The decent profitability rating of NOC may justify a higher PE ratio.
PEG (NY)29.92
PEG (5Y)6.35
EPS Next 2Y3.79%
EPS Next 3Y5.15%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

7

5. NOC Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 1.61%, NOC has a reasonable but not impressive dividend return.
  • NOC's Dividend Yield is rather good when compared to the industry average which is at 0.38. NOC pays more dividend than 96.25% of the companies in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.82, NOC has a dividend comparable with the average S&P500 company.
Industry RankSector Rank
Dividend Yield 1.61%

5.2 History

  • The dividend of NOC is nicely growing with an annual growth rate of 9.61%!
  • NOC has been paying a dividend for at least 10 years, so it has a reliable track record.
  • NOC has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)9.61%
Div Incr Years22
Div Non Decr Years34
NOC Yearly Dividends per shareNOC Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2 4 6 8

5.3 Sustainability

  • NOC pays out 28.93% 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.
DP28.93%
EPS Next 2Y3.79%
EPS Next 3Y5.15%
NOC Yearly Income VS Free CF VS DividendNOC Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B
NOC Dividend Payout.NOC Dividend Payout, showing the Payout Ratio.NOC Dividend Payout.PayoutRetained Earnings

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NOC Fundamentals: All Metrics, Ratios and Statistics

NORTHROP GRUMMAN CORP

NYSE:NOC (4/28/2026, 1:22:51 PM)

573.365

-1.91 (-0.33%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)04-21
Earnings (Next)07-20
Inst Owners82.95%
Inst Owner Change-0.1%
Ins Owners0.2%
Ins Owner Change0.14%
Market Cap81.44B
Revenue(TTM)42.37B
Net Income(TTM)4.58B
Analysts75.17
Price Target735.2 (28.23%)
Short Float %1.2%
Short Ratio2
Dividend
Industry RankSector Rank
Dividend Yield 1.61%
Yearly Dividend9.01
Dividend Growth(5Y)9.61%
DP28.93%
Div Incr Years22
Div Non Decr Years34
Ex-Date02-23
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.58%
Min EPS beat(2)0.4%
Max EPS beat(2)2.76%
EPS beat(4)4
Avg EPS beat(4)5.98%
Min EPS beat(4)0.4%
Max EPS beat(4)17.64%
EPS beat(8)6
Avg EPS beat(8)5%
EPS beat(12)9
Avg EPS beat(12)4.97%
EPS beat(16)12
Avg EPS beat(16)4.91%
Revenue beat(2)1
Avg Revenue beat(2)0.03%
Min Revenue beat(2)-0.26%
Max Revenue beat(2)0.31%
Revenue beat(4)2
Avg Revenue beat(4)-0.46%
Min Revenue beat(4)-3.68%
Max Revenue beat(4)1.8%
Revenue beat(8)3
Avg Revenue beat(8)-1.62%
Revenue beat(12)7
Avg Revenue beat(12)-0.59%
Revenue beat(16)9
Avg Revenue beat(16)-0.65%
PT rev (1m)1.14%
PT rev (3m)11.29%
EPS NQ rev (1m)-0.05%
EPS NQ rev (3m)-2.65%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)-2.98%
Revenue NQ rev (1m)0.06%
Revenue NQ rev (3m)-0.9%
Revenue NY rev (1m)0.08%
Revenue NY rev (3m)-0.78%
Valuation
Industry RankSector Rank
PE 20.37
Fwd PE 18.96
P/S 1.92
P/FCF 24.64
P/OCF 17.45
P/B 4.76
P/tB N/A
EV/EBITDA 15.28
EPS(TTM)28.15
EY4.91%
EPS(NY)30.24
Fwd EY5.27%
FCF(TTM)23.27
FCFY4.06%
OCF(TTM)32.85
OCFY5.73%
SpS298.3
BVpS120.5
TBVpS-2.28
PEG (NY)29.92
PEG (5Y)6.35
Graham Number276.267 (-51.82%)
Profitability
Industry RankSector Rank
ROA 9.15%
ROE 26.74%
ROCE 12.63%
ROIC 10.46%
ROICexc 11.09%
ROICexgc 22.04%
OM 11.08%
PM (TTM) 10.8%
GM 20.52%
FCFM 7.8%
ROA(3y)7%
ROA(5y)9.73%
ROE(3y)22.09%
ROE(5y)30.49%
ROIC(3y)8.6%
ROIC(5y)8.86%
ROICexc(3y)9.71%
ROICexc(5y)9.9%
ROICexgc(3y)21.99%
ROICexgc(5y)23.62%
ROCE(3y)10.38%
ROCE(5y)10.69%
ROICexgc growth 3Y-3.47%
ROICexgc growth 5Y-4.46%
ROICexc growth 3Y2.05%
ROICexc growth 5Y-0.94%
OM growth 3Y1.22%
OM growth 5Y-1.58%
PM growth 3Y-9.34%
PM growth 5Y2.84%
GM growth 3Y-1%
GM growth 5Y-0.5%
F-Score9
Asset Turnover0.85
Health
Industry RankSector Rank
Debt/Equity 0.84
Debt/FCF 4.59
Debt/EBITDA 2.32
Cap/Depr 90.31%
Cap/Sales 3.21%
Interest Coverage 250
Cash Conversion 75.22%
Profit Quality 72.22%
Current Ratio 1.15
Quick Ratio 1.04
Altman-Z 3.17
F-Score9
WACC9.7%
ROIC/WACC1.08
Cap/Depr(3y)120.05%
Cap/Depr(5y)116.26%
Cap/Sales(3y)4.09%
Cap/Sales(5y)4.03%
Profit Quality(3y)81.34%
Profit Quality(5y)60.93%
High Growth Momentum
Growth
EPS 1Y (TTM)9.07%
EPS 3Y2.74%
EPS 5Y3.21%
EPS Q2Q%1.32%
EPS Next Y0.68%
EPS Next 2Y3.79%
EPS Next 3Y5.15%
EPS Next 5Y5.9%
Revenue 1Y (TTM)4.95%
Revenue growth 3Y4.65%
Revenue growth 5Y2.66%
Sales Q2Q%4.36%
Revenue Next Year4.85%
Revenue Next 2Y5.52%
Revenue Next 3Y5.58%
Revenue Next 5Y5.34%
EBIT growth 1Y21.28%
EBIT growth 3Y5.93%
EBIT growth 5Y1.04%
EBIT Next Year38.98%
EBIT Next 3Y15.99%
EBIT Next 5Y10.71%
FCF growth 1Y54.8%
FCF growth 3Y31.15%
FCF growth 5Y2.77%
OCF growth 1Y20.54%
OCF growth 3Y17.92%
OCF growth 5Y2.02%

NORTHROP GRUMMAN CORP / NOC Fundamental Analysis FAQ

What is the fundamental rating for NOC stock?

ChartMill assigns a fundamental rating of 6 / 10 to NOC.


What is the valuation status of NORTHROP GRUMMAN CORP (NOC) stock?

ChartMill assigns a valuation rating of 5 / 10 to NORTHROP GRUMMAN CORP (NOC). This can be considered as Fairly Valued.


What is the profitability of NOC stock?

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


What are the PE and PB ratios of NORTHROP GRUMMAN CORP (NOC) stock?

The Price/Earnings (PE) ratio for NORTHROP GRUMMAN CORP (NOC) is 20.37 and the Price/Book (PB) ratio is 4.76.


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

The financial health rating of NORTHROP GRUMMAN CORP (NOC) is 5 / 10.