NORTHROP GRUMMAN CORP (NTH.DE) Stock Fundamental Analysis
Europe - FRA:NTH - US6668071029 - Common Stock
481.3 EUR
-2.1 (-0.43%)
Taking everything into account, NTH scores 5 out of 10 in our fundamental rating. NTH was compared to 46 industry peers in the Aerospace & Defense industry. While NTH belongs to the best of the industry regarding profitability, there are concerns on its financial health. NTH has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
NTH had positive earnings in the past year.
In the past year NTH had a positive cash flow from operations.
In the past 5 years NTH has always been profitable.
In the past 5 years NTH always reported a positive cash flow from operatings.
1.2 Ratios
NTH has a better Return On Assets (8.15%) than 91.30% of its industry peers.
NTH has a Return On Equity of 25.14%. This is amongst the best in the industry. NTH outperforms 80.43% of its industry peers.
NTH has a better Return On Invested Capital (9.57%) than 60.87% of its industry peers.
NTH had an Average Return On Invested Capital over the past 3 years of 8.81%. This is in line with the industry average of 9.34%.
The last Return On Invested Capital (9.57%) for NTH is above the 3 year average (8.81%), which is a sign of increasing profitability.
| 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
Looking at the Profit Margin, with a value of 9.82%, NTH is in the better half of the industry, outperforming 78.26% of the companies in the same industry.
In the last couple of years the Profit Margin of NTH has grown nicely.
NTH's Operating Margin of 10.01% is fine compared to the rest of the industry. NTH outperforms 63.04% of its industry peers.
In the last couple of years the Operating Margin of NTH has declined.
NTH has a worse Gross Margin (19.42%) than 71.74% of its industry peers.
In the last couple of years the Gross Margin of NTH 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) below the Cost of Capital (WACC), NTH is destroying value.
Compared to 1 year ago, NTH has less shares outstanding
NTH has less shares outstanding than it did 5 years ago.
NTH has a worse debt/assets ratio than last year.
2.2 Solvency
NTH has an Altman-Z score of 3.04. This indicates that NTH is financially healthy and has little risk of bankruptcy at the moment.
NTH has a better Altman-Z score (3.04) than 63.04% of its industry peers.
The Debt to FCF ratio of NTH is 8.56, which is on the high side as it means it would take NTH, 8.56 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of NTH (8.56) is worse than 65.22% of its industry peers.
A Debt/Equity ratio of 0.95 indicates that NTH is somewhat dependend on debt financing.
NTH has a Debt to Equity ratio of 0.95. This is in the lower half of the industry: NTH underperforms 69.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.95 | ||
| Debt/FCF | 8.56 | ||
| Altman-Z | 3.04 |
ROIC/WACC0.98
WACC9.75%
2.3 Liquidity
A Current Ratio of 1.11 indicates that NTH should not have too much problems paying its short term obligations.
NTH has a Current ratio of 1.11. This is in the lower half of the industry: NTH underperforms 60.87% of its industry peers.
NTH has a Quick Ratio of 1.11. This is a bad value and indicates that NTH is not financially healthy enough and could expect problems in meeting its short term obligations.
NTH has a Quick ratio of 0.98. This is in the better half of the industry: NTH outperforms 73.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.11 | ||
| Quick Ratio | 0.98 |
3. Growth
3.1 Past
NTH shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.93%.
Measured over the past 5 years, NTH shows a small growth in Earnings Per Share. The EPS has been growing by 4.20% on average per year.
NTH shows a decrease in Revenue. In the last year, the revenue decreased by -0.14%.
NTH 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
The Earnings Per Share is expected to grow by 7.69% on average over the next years.
NTH is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.28% yearly.
EPS Next Y0.97%
EPS Next 2Y5.77%
EPS Next 3Y6.59%
EPS Next 5Y7.69%
Revenue Next Year1.37%
Revenue Next 2Y3.34%
Revenue Next 3Y3.94%
Revenue Next 5Y4.28%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
Based on the Price/Earnings ratio of 20.53, the valuation of NTH can be described as rather expensive.
93.48% of the companies in the same industry are more expensive than NTH, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of NTH to the average of the S&P500 Index (25.89), we can say NTH is valued slightly cheaper.
NTH is valuated rather expensively with a Price/Forward Earnings ratio of 19.18.
Based on the Price/Forward Earnings ratio, NTH is valued cheaply inside the industry as 86.96% of the companies are valued more expensively.
NTH is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 34.59, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.53 | ||
| Fwd PE | 19.18 |
4.2 Price Multiples
NTH's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. NTH is cheaper than 71.74% of the companies in the same industry.
NTH's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 43.66 | ||
| EV/EBITDA | 16.88 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates NTH does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of NTH may justify a higher PE ratio.
PEG (NY)21.22
PEG (5Y)4.89
EPS Next 2Y5.77%
EPS Next 3Y6.59%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.66%, NTH has a reasonable but not impressive dividend return.
NTH's Dividend Yield is rather good when compared to the industry average which is at 1.14. NTH pays more dividend than 86.96% of the companies in the same industry.
Compared to the average S&P500 Dividend Yield of 2.36, NTH is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.66% |
5.2 History
On average, the dividend of NTH grows each year by 9.14%, which is quite nice.
Dividend Growth(5Y)9.14%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
31.43% of the earnings are spent on dividend by NTH. This is a low number and sustainable payout ratio.
The dividend of NTH is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP31.43%
EPS Next 2Y5.77%
EPS Next 3Y6.59%
FRA:NTH (11/14/2025, 7:00:00 PM)
481.3
-2.1 (-0.43%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners85.04%
Inst Owner ChangeN/A
Ins Owners0.21%
Ins Owner ChangeN/A
Market Cap68.91B
Revenue(TTM)40.93B
Net Income(TTM)4.02B
Analysts74.62
Price Target577.72 (20.03%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.66% |
Yearly Dividend6.9
Dividend Growth(5Y)9.14%
DP31.43%
Div Incr Years5
Div Non Decr Years5
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)9.74%
PT rev (3m)9.15%
EPS NQ rev (1m)-7.69%
EPS NQ rev (3m)-7.59%
EPS NY rev (1m)2.59%
EPS NY rev (3m)3.42%
Revenue NQ rev (1m)-0.26%
Revenue NQ rev (3m)-0.28%
Revenue NY rev (1m)-0.66%
Revenue NY rev (3m)-0.67%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.53 | ||
| Fwd PE | 19.18 | ||
| P/S | 1.96 | ||
| P/FCF | 43.66 | ||
| P/OCF | 23.29 | ||
| P/B | 5.01 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.88 |
EPS(TTM)23.44
EY4.87%
EPS(NY)25.1
Fwd EY5.22%
FCF(TTM)11.02
FCFY2.29%
OCF(TTM)20.67
OCFY4.29%
SpS246.02
BVpS96.1
TBVpS-10.03
PEG (NY)21.22
PEG (5Y)4.89
Graham Number225.13
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 | 3.04 |
F-Score6
WACC9.75%
ROIC/WACC0.98
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 Y0.97%
EPS Next 2Y5.77%
EPS Next 3Y6.59%
EPS Next 5Y7.69%
Revenue 1Y (TTM)-0.14%
Revenue growth 3Y4.78%
Revenue growth 5Y3.93%
Sales Q2Q%4.27%
Revenue Next Year1.37%
Revenue Next 2Y3.34%
Revenue Next 3Y3.94%
Revenue Next 5Y4.28%
EBIT growth 1Y41.9%
EBIT growth 3Y5.98%
EBIT growth 5Y1.94%
EBIT Next Year31.68%
EBIT Next 3Y14.91%
EBIT Next 5Y10.2%
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 / NTH.DE FAQ
What is the ChartMill fundamental rating of NORTHROP GRUMMAN CORP (NTH.DE) stock?
ChartMill assigns a fundamental rating of 5 / 10 to NTH.DE.
What is the valuation status of NORTHROP GRUMMAN CORP (NTH.DE) stock?
ChartMill assigns a valuation rating of 4 / 10 to NORTHROP GRUMMAN CORP (NTH.DE). This can be considered as Fairly Valued.
Can you provide the profitability details for NORTHROP GRUMMAN CORP?
NORTHROP GRUMMAN CORP (NTH.DE) has a profitability rating of 7 / 10.
What are the PE and PB ratios of NORTHROP GRUMMAN CORP (NTH.DE) stock?
The Price/Earnings (PE) ratio for NORTHROP GRUMMAN CORP (NTH.DE) is 20.53 and the Price/Book (PB) ratio is 5.01.
How financially healthy is NORTHROP GRUMMAN CORP?
The financial health rating of NORTHROP GRUMMAN CORP (NTH.DE) is 3 / 10.