NORTHROP GRUMMAN CORP (NOC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:NOC - US6668071029 - Common Stock
572.25 USD
+5.14 (+0.91%)
572.25 USD
0 (0%)
Overall NOC gets a fundamental rating of 5 out of 10. We evaluated NOC against 71 industry peers in the Aerospace & Defense industry. While NOC has a great profitability rating, there are quite some 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.
In the past 5 years NOC has always been profitable.
Each year in the past 5 years NOC had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 8.15%, NOC belongs to the best of the industry, outperforming 88.73% of the companies in the same industry.
NOC has a better Return On Equity (25.14%) than 92.96% of its industry peers.
The Return On Invested Capital of NOC (9.57%) is better than 83.10% 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 8.53%.
The last Return On Invested Capital (9.57%) for NOC 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
NOC has a better Profit Margin (9.82%) than 78.87% of its industry peers.
In the last couple of years the Profit Margin of NOC has grown nicely.
NOC has a Operating Margin of 10.01%. This is in the better half of the industry: NOC outperforms 63.38% of its industry peers.
NOC's Operating Margin has declined in the last couple of years.
The Gross Margin of NOC (19.42%) is worse than 63.38% 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so NOC is destroying 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
An Altman-Z score of 3.05 indicates that NOC is not in any danger for bankruptcy at the moment.
NOC's Altman-Z score of 3.05 is in line compared to the rest of the industry. NOC outperforms 45.07% of its industry peers.
NOC has a debt to FCF ratio of 8.56. This is a slightly negative value and a sign of low solvency as NOC would need 8.56 years to pay back of all of its debts.
NOC has a Debt to FCF ratio (8.56) which is comparable to the rest of the industry.
NOC has a Debt/Equity ratio of 0.95. This is a neutral value indicating NOC is somewhat dependend on debt financing.
NOC has a worse Debt to Equity ratio (0.95) than 74.65% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.95 | ||
| Debt/FCF | 8.56 | ||
| Altman-Z | 3.05 |
ROIC/WACC0.95
WACC10.05%
2.3 Liquidity
NOC has a Current Ratio of 1.11. This is a normal value and indicates that NOC is financially healthy and should not expect problems in meeting its short term obligations.
NOC has a Current ratio of 1.11. This is amonst the worse of the industry: NOC underperforms 83.10% 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.
The Quick ratio of NOC (0.98) is worse than 69.01% 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%.
The Earnings Per Share has been growing slightly by 4.20% on average over the past years.
The Revenue has decreased by -0.14% in the past year.
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
NOC is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.69% yearly.
The Revenue is expected to grow by 4.28% on average over the next years.
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 21.02 indicates a rather expensive valuation of NOC.
Compared to the rest of the industry, the Price/Earnings ratio of NOC indicates a rather cheap valuation: NOC is cheaper than 90.14% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.31. NOC is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 19.62, the valuation of NOC can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NOC indicates a rather cheap valuation: NOC is cheaper than 84.51% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 36.59. NOC is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.02 | ||
| Fwd PE | 19.62 |
4.2 Price Multiples
76.06% of the companies in the same industry are more expensive than NOC, based on the Enterprise Value to EBITDA ratio.
64.79% of the companies in the same industry are more expensive than NOC, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 44.68 | ||
| EV/EBITDA | 17.02 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates NOC does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of NOC may justify a higher PE ratio.
PEG (NY)21.72
PEG (5Y)5
EPS Next 2Y5.77%
EPS Next 3Y6.59%
5. Dividend
5.1 Amount
NOC has a Yearly Dividend Yield of 1.63%.
NOC's Dividend Yield is rather good when compared to the industry average which is at 1.15. NOC pays more dividend than 91.55% of the companies in the same industry.
Compared to the average S&P500 Dividend Yield of 2.40, NOC is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.63% |
5.2 History
On average, the dividend of NOC grows each year by 9.14%, which is quite nice.
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 2Y5.77%
EPS Next 3Y6.59%
572.25
+5.14 (+0.91%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners85.04%
Inst Owner Change-10.2%
Ins Owners0.21%
Ins Owner Change-0.96%
Market Cap81.67B
Revenue(TTM)40.93B
Net Income(TTM)4.02B
Analysts74.62
Price Target669.87 (17.06%)
Short Float %0.84%
Short Ratio1.56
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.63% |
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)8.64%
PT rev (3m)8.94%
EPS NQ rev (1m)-7.28%
EPS NQ rev (3m)-7.51%
EPS NY rev (1m)2.59%
EPS NY rev (3m)2.59%
Revenue NQ rev (1m)-0.31%
Revenue NQ rev (3m)-0.26%
Revenue NY rev (1m)-0.74%
Revenue NY rev (3m)-0.67%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.02 | ||
| Fwd PE | 19.62 | ||
| P/S | 2 | ||
| P/FCF | 44.68 | ||
| P/OCF | 23.83 | ||
| P/B | 5.12 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.02 |
EPS(TTM)27.23
EY4.76%
EPS(NY)29.16
Fwd EY5.1%
FCF(TTM)12.81
FCFY2.24%
OCF(TTM)24.01
OCFY4.2%
SpS285.85
BVpS111.66
TBVpS-11.65
PEG (NY)21.72
PEG (5Y)5
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 | 3.05 |
F-Score6
WACC10.05%
ROIC/WACC0.95
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 / 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 5 / 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 21.02 and the Price/Book (PB) ratio is 5.12.
What is the financial health of NORTHROP GRUMMAN CORP (NOC) stock?
The financial health rating of NORTHROP GRUMMAN CORP (NOC) is 3 / 10.