NORTHROP GRUMMAN CORP (NOC) Stock Fundamental Analysis
USA - NYSE:NOC - US6668071029 - Common Stock
558 USD
0 (0%)
559.318 USD
+1.32 (+0.24%)
Taking everything into account, NOC scores 5 out of 10 in our fundamental rating. 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.
NOC had a positive operating cash flow in the past year.
NOC had positive earnings in each of the past 5 years.
NOC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of NOC (8.15%) is better than 87.50% of its industry peers.
NOC has a Return On Equity of 25.14%. This is amongst the best in the industry. NOC outperforms 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 8.50%.
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
With a decent Profit Margin value of 9.82%, NOC is doing good in the industry, outperforming 79.17% of the companies in the same industry.
NOC's Profit Margin has improved in the last couple of years.
NOC has a better Operating Margin (10.01%) than 62.50% of its industry peers.
In the last couple of years the Operating Margin of NOC has declined.
NOC has a worse Gross Margin (19.42%) than 63.89% 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 below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, NOC has less shares outstanding
NOC has less shares outstanding than it did 5 years ago.
The debt/assets ratio for NOC is higher compared to a year ago.
2.2 Solvency
NOC has an Altman-Z score of 3.03. This indicates that NOC is financially healthy and has little risk of bankruptcy at the moment.
NOC has a Altman-Z score (3.03) which is in line with its industry peers.
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.
With a Debt to FCF ratio value of 8.56, NOC perfoms like the industry average, outperforming 58.33% of the companies in the same industry.
NOC has a Debt/Equity ratio of 0.95. This is a neutral value indicating NOC is somewhat dependend on debt financing.
The Debt to Equity ratio of NOC (0.95) is worse than 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.95 | ||
| Debt/FCF | 8.56 | ||
| Altman-Z | 3.03 |
ROIC/WACC0.98
WACC9.77%
2.3 Liquidity
A Current Ratio of 1.11 indicates that NOC should not have too much problems paying its short term obligations.
NOC has a Current ratio of 1.11. This is amonst the worse of the industry: NOC underperforms 83.33% of its industry peers.
A Quick Ratio of 0.98 indicates that NOC may have some problems paying its short term obligations.
NOC's Quick ratio of 0.98 is on the low side compared to the rest of the industry. NOC is outperformed by 69.44% of its industry peers.
| 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.
The Revenue has decreased by -0.14% in the past year.
The Revenue has been growing slightly by 3.93% on average over the past years.
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.
Based on estimates for the next years, NOC will show a small growth in Revenue. The Revenue will grow by 4.28% on average per year.
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
The Price/Earnings ratio is 20.49, which indicates a rather expensive current 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 88.89% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 25.89. NOC is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 19.13, which indicates a rather expensive current valuation of NOC.
Based on the Price/Forward Earnings ratio, NOC is valued cheaply inside the industry as 84.72% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 34.59. NOC is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.49 | ||
| Fwd PE | 19.13 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NOC is valued a bit cheaper than the industry average as 76.39% of the companies are valued more expensively.
69.44% 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 | 43.56 | ||
| EV/EBITDA | 16.79 |
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)21.18
PEG (5Y)4.88
EPS Next 2Y5.77%
EPS Next 3Y6.59%
5. Dividend
5.1 Amount
NOC has a Yearly Dividend Yield of 1.66%. 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 1.12. NOC pays more dividend than 91.67% of the companies in the same industry.
Compared to the average S&P500 Dividend Yield of 2.36, NOC is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.66% |
5.2 History
On average, the dividend of NOC grows each year by 9.14%, which is quite nice.
NOC has been paying a dividend for at least 10 years, so it has 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.
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%
558
0 (0%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners85.04%
Inst Owner Change-10.05%
Ins Owners0.21%
Ins Owner Change-0.66%
Market Cap79.89B
Revenue(TTM)40.93B
Net Income(TTM)4.02B
Analysts74.62
Price Target669.85 (20.04%)
Short Float %1.04%
Short Ratio2.02
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.66% |
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)9.44%
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 | 20.49 | ||
| Fwd PE | 19.13 | ||
| P/S | 1.95 | ||
| P/FCF | 43.56 | ||
| P/OCF | 23.24 | ||
| P/B | 5 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.79 |
EPS(TTM)27.23
EY4.88%
EPS(NY)29.16
Fwd EY5.23%
FCF(TTM)12.81
FCFY2.3%
OCF(TTM)24.01
OCFY4.3%
SpS285.85
BVpS111.66
TBVpS-11.65
PEG (NY)21.18
PEG (5Y)4.88
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 | 3.03 |
F-Score6
WACC9.77%
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 / 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 20.49 and the Price/Book (PB) ratio is 5.
What is the financial health of NORTHROP GRUMMAN CORP (NOC) stock?
The financial health rating of NORTHROP GRUMMAN CORP (NOC) is 3 / 10.