NORTHROP GRUMMAN CORP (NOC) Fundamental Analysis & Valuation

NYSE:NOC • US6668071029

Current stock price

728.19 USD
+4.16 (+0.57%)
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

  • 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.
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 8.14%. This is amongst the best in the industry. NOC outperforms 85.90% of its industry peers.
  • NOC has a better Return On Equity (25.08%) than 88.46% of its industry peers.
  • NOC's Return On Invested Capital of 9.46% is fine compared to the rest of the industry. NOC outperforms 78.21% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for NOC is in line with the industry average of 9.30%.
  • The last Return On Invested Capital (9.46%) for NOC is above the 3 year average (8.60%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 8.14%
ROE 25.08%
ROIC 9.46%
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

  • With a decent Profit Margin value of 9.97%, NOC is doing good in the industry, outperforming 79.49% 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 (10.20%) than 64.10% of its industry peers.
  • In the last couple of years the Operating Margin of NOC has declined.
  • NOC's Gross Margin of 19.81% is in line compared to the rest of the industry. NOC outperforms 41.03% of its industry peers.
  • NOC's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 10.2%
PM (TTM) 9.97%
GM 19.81%
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

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), NOC is destroying value.
  • NOC has less shares outstanding than it did 1 year ago.
  • NOC has less shares outstanding than it did 5 years ago.
  • Compared to 1 year ago, NOC has an improved debt to assets ratio.
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

  • NOC has an Altman-Z score of 3.35. This indicates that NOC is financially healthy and has little risk of bankruptcy at the moment.
  • NOC's Altman-Z score of 3.35 is in line compared to the rest of the industry. NOC outperforms 47.44% of its industry peers.
  • The Debt to FCF ratio of NOC is 4.75, which is a neutral value as it means it would take NOC, 4.75 years of fcf income to pay off all of its debts.
  • With a decent Debt to FCF ratio value of 4.75, NOC is doing good in the industry, outperforming 74.36% of the companies in the same industry.
  • NOC has a Debt/Equity ratio of 0.91. This is a neutral value indicating NOC is somewhat dependend on debt financing.
  • NOC's Debt to Equity ratio of 0.91 is on the low side compared to the rest of the industry. NOC is outperformed by 67.95% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.91
Debt/FCF 4.75
Altman-Z 3.35
ROIC/WACC0.99
WACC9.6%
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

  • A Current Ratio of 1.10 indicates that NOC should not have too much problems paying its short term obligations.
  • The Current ratio of NOC (1.10) is worse than 83.33% of its industry peers.
  • NOC has a Quick Ratio of 1.01. 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 Quick ratio of 1.01. This is in the lower half of the industry: NOC underperforms 73.08% of its industry peers.
Industry RankSector Rank
Current Ratio 1.1
Quick Ratio 1.01
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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4

3. NOC Growth Analysis

3.1 Past

  • NOC shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.67%.
  • Measured over the past 5 years, NOC shows a small growth in Earnings Per Share. The EPS has been growing by 3.21% on average per year.
  • NOC shows a small growth in Revenue. In the last year, the Revenue has grown by 2.24%.
  • Measured over the past years, NOC shows a small growth in Revenue. The Revenue has been growing by 2.66% on average per year.
EPS 1Y (TTM)7.67%
EPS 3Y2.74%
EPS 5Y3.21%
EPS Q2Q%13.15%
Revenue 1Y (TTM)2.24%
Revenue growth 3Y4.65%
Revenue growth 5Y2.66%
Sales Q2Q%9.6%

3.2 Future

  • The Earnings Per Share is expected to grow by 5.60% on average over the next years.
  • NOC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.34% yearly.
EPS Next Y0.7%
EPS Next 2Y3.79%
EPS Next 3Y5.18%
EPS Next 5Y5.6%
Revenue Next Year4.77%
Revenue Next 2Y5.41%
Revenue Next 3Y5.36%
Revenue Next 5Y5.34%

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 accelerating.
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 quite expensively with a Price/Earnings ratio of 25.94.
  • Based on the Price/Earnings ratio, NOC is valued cheaper than 83.33% of the companies in the same industry.
  • The average S&P500 Price/Earnings ratio is at 26.11. NOC is around the same levels.
  • NOC is valuated quite expensively with a Price/Forward Earnings ratio of 25.76.
  • Based on the Price/Forward Earnings ratio, NOC is valued cheaper than 83.33% of the companies in the same industry.
  • NOC is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 24.12, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 25.94
Fwd PE 25.76
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 a bit cheaper than the industry average as 71.79% of the companies are valued more expensively.
  • 85.90% of the companies in the same industry are more expensive than NOC, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 31.25
EV/EBITDA 19.83
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 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)37.24
PEG (5Y)8.09
EPS Next 2Y3.79%
EPS Next 3Y5.18%

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6

5. NOC Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 1.25%, NOC has a reasonable but not impressive dividend return.
  • Compared to an average industry Dividend Yield of 0.65, NOC pays a better dividend. On top of this NOC pays more dividend than 87.18% of the companies listed in the same industry.
  • NOC's Dividend Yield is slightly below the S&P500 average, which is at 1.91.
Industry RankSector Rank
Dividend Yield 1.25%

5.2 History

  • On average, the dividend of NOC grows each year by 9.61%, 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)9.61%
Div Incr Years21
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 30.92% 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.
DP30.92%
EPS Next 2Y3.79%
EPS Next 3Y5.18%
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 (3/18/2026, 10:43:59 AM)

728.19

+4.16 (+0.57%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)01-27
Earnings (Next)04-20
Inst Owners82.93%
Inst Owner Change-1.5%
Ins Owners0.2%
Ins Owner Change0.14%
Market Cap103.34B
Revenue(TTM)41.95B
Net Income(TTM)4.18B
Analysts75
Price Target744.59 (2.25%)
Short Float %1.39%
Short Ratio1.94
Dividend
Industry RankSector Rank
Dividend Yield 1.25%
Yearly Dividend9.01
Dividend Growth(5Y)9.61%
DP30.92%
Div Incr Years21
Div Non Decr Years34
Ex-Date02-23
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.2%
Min EPS beat(2)2.76%
Max EPS beat(2)17.64%
EPS beat(4)3
Avg EPS beat(4)4.88%
Min EPS beat(4)-4.03%
Max EPS beat(4)17.64%
EPS beat(8)6
Avg EPS beat(8)5.95%
EPS beat(12)9
Avg EPS beat(12)5.51%
EPS beat(16)12
Avg EPS beat(16)4.97%
Revenue beat(2)0
Avg Revenue beat(2)-1.97%
Min Revenue beat(2)-3.68%
Max Revenue beat(2)-0.26%
Revenue beat(4)1
Avg Revenue beat(4)-1.9%
Min Revenue beat(4)-5.46%
Max Revenue beat(4)1.8%
Revenue beat(8)3
Avg Revenue beat(8)-1.33%
Revenue beat(12)7
Avg Revenue beat(12)-0.58%
Revenue beat(16)8
Avg Revenue beat(16)-0.79%
PT rev (1m)1.2%
PT rev (3m)9.9%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-6.46%
EPS NY rev (1m)-0.53%
EPS NY rev (3m)-3.22%
Revenue NQ rev (1m)-0.22%
Revenue NQ rev (3m)-2.9%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)-0.86%
Valuation
Industry RankSector Rank
PE 25.94
Fwd PE 25.76
P/S 2.46
P/FCF 31.25
P/OCF 21.72
P/B 6.2
P/tB N/A
EV/EBITDA 19.83
EPS(TTM)28.07
EY3.85%
EPS(NY)28.27
Fwd EY3.88%
FCF(TTM)23.3
FCFY3.2%
OCF(TTM)33.52
OCFY4.6%
SpS295.62
BVpS117.49
TBVpS-6.84
PEG (NY)37.24
PEG (5Y)8.09
Graham Number272.4
Profitability
Industry RankSector Rank
ROA 8.14%
ROE 25.08%
ROCE 11.41%
ROIC 9.46%
ROICexc 10.72%
ROICexgc 22.96%
OM 10.2%
PM (TTM) 9.97%
GM 19.81%
FCFM 7.88%
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-Score6
Asset Turnover0.82
Health
Industry RankSector Rank
Debt/Equity 0.91
Debt/FCF 4.75
Debt/EBITDA 2.64
Cap/Depr 98.51%
Cap/Sales 3.46%
Interest Coverage 250
Cash Conversion 82.7%
Profit Quality 79.08%
Current Ratio 1.1
Quick Ratio 1.01
Altman-Z 3.35
F-Score6
WACC9.6%
ROIC/WACC0.99
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)7.67%
EPS 3Y2.74%
EPS 5Y3.21%
EPS Q2Q%13.15%
EPS Next Y0.7%
EPS Next 2Y3.79%
EPS Next 3Y5.18%
EPS Next 5Y5.6%
Revenue 1Y (TTM)2.24%
Revenue growth 3Y4.65%
Revenue growth 5Y2.66%
Sales Q2Q%9.6%
Revenue Next Year4.77%
Revenue Next 2Y5.41%
Revenue Next 3Y5.36%
Revenue Next 5Y5.34%
EBIT growth 1Y-2.06%
EBIT growth 3Y5.93%
EBIT growth 5Y1.04%
EBIT Next Year38.96%
EBIT Next 3Y15.99%
EBIT Next 5Y10.71%
FCF growth 1Y26.17%
FCF growth 3Y31.15%
FCF growth 5Y2.77%
OCF growth 1Y8.41%
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 5 / 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.


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 25.94 and the Price/Book (PB) ratio is 6.2.


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

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