NORTHROP GRUMMAN CORP (NOC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:NOC - US6668071029 - Common Stock
561.01 USD
-5.69 (-1%)
NOC gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 71 industry peers in the Aerospace & Defense industry. NOC has an excellent profitability rating, but there are concerns on its financial health. NOC has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
NOC had positive earnings in the past year.
NOC had a positive operating cash flow in the past year.
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.
1.2 Ratios
NOC's Return On Assets of 8.15% is amongst the best of the industry. NOC outperforms 88.73% of its industry peers.
NOC's Return On Equity of 25.14% is amongst the best of the industry. NOC outperforms 92.96% of its industry peers.
NOC's Return On Invested Capital of 9.57% is amongst the best of the industry. NOC outperforms 83.10% 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 8.52%.
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
NOC has a Profit Margin of 9.82%. This is in the better half of the industry: NOC outperforms 78.87% of its industry peers.
In the last couple of years the Profit Margin of NOC has grown nicely.
NOC has a better Operating Margin (10.01%) than 63.38% of its industry peers.
NOC's Operating Margin has declined in the last couple of years.
NOC has a worse Gross Margin (19.42%) 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.
Compared to 5 years ago, NOC has less shares outstanding
The debt/assets ratio for NOC is higher compared to a year ago.
2.2 Solvency
NOC has an Altman-Z score of 3.05. This indicates that NOC is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of NOC (3.05) is comparable to the rest of the industry.
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.
Looking at the Debt to FCF ratio, with a value of 8.56, NOC is in line with its industry, outperforming 57.75% 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.
NOC's Debt to Equity ratio of 0.95 is on the low side compared to the rest of the industry. NOC is outperformed by 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
WACC10.07%
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 worse Current ratio (1.11) than 83.10% of its industry peers.
A Quick Ratio of 0.98 indicates that NOC may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.98, NOC is doing worse than 69.01% of the companies in the same industry.
| 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%.
Measured over the past 5 years, NOC shows a small growth in Earnings Per Share. The EPS has been growing by 4.20% on average per year.
Looking at the last year, NOC shows a decrease in Revenue. The Revenue has decreased by -0.14% in the last year.
NOC 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.
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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 20.60, the valuation of NOC can be described as rather expensive.
Based on the Price/Earnings ratio, NOC is valued cheaper than 90.14% of the companies in the same industry.
NOC's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.47.
The Price/Forward Earnings ratio is 19.24, which indicates a rather expensive current valuation of NOC.
Based on the Price/Forward Earnings ratio, NOC is valued cheaply inside the industry as 84.51% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of NOC to the average of the S&P500 Index (34.42), we can say NOC is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.6 | ||
| Fwd PE | 19.24 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NOC is valued a bit cheaper than the industry average as 76.06% of the companies are valued more expensively.
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 | 43.8 | ||
| EV/EBITDA | 17.01 |
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)21.29
PEG (5Y)4.9
EPS Next 2Y5.77%
EPS Next 3Y6.59%
5. Dividend
5.1 Amount
NOC has a Yearly Dividend Yield of 1.63%.
Compared to an average industry Dividend Yield of 1.15, NOC pays a better dividend. On top of this NOC pays more dividend than 91.55% of the companies listed in the same industry.
Compared to the average S&P500 Dividend Yield of 2.41, 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
NOC pays out 31.43% 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.
DP31.43%
EPS Next 2Y5.77%
EPS Next 3Y6.59%
NYSE:NOC (11/24/2025, 10:04:07 AM)
561.01
-5.69 (-1%)
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 Cap80.33B
Revenue(TTM)40.93B
Net Income(TTM)4.02B
Analysts74.62
Price Target669.87 (19.4%)
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 | 20.6 | ||
| Fwd PE | 19.24 | ||
| P/S | 1.96 | ||
| P/FCF | 43.8 | ||
| P/OCF | 23.36 | ||
| P/B | 5.02 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.01 |
EPS(TTM)27.23
EY4.85%
EPS(NY)29.16
Fwd EY5.2%
FCF(TTM)12.81
FCFY2.28%
OCF(TTM)24.01
OCFY4.28%
SpS285.85
BVpS111.66
TBVpS-11.65
PEG (NY)21.29
PEG (5Y)4.9
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
WACC10.07%
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 20.6 and the Price/Book (PB) ratio is 5.02.
What is the financial health of NORTHROP GRUMMAN CORP (NOC) stock?
The financial health rating of NORTHROP GRUMMAN CORP (NOC) is 3 / 10.