NORTHROP GRUMMAN CORP (NOC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:NOC - US6668071029 - Common Stock
618.82 USD
+28.03 (+4.74%)
619.372 USD
+0.55 (+0.09%)
Taking everything into account, NOC scores 5 out of 10 in our fundamental rating. NOC was compared to 71 industry peers in the Aerospace & Defense industry. NOC scores excellent on profitability, but there are concerns on its financial health. NOC is not valued too expensively and it also shows a decent growth rate. NOC also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
NOC had positive earnings in the past year.
In the past year NOC had a positive cash flow from operations.
Each year in the past 5 years NOC has been profitable.
NOC had a positive operating cash flow in each of the past 5 years.
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.
Looking at the Return On Equity, with a value of 25.14%, NOC belongs to the top of the industry, outperforming 92.96% of the companies in the same industry.
The Return On Invested Capital of NOC (9.57%) is better than 81.69% 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 8.54%.
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's Profit Margin of 9.82% is fine compared to the rest 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 Operating Margin of 10.01%. This is in the better half of the industry: NOC outperforms 60.56% of its industry peers.
In the last couple of years the Operating Margin of NOC has declined.
Looking at the Gross Margin, with a value of 19.42%, NOC is doing worse than 64.79% of the companies in the same industry.
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.
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 a worse debt to assets ratio.
2.2 Solvency
NOC has an Altman-Z score of 3.18. This indicates that NOC is financially healthy and has little risk of bankruptcy at the moment.
With a Altman-Z score value of 3.18, NOC perfoms like the industry average, outperforming 43.66% of the companies in the same 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.
NOC has a Debt to FCF ratio (8.56) which is in line with its industry peers.
A Debt/Equity ratio of 0.95 indicates that NOC is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.95, NOC is not doing good in the industry: 74.65% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.95 | ||
| Debt/FCF | 8.56 | ||
| Altman-Z | 3.18 |
ROIC/WACC0.95
WACC10.05%
2.3 Liquidity
A Current Ratio of 1.11 indicates that NOC should not have too much problems paying its short term obligations.
The Current ratio of NOC (1.11) is worse than 85.92% of its industry peers.
A Quick Ratio of 0.98 indicates that NOC may have some problems paying its short term obligations.
The Quick ratio of NOC (0.98) is worse than 73.24% 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%.
NOC shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.20% yearly.
Looking at the last year, NOC shows a decrease in Revenue. The Revenue has decreased by -0.14% in the last 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
Based on estimates for the next years, NOC will show a small growth in Earnings Per Share. The EPS will grow by 7.69% on average per year.
NOC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.30% yearly.
EPS Next Y0.91%
EPS Next 2Y5.77%
EPS Next 3Y6.79%
EPS Next 5Y7.69%
Revenue Next Year1.33%
Revenue Next 2Y3.47%
Revenue Next 3Y4.1%
Revenue Next 5Y4.3%
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 22.73 indicates a rather expensive valuation of NOC.
Based on the Price/Earnings ratio, NOC is valued cheaper than 91.55% of the companies in the same industry.
NOC's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.19.
NOC is valuated rather expensively with a Price/Forward Earnings ratio of 21.22.
NOC's Price/Forward Earnings ratio is rather cheap when compared to the industry. NOC is cheaper than 91.55% 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 23.92, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.73 | ||
| Fwd PE | 21.22 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NOC is valued a bit cheaper than 78.87% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, NOC is valued a bit cheaper than the industry average as 66.20% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 48.16 | ||
| EV/EBITDA | 18.3 |
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.
NOC has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)24.97
PEG (5Y)5.41
EPS Next 2Y5.77%
EPS Next 3Y6.79%
5. Dividend
5.1 Amount
NOC has a Yearly Dividend Yield of 1.56%.
NOC's Dividend Yield is rather good when compared to the industry average which is at 0.37. NOC pays more dividend than 94.37% of the companies in the same industry.
NOC's Dividend Yield is comparable with the S&P500 average which is at 1.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.56% |
5.2 History
The dividend of NOC is nicely growing with an annual growth rate of 9.14%!
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
31.43% of the earnings are spent on dividend by NOC. This is a low number and 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 3Y6.79%
618.82
+28.03 (+4.74%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners83.48%
Inst Owner Change0.14%
Ins Owners0.21%
Ins Owner Change-0.75%
Market Cap88.32B
Revenue(TTM)40.93B
Net Income(TTM)4.02B
Analysts75.71
Price Target676.91 (9.39%)
Short Float %1.08%
Short Ratio2.1
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.56% |
Yearly Dividend8.04
Dividend Growth(5Y)9.14%
DP31.43%
Div Incr Years21
Div Non Decr Years34
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)-0.09%
PT rev (3m)9.78%
EPS NQ rev (1m)-0.01%
EPS NQ rev (3m)-7.7%
EPS NY rev (1m)-0.06%
EPS NY rev (3m)2.53%
Revenue NQ rev (1m)-0.05%
Revenue NQ rev (3m)-0.31%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)-0.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.73 | ||
| Fwd PE | 21.22 | ||
| P/S | 2.16 | ||
| P/FCF | 48.16 | ||
| P/OCF | 25.69 | ||
| P/B | 5.52 | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.3 |
EPS(TTM)27.23
EY4.4%
EPS(NY)29.17
Fwd EY4.71%
FCF(TTM)12.85
FCFY2.08%
OCF(TTM)24.09
OCFY3.89%
SpS286.77
BVpS112.02
TBVpS-11.69
PEG (NY)24.97
PEG (5Y)5.41
Graham Number261.98
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 | 3.18 |
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 Y0.91%
EPS Next 2Y5.77%
EPS Next 3Y6.79%
EPS Next 5Y7.69%
Revenue 1Y (TTM)-0.14%
Revenue growth 3Y4.78%
Revenue growth 5Y3.93%
Sales Q2Q%4.27%
Revenue Next Year1.33%
Revenue Next 2Y3.47%
Revenue Next 3Y4.1%
Revenue Next 5Y4.3%
EBIT growth 1Y41.9%
EBIT growth 3Y5.98%
EBIT growth 5Y1.94%
EBIT Next Year33.48%
EBIT Next 3Y15.42%
EBIT Next 5Y12.34%
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.
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 22.73 and the Price/Book (PB) ratio is 5.52.
What is the financial health of NORTHROP GRUMMAN CORP (NOC) stock?
The financial health rating of NORTHROP GRUMMAN CORP (NOC) is 3 / 10.