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%)
We assign a fundamental rating of 5 out of 10 to NOC. NOC was compared to 71 industry peers in the Aerospace & Defense industry. NOC has an excellent profitability rating, but there are 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.
In the past year NOC had a positive cash flow from operations.
Each year in the past 5 years NOC has been profitable.
Each year in the past 5 years NOC had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 8.15%, NOC belongs to the top of the industry, outperforming 88.73% of the companies in the same industry.
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.
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
The Profit Margin of NOC (9.82%) is better than 78.87% of its industry peers.
NOC's Profit Margin has improved in the last couple of years.
NOC has a better Operating Margin (10.01%) than 63.38% 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 63.38% of the companies in the same industry.
In the last couple of years the Gross Margin of NOC has remained more or less at the same level.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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.
The Altman-Z score of NOC (3.05) is comparable to the rest of the industry.
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.
With a Debt to FCF ratio value of 8.56, NOC perfoms like the industry average, outperforming 56.34% of the companies in the same industry.
A Debt/Equity ratio of 0.95 indicates that NOC is somewhat dependend on debt financing.
The Debt to Equity ratio of NOC (0.95) is worse 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
WACC10.03%
2.3 Liquidity
A Current Ratio of 1.11 indicates that NOC should not have too much problems paying its short term obligations.
NOC's Current ratio of 1.11 is on the low side compared to the rest of the industry. NOC is outperformed by 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.
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
The Earnings Per Share has been growing slightly by 4.93% over the past year.
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.
The Revenue has decreased by -0.14% in the past 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
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.
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
A Price/Earnings ratio of 21.02 indicates a rather expensive valuation of NOC.
Based on the Price/Earnings ratio, NOC is valued cheaply inside the industry as 90.14% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.15, NOC is valued at the same level.
With a Price/Forward Earnings ratio of 19.62, NOC is valued on the expensive side.
NOC's Price/Forward Earnings ratio is rather cheap when compared to the industry. NOC is cheaper than 84.51% of the companies in the same industry.
NOC's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 36.12.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.02 | ||
| Fwd PE | 19.62 |
4.2 Price Multiples
NOC's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. NOC is cheaper than 76.06% 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 64.79% of the companies are valued more expensively.
| 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 an expensive valuation of the company.
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 2.41, NOC is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.63% |
5.2 History
The dividend of NOC is nicely growing with an annual growth rate of 9.14%!
NOC has paid a dividend for at least 10 years, which is 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 3Y6.59%
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 Cap81.93B
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
WACC10.03%
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.