NORTHROP GRUMMAN CORP (NOC) Stock Fundamental Analysis

NYSE:NOC • US6668071029

723.56 USD
-13.31 (-1.81%)
At close: Feb 20, 2026
723.9 USD
+0.34 (+0.05%)
After Hours: 2/20/2026, 9:55:09 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

5

Overall NOC gets a fundamental rating of 5 out of 10. We evaluated NOC against 73 industry peers in the Aerospace & Defense industry. While NOC belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. NOC has a decent growth rate and is not valued too expensively.


Dividend Valuation Growth Profitability Health

7

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.
  • 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 better Return On Assets (8.14%) than 89.04% of its industry peers.
  • NOC has a Return On Equity of 25.08%. This is amongst the best in the industry. NOC outperforms 93.15% of its industry peers.
  • With an excellent Return On Invested Capital value of 9.46%, NOC belongs to the best of the industry, outperforming 80.82% of the companies in the same industry.
  • Measured over the past 3 years, the Average Return On Invested Capital for NOC is in line with the industry average of 8.97%.
  • The 3 year average ROIC (8.60%) for NOC is below the current ROIC(9.46%), indicating increased profibility in the last year.
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

  • The Profit Margin of NOC (9.97%) is better than 79.45% of its industry peers.
  • In the last couple of years the Profit Margin of NOC has grown nicely.
  • With a decent Operating Margin value of 10.20%, NOC is doing good in the industry, outperforming 63.01% of the companies in the same industry.
  • In the last couple of years the Operating Margin of NOC has declined.
  • NOC has a worse Gross Margin (19.81%) than 60.27% 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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ROAROEROICOperating and Profit MarginShow most profitable peers

5

2. Health

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so NOC is destroying value.
  • Compared to 1 year ago, NOC has less shares outstanding
  • The number of shares outstanding for NOC has been reduced compared to 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

  • An Altman-Z score of 3.39 indicates that NOC is not in any danger for bankruptcy at the moment.
  • NOC has a Altman-Z score (3.39) which is comparable to the rest of the industry.
  • NOC has a debt to FCF ratio of 4.75. This is a neutral value as NOC would need 4.75 years to pay back of all of its debts.
  • NOC has a better Debt to FCF ratio (4.75) than 72.60% of its industry peers.
  • A Debt/Equity ratio of 0.91 indicates that NOC is somewhat dependend on debt financing.
  • Looking at the Debt to Equity ratio, with a value of 0.91, NOC is doing worse than 73.97% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.91
Debt/FCF 4.75
Altman-Z 3.39
ROIC/WACC0.98
WACC9.66%
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.
  • NOC has a worse Current ratio (1.10) than 83.56% of its industry peers.
  • A Quick Ratio of 1.01 indicates that NOC should not have too much problems paying its short term obligations.
  • NOC has a Quick ratio of 1.01. This is in the lower half of the industry: NOC underperforms 72.60% 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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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

3. Growth

3.1 Past

  • The Earnings Per Share has been growing slightly by 7.67% 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 3.21% on average per year.
  • NOC shows a small growth in Revenue. In the last year, the Revenue has grown by 2.24%.
  • NOC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.66% yearly.
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.
  • The Revenue is expected to grow by 5.49% on average over the next years.
EPS Next Y1.23%
EPS Next 2Y3.95%
EPS Next 3Y5.28%
EPS Next 5Y5.6%
Revenue Next Year4.78%
Revenue Next 2Y5.4%
Revenue Next 3Y5.37%
Revenue Next 5Y5.49%

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 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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Find the best growth stocksShow best growing peers

5

4. Valuation

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 25.78, the valuation of NOC can be described as expensive.
  • Based on the Price/Earnings ratio, NOC is valued cheaper than 89.04% of the companies in the same industry.
  • Compared to an average S&P500 Price/Earnings ratio of 26.99, NOC is valued at the same level.
  • The Price/Forward Earnings ratio is 25.46, which means the current valuation is very expensive for NOC.
  • Based on the Price/Forward Earnings ratio, NOC is valued cheaper than 87.67% of the companies in the same industry.
  • NOC's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.06.
Industry RankSector Rank
PE 25.78
Fwd PE 25.46
NOC Price Earnings VS Forward Price EarningsNOC Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, NOC is valued a bit cheaper than 78.08% of the companies in the same industry.
  • Based on the Price/Free Cash Flow ratio, NOC is valued cheaper than 86.30% of the companies in the same industry.
Industry RankSector Rank
P/FCF 31.05
EV/EBITDA 20.14
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)20.89
PEG (5Y)8.03
EPS Next 2Y3.95%
EPS Next 3Y5.28%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

6

5. Dividend

5.1 Amount

  • NOC has a Yearly Dividend Yield of 1.33%. 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 0.35. NOC pays more dividend than 90.41% of the companies in the same industry.
  • Compared to the average S&P500 Dividend Yield of 1.85, NOC is paying slightly less dividend.
Industry RankSector Rank
Dividend Yield 1.33%

5.2 History

  • On average, the dividend of NOC grows each year by 9.61%, 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)9.61%
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 2 4 6 8

5.3 Sustainability

  • 30.92% of the earnings are spent on dividend by NOC. This is a low number and sustainable payout ratio.
  • NOC's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP30.92%
EPS Next 2Y3.95%
EPS Next 3Y5.28%
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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Find the best dividend stocksShow peers with best dividend

NORTHROP GRUMMAN CORP

NYSE:NOC (2/20/2026, 9:55:09 PM)

After market: 723.9 +0.34 (+0.05%)

723.56

-13.31 (-1.81%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)01-27
Earnings (Next)04-20
Inst Owners83.48%
Inst Owner Change0.1%
Ins Owners0.21%
Ins Owner Change0.09%
Market Cap102.69B
Revenue(TTM)41.95B
Net Income(TTM)4.18B
Analysts75
Price Target735.78 (1.69%)
Short Float %1.08%
Short Ratio1.67
Dividend
Industry RankSector Rank
Dividend Yield 1.33%
Yearly Dividend9.01
Dividend Growth(5Y)9.61%
DP30.92%
Div Incr Years21
Div Non Decr Years34
Ex-DateN/A
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)8.7%
PT rev (3m)9.84%
EPS NQ rev (1m)-5.59%
EPS NQ rev (3m)-6.46%
EPS NY rev (1m)-2.57%
EPS NY rev (3m)-2.56%
Revenue NQ rev (1m)-2.85%
Revenue NQ rev (3m)-2.68%
Revenue NY rev (1m)-0.82%
Revenue NY rev (3m)-0.57%
Valuation
Industry RankSector Rank
PE 25.78
Fwd PE 25.46
P/S 2.45
P/FCF 31.05
P/OCF 21.59
P/B 6.16
P/tB N/A
EV/EBITDA 20.14
EPS(TTM)28.07
EY3.88%
EPS(NY)28.42
Fwd EY3.93%
FCF(TTM)23.3
FCFY3.22%
OCF(TTM)33.52
OCFY4.63%
SpS295.62
BVpS117.49
TBVpS-6.84
PEG (NY)20.89
PEG (5Y)8.03
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 3.39
F-Score6
WACC9.66%
ROIC/WACC0.98
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 Y1.23%
EPS Next 2Y3.95%
EPS Next 3Y5.28%
EPS Next 5Y5.6%
Revenue 1Y (TTM)2.24%
Revenue growth 3Y4.65%
Revenue growth 5Y2.66%
Sales Q2Q%9.6%
Revenue Next Year4.78%
Revenue Next 2Y5.4%
Revenue Next 3Y5.37%
Revenue Next 5Y5.49%
EBIT growth 1Y-2.06%
EBIT growth 3Y5.93%
EBIT growth 5Y1.04%
EBIT Next Year43.82%
EBIT Next 3Y15.58%
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 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 25.78 and the Price/Book (PB) ratio is 6.16.


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

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