NORTHROP GRUMMAN CORP (NOC) Stock Fundamental Analysis
USA - NYSE:NOC - US6668071029 - Common Stock
570.41 USD
+3.06 (+0.54%)
NOC gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 71 industry peers in the Aerospace & Defense industry. While NOC belongs to the best of the industry regarding profitability, 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
NOC had positive earnings in the past year.
In the past year NOC had a positive cash flow from operations.
In the past 5 years NOC has always been profitable.
NOC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 8.15%, NOC belongs to the top of the industry, outperforming 87.32% 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.
NOC has a better Return On Invested Capital (9.57%) 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 8.47%.
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
Looking at the Profit Margin, with a value of 9.82%, NOC is in the better half of the industry, outperforming 78.87% of the companies in the same industry.
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 63.38% of its industry peers.
In the last couple of years the Operating Margin of NOC has declined.
With a Gross Margin value of 19.42%, NOC is not doing good in the industry: 63.38% of the companies in the same industry are doing better.
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.
NOC has less shares outstanding than it did 5 years ago.
NOC has a worse debt/assets ratio than last year.
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.
NOC's Altman-Z score of 3.05 is in line compared to the rest of the industry. NOC outperforms 45.07% of its industry peers.
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.
The Debt to FCF ratio of NOC (8.56) is comparable to the rest of the 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 76.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.95 | ||
| Debt/FCF | 8.56 | ||
| Altman-Z | 3.05 |
ROIC/WACC1
WACC9.59%
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.
Looking at the Current ratio, with a value of 1.11, NOC is doing worse than 83.10% of the companies in the same industry.
A Quick Ratio of 0.98 indicates that NOC may have some problems paying its short term obligations.
With a Quick ratio value of 0.98, NOC is not doing good in the industry: 69.01% of the companies in the same industry are doing better.
| 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.
NOC shows a decrease in Revenue. In the last year, the revenue decreased by -0.14%.
Measured over the past years, NOC shows a small growth in Revenue. The Revenue has been growing by 3.93% on average per year.
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.
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.
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
With a Price/Earnings ratio of 20.95, NOC is valued on the expensive side.
NOC's Price/Earnings ratio is rather cheap when compared to the industry. NOC is cheaper than 90.14% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 25.07. NOC is around the same levels.
The Price/Forward Earnings ratio is 19.56, which indicates a rather expensive current valuation of NOC.
Based on the Price/Forward Earnings ratio, NOC is valued cheaper than 83.10% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of NOC to the average of the S&P500 Index (34.08), we can say NOC is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.95 | ||
| Fwd PE | 19.56 |
4.2 Price Multiples
77.46% of the companies in the same industry are more expensive than NOC, based on the Enterprise Value to EBITDA ratio.
67.61% 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 | 44.53 | ||
| EV/EBITDA | 17.03 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
NOC has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)21.65
PEG (5Y)4.98
EPS Next 2Y5.77%
EPS Next 3Y6.59%
5. Dividend
5.1 Amount
NOC has a Yearly Dividend Yield of 1.66%.
Compared to an average industry Dividend Yield of 1.37, NOC pays a better dividend. On top of this NOC pays more dividend than 90.14% of the companies listed in the same industry.
Compared to the average S&P500 Dividend Yield of 2.44, NOC is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.66% |
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 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.
NOC's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP31.43%
EPS Next 2Y5.77%
EPS Next 3Y6.59%
NYSE:NOC (11/21/2025, 12:27:04 PM)
570.41
+3.06 (+0.54%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners85.04%
Inst Owner Change-10.24%
Ins Owners0.21%
Ins Owner Change-1.78%
Market Cap81.67B
Revenue(TTM)40.93B
Net Income(TTM)4.02B
Analysts74.62
Price Target669.85 (17.43%)
Short Float %0.84%
Short Ratio1.56
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.66% |
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)9.44%
EPS NQ rev (1m)-7.46%
EPS NQ rev (3m)-7.51%
EPS NY rev (1m)2.59%
EPS NY rev (3m)3.42%
Revenue NQ rev (1m)-0.31%
Revenue NQ rev (3m)-0.26%
Revenue NY rev (1m)-0.66%
Revenue NY rev (3m)-0.67%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.95 | ||
| Fwd PE | 19.56 | ||
| P/S | 2 | ||
| P/FCF | 44.53 | ||
| P/OCF | 23.76 | ||
| P/B | 5.11 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.03 |
EPS(TTM)27.23
EY4.77%
EPS(NY)29.16
Fwd EY5.11%
FCF(TTM)12.81
FCFY2.25%
OCF(TTM)24.01
OCFY4.21%
SpS285.85
BVpS111.66
TBVpS-11.65
PEG (NY)21.65
PEG (5Y)4.98
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
WACC9.59%
ROIC/WACC1
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 20.95 and the Price/Book (PB) ratio is 5.11.
What is the financial health of NORTHROP GRUMMAN CORP (NOC) stock?
The financial health rating of NORTHROP GRUMMAN CORP (NOC) is 3 / 10.