NORTHROP GRUMMAN CORP (NOC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:NOC - US6668071029 - Common Stock
653.14 USD
+27.64 (+4.42%)
654.06 USD
+0.92 (+0.14%)
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. 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.
- In the past 5 years NOC always reported a positive cash flow from operatings.
1.2 Ratios
- The Return On Assets of NOC (8.15%) is better than 88.73% of its industry peers.
- The Return On Equity of NOC (25.14%) is better than 92.96% of its industry peers.
- NOC has a Return On Invested Capital of 9.57%. This is amongst the best in the industry. NOC outperforms 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 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
- NOC has a better Profit Margin (9.82%) than 78.87% 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 10.01%, NOC is doing good in the industry, outperforming 60.56% of the companies in the same industry.
- 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
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), NOC is creating some value.
- NOC has less shares outstanding than it did 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 3.20 indicates that NOC is not in any danger for bankruptcy at the moment.
- NOC has a Altman-Z score (3.20) which is in line with 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.
- NOC has a Debt to FCF ratio of 8.56. This is comparable to the rest of the industry: NOC outperforms 54.93% of its industry peers.
- NOC has a Debt/Equity ratio of 0.95. This is a neutral value indicating 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 | 3.2 |
ROIC/WACC1.02
WACC9.38%
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 85.92% 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 73.24% 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.
- The Earnings Per Share has been growing slightly by 4.20% on average over the past years.
- 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
- 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 4.30% on average per year.
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
- 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
- A Price/Earnings ratio of 23.99 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.
- When comparing the Price/Earnings ratio of NOC to the average of the S&P500 Index (27.33), we can say NOC is valued inline with the index average.
- With a Price/Forward Earnings ratio of 22.39, NOC is valued on the expensive side.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of NOC indicates a rather cheap valuation: NOC is cheaper than 91.55% of the companies listed in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 24.12. NOC is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.99 | ||
| Fwd PE | 22.39 |
4.2 Price Multiples
- 80.28% of the companies in the same industry are more expensive than NOC, based on the Enterprise Value to EBITDA ratio.
- Based on the Price/Free Cash Flow ratio, NOC is valued a bit cheaper than the industry average as 67.61% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 50.83 | ||
| EV/EBITDA | 18.47 |
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)26.35
PEG (5Y)5.71
EPS Next 2Y5.77%
EPS Next 3Y6.79%
5. Dividend
5.1 Amount
- NOC has a Yearly Dividend Yield of 1.56%. 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 0.37. NOC pays more dividend than 94.37% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.91, NOC has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.56% |
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.
- 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 3Y6.79%
653.14
+27.64 (+4.42%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)10-21 2025-10-21/bmo
Earnings (Next)01-27 2026-01-27/amc
Inst Owners83.48%
Inst Owner Change0.14%
Ins Owners0.21%
Ins Owner Change-0.75%
Market Cap93.22B
Revenue(TTM)40.93B
Net Income(TTM)4.02B
Analysts75.71
Price Target676.91 (3.64%)
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 | 23.99 | ||
| Fwd PE | 22.39 | ||
| P/S | 2.28 | ||
| P/FCF | 50.83 | ||
| P/OCF | 27.11 | ||
| P/B | 5.83 | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.47 |
EPS(TTM)27.23
EY4.17%
EPS(NY)29.17
Fwd EY4.47%
FCF(TTM)12.85
FCFY1.97%
OCF(TTM)24.09
OCFY3.69%
SpS286.77
BVpS112.02
TBVpS-11.69
PEG (NY)26.35
PEG (5Y)5.71
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 | 3.2 |
F-Score6
WACC9.38%
ROIC/WACC1.02
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 23.99 and the Price/Book (PB) ratio is 5.83.
What is the financial health of NORTHROP GRUMMAN CORP (NOC) stock?
The financial health rating of NORTHROP GRUMMAN CORP (NOC) is 3 / 10.