NORTHROP GRUMMAN CORP (NOC)
US6668071029 - Common Stock
Taking everything into account, NOC scores 4 out of 10 in our fundamental rating. NOC was compared to 65 industry peers in the Aerospace & Defense industry. There are concerns on the financial health of NOC while its profitability can be described as average. NOC has a decent growth rate and is not valued too expensively.
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.
In the past 5 years NOC has always been profitable.
In the past 5 years NOC always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of 4.92%, NOC perfoms like the industry average, outperforming 58.46% of the companies in the same industry.
NOC's Return On Equity of 16.10% is amongst the best of the industry. NOC outperforms 84.62% of its industry peers.
NOC has a Return On Invested Capital of 7.04%. This is in the better half of the industry: NOC outperforms 67.69% of its industry peers.
NOC had an Average Return On Invested Capital over the past 3 years of 8.47%. This is in line with the industry average of 7.69%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.92% | ||
| ROE | 16.1% | ||
| ROIC | 7.04% |
ROA(3y)10.69%
ROA(5y)8.94%
ROE(3y)33.35%
ROE(5y)31.14%
ROIC(3y)8.47%
ROIC(5y)9.23%
1.3 Margins
NOC has a Profit Margin of 5.79%. This is in the better half of the industry: NOC outperforms 61.54% of its industry peers.
NOC's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 7.05%, NOC perfoms like the industry average, outperforming 53.85% of the companies in the same industry.
In the last couple of years the Operating Margin of NOC has declined.
NOC's Gross Margin of 16.87% is on the low side compared to the rest of the industry. NOC is outperformed by 69.23% of its industry peers.
NOC's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.05% | ||
| PM (TTM) | 5.79% | ||
| GM | 16.87% |
OM growth 3Y-16.39%
OM growth 5Y-12.46%
PM growth 3Y-15.48%
PM growth 5Y-13.38%
GM growth 3Y-6.38%
GM growth 5Y-5.87%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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.
NOC has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.72 indicates that NOC is not a great score, but indicates only limited risk for bankruptcy at the moment.
NOC has a Altman-Z score (2.72) which is comparable to the rest of the industry.
NOC has a debt to FCF ratio of 6.55. This is a slightly negative value and a sign of low solvency as NOC would need 6.55 years to pay back of all of its debts.
NOC has a better Debt to FCF ratio (6.55) than 67.69% of its industry peers.
NOC has a Debt/Equity ratio of 1.00. This is a neutral value indicating NOC is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.00, NOC is doing worse than 76.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1 | ||
| Debt/FCF | 6.55 | ||
| Altman-Z | 2.72 |
ROIC/WACC0.74
WACC9.51%
2.3 Liquidity
A Current Ratio of 1.09 indicates that NOC should not have too much problems paying its short term obligations.
NOC's Current ratio of 1.09 is on the low side compared to the rest of the industry. NOC is outperformed by 80.00% of its industry peers.
NOC has a Quick Ratio of 1.09. This is a bad value and indicates that NOC is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of NOC (0.97) is worse than 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.09 | ||
| Quick Ratio | 0.97 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 5.83% 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 4.30% on average per year.
The Revenue has been growing slightly by 5.95% in the past year.
The Revenue has been growing slightly by 5.48% on average over the past years.
EPS 1Y (TTM)5.83%
EPS 3Y-0.95%
EPS 5Y4.3%
EPS Q2Q%13.27%
Revenue 1Y (TTM)5.95%
Revenue growth 3Y2.21%
Revenue growth 5Y5.48%
Sales Q2Q%2.26%
3.2 Future
Based on estimates for the next years, NOC will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.32% on average per year.
NOC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.48% yearly.
EPS Next Y12.8%
EPS Next 2Y10.33%
EPS Next 3Y8.7%
EPS Next 5Y8.32%
Revenue Next Year5.66%
Revenue Next 2Y4.63%
Revenue Next 3Y4.62%
Revenue Next 5Y4.48%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
The Price/Earnings ratio is 18.09, which indicates a rather expensive current valuation of NOC.
Based on the Price/Earnings ratio, NOC is valued cheaply inside the industry as 84.62% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.73, NOC is valued a bit cheaper.
A Price/Forward Earnings ratio of 16.56 indicates a correct valuation of NOC.
84.62% of the companies in the same industry are more expensive than NOC, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.83, NOC is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.09 | ||
| Fwd PE | 16.56 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NOC is valued a bit cheaper than the industry average as 64.62% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of NOC indicates a rather cheap valuation: NOC is cheaper than 83.08% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.52 | ||
| EV/EBITDA | 19.09 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.41
PEG (5Y)4.21
EPS Next 2Y10.33%
EPS Next 3Y8.7%
5. Dividend
5.1 Amount
NOC has a Yearly Dividend Yield of 1.76%.
Compared to an average industry Dividend Yield of 1.39, NOC pays a better dividend. On top of this NOC pays more dividend than 89.23% of the companies listed in the same industry.
Compared to the average S&P500 Dividend Yield of 2.24, NOC is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.76% |
5.2 History
On average, the dividend of NOC grows each year by 9.12%, 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)9.12%
Div Incr Years20
Div Non Decr Years33
5.3 Sustainability
49.22% of the earnings are spent on dividend by NOC. This is a bit on the high side, but may be sustainable.
NOC's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP49.22%
EPS Next 2Y10.33%
EPS Next 3Y8.7%
NORTHROP GRUMMAN CORP
NYSE:NOC (12/20/2024, 8:04:01 PM)
After market: 471.36 +1.82 (+0.39%)469.54
+2.41 (+0.52%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners82.99%
Inst Owner Change-0.23%
Ins Owners0.23%
Ins Owner Change-0.09%
Market Cap68.41B
Analysts70.34
Price Target574.74 (22.4%)
Short Float %1.12%
Short Ratio2.17
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.76% |
Dividend Growth(5Y)9.12%
DP49.22%
Div Incr Years20
Div Non Decr Years33
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.19%
Min EPS beat(2)6.23%
Max EPS beat(2)14.15%
EPS beat(4)4
Avg EPS beat(4)8.84%
Min EPS beat(4)6.23%
Max EPS beat(4)14.15%
EPS beat(8)7
Avg EPS beat(8)7.49%
EPS beat(12)9
Avg EPS beat(12)5%
EPS beat(16)13
Avg EPS beat(16)6.9%
Revenue beat(2)1
Avg Revenue beat(2)-0.9%
Min Revenue beat(2)-2.79%
Max Revenue beat(2)0.99%
Revenue beat(4)3
Avg Revenue beat(4)0.44%
Min Revenue beat(4)-2.79%
Max Revenue beat(4)2.68%
Revenue beat(8)7
Avg Revenue beat(8)0.92%
Revenue beat(12)7
Avg Revenue beat(12)-0.51%
Revenue beat(16)10
Avg Revenue beat(16)0.57%
PT rev (1m)4.22%
PT rev (3m)8.41%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.57%
EPS NY rev (1m)0.04%
EPS NY rev (3m)3.36%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.32%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.09 | ||
| Fwd PE | 16.56 | ||
| P/S | 1.67 | ||
| P/FCF | 27.52 | ||
| P/OCF | 16.13 | ||
| P/B | 4.64 | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.09 |
EPS(TTM)25.95
EY5.53%
EPS(NY)28.35
Fwd EY6.04%
FCF(TTM)17.06
FCFY3.63%
OCF(TTM)29.1
OCFY6.2%
SpS281.3
BVpS101.22
TBVpS-20.84
PEG (NY)1.41
PEG (5Y)4.21
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.92% | ||
| ROE | 16.1% | ||
| ROCE | 8.21% | ||
| ROIC | 7.04% | ||
| ROICexc | 7.77% | ||
| ROICexgc | 17.6% | ||
| OM | 7.05% | ||
| PM (TTM) | 5.79% | ||
| GM | 16.87% | ||
| FCFM | 6.07% |
ROA(3y)10.69%
ROA(5y)8.94%
ROE(3y)33.35%
ROE(5y)31.14%
ROIC(3y)8.47%
ROIC(5y)9.23%
ROICexc(3y)9.34%
ROICexc(5y)10.24%
ROICexgc(3y)23.3%
ROICexgc(5y)26.99%
ROCE(3y)9.88%
ROCE(5y)10.76%
ROICexcg growth 3Y-18.91%
ROICexcg growth 5Y-17.56%
ROICexc growth 3Y-15.93%
ROICexc growth 5Y-9.94%
OM growth 3Y-16.39%
OM growth 5Y-12.46%
PM growth 3Y-15.48%
PM growth 5Y-13.38%
GM growth 3Y-6.38%
GM growth 5Y-5.87%
F-Score5
Asset Turnover0.85
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1 | ||
| Debt/FCF | 6.55 | ||
| Debt/EBITDA | 3.46 | ||
| Cap/Depr | 129.35% | ||
| Cap/Sales | 4.28% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 99.91% | ||
| Profit Quality | 104.67% | ||
| Current Ratio | 1.09 | ||
| Quick Ratio | 0.97 | ||
| Altman-Z | 2.72 |
F-Score5
WACC9.51%
ROIC/WACC0.74
Cap/Depr(3y)117.93%
Cap/Depr(5y)118.01%
Cap/Sales(3y)4.14%
Cap/Sales(5y)4%
Profit Quality(3y)54.27%
Profit Quality(5y)77.64%
High Growth Momentum
Growth
EPS 1Y (TTM)5.83%
EPS 3Y-0.95%
EPS 5Y4.3%
EPS Q2Q%13.27%
EPS Next Y12.8%
EPS Next 2Y10.33%
EPS Next 3Y8.7%
EPS Next 5Y8.32%
Revenue 1Y (TTM)5.95%
Revenue growth 3Y2.21%
Revenue growth 5Y5.48%
Sales Q2Q%2.26%
Revenue Next Year5.66%
Revenue Next 2Y4.63%
Revenue Next 3Y4.62%
Revenue Next 5Y4.48%
EBIT growth 1Y-24.71%
EBIT growth 3Y-14.54%
EBIT growth 5Y-7.67%
EBIT Next Year42.24%
EBIT Next 3Y16.43%
EBIT Next 5Y11.65%
FCF growth 1Y347.12%
FCF growth 3Y-10.05%
FCF growth 5Y-4.02%
OCF growth 1Y102.68%
OCF growth 3Y-3.45%
OCF growth 5Y0.25%