NORTHROP GRUMMAN CORP (NOC) Fundamental Analysis & Valuation

NYSE:NOC • US6668071029

Current stock price

679 USD
-12.99 (-1.88%)
At close:
679 USD
0 (0%)
After Hours:

This NOC fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

7

1. NOC Profitability Analysis

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.
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 Return On Assets of 8.14%. This is amongst the best in the industry. NOC outperforms 86.08% of its industry peers.
  • NOC has a better Return On Equity (25.08%) than 88.61% of its industry peers.
  • The Return On Invested Capital of NOC (9.46%) is better than 77.22% of its industry peers.
  • NOC had an Average Return On Invested Capital over the past 3 years of 8.60%. This is in line with the industry average of 9.24%.
  • 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

  • NOC has a Profit Margin of 9.97%. This is in the better half of the industry: NOC outperforms 79.75% of its industry peers.
  • NOC's Profit Margin has improved in the last couple of years.
  • The Operating Margin of NOC (10.20%) is better than 65.82% of its industry peers.
  • In the last couple of years the Operating Margin of NOC has declined.
  • NOC has a Gross Margin of 19.81%. This is comparable to the rest of the industry: NOC outperforms 40.51% of its industry peers.
  • In the last couple of years the Gross Margin of NOC has remained more or less at the same level.
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. NOC Health Analysis

2.1 Basic Checks

  • NOC has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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 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

  • NOC has an Altman-Z score of 3.28. This indicates that NOC is financially healthy and has little risk of bankruptcy at the moment.
  • NOC has a Altman-Z score (3.28) which is in line with its industry peers.
  • The Debt to FCF ratio of NOC is 4.75, which is a neutral value as it means it would take NOC, 4.75 years of fcf income to pay off all of its debts.
  • With a decent Debt to FCF ratio value of 4.75, NOC is doing good in the industry, outperforming 74.68% of the companies in the same industry.
  • NOC has a Debt/Equity ratio of 0.91. This is a neutral value indicating NOC is somewhat dependend on debt financing.
  • NOC has a Debt to Equity ratio of 0.91. This is in the lower half of the industry: NOC underperforms 67.09% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.91
Debt/FCF 4.75
Altman-Z 3.28
ROIC/WACC0.94
WACC10.05%
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's Current ratio of 1.10 is on the low side compared to the rest of the industry. NOC is outperformed by 82.28% of its industry peers.
  • NOC has a Quick Ratio of 1.01. 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 Quick ratio (1.01) than 72.15% 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. NOC Growth Analysis

3.1 Past

  • The Earnings Per Share has been growing slightly by 7.67% over the past year.
  • The Earnings Per Share has been growing slightly by 3.21% on average over the past years.
  • Looking at the last year, NOC shows a small growth in Revenue. The Revenue has grown by 2.24% in the last year.
  • Measured over the past years, NOC shows a small growth in Revenue. The Revenue has been growing by 2.66% on average per year.
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 5.34% on average over the next years.
EPS Next Y0.7%
EPS Next 2Y3.79%
EPS Next 3Y5.18%
EPS Next 5Y5.6%
Revenue Next Year4.77%
Revenue Next 2Y5.41%
Revenue Next 3Y5.36%
Revenue Next 5Y5.34%

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 accelerating: in the next years the growth will be better than in the last years.
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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5

4. NOC Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 24.19 indicates a rather expensive valuation of NOC.
  • Based on the Price/Earnings ratio, NOC is valued cheaper than 82.28% of the companies in the same industry.
  • NOC's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 24.88.
  • A Price/Forward Earnings ratio of 24.02 indicates a rather expensive valuation of NOC.
  • 78.48% 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 22.19, NOC is valued at the same level.
Industry RankSector Rank
PE 24.19
Fwd PE 24.02
NOC Price Earnings VS Forward Price EarningsNOC Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40 50

4.2 Price Multiples

  • NOC's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. NOC is cheaper than 70.89% of the companies in the same industry.
  • Based on the Price/Free Cash Flow ratio, NOC is valued cheaply inside the industry as 87.34% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 29.14
EV/EBITDA 19.04
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 an expensive valuation of the company.
  • The decent profitability rating of NOC may justify a higher PE ratio.
PEG (NY)34.72
PEG (5Y)7.54
EPS Next 2Y3.79%
EPS Next 3Y5.18%

More info and screens

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

6

5. NOC Dividend Analysis

5.1 Amount

  • NOC has a Yearly Dividend Yield of 1.34%. 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 91.14% of the companies in the same industry.
  • Compared to the average S&P500 Dividend Yield of 1.89, NOC is paying slightly less dividend.
Industry RankSector Rank
Dividend Yield 1.34%

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 their dividend for at least 10 years, which is a reliable track record.
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 2026 2 4 6 8

5.3 Sustainability

  • NOC pays out 30.92% 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.
DP30.92%
EPS Next 2Y3.79%
EPS Next 3Y5.18%
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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NOC Fundamentals: All Metrics, Ratios and Statistics

NORTHROP GRUMMAN CORP

NYSE:NOC (3/27/2026, 8:04:00 PM)

After market: 679 0 (0%)

679

-12.99 (-1.88%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)01-27
Earnings (Next)04-21
Inst Owners82.93%
Inst Owner Change-1.5%
Ins Owners0.2%
Ins Owner Change0.14%
Market Cap96.36B
Revenue(TTM)41.95B
Net Income(TTM)4.18B
Analysts75
Price Target744.59 (9.66%)
Short Float %1.39%
Short Ratio1.94
Dividend
Industry RankSector Rank
Dividend Yield 1.34%
Yearly Dividend9.01
Dividend Growth(5Y)9.61%
DP30.92%
Div Incr Years21
Div Non Decr Years34
Ex-Date02-23
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)1.2%
PT rev (3m)9.9%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-6.16%
EPS NY rev (1m)-0.53%
EPS NY rev (3m)-3.22%
Revenue NQ rev (1m)-0.22%
Revenue NQ rev (3m)-2.92%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)-0.86%
Valuation
Industry RankSector Rank
PE 24.19
Fwd PE 24.02
P/S 2.3
P/FCF 29.14
P/OCF 20.26
P/B 5.78
P/tB N/A
EV/EBITDA 19.04
EPS(TTM)28.07
EY4.13%
EPS(NY)28.27
Fwd EY4.16%
FCF(TTM)23.3
FCFY3.43%
OCF(TTM)33.52
OCFY4.94%
SpS295.62
BVpS117.49
TBVpS-6.84
PEG (NY)34.72
PEG (5Y)7.54
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 3.28
F-Score6
WACC10.05%
ROIC/WACC0.94
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 Y0.7%
EPS Next 2Y3.79%
EPS Next 3Y5.18%
EPS Next 5Y5.6%
Revenue 1Y (TTM)2.24%
Revenue growth 3Y4.65%
Revenue growth 5Y2.66%
Sales Q2Q%9.6%
Revenue Next Year4.77%
Revenue Next 2Y5.41%
Revenue Next 3Y5.36%
Revenue Next 5Y5.34%
EBIT growth 1Y-2.06%
EBIT growth 3Y5.93%
EBIT growth 5Y1.04%
EBIT Next Year38.96%
EBIT Next 3Y15.99%
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 Fundamental Analysis 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 24.19 and the Price/Book (PB) ratio is 5.78.


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

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