NORTHROP GRUMMAN CORP (NOC) Fundamental Analysis & Valuation

NYSE:NOC • US6668071029

Current stock price

575.11 USD
-12.55 (-2.14%)
At close:
575.52 USD
+0.41 (+0.07%)
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

  • NOC had positive earnings in the past year.
  • NOC had a positive operating cash flow in the past year.
  • NOC had positive earnings in each of the past 5 years.
  • 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

  • Looking at the Return On Assets, with a value of 9.15%, NOC belongs to the top of the industry, outperforming 86.25% of the companies in the same industry.
  • Looking at the Return On Equity, with a value of 26.74%, NOC belongs to the top of the industry, outperforming 90.00% of the companies in the same industry.
  • NOC's Return On Invested Capital of 10.46% is fine compared to the rest of the industry. NOC outperforms 78.75% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for NOC is in line with the industry average of 9.34%.
  • The 3 year average ROIC (8.60%) for NOC is below the current ROIC(10.46%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 9.15%
ROE 26.74%
ROIC 10.46%
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's Profit Margin of 10.80% is amongst the best of the industry. NOC outperforms 82.50% of its industry peers.
  • NOC's Profit Margin has improved in the last couple of years.
  • The Operating Margin of NOC (11.08%) is better than 75.00% of its industry peers.
  • NOC's Operating Margin has declined in the last couple of years.
  • NOC has a Gross Margin (20.52%) which is in line with 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 11.08%
PM (TTM) 10.8%
GM 20.52%
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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5

2. NOC Health Analysis

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.
  • NOC has less shares outstanding than it did 5 years ago.
  • NOC has a better debt/assets ratio than last year.
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 3.21. This indicates that NOC is financially healthy and has little risk of bankruptcy at the moment.
  • NOC has a Altman-Z score (3.21) which is comparable to the rest of the industry.
  • NOC has a debt to FCF ratio of 4.59. This is a neutral value as NOC would need 4.59 years to pay back of all of its debts.
  • With a decent Debt to FCF ratio value of 4.59, NOC is doing good in the industry, outperforming 75.00% of the companies in the same industry.
  • NOC has a Debt/Equity ratio of 0.84. This is a neutral value indicating NOC is somewhat dependend on debt financing.
  • With a Debt to Equity ratio value of 0.84, NOC is not doing good in the industry: 70.00% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 0.84
Debt/FCF 4.59
Altman-Z 3.21
ROIC/WACC1.02
WACC10.29%
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

  • NOC has a Current Ratio of 1.15. 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 1.15, NOC is doing worse than 85.00% of the companies in the same industry.
  • NOC has a Quick Ratio of 1.04. This is a normal value and indicates that NOC is financially healthy and should not expect problems in meeting its short term obligations.
  • The Quick ratio of NOC (1.04) is worse than 73.75% of its industry peers.
Industry RankSector Rank
Current Ratio 1.15
Quick Ratio 1.04
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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5

3. NOC Growth Analysis

3.1 Past

  • NOC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.07%, which is quite good.
  • 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 4.95%.
  • NOC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.66% yearly.
EPS 1Y (TTM)9.07%
EPS 3Y2.74%
EPS 5Y3.21%
EPS Q2Q%1.32%
Revenue 1Y (TTM)4.95%
Revenue growth 3Y4.65%
Revenue growth 5Y2.66%
Sales Q2Q%4.36%

3.2 Future

  • NOC is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.90% yearly.
  • Based on estimates for the next years, NOC will show a small growth in Revenue. The Revenue will grow by 5.34% on average per year.
EPS Next Y0.68%
EPS Next 2Y3.79%
EPS Next 3Y5.15%
EPS Next 5Y5.9%
Revenue Next Year4.85%
Revenue Next 2Y5.52%
Revenue Next 3Y5.58%
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

  • With a Price/Earnings ratio of 20.43, NOC is valued on the expensive side.
  • Based on the Price/Earnings ratio, NOC is valued cheaper than 85.00% of the companies in the same industry.
  • When comparing the Price/Earnings ratio of NOC to the average of the S&P500 Index (27.42), we can say NOC is valued slightly cheaper.
  • NOC is valuated rather expensively with a Price/Forward Earnings ratio of 19.02.
  • Based on the Price/Forward Earnings ratio, NOC is valued cheaply inside the industry as 87.50% of the companies are valued more expensively.
  • NOC is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.24, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 20.43
Fwd PE 19.02
NOC Price Earnings VS Forward Price EarningsNOC Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, NOC is valued a bit cheaper than the industry average as 80.00% 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 87.50% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 24.71
EV/EBITDA 15.56
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)30.01
PEG (5Y)6.37
EPS Next 2Y3.79%
EPS Next 3Y5.15%

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7

5. NOC Dividend Analysis

5.1 Amount

  • NOC has a Yearly Dividend Yield of 1.57%.
  • NOC's Dividend Yield is rather good when compared to the industry average which is at 0.36. NOC pays more dividend than 96.25% of the companies in the same industry.
  • NOC's Dividend Yield is comparable with the S&P500 average which is at 1.81.
Industry RankSector Rank
Dividend Yield 1.57%

5.2 History

  • The dividend of NOC is nicely growing with an annual growth rate of 9.61%!
  • 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 Years22
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 28.93% of its income as dividend. This is a sustainable payout ratio.
  • The dividend of NOC is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP28.93%
EPS Next 2Y3.79%
EPS Next 3Y5.15%
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 (4/24/2026, 8:04:00 PM)

After market: 575.52 +0.41 (+0.07%)

575.11

-12.55 (-2.14%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)04-21
Earnings (Next)07-20
Inst Owners82.95%
Inst Owner Change-0.08%
Ins Owners0.2%
Ins Owner Change0.14%
Market Cap81.68B
Revenue(TTM)42.37B
Net Income(TTM)4.58B
Analysts75.17
Price Target753.11 (30.95%)
Short Float %1.34%
Short Ratio2.23
Dividend
Industry RankSector Rank
Dividend Yield 1.57%
Yearly Dividend9.01
Dividend Growth(5Y)9.61%
DP28.93%
Div Incr Years22
Div Non Decr Years34
Ex-Date02-23
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.58%
Min EPS beat(2)0.4%
Max EPS beat(2)2.76%
EPS beat(4)4
Avg EPS beat(4)5.98%
Min EPS beat(4)0.4%
Max EPS beat(4)17.64%
EPS beat(8)6
Avg EPS beat(8)5%
EPS beat(12)9
Avg EPS beat(12)4.97%
EPS beat(16)12
Avg EPS beat(16)4.91%
Revenue beat(2)1
Avg Revenue beat(2)0.03%
Min Revenue beat(2)-0.26%
Max Revenue beat(2)0.31%
Revenue beat(4)2
Avg Revenue beat(4)-0.46%
Min Revenue beat(4)-3.68%
Max Revenue beat(4)1.8%
Revenue beat(8)3
Avg Revenue beat(8)-1.62%
Revenue beat(12)7
Avg Revenue beat(12)-0.59%
Revenue beat(16)9
Avg Revenue beat(16)-0.65%
PT rev (1m)1.14%
PT rev (3m)11.29%
EPS NQ rev (1m)0.44%
EPS NQ rev (3m)-5.18%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)-3.1%
Revenue NQ rev (1m)0.09%
Revenue NQ rev (3m)-2.98%
Revenue NY rev (1m)0.08%
Revenue NY rev (3m)-0.76%
Valuation
Industry RankSector Rank
PE 20.43
Fwd PE 19.02
P/S 1.93
P/FCF 24.71
P/OCF 17.51
P/B 4.77
P/tB N/A
EV/EBITDA 15.56
EPS(TTM)28.15
EY4.89%
EPS(NY)30.24
Fwd EY5.26%
FCF(TTM)23.27
FCFY4.05%
OCF(TTM)32.85
OCFY5.71%
SpS298.3
BVpS120.5
TBVpS-2.28
PEG (NY)30.01
PEG (5Y)6.37
Graham Number276.267 (-51.96%)
Profitability
Industry RankSector Rank
ROA 9.15%
ROE 26.74%
ROCE 12.63%
ROIC 10.46%
ROICexc 11.09%
ROICexgc 22.04%
OM 11.08%
PM (TTM) 10.8%
GM 20.52%
FCFM 7.8%
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-Score9
Asset Turnover0.85
Health
Industry RankSector Rank
Debt/Equity 0.84
Debt/FCF 4.59
Debt/EBITDA 2.32
Cap/Depr 90.31%
Cap/Sales 3.21%
Interest Coverage 250
Cash Conversion 75.22%
Profit Quality 72.22%
Current Ratio 1.15
Quick Ratio 1.04
Altman-Z 3.21
F-Score9
WACC10.29%
ROIC/WACC1.02
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)9.07%
EPS 3Y2.74%
EPS 5Y3.21%
EPS Q2Q%1.32%
EPS Next Y0.68%
EPS Next 2Y3.79%
EPS Next 3Y5.15%
EPS Next 5Y5.9%
Revenue 1Y (TTM)4.95%
Revenue growth 3Y4.65%
Revenue growth 5Y2.66%
Sales Q2Q%4.36%
Revenue Next Year4.85%
Revenue Next 2Y5.52%
Revenue Next 3Y5.58%
Revenue Next 5Y5.34%
EBIT growth 1Y21.28%
EBIT growth 3Y5.93%
EBIT growth 5Y1.04%
EBIT Next Year38.98%
EBIT Next 3Y15.99%
EBIT Next 5Y10.71%
FCF growth 1Y54.8%
FCF growth 3Y31.15%
FCF growth 5Y2.77%
OCF growth 1Y20.54%
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 6 / 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.


What is the profitability of NOC stock?

NORTHROP GRUMMAN CORP (NOC) has a profitability rating of 7 / 10.


What are the PE and PB ratios of NORTHROP GRUMMAN CORP (NOC) stock?

The Price/Earnings (PE) ratio for NORTHROP GRUMMAN CORP (NOC) is 20.43 and the Price/Book (PB) ratio is 4.77.


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

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