(NOC) Northrop Grumman - Overview
Stock: Aircraft, Missiles, Satellites, Sensors, Propulsion
EPS (Earnings per Share)
Revenue
Dividends
| Dividend Yield | 1.73% |
| Yield on Cost 5y | 3.34% |
| Yield CAGR 5y | 9.91% |
| Payout Consistency | 97.0% |
| Payout Ratio | 34.1% |
| Risk 5d forecast | |
|---|---|
| Volatility | 24.1% |
| Relative Tail Risk | -15.4% |
| Reward TTM | |
|---|---|
| Sharpe Ratio | 1.33 |
| Alpha | 41.20 |
| Character TTM | |
|---|---|
| Beta | 0.078 |
| Beta Downside | 0.147 |
| Drawdowns 3y | |
|---|---|
| Max DD | 19.97% |
| CAGR/Max DD | 0.92 |
Description: NOC Northrop Grumman January 27, 2026
Northrop Grumman (NYSE: NOC) is a diversified aerospace and defense contractor operating across four primary segments-Aeronautics Systems, Defense Systems, Mission Systems, and Space Systems-serving U.S., Asia-Pacific, European, and other international customers. The Aeronautics Systems unit builds manned and unmanned aircraft, including high-altitude long-endurance platforms and next-generation fighter and command-and-control aircraft. Defense Systems focuses on strategic deterrent weapons, missile-defense solutions, and precision-strike munitions, while Mission Systems delivers ISR, electronic-warfare, cyber, and navigation technologies. Space Systems supplies satellites, launch vehicles, and related propulsion and ground-segment hardware.
According to the company’s FY 2024 filing (released Feb 2025), Northrop Grumman reported total revenue of **$20.3 billion**, a **5 % year-over-year increase**, driven primarily by higher defense-spending budgets and strong demand for hypersonic and space-based capabilities. The firm’s **backlog stood at $45 billion**, indicating a robust pipeline of multi-year contracts. R&D intensity remained high at **~6 % of revenue**, underscoring continued investment in emerging technologies such as autonomous systems and high-energy lasers.
Key macro drivers for the sector include the U.S. defense budget, which the Department of Defense projected to grow **~3 % annually through 2028**, and the global satellite-services market, expected to expand at a **~9 % CAGR** (Euroconsult, 2024). These trends support Northrop Grumman’s strategic focus on hypersonic weapons, integrated air-and-space command networks, and commercial-military launch services.
For a deeper quantitative assessment, you may wish to explore ValueRay’s analyst toolkit for additional metrics and scenario modeling.
Piotroski VR‑10 (Strict, 0-10) 7.5
| Net Income: 4.18b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.06 > 0.02 and ΔFCF/TA 1.13 > 1.0 |
| NWC/Revenue: 2.90% < 20% (prev 0.36%; Δ 2.54% < -1%) |
| CFO/TA 0.09 > 3% & CFO 4.76b > Net Income 4.18b |
| Net Debt (15.34b) to EBITDA (7.21b): 2.13 < 3 |
| Current Ratio: 1.09 > 1.5 & < 3 |
| Outstanding Shares: last quarter (142.9m) vs 12m ago -2.99% < -2% |
| Gross Margin: 19.81% > 18% (prev 0.20%; Δ 1961 % > 0.5%) |
| Asset Turnover: 83.29% > 50% (prev 83.13%; Δ 0.16% > 0%) |
| Interest Coverage Ratio: 8.62 > 6 (EBITDA TTM 7.21b / Interest Expense TTM 665.0m) |
Altman Z'' 2.48
| A: 0.02 (Total Current Assets 15.10b - Total Current Liabilities 13.88b) / Total Assets 51.38b |
| B: 0.32 (Retained Earnings 16.66b / Total Assets 51.38b) |
| C: 0.11 (EBIT TTM 5.73b / Avg Total Assets 50.37b) |
| D: 0.48 (Book Value of Equity 16.67b / Total Liabilities 34.70b) |
| Altman-Z'' Score: 2.48 = A |
Beneish M -2.83
| DSRI: 1.20 (Receivables 8.84b/7.18b, Revenue 41.95b/41.03b) |
| GMI: 1.03 (GM 19.81% / 20.38%) |
| AQI: 0.99 (AQ_t 0.46 / AQ_t-1 0.46) |
| SGI: 1.02 (Revenue 41.95b / 41.03b) |
| TATA: -0.01 (NI 4.18b - CFO 4.76b) / TA 51.38b) |
| Beneish M-Score: -2.83 (Cap -4..+1) = A |
What is the price of NOC shares?
Over the past week, the price has changed by +4.73%, over one month by +18.20%, over three months by +20.79% and over the past year by +44.39%.
Is NOC a buy, sell or hold?
- StrongBuy: 10
- Buy: 4
- Hold: 11
- Sell: 0
- StrongSell: 0
What are the forecasts/targets for the NOC price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 716.8 | 3.5% |
| Analysts Target Price | 716.8 | 3.5% |
| ValueRay Target Price | 838.4 | 21.1% |
NOC Fundamental Data Overview February 01, 2026
P/E Forward = 24.0964
P/S = 2.3418
P/B = 5.9185
P/EG = 5.1299
Revenue TTM = 41.95b USD
EBIT TTM = 5.73b USD
EBITDA TTM = 7.21b USD
Long Term Debt = 15.16b USD (from longTermDebt, last quarter)
Short Term Debt = 865.0m USD (from shortTermDebt, last quarter)
Debt = 19.74b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 15.34b USD (from netDebt column, last quarter)
Enterprise Value = 113.58b USD (98.25b + Debt 19.74b - CCE 4.40b)
Interest Coverage Ratio = 8.62 (Ebit TTM 5.73b / Interest Expense TTM 665.0m)
EV/FCF = 34.35x (Enterprise Value 113.58b / FCF TTM 3.31b)
FCF Yield = 2.91% (FCF TTM 3.31b / Enterprise Value 113.58b)
FCF Margin = 7.88% (FCF TTM 3.31b / Revenue TTM 41.95b)
Net Margin = 9.97% (Net Income TTM 4.18b / Revenue TTM 41.95b)
Gross Margin = 19.81% ((Revenue TTM 41.95b - Cost of Revenue TTM 33.64b) / Revenue TTM)
Gross Margin QoQ = 19.60% (prev 21.37%)
Tobins Q-Ratio = 2.21 (Enterprise Value 113.58b / Total Assets 51.38b)
Interest Expense / Debt = 0.89% (Interest Expense 175.0m / Debt 19.74b)
Taxrate = 17.99% (313.0m / 1.74b)
NOPAT = 4.70b (EBIT 5.73b * (1 - 17.99%))
Current Ratio = 1.09 (Total Current Assets 15.10b / Total Current Liabilities 13.88b)
Debt / Equity = 1.18 (Debt 19.74b / totalStockholderEquity, last quarter 16.67b)
Debt / EBITDA = 2.13 (Net Debt 15.34b / EBITDA 7.21b)
Debt / FCF = 4.64 (Net Debt 15.34b / FCF TTM 3.31b)
Total Stockholder Equity = 15.78b (last 4 quarters mean from totalStockholderEquity)
RoA = 8.30% (Net Income 4.18b / Total Assets 51.38b)
RoE = 26.50% (Net Income TTM 4.18b / Total Stockholder Equity 15.78b)
RoCE = 18.53% (EBIT 5.73b / Capital Employed (Equity 15.78b + L.T.Debt 15.16b))
RoIC = 15.32% (NOPAT 4.70b / Invested Capital 30.69b)
WACC = 5.28% (E(98.25b)/V(117.99b) * Re(6.20%) + D(19.74b)/V(117.99b) * Rd(0.89%) * (1-Tc(0.18)))
Discount Rate = 6.20% (= CAPM, Blume Beta Adj.) -> floored to rf + 0.7*ERP = 7.95%
Shares Correlation 3-Years: -100.0 | Cagr: -2.67%
[DCF Debug] Terminal Value 88.22% ; FCFF base≈3.03b ; Y1≈3.65b ; Y5≈5.89b
Fair Price DCF = 1102 (EV 171.79b - Net Debt 15.34b = Equity 156.45b / Shares 141.9m; r=5.90% [WACC]; 5y FCF grow 21.82% → 2.90% )
EPS Correlation: 13.50 | EPS CAGR: 4.64% | SUE: 0.18 | # QB: 0
Revenue Correlation: 79.57 | Revenue CAGR: 7.93% | SUE: 0.31 | # QB: 0
EPS next Quarter (2026-03-31): EPS=6.01 | Chg30d=-0.373 | Revisions Net=+3 | Analysts=14
EPS current Year (2026-12-31): EPS=27.94 | Chg30d=-0.906 | Revisions Net=+1 | Growth EPS=+6.1% | Growth Revenue=+4.6%
EPS next Year (2027-12-31): EPS=30.48 | Chg30d=-0.895 | Revisions Net=+4 | Growth EPS=+9.1% | Growth Revenue=+6.1%