(NOC) Northrop Grumman - Overview
Sector: Industrials | Industry: Aerospace & Defense | Exchange: NYSE (USA) | Market Cap: 76.796m USD | Total Return: 18.6% in 12m
Industry Rotation: -0.5
Avg Turnover: 405M
EPS Trend: 8.0%
Qual. Beats: 0
Rev. Trend: 66.9%
Qual. Beats: 0
Warnings
No concerns identified
Tailwinds
No distinct edge detected
Northrop Grumman Corporation is a global aerospace and defense technology firm organized into four primary segments: Aeronautics Systems, Defense Systems, Mission Systems, and Space Systems. The company specializes in high-altitude autonomous aircraft, strategic long-range strike capabilities, and advanced missile defense solutions. Its portfolio also includes electronic warfare systems, satellite technology, and hypersonic propulsion systems for international and domestic military applications.
The aerospace and defense sector operates primarily through long-term government contracts, often utilizing a cost-plus or fixed-price billing model. As a prime contractor for the U.S. Department of Defense, Northrop Grumman benefits from high barriers to entry due to the intense capital requirements and specialized technical expertise needed to develop next-generation stealth and space technology.
Investors can further evaluate the companys financial health by reviewing the detailed performance metrics available on ValueRay.
- B-21 Raider production ramp-up drives long-term aeronautics revenue growth
- Sentinel ICBM program development costs impact defense segment margins
- Space Systems growth accelerates through increased military satellite demand
- Elevated Pentagon defense spending levels sustain multi-year contract backlog
- Higher interest rates increase debt service costs for capital-intensive projects
| Net Income: 4.58b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.07 > 0.02 and ΔFCF/TA 2.94 > 1.0 |
| NWC/Revenue: 4.60% < 20% (prev -2.16%; Δ 6.76% < -1%) |
| CFO/TA 0.09 > 3% & CFO 4.67b > Net Income 4.58b |
| Net Debt (14.98b) to EBITDA (7.50b): 2.00 < 3 |
| Current Ratio: 1.15 > 1.5 & < 3 |
| Outstanding Shares: last quarter (142.5m) vs 12m ago -1.66% < -2% |
| Gross Margin: 20.52% > 18% (prev 0.19%; Δ 2.03k% > 0.5%) |
| Asset Turnover: 86.05% > 50% (prev 83.29%; Δ 2.76% > 0%) |
| Interest Coverage Ratio: 8.92 > 6 (EBITDA TTM 7.50b / Interest Expense TTM 671.0m) |
| A: 0.04 (Total Current Assets 14.77b - Total Current Liabilities 12.82b) / Total Assets 50.01b |
| B: 0.34 (Retained Earnings 17.10b / Total Assets 50.01b) |
| C: 0.12 (EBIT TTM 5.99b / Avg Total Assets 49.24b) |
| D: 0.52 (Book Value of Equity 17.11b / Total Liabilities 32.89b) |
| Altman-Z'' Score: 2.73 = A |
| DSRI: 1.03 (Receivables 9.36b/8.66b, Revenue 42.37b/40.37b) |
| GMI: 0.94 (GM 20.52% / 19.34%) |
| AQI: 0.97 (AQ_t 0.46 / AQ_t-1 0.47) |
| SGI: 1.05 (Revenue 42.37b / 40.37b) |
| TATA: -0.00 (NI 4.58b - CFO 4.67b) / TA 50.01b) |
| Beneish M-Score: -3.04 (Cap -4..+1) = AA |
Over the past week, the price has changed by +0.33%, over one month by -16.28%, over three months by -23.88% and over the past year by +18.62%.
- StrongBuy: 10
- Buy: 4
- Hold: 11
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 710.6 | 29.2% |
P/E Forward = 19.6078
P/S = 1.8126
P/B = 4.5603
P/EG = 4.0814
Revenue TTM = 42.37b USD
EBIT TTM = 5.99b USD
EBITDA TTM = 7.50b USD
Long Term Debt = 14.41b USD (from longTermDebt, last quarter)
Short Term Debt = 758.0m USD (from shortTermDebt, last quarter)
Debt = 17.07b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 14.98b USD (from netDebt column, last quarter)
Enterprise Value = 91.78b USD (76.80b + Debt 17.07b - CCE 2.09b)
Interest Coverage Ratio = 8.92 (Ebit TTM 5.99b / Interest Expense TTM 671.0m)
EV/FCF = 27.77x (Enterprise Value 91.78b / FCF TTM 3.31b)
FCF Yield = 3.60% (FCF TTM 3.31b / Enterprise Value 91.78b)
FCF Margin = 7.80% (FCF TTM 3.31b / Revenue TTM 42.37b)
Net Margin = 10.80% (Net Income TTM 4.58b / Revenue TTM 42.37b)
Gross Margin = 20.52% ((Revenue TTM 42.37b - Cost of Revenue TTM 33.67b) / Revenue TTM)
Gross Margin QoQ = 19.84% (prev 19.60%)
Tobins Q-Ratio = 1.84 (Enterprise Value 91.78b / Total Assets 50.01b)
Interest Expense / Debt = 0.95% (Interest Expense 162.0m / Debt 17.07b)
Taxrate = 15.05% (155.0m / 1.03b)
NOPAT = 5.09b (EBIT 5.99b * (1 - 15.05%))
Current Ratio = 1.15 (Total Current Assets 14.77b / Total Current Liabilities 12.82b)
Debt / Equity = 1.00 (Debt 17.07b / totalStockholderEquity, last quarter 17.11b)
Debt / EBITDA = 2.00 (Net Debt 14.98b / EBITDA 7.50b)
Debt / FCF = 4.53 (Net Debt 14.98b / FCF TTM 3.31b)
Total Stockholder Equity = 16.31b (last 4 quarters mean from totalStockholderEquity)
RoA = 9.29% (Net Income 4.58b / Total Assets 50.01b)
RoE = 28.05% (Net Income TTM 4.58b / Total Stockholder Equity 16.31b)
RoCE = 19.49% (EBIT 5.99b / Capital Employed (Equity 16.31b + L.T.Debt 14.41b))
RoIC = 16.26% (NOPAT 5.09b / Invested Capital 31.29b)
WACC = 4.53% (E(76.80b)/V(93.87b) * Re(5.36%) + D(17.07b)/V(93.87b) * Rd(0.95%) * (1-Tc(0.15)))
Discount Rate = 5.36% (= CAPM, Blume Beta Adj.) -> floored to rf + 0.7*ERP = 7.92%
Shares (quarterly) Correlation: -95.45 | Cagr: -2.68%
[DCF] Terminal Value 88.44% ; FCFF base≈2.69b ; Y1≈3.32b ; Y5≈5.67b
[DCF] Fair Price = 1.05k (EV 164.46b - Net Debt 14.98b = Equity 149.48b / Shares 142.0m; r=6.0% [WACC]; 5y FCF grow 25.0% → 3.0% )
EPS Correlation: 8.03 | EPS CAGR: 0.35% | SUE: 0.06 | # QB: 0
Revenue Correlation: 66.89 | Revenue CAGR: 3.13% | SUE: 0.42 | # QB: 0
EPS current Quarter (2026-06-30): EPS=6.81 | Chg30d=-0.51% | Revisions=-25% | Analysts=18
EPS next Quarter (2026-09-30): EPS=7.00 | Chg30d=-0.36% | Revisions=-38% | Analysts=18
EPS current Year (2026-12-31): EPS=27.93 | Chg30d=-0.00% | Revisions=-6% | GrowthEPS=+6.0% | GrowthRev=+4.8%
EPS next Year (2027-12-31): EPS=30.18 | Chg30d=+0.01% | Revisions=+29% | GrowthEPS=+8.1% | GrowthRev=+6.5%
[Analyst] Revisions Ratio: -38%