NOC Stock Analysis: Northrop Grumman | NYSE
Aerospace & Defense | NYSE, USA | Market Cap: 71.444m USD | 12M Return: 2.9% | Charts, Fundamentals & Technical Analysis
Avg Turnover: 567M
EPS Trend: 64.6%
Qual. Beats: 0
Rev. Trend: 89.4%
Qual. Beats: 0
Warnings
Tailwinds
No distinct edge detected
Seasonality
Northrop Grumman Corporation (NYSE: NOC) is a major U.S. aerospace and defense technology company headquartered in Falls Church, Virginia, and founded in 1939. It operates through four business segments: Aeronautics Systems, Defense Systems, Mission Systems, and Space Systems. The company designs, develops, and produces a broad portfolio of products including military aircraft, autonomous unmanned systems, strategic missiles and missile defense solutions, radar and electronic warfare systems, satellites, spacecraft, and launch vehicles. It serves customers in the United States, Asia/Pacific, Europe, and other international markets.
The company operates in the Aerospace & Defense sub-industry (GICS Industrials sector), which is characterized by long-term government contracts, particularly with the U.S. Department of Defense, and high barriers to entry due to stringent regulatory and security requirements. Northrop Grummans business model relies on a mix of prime contracting and systems integration across air, land, sea, space, and cyber domains, with revenue largely tied to U.S. national defense spending and allied nations military procurement.
- B-21 Raider production ramp accelerates Aeronautics revenue growth
- Sentinel ICBM cost growth pressures segment profit margins
- Space Systems backlog expands on missile defense and satellite awards
| 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: 4.14% < 20% (prev -2.16%; Δ 6.29% < -1%) |
| CFO/TA 0.09 > 3% & CFO 4.67b > Net Income 4.58b |
| Net Debt (16.9b) to EBITDA (7.70b): 2.19 < 3 |
| Current Ratio: 1.14 > 1.5 & < 3 |
| Outstanding Shares: last quarter (142.5m) vs 12m ago -1.66% < -2% |
| Gross Margin: 20.52% > 18% (prev 19.34%; Δ 1.17% > 0.5%) |
| Asset Turnover: 86.05% > 50% (prev 83.29%; Δ 2.76% > 0%) |
| Interest Coverage Ratio: 9.23 > 6 (EBIT TTM 6.19b / Interest Expense TTM 671.0m) |
| A: 0.04 (Total Current Assets 14.6b - Total Current Liabilities 12.8b) / Total Assets 50.0b |
| B: 0.34 (Retained Earnings 17.1b / Total Assets 50.0b) |
| C: 0.13 (EBIT TTM 6.19b / Avg Total Assets 49.2b) |
| D: 0.52 (Book Value of Equity 17.1b / Total Liabilities 32.9b) |
| Altman-Z'' = 2.74 = A |
| DSRI: 1.15 (Receivables 10.5b/8.66b, Revenue 42.4b/40.4b) |
| GMI: 0.94 (GM 19.34% / 20.52%) |
| AQI: 0.98 (AQ_t 0.47 / AQ_t-1 0.47) |
| SGI: 1.05 (Revenue 42.4b / 40.4b) |
| TATA: -0.00 (NI 4.58b - CFO 4.67b) / TA 50.0b) |
| Beneish M = -2.93 (Cap -4..+1) = A |
As of June 30, 2026, the stock is trading at USD 500.03 with a total of 1,584,096 shares traded. Over the past week, the price has changed by -4.12%, over one month by -9.80%, over three months by -27.42% and over the past year by +2.88%.
Current recommended Stop Loss: 482.50 (which is 3.5% or 1.2 ATR below the current price).
Northrop Grumman has received a consensus analysts rating of 3.96. Therefore, it is recommended to buy NOC.
- StrongBuy: 10
- Buy: 4
- Hold: 11
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 697 | 39.4% |
P/E Trailing = 15.7733
P/E Forward = 17.9856
P/S = 1.6863
P/B = 4.1744
P/EG = 3.7466
Revenue TTM = 42.4b USD
EBIT TTM = 6.19b USD
EBITDA TTM = 7.70b USD
Long Term Debt = 14.4b USD (from longTermDebt, last quarter)
Short Term Debt = 758.0m USD (from shortTermDebt, last quarter)
Debt = 19.0b USD (from shortLongTermDebtTotal, last quarter) + Leases 1.91b
Net Debt = 16.9b USD (calculated: Debt 19.0b - CCE 2.09b)
Enterprise Value = 88.3b USD (71.4b + Debt 19.0b - CCE 2.09b)
Interest Coverage Ratio = 9.23 (Ebit TTM 6.19b / Interest Expense TTM 671.0m)
EV/FCF = 26.73x (Enterprise Value 88.3b / FCF TTM 3.31b)
FCF Yield = 3.74% (FCF TTM 3.31b / Enterprise Value 88.3b)
FCF Margin = 7.80% (FCF TTM 3.31b / Revenue TTM 42.4b)
Net Margin = 10.80% (Net Income TTM 4.58b / Revenue TTM 42.4b)
Gross Margin = 20.52% ((Revenue TTM 42.4b - Cost of Revenue TTM 33.7b) / Revenue TTM)
Gross Margin QoQ = 19.84% (prev 19.60%)
Tobins Q-Ratio = 1.77 (Enterprise Value 88.3b / Total Assets 50.0b)
Interest Expense / Debt = 3.54% (Interest Expense 671.0m / Debt 19.0b)
Taxrate = 17.10% (944.0m / 5.52b)
NOPAT = 5.13b (EBIT 6.19b * (1 - 17.10%))
Current Ratio = 1.14 (Total Current Assets 14.6b / Total Current Liabilities 12.8b)
Debt / Equity = 1.11 (Debt 19.0b / totalStockholderEquity, last quarter 17.1b)
Debt / EBITDA = 2.19 (Net Debt 16.9b / EBITDA 7.70b)
Debt / FCF = 5.11 (Net Debt 16.9b / FCF TTM 3.31b)
Total Stockholder Equity = 16.3b (last 4 quarters mean from totalStockholderEquity)
RoA = 9.29% (Net Income 4.58b / Total Assets 50.0b)
RoE = 28.05% (Net Income TTM 4.58b / Total Stockholder Equity 16.3b)
RoCE = 20.15% (EBIT 6.19b / Capital Employed (Equity 16.3b + L.T.Debt 14.4b))
RoIC = 14.31% (NOPAT 5.13b / Invested Capital 35.9b)
WACC = 4.87% (E(71.4b)/V(90.4b) * Re(5.38%) + D(19.0b)/V(90.4b) * Rd(3.54%) * (1-Tc(0.17)))
Discount Rate = 5.38% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -95.56 | Cagr: -2.57%
[DCF] Terminal Value 77.97% ; FCFF base≈2.69b ; Y1≈3.09b ; Y5≈4.54b
[DCF] Fair Price = 362.5 (EV 68.4b - Net Debt 16.9b = Equity 51.5b / Shares 142.0m; r=8.35% [WACC [floored]]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: 64.55 | EPS CAGR: 4.65% | SUE: 0.06 | # QB: 0
Revenue Correlation: 89.38 | Revenue CAGR: 3.22% | SUE: 0.42 | # QB: 0
EPS current Quarter (2026-06-30): EPS=6.81 | Chg30d=-0.36% | Revisions=-25% | Analysts=17
EPS next Quarter (2026-09-30): EPS=7.00 | Chg30d=-0.18% | Revisions=-25% | Analysts=17
EPS current Year (2026-12-31): EPS=27.94 | Chg30d=+0.06% | Revisions=+9% | GrowthEPS=+6.1% | GrowthRev=+4.8%
EPS next Year (2027-12-31): EPS=30.14 | Chg30d=-0.26% | Revisions=+0% | GrowthEPS=+7.9% | GrowthRev=+6.5%
[Analyst] Revisions Ratio: -25%