NOC Northrop Grumman Corporation - Fundamental Analysis
At a glance
Key valuation, profitability, growth, and risk metrics.
AI Analysis
Powered by advanced machine learning algorithms
Key Strengths
Key Risks
Performance Snowflake
Multi-dimensional analysis across 5 key categories
NOC is significantly cheaper than the industrials sector on earnings, even as it delivers higher ROE and lower leverage than HON, DE, and PCAR, making it a standout value in a high-quality cohort.
- P/E of 20.08 is 25% below sector average of 26.79
- Price/Sales of 1.95 is in line with HON and below DE, suggesting fair top-line valuation
- Lack of EV/EBITDA and EV/Revenue data limits full enterprise valuation assessment
- Price/Book of 4.98 is high, though justified by ROE premium
While NOC’s earnings growth trajectory is positive and aligned with defense spending trends, near-term price momentum and earnings delivery have weakened, contrasting with Boeing’s 40.8% 1Y return and HON’s stable growth.
- 9.6% YoY earnings growth outpaces 4.3% revenue growth, signaling margin improvement
- Analyst target implies 19% upside, reflecting confidence in defense budget resilience
- Recent price momentum is negative (-8.4% over 1M), lagging broader sector recovery
- No quarterly earnings beats in last 4 quarters, raising concerns about growth execution
NOC has delivered strong long-term returns and consistent profitability, but the complete absence of earnings beats over 25 quarters and recent price weakness suggest execution has been predictable but uninspiring.
- 5-year share price return of +93.9% reflects strong long-term compounding
- Consistent profitability with stable ROE near 26% and operating margin of 13.22%
- Zero earnings surprises in the last 25 quarters, indicating lack of upside catalysts
- Recent underperformance: -8.4% over 1M vs. sector average 1Y return of ~5%
NOC maintains a healthier capital structure than peers like DE (2.67) and HON (2.15), but tight liquidity ratios raise concerns about near-term operational flexibility, especially in a high-interest-rate environment.
- Debt/Equity of 1.09 is well below sector average of 1.76, reducing refinancing risk
- Operating margin of 13.22% supports strong cash generation potential
- Current ratio of 1.11 and quick ratio of 0.92 indicate constrained short-term liquidity
- Missing total cash and debt figures limit full solvency assessment
NOC’s dividend policy appears sustainable and disciplined, with a moderate yield and low payout ratio, positioning it favorably against peers like PCAR and DE in terms of income reliability.
- 1.66% dividend yield is competitive within the industrials sector
- Payout ratio of 31.47% is conservative, leaving room for future increases
- Lack of 5-year yield average and ex-dividend date limits forward-looking analysis
- No visible dividend growth trend data provided
Stock Price & Analyst Targets
Real-time price movements and analyst price targets
Multi-Horizon Performance vs Peers
Price momentum across 5Y → 1W horizons for NOC and closest competitors.
| Company | 5Y | 3Y | 1Y | 6M | 1M | 1W |
|---|---|---|---|---|---|---|
|
NOC
Northrop Grumman Corporation
Primary
|
+93.9% | +17.1% | +13.5% | +19.0% | -8.4% | -1.9% |
|
JCI
Johnson Controls International plc
Peer
|
+189.6% | +89.8% | +41.2% | +21.7% | +7.1% | -2.9% |
|
CTAS
Cintas Corporation
Peer
|
+112.1% | +72.4% | -13.1% | -15.1% | -0.1% | +1.1% |
|
WM
Waste Management, Inc.
Peer
|
+85.7% | +39.5% | -4.3% | -8.3% | -2.1% | +3.6% |
|
EMR
Emerson Electric Co.
Peer
|
+81.5% | +40.8% | +1.0% | +6.7% | -1.6% | -1.1% |
Positive values indicate cumulative gains over the specified period. Comparables pulled from the same sector to highlight whether momentum is stock-specific or industry-wide.
Historical Performance Trends
Long-term financial metrics and growth patterns
Revenue & Net Income
Profit & Operating Margins
Return on Equity (ROE)
Quarterly Revenue Growth
Valuation Metrics
Key valuation ratios and pricing indicators
Profitability
Profit margins and return metrics
Growth
Revenue and earnings growth rates
Financial Health
Balance sheet strength and liquidity metrics
Quarterly Earnings History
EPS performance vs analyst estimates
Industrials Sector Comparison
Similar Companies
Peer comparison within the same industry
| Company | AI Rating | Market Cap | P/E | ROE | Profit Margin | Price | |
|---|---|---|---|---|---|---|---|
|
NOC
Northrop Grumman Corporation
|
BULLISH | $79.64B | 20.08 | 26.2% | 9.8% | $558.0 | |
|
JCI
Johnson Controls International plc
|
NEUTRAL | $78.66B | 44.97 | 11.4% | 13.9% | $118.72 | |
|
CTAS
Cintas Corporation
|
NEUTRAL | $75.51B | 41.49 | 42.2% | 17.5% | $186.72 | |
|
WM
Waste Management, Inc.
|
NEUTRAL | $84.27B | 32.89 | 29.3% | 10.3% | $209.17 | |
|
EMR
Emerson Electric Co.
|
NEUTRAL | $72.17B | 31.66 | 9.4% | 12.7% | $127.58 |
Recent Insider Trading
Insider buy and sell transactions from the last 6 months
| Date | Insider | Position | Transaction | Shares | Value |
|---|---|---|---|---|---|
| 2025-09-30 | BROWN MARIANNE CATHERINE | Director | Stock Award | 76 | $46,308 |
| 2025-09-30 | KRISHNA ARVIND | Director | Stock Award | 59 | $35,950 |
| 2025-07-17 | JONES THOMAS H. | Officer | Sale | 729 | $382,725 |
| 2025-07-07 | WELSH MARK A. III | Director | Sale | 33 | $16,720 |
| 2025-06-30 | BROWN MARIANNE CATHERINE | Director | Stock Award | 93 | $46,498 |
| 2025-06-30 | KRISHNA ARVIND | Director | Stock Award | 73 | $36,499 |
| 2025-06-16 | JONES THOMAS H. | Officer | Gift | 616 | - |
| 2025-06-13 | JONES THOMAS H. | Officer | Sale | 729 | $368,706 |
| 2025-06-13 | FLEMING ROBERT J | Officer | Sale | 3,500 | $1,770,195 |
| 2025-06-13 | WARDEN KATHY J | Chief Executive Officer | Sale | 11,250 | $5,649,525 |
| 2025-06-05 | WELSH MARK A. III | Director | Sale | 33 | $16,120 |
| 2025-06-04 | ROEDER ROSHAN S. | Officer | Sale | 991 | $485,590 |
| 2025-05-30 | JONES THOMAS H. | Officer | Sale | 729 | $349,920 |
| 2025-05-21 | BROWN MARIANNE CATHERINE | Director | Stock Award | 385 | $182,452 |
| 2025-05-21 | KRISHNA ARVIND | Director | Stock Award | 385 | $182,452 |
Wall Street Analysts
Professional analyst ratings and price targets