Northrop Grumman Corp
Exchange: NYSESector: IndustrialsIndustry: Aerospace & Defense
Northrop Grumman is a leading global aerospace and defense technology company. Our pioneering solutions equip our customers with the capabilities they need to connect and protect the world, and push the boundaries of human exploration across the universe. Driven by a shared purpose to solve our customers' toughest problems, our employees define possible every day. Photo - https://mma.prnewswire.com/media/2740456/Red_6_Beacon_Partner.jpg Logo - https://mma.prnewswire.com/media/1446081/Red6_Logo_White__Logo.jpg
Did you know?
Profit margin stands at 10.0%.
Current Price
$702.50
+0.79%GoodMoat Value
$526.02
25.1% overvaluedProfile
Valuation (TTM)
Market Cap$100.26B
P/E23.97
EV$109.67B
P/B6.01
Shares Out142.72M
P/Sales2.39
Revenue$41.95B
EV/EBITDA15.67
Northrop Grumman Corp (NOC) Stock Analysis
GoodMoat Analysis
Northrop Grumman is a major defense contractor with a durable moat built on regulatory barriers and mission-critical products, but its valuation appears elevated relative to the platform's fair value estimate. The stock's current price requires a high-conviction view on continued execution.
Read full analysis
Northrop Grumman Corp is a leading global aerospace and defense company, primarily engaged in designing, building, and delivering advanced systems for national security, including aircraft, space systems, and cyber solutions. Applying the GoodMoat framework, the company demonstrates a clear competitive moat, primarily through high regulatory barriers (criterion 5) as a prime contractor on classified, long-term government programs, and significant switching costs (criterion 2) due to the mission-critical nature and complexity of its products. Its scale and technology leadership in areas like stealth and space also contribute to its durable advantage. The business shows strong quality indicators, including a robust ROE of 25.1% and a solid 9.6% YoY revenue growth. However, the valuation assessment presents a challenge. The stock trades at a P/E of 23.6x, and the provided GoodMoat Target of $526.02 suggests the current price of $691.21 represents a significant premium, indicating a negative margin of safety in a DCF context. According to the Decision Framework, while the company likely passes the Moat & Quality Gate, it falls into the 'With Caution' category at the Valuation & Risk Gate. The elevated price relative to fair value, combined with a debt/equity ratio above 1.0, means further investigation would require a strong conviction that growth and execution will consistently exceed expectations to justify the premium. Analysis based on data as of 2024-05-15.
Market Cap$100.26B
Current Price$702.50
P/E Ratio23.97
Forward P/E—
PEG Ratio1.57
EPS$29.08
Book Value$116.83
P/B Ratio6.01
NOC Financial Charts
FCF vs CAPEX
FCFCAPEX
Forward estimates use 1.5% FCF growth (CAGR)
Cash vs Debt
Net Debt: 12.6B
Revenue
33.8B
FY19
36.8B
FY20
35.7B
FY21
36.6B
FY22
39.3B
FY23
41.0B
FY24
42.0B
FY25
Net Income
2.2B
FY19
3.2B
FY20
7.0B
FY21
4.9B
FY22
2.1B
FY23
4.2B
FY24
4.2B
FY25
NOC 52-Week Range
$449.02
$768.02
50-Day MA: $707.66200-Day MA: $603.79
Did you know?
Price sits at 79% of its 52-week range.
Northrop Grumman Corp (NOC) Financial Summary
Northrop Grumman Corp (NOC) is a Industrials company in the Aerospace & Defense industry, listed on NYSE. The stock currently trades at $702.50 with a market capitalization of $100.26B.
Key valuation metrics include a P/E ratio of 23.97, price-to-book ratio of 6.01, and EPS of $29.08. The company reports a profit margin of 10.0% and return on equity of 25.1%.
NOC Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $100.26B |
| P/E Ratio | 23.97 |
| EPS | $29.08 |
| P/B Ratio | 6.01 |
| P/S Ratio | 2.39 |
| EV/EBITDA | 15.67 |
| Dividend Yield | 1.29% |
| Profit Margin | 10.0% |
| Return on Equity | 25.1% |
| Debt/Equity | 1.02 |
NOC Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY19 | $33.84B | $2.25B |
| FY20 | $36.80B | $3.19B |
| FY21 | $35.67B | $7.00B |
| FY22 | $36.60B | $4.90B |
| FY23 | $39.29B | $2.06B |
| FY24 | $41.03B | $4.17B |
| FY25 | $41.95B | $4.18B |
Northrop Grumman Corp (NOC) Valuation
Based on GoodMoat's DCF model, Northrop Grumman Corp has a fair value estimate of $526.02. At the current price of $702.50, the stock appears 33.6% overvalued relative to our intrinsic value estimate.
NOC Quality Indicators
Northrop Grumman Corp maintains a profit margin of 10.0% and an operating margin of 10.2%. Return on equity stands at 25.1%. The current ratio is 1.10. Debt-to-equity ratio is 1.02.
About Northrop Grumman Corp
Northrop Grumman is a leading global aerospace and defense technology company. Our pioneering solutions equip our customers with the capabilities they need to connect and protect the world, and push the boundaries of human exploration across the universe. Driven by a shared purpose to solve our customers' toughest problems, our employees define possible every day. Photo - https://mma.prnewswire.com/media/2740456/Red_6_Beacon_Partner.jpg Logo - https://mma.prnewswire.com/media/1446081/Red6_Logo_White__Logo.jpg
NOC Free Cash Flow
Northrop Grumman Corp generated $3.31B in trailing twelve-month free cash flow, representing an FCF yield of 3.30%. This moderate FCF yield indicates reasonable cash generation.
NOC Shares Outstanding
Northrop Grumman Corp has 0.14 billion shares outstanding at a share price of $702.50, giving it a market capitalization of $100.26B.
NOC Recent Insider Trades
Recent insider transactions at Northrop Grumman Corp include:
| Insider | Type | Shares | Value |
|---|---|---|---|
| Simpson Kathryn G (Corp VP & General Counsel) | SELL | 873 | $650385.00 |
| ROEDER ROSHAN S (CVP & Pres. Mission Systems) | SELL | 1,754 | $1.26M |
| Simpson Kathryn G (Corp VP & General Counsel) | SELL | 194 | $141158.28 |