Northrop Grumman (NOC)
Industrials · $73.6B market cap · SEC CIK 0001133421
fundamentals score out of 100
Next reports on Oct 20, 2026, before the open, with analysts expecting $7.24 in earnings per share.
The case for NOC
- Earns 27% back on shareholder equity.
- Reasonably priced at 16.4× earnings.
- Moves less than the market (beta -0.12).
- Pays a modest 1.6% dividend.
The case against
- Near the bottom of its 52-week range, 34% below the high. Falling prices usually have a reason; find it first.
- Growth is weak (40/100): revenue +5.9%, EPS +15.9%, +2.7% a year over five years.
What the score is made of
Each factor is half a curve over reported figures and half a rank among the other Industrials companies (momentum is judged against fixed thresholds only), and the five are blended by weight. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings, sales, assets and cash | 74 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 40 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 43 |
| Momentumhow the price has behaved lately | 33 |
| Stabilityhow violently it moves, what it owes and what it pays you | 71 |
- Each factor except momentum is half fixed thresholds, half rank among the 79 Industrials companies.
Key numbers
| Price / earnings | 16.4× |
|---|---|
| Price / book | 4.04× |
| Price / sales | 1.7× |
| Revenue growth (YoY) | +5.9% |
| EPS growth (YoY) | +15.9% |
| Gross margin | 20% |
| Operating margin | 11% |
| Net margin | 10% |
| Return on equity | 27% |
| Debt / equity | 0.85× |
| Current ratio | 1.17 |
| Dividend yield | 1.59% |
| Beta | -0.12 |
| 52-week range | $479.02 – $774.00 |
| Position in that range | 10% of the way up |
| 3-month return | +1.0% |
| 1-year return | -8.1% |
Five years of financials, as filed
Pulled from Northrop Grumman's XBRL filings on SEC EDGAR. Italic rows are derived from the rows above.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Revenue | $42.0B | $41.0B | $39.3B | $36.6B | $35.7B |
| Operating income | $4.5B | $4.4B | $2.5B | $3.6B | $5.7B |
| Net income | $4.2B | $4.2B | $2.1B | $4.9B | $7.0B |
| Operating cash flow | $4.8B | $4.4B | $3.9B | $2.9B | $3.6B |
| Capital expenditure | $1.4B | $1.8B | $1.8B | $1.4B | $1.4B |
| Total assets | $51.4B | $49.4B | $46.5B | $43.8B | $42.6B |
| Total liabilities | $34.7B | $34.1B | $31.7B | $28.4B | $29.7B |
| Shareholder equity | $16.7B | $15.3B | $14.8B | $15.3B | $12.9B |
| Cash | $4.4B | $4.4B | $3.1B | $2.6B | $3.5B |
| Long-term debt | $15.2B | $14.7B | $13.8B | $11.8B | $12.8B |
| Free cash flow | $3.3B | $2.6B | $2.1B | $1.5B | $2.2B |
| Operating margin | 10.8% | 10.6% | 6.5% | 9.8% | 15.8% |
| Net margin | 10.0% | 10.2% | 5.2% | 13.4% | 19.6% |
| Diluted shares | 144M | 147M | 152M | 156M | 161M |
Share count is down 10.6% over 4 years. Buybacks have been shrinking the pie.
What Northrop Grumman says it does
HISTORY AND ORGANIZATION History Northrop Grumman Corporation (herein referred to as "Northrop Grumman," the "company," "we," "us," or "our") is a leading global aerospace and defense technology company. We deliver a broad range of products, services and solutions to U.S. and international customers, and principally to the U.S. Department of War ("DoW") and intelligence community. Our broad portfolio is aligned to support national security priorities and our solutions equip our customers with capabilities they need to connect, protect and advance humanity. The company is a leading provider of space systems, military aircraft, missile defense, advanced weapons and long-range fires capabilities, mission systems, networking and communications, strategic deterrence systems, and breakthrough technologies, such as advanced computing, microelectronics and cyber. We are focused on competing and winning programs that enable continued growth,…
Risk factors NOC lists in its 10-K
- Competitive dynamics within our markets may affect our ability to win new contracts and result in reduced revenues, which could have a material adverse effect on our financial position, results of operations and/or cash flows
- Cyber and other security threats or disruptions could have a material adverse effect on our reputation and our financial position, results of operations and/or cash flows
- Our business is subject to significant disruptions caused by natural disasters or other events outside of our control, which could have a material adverse effect on our financial position, results of operations and/or cash flows
- Business investments and/or recorded goodwill and other long-lived assets may become impaired, which could have a material adverse effect on our financial condition and/or results of operations