Northrop Grumman Corp

Industrials
Industrial Machinery/Components
www.northropgrumman.com

Earnings Score
Moat Score
Safety Score

Market Cap $69.06B
PE 29
Debt $16.28B
Cash $3.33B
EV $82.02B
FCF $2.49B

Earnings

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Sales & Net Margins

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Earnings	$2.38B
EBIT	$2.90B
ROE	16%
ROA	6%
FCF	$2.49B
Equity	$14.75B
Growth Stability	41%
PE	29.08
PEG	53.39
PB	4.68
P/FCF	27.78
P/S	1.69
Price/Cash	0.05
Debt/Equity	1.1
Debt/FCF	6.55
Net Margins	10%
Op. Margins	7%
Earnings CAGR	8%
Sales Growth YoY	2%
Sales Growth QoQ	-2%
Sales CAGR	7%
FCF CAGR	-1%
Equity CAGR	13%
Earnings Stability	0.28
Earnings Growth YoY	9%
Earnings Growth QoQ	9%
Earnings CAGR 5Y	1%

Sales CAGR 5Y	3%
FCF CAGR 5Y	-12%
Equity CAGR 5Y	13%
Earnings CAGR 3Y	7%
Sales CAGR 3Y	7%
FCF CAGR 3Y	42%
Equity CAGR 3Y	4%
Market Cap	$69.06B
Revenue	$40.99B
Dividend Yield	2%
Payout Ratio	49%
Assets	$48.29B
Total Debt	$16.28B
Cash	$3.33B
Shares Outstanding	145.81M
EV	82.02B
Earnings Score	13%
Moat Score	86%
Safety Score	53%
Final Score	51%
Working Capital	1.23B
Current Ratio	1.09
Shares Growth 3y	-2%
Equity Growth QoQ	3%
Equity Growth YoY	-7%

Assets & ROA

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Stockholders Equity & ROE

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Northrop Grumman is a defense contractor that is diversified across short-cycle and long-cycle businesses. The firm's segments include aeronautics, mission systems, defense services, and space systems. The company's aerospace segment creates the fuselage for the massive F-35 program and produces various piloted and autonomous flight systems. Mission systems creates a variety of sensors and processors for defense hardware. The defense systems segment is a mix between a long-range missile manufacturer and a defense IT service provider. Finally, the company's space systems segment produces various space structures, sensors, and satellites.

SEC Filings

Direct access to Northrop Grumman Corp (NOC) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2022
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31

Sector Comparison

How does Northrop Grumman Corp compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Northrop Grumman Corp compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 8%

Stability 28%

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Northrop Grumman Corp Discounted Cash Flow

Fully customizable DCF calculator online for Northrop Grumman Corp .

Years

Calculation mode

= $24B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$2.5B	$2.5B	$2.4B	$2.4B	$2.4B	$2.4B	$2.4B	$2.4B	$2.3B	$2.3B	$2.3B	$23B
DCF		$2.2B	$2B	$1.8B	$1.6B	$1.5B	$1.3B	$1.2B	$1.1B	$981M	$885M	$8.8B
Value	$24B

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Net Margins	9%	8%	9%	8%	11%	7%	9%	20%	13%	5%	10%
ROA	-	13%	12%	9%	10%	10%	9%	21%	13%	5%	6%
ROE	-	36%	42%	29%	39%	25%	30%	54%	32%	14%	16%

Net Margins (9.59%)

Net Margins are at a level that is not too high nor too low. They are not a competitive advantage but they are not a competitive disadvantage either.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Debt over FCF	-	3.92	3.76	9.62	5.82	4.96	5.49	5.98	9.56	6.67	6.55
Debt over Equity	0.82	1.2	1.35	2.3	1.83	1.71	1.5	1	0.92	0.95	1.1
Growth Stability	-	-	-	97%	100%	91%	100%	100%	100%	41%	41%

Bad Debt/FCF ratio (6.55)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Neutral Debt/Equity ratio (1.1)

The company has a balance between equity and debt that is not too good nor too bad.

Bad Graham’s Stability (41%)

The company has a bad stability in its earnings, which is a sign of a bad competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	CAGR 5Y
Revenue YoY growth	-	-2%	5%	5%	16%	12%	9%	-3%	3%	7%	3%
Earnings YoY growth	-	-4%	11%	-8%	60%	-30%	42%	120%	-30%	-58%	1%
Equity YoY growth	-	-24%	-5%	34%	16%	8%	20%	22%	18%	-3%	13%
FCF YoY growth	-	-17%	12%	-11%	53%	18%	-5%	-25%	-32%	43%	-12%