Northrop Grumman Corp

Industrials
Industrial Machinery/Components
www.northropgrumman.com

Earnings Score
Moat Score
Safety Score

Market Cap $70.23B
PE 19
Debt $14.77B
Cash $1.69B
EV $83.32B
FCF $1.78B

Earnings

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Sales & Net Margins

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Earnings	$3.71B
EBIT	$4.46B
ROE	25%
ROA	9%
FCF	$1.78B
Equity	$14.98B
Growth Stability	41%
PE	18.93
PEG	-4.04
PB	4.69
P/FCF	39.54
P/S	1.74
Price/Cash	0.02
Debt/Equity	0.99
Debt/FCF	8.32
Net Margins	5%
Op. Margins	11%
Earnings CAGR	7%
Sales Growth YoY	-7%
Sales Growth QoQ	-11%
Sales CAGR	6%
FCF CAGR	-1%
Equity CAGR	13%
Earnings Stability	0.24
Earnings Growth YoY	-49%
Earnings Growth QoQ	-62%
Earnings CAGR 5Y	-5%

Sales CAGR 5Y	3%
FCF CAGR 5Y	-8%
Equity CAGR 5Y	10%
Earnings CAGR 3Y	6%
Sales CAGR 3Y	6%
FCF CAGR 3Y	68%
Equity CAGR 3Y	1%
Market Cap	$70.23B
Revenue	$40.37B
Dividend Yield	2%
Payout Ratio	32%
Assets	$48.47B
Total Debt	$14.77B
Cash	$1.69B
Shares Outstanding	144.07M
EV	83.32B
Earnings Score	11%
Moat Score	89%
Safety Score	50%
Final Score	50%
Working Capital	-702M
Current Ratio	0.95
Shares Growth 3y	-3%
Equity Growth QoQ	-2%
Equity Growth YoY	5%

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.

2025
- 10-Q Mar 31
2024
- 10-K Dec 31
- 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

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 7%

Stability 24%

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Northrop Grumman Corp Discounted Cash Flow

Fully customizable DCF calculator online for Northrop Grumman Corp .

Years

Calculation mode

= $17B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$1.8B	$1.8B	$1.7B	$1.7B	$1.7B	$1.7B	$1.7B	$1.7B	$1.7B	$1.6B	$1.6B	$16B
DCF		$1.6B	$1.4B	$1.3B	$1.2B	$1.1B	$951M	$857M	$772M	$696M	$627M	$6.3B
Value	$17B

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	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	12/2024	TTM
Net Margins	8%	9%	8%	11%	7%	9%	20%	13%	5%	10%	5%
ROA	-	12%	9%	10%	10%	9%	21%	13%	5%	10%	9%
ROE	-	42%	29%	39%	25%	30%	54%	32%	14%	27%	25%

Bad Net Margins (5.08%)

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

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	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	12/2024	TTM
Debt over FCF	-	3.76	9.62	5.82	4.96	5.49	5.98	9.56	6.67	6.85	8.32
Debt over Equity	1.2	1.35	2.3	1.83	1.71	1.5	1	0.92	0.95	1.17	0.99
Growth Stability	-	-	-	100%	91%	100%	100%	100%	41%	90%	41%

Bad Debt/FCF ratio (8.32)

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

Good Debt/Equity ratio (0.99)

The company is not overleveraged and has a good balance between equity and debt.

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	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	12/2024	CAGR 5Y
Revenue YoY growth	-	5%	5%	16%	12%	9%	-3%	3%	7%	4%	3%
Earnings YoY growth	-	11%	-8%	60%	-30%	42%	120%	-30%	-58%	103%	-5%
Equity YoY growth	-	-5%	34%	16%	8%	20%	22%	18%	-3%	3%	10%
FCF YoY growth	-	12%	-11%	53%	18%	-5%	-25%	-32%	43%	25%	-8%