Northrop Grumman Corp (NOC)
Industrials · Aerospace & Defense · US stock · S&P 500 component
$552.35
▲ +13.04 (2.42%)
Fair valueFair
$537 −2.7% to fair value
$269fair band $457–$651$806
Day's range
$542.50 – $556.56
52-week range
$470.06 – $774.00
About Northrop Grumman Corp
Northrop Grumman is a defence and aerospace contractor that builds aircraft, space systems, missile defence and mission systems, and provides cyber and electronic warfare capabilities. Its main customer is the United States government, along with allied governments, and it earns money from long-term contracts for developing and producing systems and for maintaining them. Defence budgets and programme execution therefore shape its results.
Over the latest twelve months the company reported revenue of $42.9 billion, with growth of 4.7% a year across three years. It reports an operating margin of 10.7%, with return on invested capital of 13%. Leverage, measured as net debt to EBITDA, is 2.1 times. A dividend is paid, with a yield of 1.7%. Overall, it receives an X-Ray Score of 49 out of 100.
Price chart
52-wk range $470.06 – $774.00Volume 1,060,787Daily, split-adjusted
Vitals
Market cap$78.7B
52-week range$470.06 – $774.00
Volume (last day)1,060,787
P/E (TTM)17.6
EBIT / EV yield5.0%
Free-cash-flow yield4.6%
Dividend yield1.7%
Revenue (TTM)$42.9B
Net income (TTM)$4.5B
Operating margin10.7%
Return on capital12.8%
Debt incl. leases$15.2B
Cash & securities$2.3B
Debt = borrowings plus lease liabilities. Cash & securities = cash, equivalents and short-term marketable securities (long-term securities are not counted, so net cash can be understated for companies that hold large long-term investments). Net debt = debt minus cash & securities. Source: latest SEC 10-Q/10-K. EBIT / EV yield = operating profit divided by market cap plus net debt.
Fair value estimate
$537middle half of models $520 – $589
Fair
−2.7% to fair value
Average of the 15 valuation models that pass our checks: multiples, discounted cash flow, dividend discount and earnings power value. A model more than 100% above or 60% below the price is left out as unrealistic. Model uncertainty is Medium, based on how far apart the models are. Undervalued or Overvalued means the gap to fair value is more than 17.5%.
Price $552
Undervalued < $457Fair $457 – $651Overvalued > $651
P/E multiple
$550
P/B multiple
$616
P/S multiple
$550
EV/EBITDA multiple
$582
EV/EBIT multiple
$581
EV/revenue multiple
$547
10-year DCF, EBITDA exit
$590
5-year DCF, EBITDA exit
$600
10-year DCF, revenue exit
$580
5-year DCF, revenue exit
$587
10-year DCF, growth exit
$415
5-year DCF, growth exit
$390
Dividend discount, stable
$350
Dividend discount, multi-stage
$627
Earnings power value
$493
Growth the price implies
12.7%/yr
A model estimate, not a price target or recommendation. Inputs: risk-free 5.13%, equity risk premium 4.30% (Damodaran). How it works.
What this means
Weak business, fairly priced
The price sits inside our fair-value band. A high score does not guarantee a good outcome; it shifts the odds a little. Use the checklist as a prompt for your own research.
Before you invest · decision checklist
Ticked boxes are filled in from our data; the rest are yours to answer.
The five-lens scan
Every score explained in one sentence, ranked against Industrials peers. Open a lens to see the numbers behind it.
Strong: 70 to 100Fair: 50 to 69Weak: under 50No score: not enough data
Valuation
Fair
63/100
Priced about in line with its sector.
See the numbers →
EBIT / EV yield5.0%
Free-cash-flow yield4.6%
Fair value vs price1.0×
Growth
Weak
48/100
Growing slower than most of its sector.
See the numbers →
Revenue growth (3y)4.7%
EPS growth (3y)-2.6%
Growth consistency90%
Profitability
Weak
29/100
Earns lower returns on its capital than most peers.
See the numbers →
Return on invested capital12.8%
Operating margin10.7%
Financial health
Fair
55/100
Balance sheet is in typical shape for its sector.
See the numbers →
Piotroski F-Score7 / 9
Net debt / EBITDA2.1×
Interest coverNo interest cost
Dividends
Fair
56/100
Dividend is typical for its sector.
See the numbers →
Dividend yield1.7%
Dividends vs free cash flow37%
Dividend growth7.1%
Quarterly results: last 6 quarters
-6.6%
Mar '25
+1.3%
Jun '25
+4.3%
Sep '25
+9.6%
Dec '25
+4.4%
Mar '26
+5.1%
Jun '26
Revenue against the same quarter a year earlier. Latest quarter revenue $10.9B, diluted EPS $7.68.
Compare with peers
GD General Dynamics Corp70 TXT Textron Inc65 LHX L3harris Technologies,...60 TDG TransDigm Group INC57Other Aerospace & Defense companies by X-Ray Score.
SWOT analysis: Northrop Grumman Corp
Strengthsinside the company
- Operating profit covers interest 50x, so debt costs are a small drag.
- Passes 7 of the 9 Piotroski tests, which points to improving profitability, funding and efficiency.
Weaknessesinside the company
- No clear weakness in the figures we track.
Opportunitiesvaluation and setting
- Dividends use only 37% of free cash flow, which leaves room to raise them.
- Trades at 17.5x earnings, 43% below the 30.8x median of industry peers.
Threatsvaluation and setting
- No specific threat is flagged by our checks; general market and interest-rate risk still applies.
Written by fixed rules from the figures on this page and the peer table below: filings, our fair value, the sector climate and the price trend. It summarises the data, it is not a forecast or advice.
Compare NOC with peers and sector
Medians of 11 Aerospace & Defense peers and of 80 Industrials stocks in our universe.
Largest peers (X-Ray Score): GE 49, RTX 51, BA 35, LMT 55, GD 70, HWM 55.
| Metric | NOC | Peers | Sector |
|---|---|---|---|
| X-Ray Score (out of 100) | 49 | 55 | 51 |
| Valuation | 63 | 52 | 44 |
| Growth | 48 | 64 | 51 |
| Profitability | 29 | 45 | 51 |
| Financial health | 55 | 55 | 49 |
| Dividends | 56 | 53 | 53 |
Sector leaders: highest X-Ray Score in Industrials
NOC ranks #46 of 81 in Industrials and #8 of 12 in Aerospace & Defense by X-Ray Score. A higher score is stronger on our five pillars; it is a ranking of facts, not a forecast.
Green means better than the peer median, red worse (only where a higher or lower figure is clearly better). A dash means too few companies report the figure. P/E, EV/EBITDA and price changes are not graded: a different level is not good or bad by itself.
Factor ratings for NOC
Each factor is rated by where NOC stands among the 81 Industrials stocks in our universe.
Rating against the sector
Goodthe top third of these stocks
Averagethe middle third of these stocks
Badthe bottom third of these stocks
"Beats" is the share of those stocks it is ahead of.
Against its own history
The last columns set today's figure against the company's own median of its last five financial years:
▲ Betterbetter than its usual level
▼ Worseworse than its usual level
≈ In linewithin its usual range
For valuation factors Good means cheaper than most of the sector and Better means cheaper than usual for this company, which is not the same as a bargain.
In total: 8 Good · 7 Average · 6 Bad of 21
Growth: 0 · 1 · 2
Profitability: 0 · 3 · 1
Financial strength: 2 · 2 · 0
Valuation: 4 · 1 · 0
Cash flow: 1 · 0 · 3
Efficiency: 1 · 0 · 0
| Factor | NOC | Rating | Sector median | Own 5-year median | Against own history |
|---|---|---|---|---|---|
| Growth | |||||
| Revenue growth, 3 years a year | +4.7% | Average beats 44% | +5.6% | – | – |
| Revenue growth, last year | +2.2% | Bad beats 33% | +4.5% | +2.6% | ≈ In line |
| EPS growth, 3 years a year | −2.6% | Bad beats 26% | +5.7% | – | – |
| Profitability | |||||
| Operating margin | 10.7% | Bad beats 31% | 17.5% | 10.6% | ≈ In line |
| Net margin | 10.5% | Average beats 39% | 12.8% | 10.2% | ≈ In line |
| Return on invested capital | 12.8% | Average beats 36% | 14.9% | – | – |
| Return on equity | 25.1% | Average beats 54% | 23.7% | 27.3% | ≈ In line |
| Financial strength | |||||
| Net debt / EBITDA | 2.1x | Average beats 39% | 1.8x | 2.1x | ≈ In line |
| Interest cover | 50.0x | Good beats 76% | 21.4x | – | – |
| Current ratio | 1.17 | Average beats 37% | 1.25 | 1.10 | ≈ In line |
| Piotroski F-score | 7 / 9 | Good beats 68% | 6 / 9 | – | – |
| Valuation | |||||
| P/E ratio | 17.5x | Good beats 87% | 28.9x | 17.3x | ≈ In line |
| Price / book | 4.4x | Good beats 67% | 6.2x | 4.8x | ≈ In line |
| Price / sales | 1.8x | Good beats 76% | 3.5x | 1.8x | ≈ In line |
| EV / EBITDA | 15.0x | Good beats 73% | 18.5x | 15.6x | ≈ In line |
| Free cash flow yield | 4.6% | Average beats 66% | 3.8% | 3.5% | ▲ Better |
| Cash flow | |||||
| Free cash flow margin | 8.5% | Bad beats 24% | 13.8% | 6.0% | ▲ Better |
| Cash from operations / net income | 1.13 | Bad beats 17% | 1.39 | 1.05 | ≈ In line |
| Free cash flow growth, 3 years a year | +31.1% | Good beats 80% | +14.5% | – | – |
| Accruals (lower is better) | −1.1% | Bad beats 17% | −3.2% | – | – |
| Efficiency | |||||
| Days sales outstanding | 20 days | Good beats 89% | 57 days | 14 days | ▼ Worse |
These ratings compare companies with each other and describe the past; they are not a forecast, a recommendation or part of the X-Ray Score. A factor is left out when its data is missing or meaningless (for example a P/E on negative earnings). A dash in the history columns means fewer than three usable years.
Fundamentals checklist
● 3 Good · ● 9 Average · ● 3 BadCash quality
Earnings backed by cashBad
Free-cash-flow yieldAverage
Risk models
Altman Z''Average
Piotroski F-ScoreGood
Growth
EPS growth (3y)Bad
Free-cash-flow growth (3y)Good
Revenue growth (3y)Average
Growth consistencyAverage
Balance sheet
Current ratioAverage
Net debt / EBITDAAverage
Interest coverGood
Valuation
Fair value vs priceAverage
EBIT / EV yieldAverage
Profitability
Return on invested capitalAverage
Operating marginBad
Each check is graded against the company's sector, not a fixed number. Checklist score 48/100.
Financials
| FY21 | FY22 | FY23 | FY24 | FY25 | |
|---|---|---|---|---|---|
| Revenue | $35.7B | $36.6B | $39.3B | $41.0B | $42.0B |
| Operating income | $5.7B | $3.6B | $2.5B | $4.4B | $4.5B |
| Net income | $7.0B | $4.9B | $2.1B | $4.2B | $4.2B |
| Operating cash flow | $3.6B | $2.9B | $3.9B | $4.4B | $4.8B |
| Operating margin | 15.8% | 9.8% | 6.5% | 10.6% | 10.8% |
| Free cash flow | $2.2B | $1.5B | $2.1B | $2.6B | $3.3B |
| Diluted EPS | $43.54 | $31.47 | $13.53 | $28.34 | $29.08 |
Fiscal years, from SEC filings.
Technical summary
Daily
Bullish
10 bullish · 1 neutral · 5 bearish
Weekly
Bullish
8 bullish · 1 neutral · 3 bearish
Monthly
Neutral
4 bullish · 1 neutral · 3 bearish
Moving averages (daily)
| SMA 10 | 509.9 | Bullish |
| EMA 10 | 518.4 | Bullish |
| SMA 20 | 499.0 | Bullish |
| EMA 20 | 510.7 | Bullish |
| SMA 50 | 522.2 | Bullish |
| EMA 50 | 517.7 | Bullish |
| SMA 100 | 528.7 | Bullish |
| EMA 100 | 534.7 | Bullish |
| SMA 200 | 588.8 | Bearish |
| EMA 200 | 553.6 | Bearish |
Oscillators (daily)
| RSI (14) | 68.34 | Neutral |
| MACD (12, 26) | 4.47 | Bullish |
| Momentum (12) | 14.33 | Bullish |
| Stochastic %K (14) | 95.06 | Bearish |
| Williams %R (14) | -4.94 | Bearish |
| CCI (20) | 183.3 | Bearish |
Pivot points (classic, last session)
S3 530.3 | S2 536.4 | S1 544.4 | Pivot 550.5 | R1 558.4 | R2 564.5 | R3 572.5 |
Signals describe what the chart is doing, not what to do. Moving averages: price above the average is bullish. Oscillators use the usual thresholds (RSI 30/70, Stochastic 20/80, CCI ±100, Williams %R −80/−20; MACD and momentum above zero are bullish). Weekly and monthly views use closing prices only.
Dividends
Paid, last 12 months
9.56 USD
Yield on today's price
1.73%
Frequency
Quarterly
Next ex-dividend date
Not announced
| Ex-dividend date | Amount per share |
|---|---|
| 2.4700 | |
| 2.4700 | |
| 2.3100 | |
| 2.3100 | |
| 2.3100 | |
| 2.3100 | |
| 2.0600 | |
| 2.0600 | |
| 2.0600 | |
| 2.0600 | |
| 1.8700 | |
| 1.8700 |
Ex-dividend dates and amounts from EODHD. Shown as declared, before tax.
ETFs that hold NOC
| ETF | Share of the fund |
|---|---|
| PPA Invesco Aerospace & Defense | 4.75% |
| SHLD Global X Defense Tech | 4.23% |
| ITA iShares U.S. Aerospace & Defense | 3.92% |
| DFEN Daily Aerospace & Defense Bull 3X | 2.77% |
| XAR SPDR S&P Aerospace & Defense | 2.42% |
| GRNY Fundstrat Granny Shots US Large Cap | 2.25% |
| FTCS First Trust Capital Strength | 1.54% |
| MFSV MFS Active Value | 1.31% |
The eight funds with the largest weight in NOC among the ETFs we cover, from each fund's latest SEC Form N-PORT (quarter-end positions, so they can be months old). All ETFs.
NOC stock splits
NOC has split its stock once since 2004. The latest was a 2-for-1 split on 22 Jun 2004.
Full NOC stock split history →NOC SEC filings
10-QSEC EDGAR
Quarterly report
8-KSEC EDGAR
Results of operations
8-KSEC EDGAR
Director or officer change
10-QSEC EDGAR
Quarterly report
8-KSEC EDGAR
Results of operations
8-KSEC EDGAR
Shareholder vote results
10-QSEC EDGAR
Quarterly report
8-KSEC EDGAR
Results of operations
Where the numbers come from
Statements SEC EDGAR filings (10-K, 10-Q), quarters derived from year-to-date figures.
Prices end-of-day closes, split-adjusted.
Industry inputs beta, multiples and equity risk premium from Damodaran Online (NYU Stern).
StocksXray is for education only and is not financial advice. Scores and fair values are model estimates from public filings and carry uncertainty.