Northrop Grumman
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Northrop Grumman Corporation, a security company, provides products in the areas of autonomous systems, cyber, space, strikes, and logistics and modernizations in the United States, the Asia Pacific, and internationally. The last earnings update was 78 days ago. More info.
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NOC Share Price and Events
7 Day Returns
1 Year Returns
NOC Shareholder Return
| 7 Day | 30 Day | 90 Day | 1 Year | 3 Year | 5 Year | |
|---|---|---|---|---|---|---|
| Northrop Grumman (NOC) | -0.7% | 4% | 5% | -21% | 40.1% | 136.3% |
| US Aerospace & Defense | 2.1% | 4.6% | 10.3% | -8.1% | 40.7% | 57.2% |
| US Market | 0.2% | 2.1% | 8.5% | 6.3% | 37.9% | 45.7% |
1 Year Return vs Industry and Market
- NOC underperformed the Aerospace & Defense industry which returned -8.1% over the past year.
- NOC underperformed the Market in United States of America which returned 6.3% over the past year.
Value
Value is all about what a company is worth versus what price it is
available for. If you went into a grocery store and all the bananas were on sale
at half price, they could be considered
undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current
share
price of
Northrop Grumman
to its discounted cash flow analysis.value.The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Below are the data sources, inputs and calculation used to determine the intrinsic value for Northrop Grumman.
| Data Point | Source | Value |
|---|---|---|
| Valuation Model | 2 Stage Free Cash Flow to Equity | |
| Levered Free Cash Flow | Average of 18 Analyst Estimates (S&P Global) | See below |
| Discount Rate (Cost of Equity) | See below | 9.2% |
| Perpetual Growth Rate | 10-Year US Government Bond Rate | 2.7% |
An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.
| Data Point | Calculation/ Source | Result |
|---|---|---|
| Risk-Free Rate | 10-Year US Govt Bond Rate | 2.7% |
| Equity Risk Premium | S&P Global | 6% |
| Aerospace & Defense Unlevered Beta | Simply Wall St/ S&P Global | 0.92 |
| Re-levered Beta | = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.916 (1 + (1- 21%) (30.55%)) |
1.092 |
| Levered Beta | Levered Beta limited to 0.8 to 2.0 (practical range for a stable firm) |
1.09 |
| Discount Rate/ Cost of Equity |
= Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.092 * 5.96%) |
9.24% |
Discounted Cash Flow Calculation for NYSE:NOC using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for Northrop Grumman is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.
| Levered FCF (USD, Millions) | Source |
Present Value Discounted (@ 9.24%) |
|
|---|---|---|---|
| 2019 | 2,846.44 | Analyst x9 | 2,605.73 |
| 2020 | 3,379.44 | Analyst x9 | 2,832.03 |
| 2021 | 3,723.00 | Analyst x7 | 2,856.09 |
| 2022 | 4,210.33 | Analyst x3 | 2,956.79 |
| 2023 | 4,362.50 | Analyst x2 | 2,804.57 |
| 2024 | 4,506.71 | Est @ 3.31% | 2,652.26 |
| 2025 | 4,647.90 | Est @ 3.13% | 2,504.03 |
| 2026 | 4,787.90 | Est @ 3.01% | 2,361.31 |
| 2027 | 4,928.06 | Est @ 2.93% | 2,224.90 |
| 2028 | 5,069.41 | Est @ 2.87% | 2,095.17 |
| Present value of next 10 years cash flows | $25,892.88 | ||
| Calculation | Result | |
|---|---|---|
| Terminal Value |
= FCF2028
× (1 + g) ÷ (Discount Rate – g)
= $5,069.41 × (1 + 2.73%) ÷ (9.24% – 2.73%) |
$80,021.11 |
| Present Value of Terminal Value |
= Terminal Value ÷ (1 + r)10
= $80,021.11 ÷ (1 + 9.24%)10 |
$33,072.40 |
| Calculation | Result | |
|---|---|---|
| Total Equity Value |
= Present value of next 10 years cash flows +
Terminal Value
= $25,892.88 + $33,072.40 |
$58,965.27 |
| Equity Value per Share (USD) |
= Total value / Shares Outstanding
= $58,965.27 / 169.96 |
$346.94 |
| Calculation | Result | |
|---|---|---|
| Value per share (USD) | From above. | $346.94 |
| Current discount | Discount to share price of
$281.16
= -1 x ($281.16 - $346.94) / $346.94 |
19% |
Learn more about our DCF calculations in Simply Wall St’s analysis model .
Current Discount
Current Discount Checks
- Northrop Grumman's share price is below the future cash flow value, but not at a moderate discount (< 20%).
- Northrop Grumman's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.The amount the stock market is willing to pay for Northrop Grumman's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are
Northrop Grumman's earnings available for a low price, and how does
this compare to other companies in the same industry?
| Data Point | Source | Value |
|---|---|---|
| Earnings Per Share * | Company Filings (2018-12-31) in USD | $18.59 |
| NYSE:NOC Share Price ** | NYSE (2019-04-18) in USD | $281.16 |
| United States of America Aerospace & Defense Industry PE Ratio | Median Figure of 41 Publicly-Listed Aerospace & Defense Companies | 22.19x |
| United States of America Market PE Ratio | Median Figure of 3,081 Publicly-Listed Companies | 18.15x |
* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.
** Primary Listing of Northrop Grumman.
| Calculation | Outcome | |
|---|---|---|
| PE Ratio | = NYSE:NOC Share Price ÷ EPS (both in USD) = 281.16 ÷ 18.59 |
15.12x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Northrop Grumman is good value based on earnings compared to the US Aerospace & Defense industry average.
- Northrop Grumman is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does
Northrop Grumman's expected growth come at a high price?
| Data Point | Source | Value |
|---|---|---|
| PE Ratio | See PE Ratio Section | 15.12x |
| Net Income Annual Growth Rate | See Future Growth Section. Line of Best Fit* through Consensus Estimate Earnings of 18 Analysts |
8.8%per year |
| United States of America Aerospace & Defense Industry PEG Ratio | Median Figure of 34 Publicly-Listed Aerospace & Defense Companies | 1.93x |
| United States of America Market PEG Ratio | Median Figure of 2,109 Publicly-Listed Companies | 1.57x |
*Line of best fit is calculated by linear regression .
| Calculation | Outcome | |
|---|---|---|
| PEG Ratio | = PE Ratio ÷ Net Income Annual Growth Rate = 15.12x ÷ 8.8% |
1.72x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Northrop Grumman is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on
Northrop Grumman's
assets?
| Data Point | Source | Value |
|---|---|---|
| Book Value per Share | Company Filings (2018-12-31) in USD | $47.99 |
| NYSE:NOC Share Price * | NYSE (2019-04-18) in USD | $281.16 |
| United States of America Aerospace & Defense Industry PB Ratio | Median Figure of 56 Publicly-Listed Aerospace & Defense Companies | 2.64x |
| United States of America Market PB Ratio | Median Figure of 5,178 Publicly-Listed Companies | 1.91x |
| Calculation | Outcome | |
|---|---|---|
| PB Ratio | = NYSE:NOC Share Price ÷ Book Value per Share (both in USD) = 281.16 ÷ 47.99 |
5.86x |
* Primary Listing of Northrop Grumman.
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Northrop Grumman is overvalued based on assets compared to the US Aerospace & Defense industry average.
Value checks
We assess Northrop Grumman's value by looking at:- Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
- Is the PE ratio less than the market average, and/ or less than the Aerospace & Defense industry average (and greater than 0)? (2 checks)
- Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
- Is the PB ratio less than the Aerospace & Defense industry average (and greater than 0)? (1 check) Northrop Grumman has a total score of 2/6, see the detailed checks below.
Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.
Full details on the Value part of the Simply Wall St company analysis model.
Future Performance
The future performance of a company is measured in the same way as past
performance, by looking at estimated
growth
and how much profit it is expected to make.Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Earnings growth vs Low Risk Savings
- Northrop Grumman's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
- Northrop Grumman's earnings growth is positive but not above the United States of America market average.
- Northrop Grumman's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
| Data Point | Source | Value (per year) |
|---|---|---|
| NYSE:NOC Future Earnings Growth Rate | Line of Best Fit* through Consensus Estimate Earnings of 18 Analysts | 8.8% |
| NYSE:NOC Future Revenue Growth Rate | Line of Best Fit* through Consensus Estimate Revenue of 18 Analysts | 6.7% |
| United States of America Aerospace & Defense Industry Earnings Growth Rate | Market Cap Weighted Average | 10.6% |
| United States of America Aerospace & Defense Industry Revenue Growth Rate | Market Cap Weighted Average | 5.7% |
| United States of America Market Earnings Growth Rate | Market Cap Weighted Average | 13.3% |
| United States of America Market Revenue Growth Rate | Market Cap Weighted Average | 7% |
*Line of best fit is calculated by linear regression .
Industry and Market average data is calculated daily.
Learn more about our growth rate calculations in Simply Wall St’s analysis model.
Analysts growth expectations
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (3 months ago) | See Below |
| Future Estimates | Average of up to 18 Analyst Estimates (S&P Global) | See Below |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * | Avg. No. Analysts |
|---|---|---|---|---|
| 2023-12-31 | 41,766 | 6,259 | 4,883 | 2 |
| 2022-12-31 | 40,028 | 5,743 | 4,569 | 3 |
| 2021-12-31 | 38,100 | 4,917 | 4,221 | 10 |
| 2020-12-31 | 36,220 | 4,463 | 3,685 | 17 |
| 2019-12-31 | 34,106 | 4,062 | 3,129 | 18 |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * |
|---|---|---|---|
| 2018-12-31 | 30,095 | 3,827 | 3,229 |
| 2018-09-30 | 28,290 | 3,057 | 2,739 |
| 2018-06-30 | 26,774 | 3,183 | 2,238 |
| 2018-03-31 | 26,128 | 2,815 | 2,104 |
| 2017-12-31 | 26,004 | 2,613 | 2,869 |
| 2017-09-30 | 25,849 | 2,537 | 2,373 |
| 2017-06-30 | 25,435 | 2,337 | 2,332 |
| 2017-03-31 | 24,962 | 2,434 | 2,294 |
| 2016-12-31 | 24,706 | 2,813 | 2,043 |
| 2016-09-30 | 23,805 | 2,915 | 2,134 |
| 2016-06-30 | 23,629 | 2,734 | 2,048 |
| 2016-03-31 | 23,525 | 2,756 | 2,062 |
*GAAP earnings excluding extraordinary items.
Past and Future Earnings per Share
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (3 months ago) | See Below |
| Future Estimates | Average of up to 18 Analyst Estimates (S&P Global) | See Below |
All data from Northrop Grumman Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | EPS * | EPS High Estimate | EPS Low Estimate | Avg. No. Analysts |
|---|---|---|---|---|
| 2023-12-31 | 29.65 | 29.65 | 29.65 | 1.00 |
| 2022-12-31 | 27.46 | 27.46 | 27.46 | 1.00 |
| 2021-12-31 | 25.66 | 27.47 | 23.67 | 7.00 |
| 2020-12-31 | 21.98 | 23.01 | 19.89 | 13.00 |
| 2019-12-31 | 18.44 | 19.52 | 14.41 | 13.00 |
| Date (Data in USD Millions) | EPS * |
|---|---|
| 2018-12-31 | 18.59 |
| 2018-09-30 | 15.72 |
| 2018-06-30 | 12.84 |
| 2018-03-31 | 12.07 |
| 2017-12-31 | 16.45 |
| 2017-09-30 | 13.57 |
| 2017-06-30 | 13.26 |
| 2017-03-31 | 12.94 |
| 2016-12-31 | 11.42 |
| 2016-09-30 | 11.83 |
| 2016-06-30 | 11.23 |
| 2016-03-31 | 11.13 |
*GAAP earnings excluding extraordinary items.
Future performance checks
We assess Northrop Grumman's future performance by looking at:- Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
- Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
- Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
- Is the annual earnings growth rate expected to be above 20%? (1 check)
- Is the annual revenue growth rate expected to be above 20%? (1 check)
- Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Northrop Grumman has a total score of 2/6, see the detailed checks below.
Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.
Full details on the Future part of the Simply Wall St company analysis model.
Past Performance
How has Northrop Grumman performed over the past 5 years?
The past performance of a company can be measured by how much
growth
it has experienced and how much profit it makes relative to the funds and assets
it has available.
Past earnings growth
Past Earnings growth analysis
- Northrop Grumman's year on year earnings growth rate has been positive over the past 5 years.
- Northrop Grumman's 1-year earnings growth exceeds its 5-year average (12.5% vs 7%)
- Northrop Grumman's earnings growth has not exceeded the US Aerospace & Defense industry average in the past year (12.5% vs 29.2%).
Earnings and Revenue History
All data from Northrop Grumman Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | Revenue | Net Income * | G+A Expenses | R&D Expenses |
|---|---|---|---|---|
| 2018-12-31 | 30,095.00 | 3,229.00 | 2,617.00 | |
| 2018-09-30 | 28,290.00 | 2,739.00 | 2,446.00 | |
| 2018-06-30 | 26,774.00 | 2,238.00 | 2,441.00 | |
| 2018-03-31 | 26,128.00 | 2,104.00 | 2,530.00 | |
| 2017-12-31 | 26,004.00 | 2,869.00 | 1,477.00 | |
| 2017-09-30 | 25,849.00 | 2,373.00 | 2,742.00 | |
| 2017-06-30 | 25,435.00 | 2,332.00 | 2,727.00 | |
| 2017-03-31 | 24,962.00 | 2,294.00 | 2,644.00 | |
| 2016-12-31 | 24,706.00 | 2,043.00 | 2,971.00 | |
| 2016-09-30 | 23,805.00 | 2,134.00 | 2,565.00 | |
| 2016-06-30 | 23,629.00 | 2,048.00 | 2,566.00 | |
| 2016-03-31 | 23,525.00 | 2,062.00 | 2,587.00 | |
| 2015-12-31 | 23,526.00 | 1,990.00 | 2,566.00 | |
| 2015-09-30 | 23,940.00 | 2,037.00 | 2,632.00 | |
| 2015-06-30 | 23,945.00 | 1,994.00 | 2,549.00 | |
| 2015-03-31 | 24,088.00 | 1,974.00 | 2,498.00 | |
| 2014-12-31 | 23,979.00 | 2,069.00 | 2,405.00 | |
| 2014-09-30 | 24,028.00 | 2,041.00 | 2,273.00 | |
| 2014-06-30 | 24,150.00 | 2,065.00 | 2,248.00 | |
| 2014-03-31 | 24,405.00 | 2,042.00 | 2,240.00 | |
| 2013-12-31 | 24,661.00 | 1,952.00 | 2,256.00 | |
| 2013-09-30 | 24,980.00 | 2,007.00 | 2,432.00 | |
| 2013-06-30 | 25,144.00 | 1,969.00 | 2,449.00 | |
| 2013-03-31 | 25,124.00 | 1,961.00 | 2,447.00 | |
| 2012-12-31 | 25,218.00 | 1,978.00 | 2,450.00 | |
| 2012-09-30 | 25,248.00 | 1,995.00 | 2,350.00 | |
| 2012-06-30 | 25,590.00 | 2,056.00 | 2,367.00 |
*GAAP earnings excluding extraordinary items.
Performance last year
We want to ensure a company is making the most of what it has available. This is
done by comparing the return (profit) to a company's available
funds,
assets
and
capital.
- Whilst Northrop Grumman has efficiently used shareholders’ funds last year (Return on Equity greater than 20%), this is metric is skewed due to its high level of debt.
- Northrop Grumman used its assets more efficiently than the US Aerospace & Defense industry average last year based on Return on Assets.
- Northrop Grumman's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
Past performance checks
We assess Northrop Grumman's performance over the past 5 years by checking for:- Has earnings increased in past 5 years? (1 check)
- Has the earnings growth in the last year exceeded that of the Aerospace & Defense industry? (1 check)
- Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
- Is the Return on Equity (ROE) higher than 20%? (1 check)
- Is the Return on Assets (ROA) above industry average? (1 check)
- Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
Northrop Grumman has a total score of 3/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Full details on the Past part of the Simply Wall St company analysis model.
Health
How is Northrop Grumman's financial health and their level of debt?
A company's financial position is much like your own financial position,
it includes everything you own
(assets)
and owe
(liabilities).The boxes below represent the relative size of what makes up Northrop Grumman's finances.
The net worth of a company is the difference between its assets and liabilities.
- Northrop Grumman is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
- Northrop Grumman's long term commitments exceed its cash and other short term assets.
Balance sheet
Assets
Liabilities and shares
- Low level of unsold assets.
- Debt is not covered by short term assets, assets are 0.7x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t
bad,
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
All data from Northrop Grumman Company Filings, last reported 3 months ago.
| Date (Data in USD Millions) | Total Equity | Total Debt | Cash & Short Term Investments |
|---|---|---|---|
| 2018-12-31 | 8,187.00 | 14,598.00 | 1,579.00 |
| 2018-09-30 | 9,103.00 | 14,905.00 | 1,228.00 |
| 2018-06-30 | 8,227.00 | 15,131.00 | 1,539.00 |
| 2018-03-31 | 7,680.00 | 15,260.00 | 10,369.00 |
| 2017-12-31 | 7,132.00 | 15,266.00 | 11,225.00 |
| 2017-09-30 | 6,493.00 | 7,090.00 | 1,878.00 |
| 2017-06-30 | 5,919.00 | 7,081.00 | 1,383.00 |
| 2017-03-31 | 5,558.00 | 7,060.00 | 1,403.00 |
| 2016-12-31 | 5,259.00 | 7,070.00 | 2,541.00 |
| 2016-09-30 | 5,767.00 | 6,390.00 | 1,103.00 |
| 2016-06-30 | 5,681.00 | 6,390.00 | 1,139.00 |
| 2016-03-31 | 5,621.00 | 6,387.00 | 1,277.00 |
| 2015-12-31 | 5,522.00 | 6,496.00 | 2,319.00 |
| 2015-09-30 | 5,697.00 | 6,527.00 | 1,292.00 |
| 2015-06-30 | 6,171.00 | 6,527.00 | 1,907.00 |
| 2015-03-31 | 6,748.00 | 6,418.00 | 2,646.00 |
| 2014-12-31 | 7,235.00 | 5,928.00 | 3,863.00 |
| 2014-09-30 | 9,893.00 | 5,929.00 | 3,402.00 |
| 2014-06-30 | 10,268.00 | 5,929.00 | 3,476.00 |
| 2014-03-31 | 10,569.00 | 5,929.00 | 3,885.00 |
| 2013-12-31 | 10,620.00 | 5,930.00 | 5,150.00 |
| 2013-09-30 | 9,356.00 | 5,928.00 | 4,944.00 |
| 2013-06-30 | 9,558.00 | 5,933.00 | 4,904.00 |
| 2013-03-31 | 9,469.00 | 3,942.00 | 3,183.00 |
| 2012-12-31 | 9,514.00 | 3,935.00 | 3,862.00 |
| 2012-09-30 | 10,947.00 | 3,931.00 | 3,525.00 |
| 2012-06-30 | 10,715.00 | 3,932.00 | 3,148.00 |
- Northrop Grumman's level of debt (178.3%) compared to net worth is high (greater than 40%).
- The level of debt compared to net worth has increased over the past 5 years (55.8% vs 178.3% today).
- Debt is well covered by operating cash flow (26.2%, greater than 20% of total debt).
- Interest payments on debt are well covered by earnings (EBIT is 7.5x coverage).
Financial health checks
We assess Northrop Grumman's financial health by checking for:- Are short term assets greater than short term liabilities? (1 check)
- Are short term assets greater than long term liabilities? (1 check)
- Has the debt to equity ratio increased in the past 5 years? (1 check)
- Is the debt to equity ratio over 40%? (1 check)
- Is the debt covered by operating cash flow? (1 check)
- Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check) Northrop Grumman has a total score of 3/6, see the detailed checks below.
- Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
- Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
Full details on the Health part of the Simply Wall St company analysis model.
Dividends
What is Northrop Grumman's current dividend yield, its reliability and sustainability?
Dividends are regular cash payments to you from the company, similar to a
bank paying you interest on a savings account.
Annual Dividend Income
If you bought
$2,000 of
Northrop Grumman
shares you are expected to receive
$34
in your first year as a dividend.
Dividend Amount
- Northrop Grumman's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.4%).
- Northrop Grumman's dividend is below the markets top 25% of dividend payers in United States of America (3.62%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not
wildly increasing/decreasing each year. This graph shows you the historical rate
to count toward your assessment of the stock.We also check to see if the dividend has increased in the past 10 years.
| Data Point | Source | Value |
|---|---|---|
| Past Annualized Dividend Yield | S&P Global Market Data | See Below |
| Past Dividends per Share | Company Filings/ Annualized Dividend Payments | See Below |
| Future Dividends per Share Estimates | Average of up to 18 Analyst Estimates (S&P Global) | See Below |
| United States of America Aerospace & Defense Industry Average Dividend Yield | Market Cap Weighted Average of 22 Stocks | 1.9% |
| United States of America Market Average Dividend Yield | Market Cap Weighted Average of 2009 Stocks | 2.4% |
| United States of America Minimum Threshold Dividend Yield | 10th Percentile | 0.8% |
| United States of America Bottom 25% Dividend Yield | 25th Percentile | 1.4% |
| United States of America Top 25% Dividend Yield | 75th Percentile | 3.6% |
Industry and Market average data is calculated daily.
Note all dividend per share amounts are annualized and not quarterly or other period.
| Date (Data in $) | Dividend per Share (annual) | Avg. No. Analysts |
|---|---|---|
| 2023-12-31 | ||
| 2022-12-31 | 6.32 | 1.00 |
| 2021-12-31 | 6.16 | 7.00 |
| 2020-12-31 | 5.69 | 11.00 |
| 2019-12-31 | 5.21 | 11.00 |
| Date (Data in $) | Dividend per share (annual) | Avg. Yield (%) |
|---|---|---|
| 2019-02-12 | 4.800 | 1.729 |
| 2018-11-14 | 4.800 | 1.836 |
| 2018-08-15 | 4.800 | 1.615 |
| 2018-05-15 | 4.800 | 1.526 |
| 2018-01-25 | 4.400 | 1.293 |
| 2017-11-15 | 4.000 | 1.303 |
| 2017-08-16 | 4.000 | 1.407 |
| 2017-05-16 | 4.000 | 1.537 |
| 2017-02-17 | 3.600 | 1.480 |
| 2016-11-16 | 3.600 | 1.521 |
| 2016-08-17 | 3.600 | 1.642 |
| 2016-05-17 | 3.600 | 1.657 |
| 2016-02-16 | 3.200 | 1.610 |
| 2015-11-19 | 3.200 | 1.713 |
| 2015-10-28 | 3.200 | 1.725 |
| 2015-08-19 | 3.200 | 1.886 |
| 2015-05-20 | 3.200 | 1.940 |
| 2015-02-18 | 2.800 | 1.736 |
| 2014-11-19 | 2.800 | 1.860 |
| 2014-08-20 | 2.800 | 2.151 |
| 2014-05-21 | 2.800 | 2.284 |
| 2014-02-18 | 2.440 | 2.017 |
| 2013-11-20 | 2.440 | 2.149 |
| 2013-08-21 | 2.440 | 2.449 |
| 2013-05-15 | 2.440 | 2.827 |
| 2013-02-19 | 2.200 | 3.130 |
| 2013-02-05 | 2.200 | 3.345 |
| 2012-08-15 | 2.200 | 3.265 |
| 2012-05-16 | 2.200 | 3.523 |
| 2012-02-15 | 2.000 | 3.278 |
| 2011-11-17 | 2.000 | 3.460 |
| 2011-07-21 | 2.000 | 3.653 |
| 2011-04-27 | 2.000 | 3.064 |
| 2011-02-16 | 1.880 | 2.888 |
| 2010-11-17 | 1.880 | 2.845 |
| 2010-07-27 | 1.880 | 3.145 |
| 2010-05-19 | 1.880 | 3.231 |
| 2010-02-17 | 1.720 | 2.649 |
| 2009-10-19 | 1.720 | 3.107 |
| 2009-07-16 | 1.720 | 3.535 |
| 2009-05-20 | 1.720 | 3.685 |
| 2009-04-20 | 1.600 | 3.280 |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Dividends per share have been stable in the past 10 years.
- Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of
Northrop Grumman's earnings are
paid
to the shareholders as a dividend.
- Dividends paid are well covered by earnings (4x coverage).
- Dividends after 3 years are expected to be well covered by earnings (4.1x coverage).
Income/ dividend checks
We assess Northrop Grumman's dividend by checking for:- Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
- Is current dividend yield above the bottom 25% of dividend payers? (1 check)
- Is current dividend yield above the top 25% of dividend payers? (1 check)
- Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
- If they have paid a dividend for 10 years has it increased in this time? (1 check)
- How sustainable is the dividend, can Northrop Grumman afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks) Northrop Grumman has a total score of 5/6, see the detailed checks below.
Full details on the Dividends part of the Simply Wall St company analysis model.
Management
CEO
| COMPENSATION | $13,342,307 |
| AGE | 46 |
| TENURE AS CEO | 0.3 years |
CEO Bio
Ms. Kathy J. Warden has been President of Northrop Grumman Corporation since January 1, 2018 and has been its Chief Executive Officer since January 1, 2019. Ms. Warden served as the Chief Operating Officer of Northrop Grumman Corporation from January 1, 2018 to January 1, 2019. Ms. Warden was Corporate Vice President of Northrop Grumman Corporation since January 01, 2013 and was its President of Northrop Grumman Mission Systems since January 01, 2016 to 2017. Ms. Warden served as Corporate Vice President and President of Information Systems Sector at Northrop Grumman Corporation from 2013 to 2015. Ms. Warden oversaw large-scale, mission-critical systems and complex hardware and software products within the U.S. and internationally in areas such as command, control, computing, communications, intelligence, surveillance and reconnaissance (C4ISR) and cybersecurity. Ms. Warden served as the President of The Information Systems Sector at Northrop Grumman Corporation from January 01, 2013 to January 01, 2016. Ms. Warden has executive leadership over key cyber or cyber-related mission areas, such as information security, cyber security and signals intelligence (SIGINT). She works closely with other parts of Northrop Grumman as cyber products and services are delivered to its intelligence customers. Ms. Warden has extensive experience in operational leadership and business development in government and commercial markets. She served as Vice President and General Manager of Cyber Intelligence Division at Northrop Grumman Corporation from March 2011 to December 31, 2012. Among her senior roles at Northrop Grumman, Ms. Warden led the intelligence business in cyber, special access and airborne intelligence, surveillance and reconnaissance (ISR). Before joining Northrop Grumman in 2008, she served as the Senior Vice President of a business unit supporting a secure space program and served in other executive roles supporting the intelligence community. Earlier, she was a Principal in a venture Internet firm where she consulted with Fortune 500 companies on Internet use to expand their business models and led development teams to deliver e-publishing, e-commerce and e-marketing solutions. Ms. Warden held leadership roles at General Dynamics Advanced Information Systems and the Veridian Corporation. Ms. Warden spent nearly a decade with General Electric Company working in commercial industries. She began her GE career as a Systems Engineer and later served as Corporate Auditor, Strategy and Merger and Acquisitions Director and Director of Global Services at GE Information Services. She serves as Deputy Chairman of the Board at Federal Reserve Bank of Richmond since January 2018 and has been its Director since January 2015. She has been a Director of Northrop Grumman Corporation since July 12, 2018. She serves on the boards of directors for the Wolf Trap Foundation. Recently, she was Chair of the Executive Mosaic Cyber Group and served on the executive committee for the Intelligence and National Security Alliance. She served on the Clinton administration’s Internet Advisory Council. Ms. Warden is a member of the Northrop Grumman’s Corporate Policy Council. Ms. Warden holds a Bachelor's degree in Computer Systems from James Madison University and a Master's degree in Business Administration from George Washington University.
CEO Compensation
- Kathy's compensation has increased by more than 20% in the past year.
- Kathy's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure
Average tenure and age of the Northrop Grumman management team in years:
- The tenure for the Northrop Grumman management team is about average.
Management Team
Kathy Warden
CEO, President & Director
$13M
46
0.3 yrs
Ken Bedingfield
Corporate VP & CFO
$6M
45
4.2 yrs
Mark Caylor
Corporate VP & President of Mission Systems Sector
$6M
53
1.3 yrs
Blake Larson
Corporate VP & President of Innovation Systems Sector
$8M
58
Raj Chandhok
Vice President of Trust Administration and Investments
68
15.9 yrs
Michael Hardesty
Corporate VP
46
6.2 yrs
Pat Antkowiak
Corporate VP and Chief Strategy & Technology Officer
57
4.4 yrs
Steve Movius
Treasurer & Corporate VP of Investor Relations
Sheila Cheston
Corporate VP & General Counsel
$6M
59
8.7 yrs
Carl Hahn
Chief Compliance Officer & VP
4.3 yrs
Board of Directors Tenure
Average tenure and age of the Northrop Grumman board of directors in years:
- The tenure for the Northrop Grumman board of directors is about average.
Board of Directors
Wes Bush
Chairman
$24M
57
7.8 yrs
Kathy Warden
CEO, President & Director
$13M
46
0.8 yrs
Kathleen Thomas
Chairman of the Learning & Development Council and Vice President of Learning & Development
Karl Krapek
Director
$311K
69
10.6 yrs
Madeleine Kleiner
Director
$328K
66
10.5 yrs
Bill Hernandez
Director
$321K
70
5.6 yrs
Warren King
Chairman of Northrop Grumman Australia Advisory Board
1.2 yrs
Jim Stavridis
Chair of International Advisory Board
63
Don Felsinger
Lead Independent Director
$352K
70
6.9 yrs
Bruce Gordon
Director
$323K
72
10.5 yrs
Who owns this company?
Recent Insider Transactions
| Announced | Type | Name | Entity | Role | Start | End | Shares | Max Price ($) | Value ($) | |
|---|---|---|---|---|---|---|---|---|---|---|
| 01. Mar 19 | Sell | Shawn Purvis | Individual | 27. Feb 19 | 27. Feb 19 | -2,737 | $287.10 | $-783,706 | ||
| 01. Mar 19 | Sell | Kenneth Bedingfield | Individual | 27. Feb 19 | 27. Feb 19 | -1,750 | $286.36 | $-501,127 | ||
| 27. Feb 19 | Sell | David Perry | Individual | 25. Feb 19 | 25. Feb 19 | -13,210 | $290.08 | $-3,816,838 | ||
| 25. Feb 19 | Sell | Christopher Jones | Individual | 22. Feb 19 | 22. Feb 19 | -10,983 | $288.18 | $-3,155,090 | ||
| 25. Feb 19 | Sell | Lesley Kalan | Individual | 25. Sep 18 | 25. Sep 18 | -25 | $300.77 | $-7,519 | ||
| 22. Feb 19 | Sell | Lesley Kalan | Individual | 21. Feb 19 | 21. Feb 19 | -4,312 | $286.70 | $-1,236,250 | ||
| 21. Feb 19 | Sell | Wesley Bush | Individual | 20. Feb 19 | 20. Feb 19 | -77,333 | $288.22 | $-22,213,951 | ||
Management checks
We assess Northrop Grumman's management by checking for:- Is the CEO's compensation unreasonable compared to market cap? (1 check)
- Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
- Is the average tenure of the management team less than 2 years? (1 check)
- Is the average tenure of the board of directors team less than 3 years? (1 check) Northrop Grumman has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.
Note: We use the top 6 management executives and board members in our calculations.
Note 2: Insider trading include any internal stakeholders and these transactions .
Full details on the Management part of the Simply Wall St company analysis model.
News
Simply Wall St News
Northrop Grumman Corporation (NYSE:NOC): What's The Analyst Consensus Outlook?
The most recent earnings update Northrop Grumman Corporation's (NYSE:NOC) released in December 2018a
Simply Wall St - – Full articleWhen Should You Buy Northrop Grumman Corporation (NYSE:NOC)?
saw a decent share price growth in the teens level on the NYSE over the last few months. … With many analysts covering the large-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price? … Let’s examine Northrop Grumman’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.
Simply Wall St - – Full articleIf You Had Bought Northrop Grumman (NYSE:NOC) Shares Five Years Ago You'd Have Made 123%
For example, the Northrop Grumman Corporation (NYSE:NOC) share price has soared 123% in the last half decade. … During five years of share price growth, Northrop Grumman achieved compound earnings per share (EPS) growth of 17% per year. … This EPS growth is remarkably close to the 17% average annual increase in the share price.
Simply Wall St - – Full articleShould We Be Delighted With Northrop Grumman Corporation's (NYSE:NOC) ROE Of 39%?
We'll use ROE to examine Northrop Grumman Corporation (NYSE:NOC), by way of a worked example. … That means that for every $1 worth of shareholders' equity, it generated $0.39 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity
Simply Wall St - – Full articleOnly 3 Days Left Before Northrop Grumman Corporation (NYSE:NOC) Will Be Trading Ex-Dividend
Important news for shareholders and potential investors in Northrop Grumman Corporation (NYSE:NOC): The dividend payment of US$1.20 per share will be distributed to shareholders on 13 March 2019, and the stock will begin trading ex-dividend at an earlier date, 22 February 2019. … What does this mean for current shareholders and potential investors? … Below, I will explain how holding Northrop Grumman can impact your portfolio income stream, by analysing the stock's most recent financial data and dividend attributes.
Simply Wall St - – Full articleDoes Northrop Grumman Corporation (NYSE:NOC) Have A Good P/E Ratio?
We'll look at Northrop Grumman Corporation's (NYSE:NOC) P/E ratio and reflect on what it tells us about the company's share price. … Northrop Grumman has a P/E ratio of 17.82, based on the last twelve months. … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)
Simply Wall St - – Full articleEstimating The Fair Value Of Northrop Grumman Corporation (NYSE:NOC)
How far off is Northrop Grumman Corporation (NYSE:NOC) from its intrinsic value? … by taking the expected future cash flows and discounting them to their present value. … Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model
Simply Wall St - – Full articleExamining Northrop Grumman Corporation’s (NYSE:NOC) Weak Return On Capital Employed
Specifically, we'll consider its Return On Capital Employed (ROCE), since that will give us an insight into how efficiently the business can generate profits from the capital it requires. … What is Return On Capital Employed (ROCE)? … ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business.
Simply Wall St - – Full articleNorthrop Grumman Corporation (NYSE:NOC): Poised For Long Term Success?
Looking at Northrop Grumman Corporation's (NYSE:NOC) earnings update in September 2018,. … the consensus outlook from analysts appear fairly confident, … with earnings expected to grow by 16% in the upcoming year
Simply Wall St - – Full articleShould You Be Holding Northrop Grumman Corporation (NYSE:NOC)?
Building up an investment case requires looking at a stock holistically. … Today I've chosen to put the spotlight on Northrop Grumman Corporation (NYSE:NOC) due to its excellent fundamentals in more than one area.
Simply Wall St - – Full articleCompany Info
Description
Northrop Grumman Corporation, a security company, provides products in the areas of autonomous systems, cyber, space, strikes, and logistics and modernizations in the United States, the Asia Pacific, and internationally. The company operates through four segments: Aerospace Systems, Innovation Systems, Mission Systems, and Technology Services. The Aerospace Systems segment designs, develops, integrates, and produces manned aircrafts, autonomous systems, spacecraft systems, high-energy laser systems, microelectronics, and other systems and sub-systems for use in the areas of intelligence, surveillance and reconnaissance, strike operations, communications, earth observations, and space science. The Innovation Systems segment designs, develops, integrates, and produces flights, armaments, and space systems. It offers launch vehicles and related propulsion systems; missile products and defense electronics; precision weapons, armament systems, and ammunitions; satellites and associated space components and services; and advanced aerospace structures. The Mission Systems segment offers products and services that include C4ISR systems; radar, electro-optical/infrared (EO/IR), and acoustic sensors; electronic warfare systems; cyber solutions; space systems; intelligence processing systems; air and missile defense integration systems; navigation systems; and shipboard missiles and encapsulated payload launch systems. The Technology Services segment provides logistic solutions that supports the full life cycle of platforms and systems. Its products and services include software and system sustainment; modernization of platform and associated subsystems; advanced training solutions; and integrated logistics support. Northrop Grumman Corporation was founded in 1939 and is based in Falls Church, Virginia.
Details
| Name: | Northrop Grumman Corporation |
| NOC | |
| Exchange: | NYSE |
| Founded: | 1939 |
| $47,785,680,874 | |
| 169,959,030 | |
| Website: | http://www.northropgrumman.com |
| Address: |
Northrop Grumman Corporation 2980 Fairview Park Drive, Falls Church, Virginia, 22042, United States |
Listings
| Exchange Symbol | Ticker Symbol | Security | Exchange | Country | Currency | Listed on | |
|---|---|---|---|---|---|---|---|
| NYSE | NOC | Common Stock | New York Stock Exchange | US | USD | 02. Jan 1968 | |
| DB | NTH | Common Stock | Deutsche Boerse AG | DE | EUR | 02. Jan 1968 | |
| LSE | 0K92 | Common Stock | London Stock Exchange | GB | USD | 02. Jan 1968 | |
| BMV | NOC * | Common Stock | Bolsa Mexicana de Valores | MX | MXN | 02. Jan 1968 |
Number of employees
Current staff
Industry
| Aerospace and Defense | |
| Capital Goods |
Company Analysis and Financial Data Status
| Area | Date (UTC time) |
|---|---|
| Company Analysis updated: | 2019/04/19 23:39 |
| End of day share price update: | 2019/04/18 00:00 |
| Last estimates confirmation: | 2019/04/18 |
| Last earnings filing: | 2019/01/31 |
| Last earnings reported: | 2018/12/31 |
| Last annual earnings reported: | 2018/12/31 |
All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.
