Northrop Grumman
Market Cap
US$54.5b
Last Updated
2020/04/08 06:52 UTC
Data Sources
Company Financials +
Executive Summary
Northrop Grumman Corporation operates as a security company.
Rewards
Risk Analysis
Snowflake Analysis
Average dividend payer with moderate growth potential.
Similar Companies
Share Price & News
How has Northrop Grumman's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: NOC has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
6.0%
NOC
-5.7%
US Aerospace & Defense
2.4%
US Market
1 Year Return
20.3%
NOC
-16.9%
US Aerospace & Defense
-10.0%
US Market
Return vs Industry: NOC exceeded the US Aerospace & Defense industry which returned -16.9% over the past year.
Return vs Market: NOC exceeded the US Market which returned -10% over the past year.
Shareholder returns
| NOC | Industry | Market | |
|---|---|---|---|
| 7 Day | 6.0% | -5.7% | 2.4% |
| 30 Day | 3.9% | -22.7% | -11.0% |
| 90 Day | -12.6% | -32.4% | -19.4% |
| 1 Year | 22.2%20.3% | -5.8%-16.9% | -8.1%-10.0% |
| 3 Year | 42.4%36.0% | 12.2%-4.5% | 17.3%9.6% |
| 5 Year | 116.0%99.4% | 48.0%17.8% | 36.1%21.1% |
Price Volatility Vs. Market
How volatile is Northrop Grumman's share price compared to the market and industry in the last 5 years?
Simply Wall St News
7 hours ago | Simply Wall St
Should You Be Tempted To Sell Northrop Grumman Corporation (NYSE:NOC) Because Of Its P/E Ratio?2 weeks ago | Simply Wall St
Is There Now An Opportunity In Northrop Grumman Corporation (NYSE:NOC)?3 weeks ago | Simply Wall St
Is Northrop Grumman Corporation (NYSE:NOC) Investing Effectively In Its Business?Valuation
Is Northrop Grumman undervalued compared to its fair value and its price relative to the market?
17.7%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: NOC ($325.52) is trading below our estimate of fair value ($395.52)
Significantly Below Fair Value: NOC is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: NOC is poor value based on its PE Ratio (24.5x) compared to the Aerospace & Defense industry average (13.4x).
PE vs Market: NOC is poor value based on its PE Ratio (24.5x) compared to the US market (13x).
Price to Earnings Growth Ratio
PEG Ratio: NOC is poor value based on its PEG Ratio (1.6x)
Price to Book Ratio
PB vs Industry: NOC is overvalued based on its PB Ratio (6.2x) compared to the US Aerospace & Defense industry average (1.7x).
Next Steps
Future Growth
How is Northrop Grumman forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?
14.9%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: NOC's forecast earnings growth (14.9% per year) is above the savings rate (1.7%).
Earnings vs Market: NOC's earnings (14.9% per year) are forecast to grow faster than the US market (13.3% per year).
High Growth Earnings: NOC's earnings are forecast to grow, but not significantly.
Revenue vs Market: NOC's revenue (5.5% per year) is forecast to grow slower than the US market (7% per year).
High Growth Revenue: NOC's revenue (5.5% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: NOC's Return on Equity is forecast to be high in 3 years time (35.9%)
Next Steps
Past Performance
How has Northrop Grumman performed over the past 5 years?
11.5%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: NOC has high quality earnings.
Growing Profit Margin: NOC's current net profit margins (6.6%) are lower than last year (10.7%).
Past Earnings Growth Analysis
Earnings Trend: NOC's earnings have grown by 11.5% per year over the past 5 years.
Accelerating Growth: NOC's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: NOC had negative earnings growth (-30.4%) over the past year, making it difficult to compare to the Aerospace & Defense industry average (3%).
Return on Equity
High ROE: Whilst NOC's Return on Equity (25.49%) is high, this metric is skewed due to their high level of debt.
Next Steps
Financial Health
How is Northrop Grumman's financial position?
Financial Position Analysis
Short Term Liabilities: NOC's short term assets ($10.7B) exceed its short term liabilities ($9.4B).
Long Term Liabilities: NOC's short term assets ($10.7B) do not cover its long term liabilities ($22.8B).
Debt to Equity History and Analysis
Debt Level: NOC's debt to equity ratio (157.4%) is considered high.
Reducing Debt: NOC's debt to equity ratio has increased from 82.1% to 157.4% over the past 5 years.
Debt Coverage: NOC's debt is well covered by operating cash flow (31%).
Interest Coverage: NOC's interest payments on its debt are well covered by EBIT (5.6x coverage).
Balance Sheet
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Dividend
What is Northrop Grumman's current dividend yield, its reliability and sustainability?
1.62%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: NOC's dividend (1.62%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.93%).
High Dividend: NOC's dividend (1.62%) is low compared to the top 25% of dividend payers in the US market (5.46%).
Stability and Growth of Payments
Stable Dividend: NOC's dividends per share have been stable in the past 10 years.
Growing Dividend: NOC's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (38.9%), NOC's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: NOC's dividends in 3 years are forecast to be well covered by earnings (23.4% payout ratio).
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Management
How experienced are the management team and are they aligned to shareholders interests?
2.3yrs
Average management tenure
CEO
Kathy Warden (47yo)
1.25s
Tenure
US$13,342,307
Compensation
Ms. Kathy J. Warden has been President of Northrop Grumman Corporation since January 1, 2018, Chief Executive Officer since January 1, 2019 and Chairman of the Board August 1, 2019. Ms. Warden served as th ...
CEO Compensation Analysis
Compensation vs Market: Kathy's total compensation ($USD13.34M) is about average for companies of similar size in the US market ($USD11.79M).
Compensation vs Earnings: Kathy's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | 1.25yrs | US$13.34m | 0.061% $33.4m | |
| Corporate VP & President of Mission Systems Sector | 2.25yrs | US$6.15m | 0.0086% $4.7m | |
| Corporate VP & President of Space Systems Sector | no data | US$8.09m | 0.0042% $2.3m | |
| Corporate VP & CFO | 0.17yr | no data | no data | |
| Vice President of Trust Administration and Investments | 16.92yrs | no data | no data | |
| Corporate VP | 7.17yrs | no data | 0.0026% $1.4m | |
| Vice President of Investor Relations | 0.67yr | no data | no data | |
| Corporate VP & General Counsel | 9.67yrs | US$6.20m | 0.018% $9.7m | |
| Chief Compliance Officer & VP | 5.25yrs | no data | no data | |
| Corporate Vice President of Communications | 1.25yrs | no data | 0.00033% $179.7k |
2.3yrs
Average Tenure
50.5yo
Average Age
Experienced Management: NOC's management team is considered experienced (2.3 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | 1.25yrs | US$13.34m | 0.061% $33.4m | |
| Chairman of the Learning & Development Council and Vice President of Learning & Development | no data | no data | no data | |
| Independent Director | 11.58yrs | US$310.56k | 0.0039% $2.1m | |
| Lead Independent Director | 7.92yrs | US$352.18k | no data | |
| Independent Director | 6.58yrs | US$321.40k | 0.00060% $326.7k | |
| Independent Director | 8.67yrs | US$295.99k | 0.0019% $1.0m | |
| Independent Director | 11.5yrs | US$323.33k | no data | |
| Independent Director | 11.5yrs | US$328.18k | no data | |
| Independent Director | 5.17yrs | US$307.47k | 0.00038% $206.9k | |
| Independent Director | 8.17yrs | US$295.28k | no data |
8.2yrs
Average Tenure
67yo
Average Age
Experienced Board: NOC's board of directors are considered experienced (8.2 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: NOC insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Northrop Grumman Corporation's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Northrop Grumman Corporation
- Ticker: NOC
- Exchange: NYSE
- Founded: 1939
- Industry: Aerospace and Defense
- Sector: Capital Goods
- Market Cap: US$54.457b
- Shares outstanding: 167.29m
- Website: https://www.northropgrumman.com
Number of Employees
Location
- Northrop Grumman Corporation
- 2980 Fairview Park Drive
- Falls Church
- Virginia
- 22042
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| NOC | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Jan 1968 |
| NTH | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Jan 1968 |
| NTH | XTRA (XETRA Trading Platform) | Yes | Common Stock | DE | EUR | Jan 1968 |
| 0K92 | LSE (London Stock Exchange) | Yes | Common Stock | GB | USD | Jan 1968 |
| NOC * | BMV (Bolsa Mexicana de Valores) | Yes | Common Stock | MX | MXN | Jan 1968 |
| NTH | ETLX (Eurotlx) | Yes | Common Stock | IT | EUR | Jan 1968 |
| NOCO | WBAG (Wiener Boerse AG) | Yes | Common Stock | AT | EUR | Jan 1968 |
| NOCG34 | BOVESPA (Bolsa de Valores de Sao Paulo) | BDR EACH 1 REP 0.2 COM USD1 | BR | BRL | May 2019 |
Biography
Northrop Grumman Corporation operates as a security company. It provides various systems, products, and solutions in autonomous systems, cyber, space, strike, and logistics and modernization, as well as in command, control, communications and computers, intelligence, surveillance, and reconnaissance (C4ISR) to customers in the United States and internationally. The company operates through Aeronautics Systems, Defense Systems, Mission Systems, and Space Systems segments. It 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 company also designs, develops, integrates, and produces flights, armaments, and space systems to enable national security, civil government, and commercial customers in achieving their critical missions. Its space systems include launch vehicles and related propulsion systems; missile products and defense electronics; precision weapons, armament systems and ammunition; satellites and associated space components and services; and aerospace structures. In addition, it offers C4ISR systems; radar, electro-optical/infrared, and acoustic sensors; electronic warfare systems; cyber solutions; space and intelligence processing systems; air and missile defense integration systems; navigation systems; and shipboard missiles and encapsulated payload launch systems. Further, the company provides life-cycle solutions and services in support of networks and systems, including sustainment, modernization, training and simulation, software, engineering services, cyber, rapidly-deployable global logistics, and information technology. The company was founded in 1939 and is based in Falls Church, Virginia.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/04/08 06:52 |
| End of Day Share Price | 2020/04/07 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
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.