Northrop Grumman
Market Cap
US$59.3b
Last Updated
2019/10/21 23:40 UTC
Data Sources
Company Financials +
Executive Summary
Northrop Grumman Corporation operates as a security company.
Snowflake
Fundamentals
Established dividend payer with mediocre balance sheet.
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
Market Performance
7 Day Return
-4.4%
NOC
-1.4%
US Aerospace & Defense
1.0%
US Market
1 Year Return
14.2%
NOC
7.5%
US Aerospace & Defense
8.0%
US Market
Return vs Industry: NOC exceeded the US Aerospace & Defense industry which returned 7.5% over the past year.
Return vs Market: NOC exceeded the US Market which returned 8% over the past year.
Shareholder returns
| NOC | Industry | Market | |
|---|---|---|---|
| 7 Day | -4.4% | -1.4% | 1.0% |
| 30 Day | -4.8% | -2.8% | -0.07% |
| 90 Day | 8.1% | 1.6% | -1.0% |
| 1 Year | 16.1%14.2% | 9.6%7.5% | 10.4%8.0% |
| 3 Year | 69.4%61.9% | 59.1%50.3% | 46.2%36.7% |
| 5 Year | 190.7%167.9% | 92.0%73.6% | 64.3%46.2% |
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
13 hours ago | Simply Wall St
How Much Of Northrop Grumman Corporation (NYSE:NOC) Do Institutions Own?1 week ago | Simply Wall St
Announcing: Northrop Grumman (NYSE:NOC) Stock Increased An Energizing 204% In The Last Five Years3 weeks ago | Simply Wall St
A Look At The Fair Value Of Northrop Grumman Corporation (NYSE:NOC)Valuation
Is Northrop Grumman undervalued compared to its fair value and its price relative to the market?
7.6%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: NOC ($350.39) is trading below our estimate of fair value ($379.16)
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 good value based on its PE Ratio (18.1x) compared to the Aerospace & Defense industry average (21.6x).
PE vs Market: NOC is poor value based on its PE Ratio (18.1x) compared to the US market (17.6x).
Price to Earnings Growth Ratio
PEG Ratio: NOC is poor value based on its PEG Ratio (2x)
Price to Book Ratio
PB vs Industry: NOC is overvalued based on its PB Ratio (6.4x) compared to the US Aerospace & Defense industry average (2.5x).
Next Steps
Future Growth
How is Northrop Grumman forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?
9.1%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: NOC's forecast earnings growth (9.1% per year) is above the savings rate (2.7%).
Earnings vs Market: NOC's earnings (9.1% per year) are forecast to grow slower than the US market (14.5% per year).
High Growth Earnings: NOC's earnings are forecast to grow, but not significantly.
Revenue vs Market: NOC's revenue (5.6% per year) is forecast to grow slower than the US market (7.2% per year).
High Growth Revenue: NOC's revenue (5.6% 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 (35.8%)
Next Steps
Past Performance
How has Northrop Grumman performed over the past 5 years?
13.3%
Historical annual earnings growth
Earnings and Revenue History
Past Earnings Growth Analysis
Earnings Trend: NOC's earnings have grown by 13.3% per year over the past 5 years.
Accelerating Growth: NOC's earnings growth over the past year (0.9%) is below its 5-year average (13.3% per year).
Earnings vs Industry: NOC earnings growth over the past year (0.9%) underperformed the Aerospace & Defense industry 10.5%.
Return on Equity
High ROE: Whilst NOC's Return on Equity (36.08%) is high, this metric is skewed due to their high level of debt.
Return on Assets
ROA vs Industry: NOC has a higher Return on Assets than the Aerospace & Defense industry average last year.
Return on Capital Employed
ROCE Improving: NOC's Return on Capital Employed has declined over the past 3 years.
Next Steps
Financial Health
How is Northrop Grumman's financial position?
Financial Position Analysis
Short Term Liabilities: NOC's short term assets ($10.2B) exceeds its short term liabilities ($8.2B)
Long Term Liabilities: NOC's short term assets (10.2B) do not cover its long term liabilities (22.2B)
Debt to Equity History and Analysis
Debt Level: NOC's debt to equity ratio (159.3%) is considered high
Reducing Debt: NOC's debt to equity ratio has increased from 57.8% to 159.3% over the past 5 years.
Debt Coverage: NOC's debt is well covered by operating cash flow (26.4%).
Interest Coverage: NOC's interest payments on its debt are well covered by EBIT (7.8x coverage).
Balance Sheet
Inventory Level: NOC has a high level of physical assets or inventory.
Debt Coverage by Assets: NOC's debt is not covered by short term assets (assets are 0.7x debt).
Next Steps
Dividend
What is Northrop Grumman's current dividend yield, its reliability and sustainability?
1.51%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Stability and Growth of Payments
Notable Dividend: NOC's dividend (1.51%) is higher than the bottom 25% of dividend payers in the US market (1.44%).
High Dividend: NOC's dividend (1.51%) is low compared to the top 25% of dividend payers in the US market (3.68%).
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 (25.4%), 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 (23.3% payout ratio).
Next Steps
Management
What is the CEO of Northrop Grumman's salary, the management and board of directors tenure and is there insider trading?
4.8yrs
Average management tenure
CEO
Kathy Warden (47yo)
0.8yrs
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 has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the US market.
Compensation vs Earnings: Kathy's compensation has increased by more than 20% in the past year.
Management Age and Tenure
4.8yrs
Average Tenure
56yo
Average Age
Experienced Management: NOC's management team is considered experienced (4.8 years average tenure).
Board Age and Tenure
7.8yrs
Average Tenure
68.5yo
Average Age
Experienced Board: NOC's board of directors are considered experienced (7.8 years average tenure).
Insider Trading
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 971 |
| Max Price | US$315.16 |
| Entity | Individual |
| Shares | 2,737 |
| Max Price | US$287.10 |
| Entity | Individual |
| Role | Chief Financial Officer Corporate VP & CFO |
| Shares | 1,750 |
| Max Price | US$286.36 |
| Entity | Individual |
| Shares | 13,210 |
| Max Price | US$290.08 |
| Entity | Individual |
| Shares | 10,983 |
| Max Price | US$288.18 |
| Entity | Individual |
| Shares | 4,312 |
| Max Price | US$286.70 |
| Entity | Individual |
| Shares | 77,333 |
| Max Price | US$288.22 |
Ownership Breakdown
Management Team
Raj Chandhok (69yo)
Vice President of Trust Administration and Investments
- Tenure: 16.4yrs
Sheila Cheston (60yo)
Corporate VP & General Counsel
- Tenure: 9.2yrs
- Compensation: US$6.20m
Blake Larson (59yo)
Corporate VP & President of Innovation Systems Sector
- Tenure: 0yrs
- Compensation: US$8.09m
Michael Hardesty (47yo)
Corporate VP
- Tenure: 6.7yrs
Todd Ernst
Vice President of Investor Relations
- Tenure: 0.2yrs
Pat Antkowiak (58yo)
Corporate Vice President and Chief Strategy & Technology Officer
- Tenure: 4.9yrs
Kathy Warden (47yo)
Chairman
- Tenure: 0.8yrs
- Compensation: US$13.34m
Mark Caylor (54yo)
Corporate VP & President of Mission Systems Sector
- Tenure: 1.8yrs
- Compensation: US$6.15m
Ken Bedingfield (46yo)
Corporate VP & CFO
- Tenure: 4.7yrs
- Compensation: US$5.92m
Carl Hahn
Chief Compliance Officer & VP
- Tenure: 4.8yrs
Board Members
Karl Krapek (70yo)
Independent Director
- Tenure: 11.1yrs
- Compensation: US$310.56k
Don Felsinger (71yo)
Lead Independent Director
- Tenure: 7.4yrs
- Compensation: US$352.18k
Bill Hernandez (71yo)
Independent Director
- Tenure: 6.1yrs
- Compensation: US$321.40k
Tom Schoewe (66yo)
Independent Director
- Tenure: 8.2yrs
- Compensation: US$295.99k
Bruce Gordon (73yo)
Independent Director
- Tenure: 11yrs
- Compensation: US$323.33k
Madeleine Kleiner (67yo)
Independent Director
- Tenure: 11yrs
- Compensation: US$328.18k
Kathleen Thomas
Chairman of the Learning & Development Council and Vice President of Learning & Development
- Tenure: 0yrs
Kathy Warden (47yo)
Chairman
- Tenure: 0.8yrs
- Compensation: US$13.34m
Jim Stavridis (64yo)
Chair of International Advisory Board
- Tenure: 0yrs
Warren King
Chairman of Northrop Grumman Australia Advisory Board
- Tenure: 1.7yrs
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$59.285b
- Shares outstanding: 169.20m
- 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 |
| 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 |
| 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 ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2019/10/21 23:40 |
| End of Day Share Price | 2019/10/21 00:00 |
| Earnings | 2019/06/30 |
| Annual Earnings | 2018/12/31 |
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.