Stock Analysis Report

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Executive Summary

Northrop Grumman Corporation operates as a security company. More Details

Snowflake Analysis

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

Stable Share Price: NOC is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: NOC's weekly volatility (3%) has been stable over the past year.

Market Performance

7 Day Return




US Aerospace & Defense


US Market

1 Year Return




US Aerospace & Defense


US Market

Return vs Industry: NOC exceeded the US Aerospace & Defense industry which returned -28.5% over the past year.

Return vs Market: NOC underperformed the US Market which returned 19.6% over the past year.

Shareholder returns

7 Day4.3%2.4%-1.0%
30 Day-0.8%0.9%2.3%
90 Day-3.4%8.5%13.1%
1 Year-19.5%-20.8%-13.6%-28.5%22.3%19.6%
3 Year-0.3%-4.9%2.8%-18.6%45.3%35.7%
5 Year76.7%63.4%75.9%32.9%124.8%99.8%

Long-Term 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


Is Northrop Grumman undervalued compared to its fair value and its price relative to the market?


Price to Earnings (PE) ratio

Share Price vs. Fair Value

Below Fair Value: NOC ($300.75) is trading above our estimate of fair value ($290.5)

Significantly Below Fair Value: NOC is trading above our estimate of fair value.

Price To Earnings Ratio

PE vs Industry: NOC is good value based on its PE Ratio (20.6x) compared to the US Aerospace & Defense industry average (31.2x).

PE vs Market: NOC is good value based on its PE Ratio (20.6x) compared to the US market (21x).

Price to Earnings Growth Ratio

PEG Ratio: NOC is poor value based on its PEG Ratio (4x)

Price to Book Ratio

PB vs Industry: NOC is overvalued based on its PB Ratio (4.8x) compared to the US Aerospace & Defense industry average (3x).

Next Steps

Future Growth

How is Northrop Grumman forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?


Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: NOC's forecast earnings growth (5.1% per year) is above the savings rate (2%).

Earnings vs Market: NOC's earnings (5.1% per year) are forecast to grow slower than the US market (21.5% per year).

High Growth Earnings: NOC's earnings are forecast to grow, but not significantly.

Revenue vs Market: NOC's revenue (4.4% per year) is forecast to grow slower than the US market (10.3% per year).

High Growth Revenue: NOC's revenue (4.4% 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 (31.9%)

Next Steps

Past Performance

How has Northrop Grumman performed over the past 5 years?


Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: NOC has high quality earnings.

Growing Profit Margin: NOC's current net profit margins (6.9%) are lower than last year (9%).

Past Earnings Growth Analysis

Earnings Trend: NOC's earnings have grown by 6.5% 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 (-18.5%) over the past year, making it difficult to compare to the Aerospace & Defense industry average (-6.7%).

Return on Equity

High ROE: Whilst NOC's Return on Equity (23.41%) 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 ($14.6B) exceed its short term liabilities ($10.1B).

Long Term Liabilities: NOC's short term assets ($14.6B) do not cover its long term liabilities ($24.2B).

Debt to Equity History and Analysis

Debt Level: NOC's debt to equity ratio (151%) is considered high.

Reducing Debt: NOC's debt to equity ratio has increased from 114.6% to 151% over the past 5 years.

Debt Coverage: NOC's debt is well covered by operating cash flow (32.7%).

Interest Coverage: NOC's interest payments on its debt are well covered by EBIT (6x coverage).

Balance Sheet

Next Steps


What is Northrop Grumman current dividend yield, its reliability and sustainability?


Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: NOC's dividend (1.93%) is higher than the bottom 25% of dividend payers in the US market (1.39%).

High Dividend: NOC's dividend (1.93%) is low compared to the top 25% of dividend payers in the US market (3.85%).

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 (37.9%), 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 (24.1% payout ratio).

Next Steps


How experienced are the management team and are they aligned to shareholders interests?


Average management tenure


Kathy Warden (48 yo)





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 ($USD20.31M) is above average for companies of similar size in the US market ($USD10.56M).

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

Kathy Warden
$ 30.9m
Janis Pamiljans
Corporate VP & President of Aeronautics Systems Sector3.75yrsUS$7.22m0.0045%
$ 2.2m
Mark Caylor
Corporate VP & President of Mission Systems Sector3yrsUS$6.79m0.0086%
$ 4.3m
David Keffer
Corporate VP & CFO0.92yrno datano data
Rajender Chandhok
Vice President of Trust Administration and Investments17.67yrsno datano data
Michael Hardesty
Corporate VP7.92yrsno data0.0026%
$ 1.3m
Richard Stapp
Chief Technology Officer0.17yrno datano data
Todd Ernst
Vice President of Investor Relations1.42yrsno datano data
Sheila Cheston
Corporate VP & General Counsel10.42yrsUS$6.20m0.018%
$ 9.0m
Carl Hahn
Chief Compliance Officer & VP6yrsno datano data
Lucy Ryan
Corporate Vice President of Communications2yrsno data0.00033%
$ 165.5k
Ann Addison
Corporate VP & Chief Human Resources Officer2yrsno data0.0017%
$ 847.4k


Average Tenure


Average Age

Experienced Management: NOC's management team is considered experienced (2.5 years average tenure).

Board Members

Kathy Warden
$ 30.9m
Kathleen Thomas
Chairman of the Learning & Development Council and Vice President of Learning & Developmentno datano datano data
Karl Krapek
Independent Director12.33yrsUS$314.24k0.0039%
$ 2.0m
Donald Felsinger
Lead Independent Director8.67yrsUS$352.45kno data
William Hernandez
Independent Director7.33yrsUS$330.31k0.00060%
$ 300.8k
Thomas Schoewe
Independent Director9.42yrsUS$313.09k0.0019%
$ 952.7k
Ann Fudge
Independent Director4.83yrsUS$309.48k0.000060%
$ 30.1k
Bruce Gordon
Independent Director12.25yrsUS$311.07k0.011%
$ 5.6m
Madeleine Kleiner
Independent Director12.25yrsUS$335.82k0.010%
$ 5.2m
James Turley
Independent Director5.92yrsUS$309.68k0.00038%
$ 190.5k
Marianne Brown
Independent Director5.83yrsUS$299.89kno data
Gary Roughead
Independent Director8.92yrsUS$312.21k0.0053%
$ 2.7m


Average Tenure


Average Age

Experienced Board: NOC's board of directors are considered experienced (8.7 years average tenure).


Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold 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$50.140b
  • Shares outstanding: 166.72m
  • Website: https://www.northropgrumman.com

Number of Employees


  • Northrop Grumman Corporation
  • 2980 Fairview Park Drive
  • Falls Church
  • Virginia
  • 22042
  • United States


TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NOCNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1968
NTHDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1968
NTHXTRA (XETRA Trading Platform)YesCommon StockDEEURJan 1968
0K92LSE (London Stock Exchange)YesCommon StockGBUSDJan 1968
NOC *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJan 1968
NTHETLX (Eurotlx)YesCommon StockITEURJan 1968
NOCOWBAG (Wiener Boerse AG)YesCommon StockATEURJan 1968
NOCG34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 5 REPR 1 COMBRBRLMay 2019


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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/17 23:42
End of Day Share Price2021/01/15 00:00
Annual Earnings2019/12/31

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.