NOC

Northrop Grumman Corporation

Fundamental data last updated:June 10, 2026

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company profile

SECTOR

Industrials

industry

Aerospace & Defense

Exchange

NYSE

County of HQ

US

Next Earnings Date

07/23/2026

Business Summary

Northrop Grumman Corporation is a leading global player in the aerospace and defense sectors. Its Aeronautics Systems division is responsible for the full lifecycle of aircraft, from design and development to production, integration, and ongoing maintenance. This includes a diverse portfolio of crewed and uncrewed aerial platforms: advanced strategic long-range strike aircraft, tactical fighter and air superiority jets, and sophisticated airborne systems for battle management and command and control. Additionally, it specializes in autonomous uncrewed aircraft systems, such as high-altitude, long-endurance strategic intelligence, surveillance, and reconnaissance (ISR) platforms, alongside vertical take-off and landing tactical ISR systems. The Defense Systems segment focuses on creating and delivering a wide array of weapons and mission technologies. Its offerings encompass integrated battle management solutions, various weapons platforms, and specialized aircraft. Key products include command and control systems, munitions, and missiles, alongside precision strike capabilities. The segment is also at the forefront of propulsion technologies, offering both air-breathing and advanced hypersonic systems, as well as sophisticated gun systems and precision munitions. Beyond products, it provides comprehensive life-cycle support, including software services, ongoing maintenance, logistics, operational assistance, and modernization efforts for air, sea, and ground-based defense systems. Within its Mission Systems division, Northrop Grumman delivers critical capabilities spanning cybersecurity, C4ISR (command, control, communications, computers, intelligence, surveillance, and reconnaissance). This includes developing advanced sensing technologies such as radar, electro-optical/infrared, and acoustic sensors, alongside electronic warfare systems. The division also provides cutting-edge communications and networking solutions, intelligence processing, navigation systems, and maritime power, propulsion, and payload launch systems. Furthermore, it supplies airborne multifunction sensors, integrated maritime and land-based systems, targeting and survivability solutions, and robust networked information platforms. The Space Systems segment is a key provider of space-based solutions, delivering satellites and their associated payloads, along with essential ground control systems. It specializes in missile defense systems, including interceptors, and offers a range of launch vehicles with their propulsion components, as well as strategic missile technologies. Established in 1939, the corporation maintains its headquarters in Falls Church, Virginia.

 


VALUATION

P/E

17.04

Market Cap ($M USD)

$77.93B

Forward P/E

14.85

PEG

1.01

PRICE TO SALES

1.84

PRICE TO BOOK

4.56

EV / EBITDA

12.40

5-Year Average P/E

Free Cash Flow Yield

4.24%

DCF Value

$1021.42

Graham Number

$295.41

Price to FCF

23.58

EV to FCF

28.11

Earnings Yield

5.87%

FCF Yield

4.24%

DIVIDEND

Yield

1.71%

Annual Payout

$9.40

Payout Ratio

28.93%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$32.20

Next Year EPS Growth Estimate

$36.95

Next Year Revenue Growth Estimate

$5.50T

Return on Equity (ROE)

28.05%

FREE CASH FLOW

Operating Margin

11.08%

Debt-to-Equity

1.18

Piotroski F-Score

9

Altman Z-Score

3.16

Return on Invested Capital (ROIC)

12.63%

Current Ratio

1.14

Quick Ratio

1.02

Net Debt to EBITDA

2.00

Interest Coverage

7.00

Gross Profit margin

20.52%

FCF PER SHARE

$23.26

REVENUE PER SHARE

$298.15

Gainseekers Quantitative Analysis

Summary

Northrop Grumman’s valuation presents a compelling opportunity for deep value investors. The stock has traded significantly below its DCF value, suggesting a potential mispricing by the market. With a Forward P/E of 14.77 and an Earnings Yield of 5.84%, it offers a reasonable entry point for growth at a reasonable price (GARP) investors. The Altman Z-score of 3.19 indicates financial stability, reducing bankruptcy risk. Overall, the market seems to undervalue its future earnings potential and intrinsic worth.

AI Exposure / Tech Reliance

Operating in the Aerospace & Defense sector, Northrop Grumman is well-positioned to leverage AI and modern technology. The industry’s focus on innovation and defense contracts ensures a steady demand for cutting-edge solutions. This resilience to tech shifts provides a robust platform for future growth.

The Bull Case

For value investors, Northrop Grumman shines with a robust ROIC of 12.63% and a perfect Piotroski F-Score of 9, indicating strong operational efficiency and financial health. Its FCF Yield, though modest, reflects disciplined capital management. The company's operating margin of 11.08% underscores its pricing power in a competitive industry, making it an attractive buy for those seeking stable returns.

The Bear Case

Despite its strengths, Northrop Grumman faces challenges with high valuation multiples, such as a Price/Book of 4.57 and Price/Sales of 1.85, which may deter value purists. The stock's technical position, extended above its 50-Day SMA, suggests potential overvaluation in the short term. Additionally, the EV to FCF ratio of 28.21 indicates that the market may be overestimating its cash flow generation capabilities.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Buy

Average Analyst Price Target

$728.38

Institutional Ownership %

1-Year Beta

-0.12

Insider Buying % (6 Mo)

Distance to 52-Week High

41.07%

Distance to 52-Week Low

13.97%

EARNINGS SURPRISE %

1.32%

50-DAY SMA

$598.12

200-DAY SMA

$617.75

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.