NYSE
NOC
Last Price
US $549.01
KEY FIGURES
MKT CAP
$71.0B
EPS
TTM
$32.20
PEG
TTM
0.60x
P/E
TTM
15.62x
P/S
TTM
1.69x
YIELD
1.88%
GROWTH
Revenue Y/Y
Profit margin
Current Ratio
Capital Returns
28.05%
Return on equity
ROIC: 10.26%
Valuation History
15.6X
Price to Earnings
EV/EBITDA: 11.2X
Cash flow
Profit margin
2.66%
(FY vs FY)
EBITDA Y/Y
5.21%
(FY vs FY)
Cash flow Y/Y
2.77%
(FY vs FY)
Cash Flow (DCF)
Fair Value
Market $549.01
-63.78%
Default assumptions
EBITDA Multiple
Fair Value
Market $549.01
-54.96%
Default assumptions
Base valuations use default assumptions. Customize in the Valuator.
Valuation
Financial
Performance
Financial risk - Cash flow debt coverage.
Northrop Grumman Corporation cash flow to debt ratio of 24.10% indicates that the company cannot generate enough cash to cover its debt over time. This level indicates weak financial health.
Financial stability - Healthy cash flow growth.
Northrop Grumman Corporation's free cash flow has increased 26.17% from $2.62G last year to $3.31G, signaling increasing performance
Financial risk - Healthy debt to equity ratio.
Northrop Grumman Corporation's debt to equity ratio is 1.00, which means that the company's assets are unhealthy financed, signaling financial risk. READ MORE: A ratio over 0.60 means the company finances its assets with debt, signaling financial risk. If ratio is negative, the company spent its own equity and risks bankruptcy
Financial stability - Healthy debt to equity ratio development.
Northrop Grumman Corporation's debt has decreased relative to shareholder equity from 1.32 last year to 1.00 today, signaling strengthened financials
Financial stability - Net debt/EBITDA.
Northrop Grumman Corporation has a net debt to EBITDA ratio of 2.13x, which is below the 3.00x threshold, indicating healthy leverage and financial stability
Financial stability - ICR.
Northrop Grumman Corporation's interest coverage ratio of 7.00 indicates that earnings with good margin can cover interest payments on company debt
Financial stability - Profit margin growth.
Northrop Grumman Corporation's profit margin has increased (6.18%) in the last year from 10.17% to 10.80%, signaling increasing performance
Financial stability - Short term assets vs short term liabilities.
Northrop Grumman Corporation's short-term assets of $15.10G exceed its short-term liabilities of $13.88G
Increasing performance - ROA.
Northrop Grumman Corporation's return on assets of 9.15% is higher than the 5.00% threshold, indicating efficient asset utilization
Increasing performance - Absolute return on equity.
Northrop Grumman Corporation's return on equity of 28.05%, is higher than 15.00%, indicating good performance
Increasing performance - Earnings quality.
Northrop Grumman Corporation's operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation
Increasing performance - Earnings stability.
Northrop Grumman Corporation had positive net income in 5.00 out of 5 years, indicating stable and consistent earnings
Increasing performance - Free cash flow.
Northrop Grumman Corporation has positive free cash flow, indicating the company generates cash after capital expenditures
Increasing performance - FCF yield.
Northrop Grumman Corporation has a free cash flow yield of 4.66%, which is above the 2.00% threshold, indicating strong cash generation relative to market value
Increasing performance - Healthy earnings growth.
Northrop Grumman Corporation's yearly earnings has increased 0.19% since last year from $4.17G to $4.18G, signaling increasing performance
Increasing performance - Healthy revenue growth.
Northrop Grumman Corporation's yearly revenue has increased 2.24% since last year from $41.03G to $41.95G, signaling increasing performance
Increasing performance - ROIC.
ROIC 10.26% (Source: FMP key-metrics). At or above the 10% threshold. Score: 2 of 2. The company is generating returns above the upper end of the typical US weighted-average cost of capital range under this definition of invested capital.
Increasing performance - 3-year revenue CAGR.
Northrop Grumman Corporation's 3-year revenue CAGR of 4.65% is positive, indicating growing revenue over the past 3 years
Increasing performance - Revenue consistency.
Northrop Grumman Corporation had revenue growth in 4.00 out of 5 years, indicating consistent revenue performance
Increasing performance - ROE consistency.
Northrop Grumman Corporation had positive ROE in 5.00 out of 5 years, indicating consistent and reliable returns on equity
Overvalued - DCF valuation.
Northrop Grumman Corporation is overvalued relative to its fair value price of 198.83 based on Discounted Cash Flow model
Undervalued - Earnings yield.
Northrop Grumman Corporation has an earnings yield of 6.44%, which is above the 4.00% threshold, indicating the stock offers reasonable value relative to its earnings
Overvalued - EBITDA valuation.
Northrop Grumman Corporation is overvalued relative to its fair value price of 247.30 based on EBITDA multiple model
Undervalued - EV/EBITDA.
Northrop Grumman Corporation has an EV/EBITDA ratio of 11.17x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings
Undervalued - PEG ratio value.
Northrop Grumman Corporation has a PEG-ratio under 1 which is considered undervalued
Undervalued - P/B ratio.
Northrop Grumman Corporation has a price-to-book ratio of 4.15x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value
Undervalued - P/S ratio.
Northrop Grumman Corporation has a price-to-sales ratio of 1.68x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue