NOC:NYE-Northrop Grumman Corporation (USD)

COMMON STOCK | Aerospace & Defense | NYE

Last Closing Price

USD 300.91

Change

0.00 (0.00)%

Market Cap

USD 50.17B

Volume

0.96M

Average Target Price

USD 407.29 (+35.35%)
Average Analyst Rating

Verdict

Fundamental Analysis

Verdict

About

Northrop Grumman Corporation operates as an aerospace and defense company worldwide. The company operates through four segments: Aeronautics Systems, Defense Systems, Mission Systems, and Space Systems. The Aeronautics Systems segment designs, develops, manufactures, integrates, and sustains aircraft systems for strategic and tactical intelligence, surveillance, and reconnaissance (ISR) missions; and long-range strike aircraft systems, tactical fighter aircrafts, and airborne battle management systems. The Defense Systems segment offers weapon and mission systems for the U.S. military and civilian agency customers. Its principal products and services include integrated battle management systems, weapons systems, information technology services, and intelligence operations. This segment provides command and control and weapons systems, including munitions and missiles; precision strike weapons; propulsion, such as air-breathing systems; and gun systems and precision munitions. It also offers life cycle service and support for software, weapons systems, and aircraft; security services, including information and cyber operations; intelligence analysis and support; and IT infrastructure, such as cloud. The Mission Systems segment offers command, control, communications, and computers ISR systems; radar, electro-optical/infrared, and acoustic sensors; electronic warfare systems; communications and network systems; processing systems; navigation; and maritime power, propulsion, and payload launch systems. This segment also provides airborne sensors and networks; cyber and intelligence mission solutions; maritime/land systems and sensors; and navigation, targeting, and survivability solutions. The Space Systems segment offers satellites and payloads; ground systems; missile defense systems and interceptors; launch vehicles and related propulsion systems; and strategic missiles. Northrop Grumman Corporation was founded in 1939 and is based in Falls Church, Virginia.

Technical Indicators

Unadjusted Closing Price

Adjusted Closing Price

Share Volume

Relative Performance (Total Returns)

Compare
Relative Returns (From:    To: 2021-03-07 )

Largest Industry Peers for Aerospace & Defense

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GD General Dynamics Corporation

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LHX L3Harris Technologies, Inc

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TDG TransDigm Group Incorporated

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RTN Raytheon Company

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HEI HEICO Corporation

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HEI-A HEICO Corporation

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TXT Textron Inc

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CAE CAE Inc

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USD8.63B 30.54 20.11

ETFs Containing NOC

Symbol Name Weight Mer Price(Change) Market Cap
PPA Invesco Aerospace & Defen.. 0.00 % 0.59 %

N/A

USD0.67B
XAR SPDR S&P Aerospace & Defe.. 0.00 % 0.35 %

N/A

USD1.38B
DFEN Direxion Daily Aerospace .. 0.00 % 0.99 %

N/A

USD0.25B
DWSH AdvisorShares Dorsey Wrig.. 0.00 % 3.67 %

N/A

USD0.03B
BSCS Invesco BulletShares 2028.. 0.00 % 0.10 %

N/A

USD0.19B
XKFF SPDR Kensho Final Frontie.. 0.00 % 0.45 %

N/A

USD3.44M
ROKT SPDR Kensho Final Frontie.. 0.00 % 0.45 %

N/A

USD0.02B

Market Performance

  Market Performance vs.
Industry/Classification (Aerospace & Defense)
Market Performance vs. Exchange
  Value Sector Median Percentile Rank Grade Market Median Percentile Rank Grade
YTD  
Capital Gain -1.25% 25% F 30% F
Dividend Return 0.48% 60% D- 31% F
Total Return -0.77% 34% F 30% F
Trailing 12 Months  
Capital Gain -8.53% 19% F 13% F
Dividend Return 1.76% 68% D+ 30% F
Total Return -6.76% 19% F 11% F
Trailing 5 Years  
Capital Gain 61.03% 50% F 66% D
Dividend Return 12.62% 60% D- 40% F
Total Return 73.65% 50% F 65% D
Average Annual (5 Year Horizon)  
Capital Gain 11.22% 59% F 79% C+
Dividend Return 1.65% 67% D+ 42% F
Total Return 12.88% 59% F 80% B-
Risk Return Profile  
Volatility (Standard Deviation) 20.53% 84% B 40% F
Risk Adjusted Return 62.72% 78% C+ 72% C-
Market Capitalization 50.17B 94% A 95% A
Letter Grade Percentage Letter Grade Percentage Letter Grade Percentage
A+ 97%-100% A 93%-96% A- 90%-92%
B+ 87%-89% B 83%-86% B- 80%-82%
C+ 77%-79% C 73%-76% C- 70%-72%
D+ 67%-69% D 63%-66% D- 60%-62%
F 0%-59%

Key Financial Ratios

  Ratio vs. Industry/Classification
(Aerospace & Defense)
Ratio vs. Market
  Value Sector Median Percentile Rank Grade Market Median Percentile Rank Grade
Market Value  
Price / Earning Ratio 15.81 72% C- 58% F
Price/Book Ratio 4.60 31% F 22% F
Price / Cash Flow Ratio 11.65 47% F 38% F
EV/EBITDA 10.62 73% C 64% D
Management Effectiveness  
Return on Equity 32.88% 86% B 94% A
Return on Invested Capital 14.66% 81% B- 86% B
Return on Assets 6.18% 78% C+ 86% B
Debt to Equity Ratio 134.80% 19% F 27% F
Technical Ratios  
Short Ratio 5.39 19% F 11% F
Short Percent 5.19% 30% F 45% F
Beta 0.78 84% B 71% C-
Letter Grade Percentage Letter Grade Percentage Letter Grade Percentage
A+ 97%-100% A 93%-96% A- 90%-92%
B+ 97%-89% B 83%-86% B- 80%-82%
C+ 77%-79% C 73%-76% C- 70%-72%
D+ 67%-69% D 63%-66% D- 60%-62%
F 0%-59%

Annual Financials (USD)

Quarterly Financials (USD)

Analyst Rating

Target Price Action Rating Action Analyst Rating Price Date

Fundamental Analysis Breakdown

This is a composite scorecard based on the application of evaluation criteria deemed most important by analysts. This is not a buy or sell recommendation.

What to like:
High market capitalization

This is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.

Superior risk adjusted returns

This stock has performed well, on a risk adjusted basis, compared to its sector peers(for a hold period of at least 12 months) and is in the top quartile.

Low volatility

The stock’s annual returns have been stable and consistent compared to its sector peers(for a hold period of at least 12 months) and is in the top quartile. Although stability is good, also keep in mind it can limit returns.

Superior return on equity

The company management has delivered better return on equity in the most recent 4 quarters then its peers, placing it in the top quartile.

Superior capital utilization

The company management has delivered better return on invested capital in the most recent 4 quarters than its peers, placing it in the top quartile.

Superior return on assets

The company management has delivered better return on assets in the most recent 4 quarters than its peers, placing it in the top quartile.

Positive cash flow

The company had positive total cash flow in the most recent four quarters.

Positive free cash flow

The company had positive total free cash flow in the most recent four quarters.

Superior Revenue Growth

This stock has shown top quartile revenue growth in the previous 5 years compared to its sector.

Superior Dividend Growth

This stock has shown top quartile dividend growth in the previous 5 years compared to its sector

High Gross Profit to Asset Ratio

This stock is in the top quartile compared to its peers on Gross Profit to Asset Ratio. This is a popular measure among value investors for showing superior returns in the long run.

What to not like:
Overpriced compared to book value

The stock is trading high compared to its peers median on a price to book value basis.

Overpriced on cashflow basis

The stock is trading high compared to its peers on a price to cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

Highly leveraged

The company is in the bottom half compared to its sector peers on debt to equity and is highly leveraged. However, do check the news and look at its sector and management statements. Sometimes this is high because the company is trying to grow aggressively.