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NOC

S&P 500
Favorable · 65/100

Northrop Grumman

Industrials
Aerospace & Defense

$507.33

2.7%

Updated Today 7:15 PM ET

Price — Past Year

▲ Up 5.4% over the last 12 months

Price 50-day average 200-day averageSource: Yahoo Finance · refreshed daily
Key Metrics

Market Cap

$74.07B

P/E

16.22x

Forward P/E (est.)

12.88x

ROE

28.1%

Revenue Growth

5.0%

EPS Growth

26.0%

Profit Margin

10.8%

FCF Yield

7.1%

Debt / Equity

0.94x

ROIC

11.0%

Interest Coverage

Current Ratio

1.15x

Dividend Yield

1.8%

Implied Growth (rev. DCF)

4.3%

Rating Score

65/100

Technical Analysis (Educational)
Research

Technical analysis reads price and volume to judge momentum and timing. It complements the fundamentals above — it does not replace them. Here is what NOC's chart says today, with each tool explained.

Trend — moving averages. A moving average is the average closing price over a window, which smooths out daily noise. NOC trades near $507.33, below its 50-day average ($575.22) and 200-day average ($615.94). Price below both averages is a downtrend — momentum is against buyers for now.

Momentum — RSI. The Relative Strength Index runs 0–100 and measures how strong recent gains are versus losses. Above 70 is "overbought", below 30 "oversold". At 34 it is in neutral territory — neither stretched nor washed out.

MACD. MACD compares two moving averages to flag shifts in momentum. Its histogram is currently positive — short-term momentum is improving.

Volatility — ATR. Average True Range is the typical daily move. NOC's is $15.45 (~3.0% of price), so swings of about that size each day are normal — handy for setting a stop that isn't too tight.

Support & resistance. Over the last month NOC found buyers near $515.38 (support) and sellers near $563.93 (resistance); its 52-week range is $481.28–$774.00. A decisive break beyond either edge often marks the next move.

Volume. The latest session traded 2.3× the 20-day average — heavier than usual, which adds conviction to the move. Rising volume on up-days suggests real buying; on down-days, real selling.

Educational information to help you read a chart — not a recommendation or a forecast. It updates daily as the price and indicators change.

Business Overview
Research

Northrop Grumman (NOC) is a large-cap company in the Aerospace & Defense industry, part of the Industrials sector of the S&P 500, with a market value around $74.07B.

In its latest reported year it generated about $41.95B in revenue and $4.18B in net profit.

Our model rates NOC Favorable (65/100) on growth, profitability, financial health, and valuation. The summary below is built from its filed financials and current ratios and refreshes automatically.

Revenue Growth
Research

4Y CAGR

4.1%

Revenue moved from $35.67B in 2021 to $41.95B in 2025, a 4.1% compound annual growth rate. The most recent year was roughly flat (5.0%) year over year. Slower, mature growth is common for established businesses.

Profitability
Research

Gross Margin

20.5%

Operating Margin

10.8%

Net Margin

10.0%

ROE

28.1%

Northrop Grumman keeps about 10.8% of each sales dollar as net profit, with a 20.5% gross margin and 10.8% operating margin. Return on equity is 28.1% and return on invested capital about 11.0%. Margins are moderate — typical of a competitive but profitable business.

Debt Analysis
Research

Total Debt

$15.70B

Net Debt

$13.61B

Net Debt / EBITDA

3.02x

Debt / Equity

0.94x

Leverage: debt-to-equity is 0.9x, with a current ratio of 1.1x. That is a moderate, manageable debt load for most businesses. It carries roughly $15.70B of total debt against $2.09B of cash.

Cash Flow Analysis
Research

Operating CF

$4.76B

Free Cash Flow

$3.31B

FCF Margin

7.9%

In the latest year Northrop Grumman produced about $4.76B of operating cash flow and $3.31B of free cash flow after capital spending. That is a free-cash-flow yield of about 7.1% on today's price. Strong cash generation funds dividends, buybacks, and reinvestment.

Valuation Analysis
Research

P/E

16.22x

P/S

1.87x

P/B

4.62x

EV / EBITDA

15.36x

NOC trades at 16.2x trailing earnings (about 12.9x on estimated forward earnings), 1.9x sales, and 4.6x book value. Reverse-engineering today's price implies the market expects roughly 4.3% long-term free-cash-flow growth. That is a fairly typical valuation for a profitable company.

Metrics vs. Typical Range

Where this stock sits versus what most companies trade at.

TTM P/E
16.2xCheap
Forward P/E
12.9xCheap
P/S ratio
1.9xFair
Revenue growth
5.0%Average
EPS growth
26.0%Strong
Gross margin
20.5%Weak
Net margin
10.8%Strong
ROE
28.1%Strong

Typical ranges are general references (e.g., many stocks trade at ~18–26x earnings), not hard rules. Context only — not investment advice.

Sector Peer Comparison

How NOC stacks up against its Industrials peers — valuation, profitability, and growth versus the sector median.

In the Industrials sector (80 S&P 500 companies), NOC ranks #7 of 80 by our overall rating. It trades at a discount versus the sector on earnings (16.2x P/E vs. 30x median) with a higher return on equity (28.1% vs. 24.7%) and slower revenue growth (5.0% vs. 5.0%).

P/E vs sector

16.2x

median 30x

ROE vs sector

28.1%

median 24.7%

Growth vs sector

5.0%

median 5.0%

Sector rank

#7

of 80 by rating

CompanyP/ERev Gr.Rating
NOCThis stock16.2x5.0%Favorable· 65
TDG35.7x13.3%Neutral· 54
GD21.8x-16.9%Neutral· 48
LHX31.1x-20.8%Weak· 38
HWM62.1x14.2%Favorable· 59
LMT24.6x4.6%Neutral· 45
AXON168.7x34.0%Weak· 36
BA77.1x32.8%Weak· 38
Industrials median30x5.0%52/100

Valuation vs. quality map

sector medianTDGGDLHXHWMLMTAXONBANOCP/E — cheaper ←→ pricierROE — more profitable ↑

The sweet spot is upper-left: more profitable (higher ROE) for a lower P/E. Dashed lines mark the sector median.

Compare side by side

Peers are the closest Industrials companies by sub-industry and size. Sector median is across all 80 S&P 500 names in the sector. Educational, not a recommendation.

5-Year Projection Model

Project revenue → earnings → price. Edit the assumptions to build your own case.

2030 price target (Base Case)

$376.99$603.18

vs. $507.33 today · expected CAGR -6%4%

Metric20262027202820292030
Revenue$44.05B$46.25B$48.57B$51.00B$53.55B
Net income$4.41B$4.63B$4.86B$5.10B$5.35B
EPS$31.02$32.57$34.19$35.90$37.70
Share price (low)$310.15$325.66$341.94$359.04$376.99
Share price (high)$496.24$521.05$547.10$574.46$603.18
CAGR (low–high)-39% / -2%-20% / 1%-12% / 3%-8% / 3%-6% / 4%

Educational model on sample fundamentals — not a forecast or investment advice. Outputs are only as good as your assumptions.

Bull Case

The case for NOC:

  • Strong return on equity (28.1%) shows capital is put to work well.
  • Healthy free-cash-flow yield (~7.1%) funds buybacks and dividends.
  • Our model's overall read is Favorable (65/100).
Bear Case

The case against NOC:

  • Like any single stock, it is exposed to competition, the economic cycle, and shifts in its end markets.
Key Risks
Research

Market risk — sector rotation, the economic cycle, and broad sentiment move the stock regardless of fundamentals.

Investment Thesis
Research

On balance, the fundamentals screen favourably: Northrop Grumman is a large-cap industrials business growing at a mature pace, with modest profitability, and a heavier debt load to watch. It trades at 16.2x earnings, which our model scores Favorable (65/100). Weigh this against your own goals and time horizon — this is educational information, not a recommendation.

Data notice. Fundamentals and financial statements are sourced from company filings (SEC EDGAR) and market-data providers; prices and market caps refresh on trading days and may be delayed. Ratings, projections, technical signals, and written summaries are model- or rule-generated for education and may simplify or lag the latest filings.

Not advice. Nothing on this page is investment advice or a recommendation to buy, hold, or sell any security. Do your own research and consult a licensed financial professional before investing.