NOC Northrop Grumman

Northrop Grumman is a global aerospace and defense company producing advanced systems for space, strike missions, aeronautics, and mission systems. Sector: Industrials.

Northrop Grumman (NOC) is an individual stock. The analysis below presents key financial metrics for the company, covering profitability, capital efficiency, valuation, margins, and growth.

From a capital efficiency perspective, ROIC is 10.97%, WACC is 4.29%, and the economic spread is 6.68%. On balance, the company marginally exceed their cost of capital, suggesting modest but present value creation. Supporting metrics show ROE at 26.42% and ROA at 7.54%, a combination that helps frame whether profitability strength is broad enough to hold through different market conditions. Taken together, the return profile suggests a company that is value-creative but with less room for execution slippage.

Multiple analysis puts the company at trailing P/E of 24.15, forward P/E of 25.13, PEG of 11.43. Trailing and forward multiples are nearly identical, indicating the market is pricing the company on a relatively static earnings assumption. Growth-adjusted, the company is priced at a premium — a level that demands consistent execution and limits the potential for multiple expansion from here. At 1.10, the aggregate current ratio reflects the company with limited near-term liquidity buffer. The combined valuation and liquidity profile points to a company where current prices embed meaningful growth expectations, and where delivery against those expectations will drive the return outcome.

On the margin front: gross margin sits at 19.82%, operating margin at 11.47%, and free cash flow margin at 7.88%. At this gross margin level, the company has little buffer at the production layer against cost increases. The operating margin reading is below average, pointing to businesses where scaling costs remain a challenge. Moderate free cash flow margins suggest the company that generate cash but rely on continued revenue growth to sustain reinvestment capacity. The combined margin read is functional rather than exceptional, which can increase sensitivity to cost pressure or slower demand.

On the forward picture: TTM revenue growth of 9.60% reflecting consistent if unspectacular revenue expansion. Consensus EPS estimates point to a decline of -3.9% over the next 12 months, adding a layer of risk to the forward case and warranting caution on the earnings trajectory. Analyst price targets suggest the target set points to a fairly constrained upside profile on a 12-month view. Revenue growth is grounded in reported results; price targets are forward projections that embed assumptions about multiple expansion, earnings delivery, and macro conditions. The key risk in both directions is whether the company can maintain their operating trajectory as macro and sector conditions evolve. The estimated 12-month price change is based on analyst consensus price target estimates, sourced from publicly available data, and should not be interpreted as a reliable prediction of future performance.

Overall, the setup is mixed enough that patience is probably the right posture until clarity improves on the key variables.

The analysis above draws from quantitative data only and does not constitute personalized financial advice. Investors should conduct independent research and consider professional guidance before acting on any information presented here.