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⚠️ Not investment advice. Past performance does not guarantee future results.
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Northrop Grumman NOC

United States Industrials
6.0/10
AI Analyst score
510.52 USD
Last price at analysis date · analyst target 644.91 (+26.3%)
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🟡 HOLD — Hold; the Navy radar contract is positive, but weakness in earnings and momentum suggests waiting for sustained improvement before adding.

Northrop Grumman is an aerospace and defense company that designs and manufactures aircraft systems, weaponry, electronics, and space technology for government and military clients. Northrop Grumman shows moderate financial health (DN/EBITDA 2.03) and solid quality (ROE 26.96%), but earnings growth is negative (-5.80%) and momentum is weak (11th percentile in 52 weeks), warranting a cautious stance.

Financial health
5.9
Quality / Moat
5.6
Valuation
6.3
Growth
4.6
Dividend
6.3
Momentum
3.8
Risk & Context
8.8

Detailed metrics

Market and fundamental data as of the analysis date.

💵 Valuation
P/E16.23
Fwd P/E16.77
EV/EBITDA12.03
P/B4.06
P/S1.69
PEG3.38
Market cap72.53 B USD
Enterprise value87.27 B USD
🏰 Quality and moat
ROIC (approx.)14.2%
Gross margin20.06%
FCF conversion34%
Operating margin11.60%
📈 Profitability and margins
ROE26.96%
ROA7.15%
Net margin10.48%
FCF2.48 B USD
FCF yield3.42%
🏦 Solvency and liquidity
Total debt17.05 B USD
Net debt14.75 B USD
Cash2.31 B USD
EBITDA7.26 B USD
Net debt / EBITDA2.03
D/E95.35
Current ratio1.17
Quick ratio1.01
🚀 Growth
Revenue growth5.10%
Earnings growth-5.80%
EPS (TTM)31.45 USD
EPS (Fwd)30.45 USD
💰 Dividend and risk
Dividend yield1.94%
Payout29.9%
Beta-0.11
Analyst consensusBuy (22)
Target price644.91 USD
52-week range479.02 USD – 774.00 USD
⚠️ Main risk: The main risk is dependence on government defense budgets and potential slowdown in missile production, which could limit revenue growth.
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Full AI report

Generated automatically from the metrics, the macro context and the company's news.

Northrop Grumman is an aerospace and defense company that designs and manufactures aircraft systems, weaponry, electronics, and space technology for government and military clients. Northrop Grumman shows moderate financial health (DN/EBITDA 2.03) and solid quality (ROE 26.96%), but earnings growth is negative (-5.80%) and momentum is weak (11th percentile in 52 weeks), warranting a cautious stance.

Score by category

CategoryScore
Financial health5.9
Quality / Moat5.6
Valuation6.3
Growth4.6
Dividend6.3
Momentum3.8
Risk & Context8.8

OVERALL SCORE: 6.0/10

Context and risks

Northrop operates in a defense sector with high dependence on government budgets and contracts subject to political review; the regulatory and defense spending environment is a structural risk, though there is no specific imminent regulatory event.

News considered in the analysis

  • Defense Firms Are Rushing to Boost Missile Output. It’s Coming Too Late. — La industria no puede satisfacer la demanda de misiles a tiempo, lo que podría limitar el crecimiento de ingresos de Northrop en el corto plazo.
  • North Korea tests swarm attacks combining drones and missiles - WSJ — Las tensiones geopolíticas refuerzan la demanda de defensa, beneficiando a contratistas como Northrop.
  • U.S. understands Taiwan’s defence needs amid China threat, official says — El compromiso de EE.UU. con la defensa de Taiwán podría traducirse en nuevos contratos para Northrop.
  • Northrop Grumman (NOC) Lands Navy Radar Deal On Undervalued Stock Narrative — Contrato de radar con la Armada, material y reciente, con impacto directo en ingresos futuros.
  • Firefly Aerospace vs. Intuitive Machines: Which Space Infrastructure Stock Is a Better Buy in 2026? — Listículo comparativo sin información nueva sobre Northrop.

Verdict: Hold; the Navy radar contract is positive, but weakness in earnings and momentum suggests waiting for sustained improvement before adding.

Main risk: The main risk is dependence on government defense budgets and potential slowdown in missile production, which could limit revenue growth.

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Automatically generated analysis from fundamental, market and news data. Not personalised financial advice — a research tool, not an individual recommendation. Past performance does not guarantee future results. Last update of this analysis: 2026-09-28. Legal notice, privacy & cookies.