NORTHROP GRUMMAN CORP's gross profit margin for the third quarter of its fiscal year 2015 has increased when compared to the same period a year ago. Even though sales decreased, the net income has increased, representing an increase to the bottom line. NORTHROP GRUMMAN CORP has weak liquidity. Currently, the Quick Ratio is 0.89 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.
At the same time, stockholders' equity ("net worth") has significantly decreased by 42.41% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.
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|Income Statement||Q3 FY15||Q3 FY14|
|Net Sales ($mil)||5979.0||5984.0|
|Net Income ($mil)||516.0||473.0|
|Balance Sheet||Q3 FY15||Q3 FY14|
|Cash & Equiv. ($mil)||1292.0||3402.0|
|Total Assets ($mil)||23966.0||25043.0|
|Total Debt ($mil)||6527.0||5929.0|
|Profitability||Q3 FY15||Q3 FY14|
|Gross Profit Margin||26.26||24.3|
|Return on Assets||8.49||8.14|
|Return on Equity||35.75||20.63|
|Debt||Q3 FY15||Q3 FY14|
|Share Data||Q3 FY15||Q3 FY14|
|Shares outstanding (mil)||182.82||203.18|
|Div / share||0.8||0.7|
|Book value / share||31.16||48.69|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||1217136.0||1108873.0|
BUY. This stock's P/E ratio indicates a discount compared to an average of 23.05 for the Aerospace & Defense industry and a discount compared to the S&P 500 average of 21.93. To use another comparison, its price-to-book ratio of 6.04 indicates a significant premium versus the S&P 500 average of 2.77 and a significant discount versus the industry average of 8.44. The price-to-sales ratio is below both the S&P 500 average and the industry average, indicating a discount. Upon assessment of these and other key valuation criteria, NORTHROP GRUMMAN CORP proves to trade at a discount to investment alternatives within the industry.
|NOC 18.14||Peers 23.05||NOC 17.93||Peers 15.51|
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.
NOC is trading at a discount to its peers.
Premium. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.
NOC is trading at a premium to its peers.
|NOC 17.91||Peers 18.10||NOC 17.78||Peers 5.21|
Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.
NOC is trading at a valuation on par with its peers.
Premium. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.
NOC trades at a significant premium to its peers.
|NOC 6.04||Peers 8.44||NOC 10.66||Peers 20.67|
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.
NOC is trading at a significant discount to its peers.
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
However, NOC is expected to significantly trail its peers on the basis of its earnings growth rate.
|NOC 1.44||Peers 1.64||NOC -0.68||Peers 1.67|
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.
NOC is trading at a discount to its industry on this measurement.
Lower. A sales growth rate that trails the industry implies that a company is losing market share.
NOC significantly trails its peers on the basis of sales growth
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