NORTHROP GRUMMAN CORP's gross profit margin for the third quarter of its fiscal year 2014 is essentially unchanged when compared to the same period a year ago. Sales and net income have dropped, underperforming the average competitor within its industry. NORTHROP GRUMMAN CORP has average liquidity. Currently, the Quick Ratio is 1.20 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.
During the same period, stockholders' equity ("net worth") has increased by 5.73% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.
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|Income Statement||Q3 FY14||Q3 FY13|
|Net Sales ($mil)||5984.0||6106.0|
|Net Income ($mil)||473.0||497.0|
|Balance Sheet||Q3 FY14||Q3 FY13|
|Cash & Equiv. ($mil)||3402.0||4944.0|
|Total Assets ($mil)||25043.0||27405.0|
|Total Debt ($mil)||5929.0||5930.0|
|Profitability||Q3 FY14||Q3 FY13|
|Gross Profit Margin||24.3||23.99|
|Return on Assets||8.14||7.32|
|Return on Equity||20.63||21.45|
|Debt||Q3 FY14||Q3 FY13|
|Share Data||Q3 FY14||Q3 FY13|
|Shares outstanding (mil)||203.18||223.78|
|Div / share||0.7||0.61|
|Book value / share||48.69||41.81|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||1270413.0||934677.0|
BUY. This stock's P/E ratio indicates a discount compared to an average of 19.49 for the Aerospace & Defense industry and a discount compared to the S&P 500 average of 19.99. To use another comparison, its price-to-book ratio of 3.05 indicates valuation on par with the S&P 500 average of 2.76 and a significant discount versus the industry average of 4.69. The current price-to-sales ratio is well below the S&P 500 average and is also below 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 15.84||Peers 19.49||NOC 13.35||Peers 14.52|
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.
Average. 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 valuation on par to its peers.
|NOC 16.51||Peers 18.25||NOC 1.16||Peers 1.20|
Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.
NOC is trading at a discount to its peers.
Average. 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 valuation on par to its peers.
|NOC 3.05||Peers 4.69||NOC 12.20||Peers 91.55|
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 1.26||Peers 1.63||NOC -3.82||Peers 3.50|
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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