Northrop Grumman Corp

Find Ratings Reports
NOC : NYSE : Industrial Goods
$246.33 | %
Today's Range: 244.88 - 247.43
Avg. Daily Volume: 928900.0
04/21/17 - 4:02 PM ET

Financial Analysis

NORTHROP GRUMMAN CORP's gross profit margin for the fourth quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago. NORTHROP GRUMMAN CORP has average liquidity. Currently, the Quick Ratio is 1.04 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has increased from the same period last year.

During the same period, stockholders' equity ("net worth") has remained virtually unchanged only decreasing by 4.76% 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.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. To learn more visit

Income Statement Q4 FY16 Q4 FY15
Net Sales ($mil)6397.05694.0
EBITDA ($mil)965.0827.0
EBIT ($mil)831.0689.0
Net Income ($mil)525.0459.0

Balance Sheet Q4 FY16 Q4 FY15
Cash & Equiv. ($mil)2541.02319.0
Total Assets ($mil)25614.024454.0
Total Debt ($mil)7070.06526.0
Equity ($mil)5259.05522.0

Profitability Q4 FY16 Q4 FY15
Gross Profit Margin25.1825.54
EBITDA Margin15.0814.52
Operating Margin12.9912.1
Sales Turnover0.960.96
Return on Assets8.588.13
Return on Equity41.8336.03
Debt Q4 FY16 Q4 FY15
Current Ratio1.221.16
Interest Expense77.075.0
Interest Coverage10.799.19

Share Data Q4 FY16 Q4 FY15
Shares outstanding (mil)175.07181.3
Div / share0.90.8
Book value / share30.0430.46
Institutional Own % n/a n/a
Avg Daily Volume927864.01201406.0


BUY. This stock's P/E ratio indicates a discount compared to an average of 22.84 for the Aerospace & Defense industry and a discount compared to the S&P 500 average of 24.92. To use another comparison, its price-to-book ratio of 8.15 indicates a significant premium versus the S&P 500 average of 2.99 and a significant discount versus the industry average of 36.73. The current price-to-sales ratio is below the S&P 500 average, but above the industry average. Upon assessment of these and other key valuation criteria, NORTHROP GRUMMAN CORP proves to trade at a discount to investment alternatives within the industry.

1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
NOC 20.09 Peers 22.84   NOC 15.24 Peers 16.87

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.

1 2 3 4 5
premium   discount
  Price to
1 2 3 4 5
premium   discount
NOC 18.30 Peers 20.85   NOC NM Peers 4.05

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.


Neutral. 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's negative PEG ratio makes this valuation measure meaningless.

1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
NOC 8.15 Peers 36.73   NOC 17.32 Peers 24.24

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.

1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
NOC 1.75 Peers 1.67   NOC 4.17 Peers 5.58

Average. 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 valuation on par with 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



Latest Stock Upgrades/Downgrades