Northrop Grumman CorpFind Ratings Reports
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.
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|Income Statement||Q4 FY16||Q4 FY15|
|Net Sales ($mil)||6397.0||5694.0|
|Net Income ($mil)||525.0||459.0|
|Balance Sheet||Q4 FY16||Q4 FY15|
|Cash & Equiv. ($mil)||2541.0||2319.0|
|Total Assets ($mil)||25614.0||24454.0|
|Total Debt ($mil)||7070.0||6526.0|
|Profitability||Q4 FY16||Q4 FY15|
|Gross Profit Margin||25.18||25.54|
|Return on Assets||8.58||8.13|
|Return on Equity||41.83||36.03|
|Debt||Q4 FY16||Q4 FY15|
|Share Data||Q4 FY16||Q4 FY15|
|Shares outstanding (mil)||175.07||181.3|
|Div / share||0.9||0.8|
|Book value / share||30.04||30.46|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||927864.0||1201406.0|
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.
|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.
|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.
|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.
|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