Northrop Grumman CorpFind Ratings Reports
NORTHROP GRUMMAN CORP's gross profit margin for the second quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased. NORTHROP GRUMMAN CORP has weak liquidity. Currently, the Quick Ratio is 0.91 which shows a lack of ability to cover short-term cash needs. The liquidity decreased from the same period a year ago, despite already having weak liquidity to begin with. This would indicate deteriorating cash flow.
During the same period, stockholders' equity ("net worth") has decreased by 7.94% 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||Q2 FY16||Q2 FY15|
|Net Sales ($mil)||6000.0||5896.0|
|Net Income ($mil)||517.0||531.0|
|Balance Sheet||Q2 FY16||Q2 FY15|
|Cash & Equiv. ($mil)||1139.0||1907.0|
|Total Assets ($mil)||24081.0||24552.0|
|Total Debt ($mil)||6390.0||6527.0|
|Profitability||Q2 FY16||Q2 FY15|
|Gross Profit Margin||25.38||26.65|
|Return on Assets||8.5||8.12|
|Return on Equity||36.04||32.31|
|Debt||Q2 FY16||Q2 FY15|
|Share Data||Q2 FY16||Q2 FY15|
|Shares outstanding (mil)||178.96||188.38|
|Div / share||0.9||0.8|
|Book value / share||31.75||32.76|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||958988.0||871112.0|
BUY. This stock's P/E ratio indicates a discount compared to an average of 24.95 for the Aerospace & Defense industry and a discount compared to the S&P 500 average of 25.19. To use another comparison, its price-to-book ratio of 6.82 indicates a significant premium versus the S&P 500 average of 2.82 and a significant discount versus the industry average of 31.11. 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 19.47||Peers 24.95||NOC 14.32||Peers 15.47|
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 18.87||Peers 19.48||NOC 3.17||Peers 3.31|
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.
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 6.82||Peers 31.11||NOC 12.43||Peers 203.59|
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 1.64||Peers 1.55||NOC -1.01||Peers 4.07|
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