📊 NOC Key Takeaways
Is Northrop Grumman Corp. /DE/ (NOC) a Good Investment?
Northrop Grumman demonstrates solid fundamental strength with a 10.0% net margin, exceptional ROE of 25.1%, and consistent free cash flow generation of $3.3B annually. The company maintains a healthy balance sheet with manageable leverage (0.94x debt/equity) and adequate liquidity, though revenue growth remains modest at 2.2% YoY.
Northrop Grumman shows solid fundamental quality with double-digit operating and net margins, strong ROE, and healthy free cash flow generation. Growth is modest rather than high, but earnings and cash flow remain resilient, supporting a favorable view on the business’s profitability and balance sheet capacity. The main constraint is that liquidity and leverage are adequate rather than exceptional, so execution and cash conversion need to stay consistent.
Why Buy Northrop Grumman Corp. /DE/ Stock? NOC Key Strengths
- Exceptional return on equity of 25.1% indicates efficient capital deployment
- Strong free cash flow of $3.3B provides financial flexibility and dividend capacity
- Solid profitability with 10.0% net margin and 10.8% operating margin
- Conservative leverage ratio of 0.94x debt/equity with adequate liquidity (1.10x current ratio)
- Defense sector positioning provides stable, long-term revenue visibility
- Consistent profitability with 10.8% operating margin and 10.0% net margin
- Strong capital efficiency, highlighted by 25.1% ROE and solid 8.1% ROA
- Healthy cash generation with $4.76B operating cash flow and $3.31B free cash flow
NOC Stock Risks: Northrop Grumman Corp. /DE/ Investment Risks
- Modest revenue growth of 2.2% YoY suggests limited organic expansion
- High leverage with $15.7B long-term debt against $16.7B equity limits financial flexibility
- Low current ratio of 1.10x indicates tight near-term liquidity management
- Net income growth of only 0.2% YoY despite revenue growth reflects margin pressure
- Dependence on government contracts introduces regulatory and budgetary risks
- Revenue and net income growth are low, indicating limited near-term expansion
- Leverage is meaningful with long-term debt of $15.70B and debt-to-equity of 0.94x
- Liquidity is only moderate, with a 1.10x current ratio leaving less room for operational shocks
Key Metrics to Watch
- Revenue growth trajectory and backlog trends in defense contracts
- Operating margin expansion potential and cost management efficiency
- Free cash flow sustainability and capital allocation priorities
- Debt reduction progress and leverage ratio improvement
- Order book health and contract win rates in core markets
- Free cash flow conversion and FCF margin
- Revenue growth and operating margin sustainability
Northrop Grumman Corp. /DE/ (NOC) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Northrop Grumman Corp. /DE/ presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
NOC Profit Margin, ROE & Profitability Analysis
NOC vs Market Sector: How Northrop Grumman Corp. /DE/ Compares
How Northrop Grumman Corp. /DE/ compares to Market sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Northrop Grumman Corp. /DE/ Stock Overvalued? NOC Valuation Analysis 2026
Based on fundamental analysis, Northrop Grumman Corp. /DE/ has mixed fundamental signals relative to the Market sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Northrop Grumman Corp. /DE/ Balance Sheet: NOC Debt, Cash & Liquidity
NOC Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Northrop Grumman Corp. /DE/'s revenue has grown significantly by 14% over the 5-year period, indicating strong business expansion. The most recent EPS of $13.53 reflects profitable operations.
NOC Revenue Growth, EPS Growth & YoY Performance
NOC Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $10.0B | $1.0B | $7.00 |
| Q2 2025 | $10.2B | $940.0M | $6.36 |
| Q1 2025 | $9.5B | $481.0M | $3.32 |
| Q3 2024 | $9.8B | $937.0M | $6.18 |
| Q2 2024 | $9.6B | $812.0M | $5.34 |
| Q1 2024 | $9.3B | $842.0M | $5.50 |
| Q3 2023 | $9.0B | $915.0M | $5.89 |
| Q2 2023 | $8.8B | $812.0M | $5.34 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Northrop Grumman Corp. /DE/ Dividends, Buybacks & Capital Allocation
NOC SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Northrop Grumman Corp. /DE/ (CIK: 0001133421)
📋 Recent SEC Filings
❓ Frequently Asked Questions about NOC
What is the AI rating for NOC?
Northrop Grumman Corp. /DE/ (NOC) has a Combined AI Rating of BUY from Claude (BUY) and ChatGPT (BUY) with 78% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are NOC's key strengths?
Claude: Exceptional return on equity of 25.1% indicates efficient capital deployment. Strong free cash flow of $3.3B provides financial flexibility and dividend capacity. ChatGPT: Consistent profitability with 10.8% operating margin and 10.0% net margin. Strong capital efficiency, highlighted by 25.1% ROE and solid 8.1% ROA.
What are the risks of investing in NOC?
Claude: Modest revenue growth of 2.2% YoY suggests limited organic expansion. High leverage with $15.7B long-term debt against $16.7B equity limits financial flexibility. ChatGPT: Revenue and net income growth are low, indicating limited near-term expansion. Leverage is meaningful with long-term debt of $15.70B and debt-to-equity of 0.94x.
What is NOC's revenue and growth?
Northrop Grumman Corp. /DE/ reported revenue of $42.0B.
Does NOC pay dividends?
Northrop Grumman Corp. /DE/ pays dividends, with $1,293.0M distributed to shareholders in the trailing twelve months.
Where can I find NOC SEC filings?
Official SEC filings for Northrop Grumman Corp. /DE/ (CIK: 0001133421) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is NOC's EPS?
Northrop Grumman Corp. /DE/ has a diluted EPS of $29.08.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is NOC a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Northrop Grumman Corp. /DE/ has a BUY rating with 78% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is NOC stock overvalued or undervalued?
Valuation metrics for NOC: ROE of 25.1% (sector avg: 15%), net margin of 10.0% (sector avg: 12%). Higher ROE suggests strong returns relative to peers.
Should I buy NOC stock in 2026?
Our dual AI analysis gives Northrop Grumman Corp. /DE/ a combined BUY rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is NOC's free cash flow?
Northrop Grumman Corp. /DE/'s operating cash flow is $4.8B, with capital expenditures of $1.5B. FCF margin is 7.9%.
How does NOC compare to other Market stocks?
Vs Default sector averages: Net margin 10.0% (avg: 12%), ROE 25.1% (avg: 15%), current ratio 1.10 (avg: 1.8).
Why is NOC's return on equity (ROE) so high?
Northrop Grumman Corp. /DE/ has a return on equity of 25.1%, significantly above the Market sector average of 15%. A high ROE indicates the company is efficient at generating profits from shareholder equity. This is supported by a 10.0% net margin.