|NOC Overview
NOC

NORTHROP GRUMMAN CORP /DE/

Other • CIK: 0001133421

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Market Cap
$87.88B
P/E (TTM)
21.9x
Rev Growth (TTM)
-0.1%
Net Margin (TTM)
9.8%
FCF Yield (TTM)
2.1%
FCF Margin (TTM)
4.5%

LATEST EARNINGS

Q3 FY2025
4 months ago
View source
Revenue
Net Income
EPS
  • Sales increased 4% to $10.4 billion, driven by strong demand.
  • Diluted EPS increased 10% to $7.67.
  • Operating margin rate improved to 11.9% from 11.2%.
  • Segment operating margin rate increased to 12.3% from 11.5%.

Cash Flow Health

Free Cash Flow6/8 positive
TTM$1.8B
Q3 '25
$1.3B+97%
Q2 '25
$637M+135%
FCF Margin
TTM4.5%
Q3 '2512.1%+96%
Sector: 4.1%Above Avg
OCF Margin8.4%
OCF/NI0.86x
CapEx Coverage2.1x
FCF Yield2.1%
FCF Growth (2Y)+49%
Cash Conversion Cycle
-171 days
DSO: 16+DIO: 281DPO: 468

Capital Allocation & Returns

Balanced
Total Shareholder YieldTTM
TTM3.3%
Div Yield1.4%
+
Buyback (TTM)1.8%

Balancing returns with reinvestment

Dividend & Payout Metrics
Dividend Yield (TTM)1.4%
FCF Payout Ratio68.7%
Free Cash Flow (TTM)$1.8B
Stock Repurchases (TTM)$1.6B
Capital Return / FCF27.4%
Est. Dividends Paid (TTM)$1.3B
Shows how management rewards shareholders

Operational Efficiency & Returns

Return on Invested CapitalTTM
11.8%
Moderate
+0.4% YoY+10.2%
P25MedianP75
75th pctl (med: 0.1%)
DuPont BreakdownROIC = Margin × Turn × (1+D/E)
NOPAT Margin
8.7%
8Q: 8.8%
Asset Turnover
0.83x
8Q: 0.85x
Leverage (1+D/E)
1.98x
D/E: 0.98x
DuPont: 14.4%11.8% ROIC
Asset & CapEx Efficiency
Fixed Asset Turn
3.91x
8Q:4.09x
-57.8%
Invested Cap Turn
1.35x
8Q:1.34x
Flat
CapEx Intensity
5.3%
8Q:4.0%
CapEx/Depreciation
1.08x
Asset-based ROIC formula

QUARTERLY TRENDS

Last 8 quarters + TTM

MetricTTMQ3 2025Q2 2025Q1 2025Q4 2024Q3 2024Q2 2024Q1 2024Q4 2023
Revenue
$40.9B
$10.4B0.7%
$10.4B9.3%
$9.5B11.4%
$10.7B6.9%
$10.0B2.2%
$10.2B0.8%
$10.1B4.7%
$10.6B
Operating Income
$4.3B
$1.2B12.8%
$1.4B148.7%
$573.0M47.4%
$1.1B2.8%
$1.1B2.8%
$1.1B1.8%
$1.1B372.5%
$-393.0M
Net Income
$4.0B
$1.1B6.3%
$1.2B144.1%
$481.0M61.9%
$1.3B23.2%
$1.0B9.1%
$940.0M0.4%
$944.0M276.4%
$-535.0M
Operating Cash Flow
$3.4B
$1.6B79.4%
$868.0M155.5%
$-1.6B160.7%
$2.6B136.3%
$1.1B23.4%
$1.4B301.8%
$-706.0M129.1%
$2.4B
Free Cash Flow
$1.8B
$1.3B97.2%
$637.0M135.0%
$-1.8B203.3%
$1.8B141.4%
$730.0M33.9%
$1.1B213.2%
$-976.0M160.0%
$1.6B
Total Equity
N/A

Valuation Analysis

Fair Value
Price-to-EarningsTTM
21.9x
Volatile
8Q: 71.8x+13786%
Valuation Lenses
Earnings
21.9x
vs sector
Cash Flow
47.4x
EV/FCF vs
Growth-Adj
0.3xPEG
Undervalued for growth
Quality-Adj
1.9P/E per %ROIC
ROIC: 11.8%
Shareholder Returns
Dividend
1.4%
Buyback
1.8%
Total Yield
3.3%
Market Cap$87.88B
EV
Multi-angle valuation analysis with sector context

Business Quality & Moat

Overall Quality Score
87/100
Exceptional

Composite score: Returns (40%) + Consistency (30%) + Earnings Quality (30%)

Returns on Capital

Return on Equity (ROE)Top 10%
52.9%
8Q:
Return on Invested Capital (ROIC)Top 25%
11.8%
8Q:
+10.2%
vs Sector:0.1%

DuPont Analysis (ROIC = NOPAT Margin × Asset Turnover)

NOPAT Margin: 8.7%
Asset Turnover: 0.83x

Earnings Quality

Cash Conversion

0.86x

OCF / Net Income

FCF Consistency

Positive quarters

Competitive Moat Indicators

Pricing Power

Gross Margin95.1%

Capital Efficiency

Invested Capital Turnover1.35x

Working Capital

Cash Conversion Cycle-171 days

Growth Quality & Momentum

Moderate Growth
Growth Quality Score
60/100
Growth 40%
Margins 30%
FCF 20%
Consistency 10%

Growth Rates

Revenue Growth YoY
-0.1%
OpInc Growth YoY
10.9%
EPS Growth YoY
71.4%
FCF 3Y CAGR
48.9%

Growth Quality Analysis

Efficient Growth: Free cash flow growing faster than revenue

Margin Quality & Sustainability

Low Quality
Profitability Cascade
Gross
95.1%
Operating
10.6%
Above Avg in sector
Net
9.8%
Margins Unknown
Earnings Quality Signals
SBC / Revenue
FCF vs Net Gap
-5.3 pts
FCF: 4.5% | Net: 9.8%

Quality = stability + cash conversion + low dilution

Balance Sheet & Solvency

Adequate
Net Debt / EBITDA
Net Debt: $13.74B
Interest Coverage
Leverage Metrics
Debt-to-Equity
0.98x
Balance sheet risk & solvency analysis