NOC

NORTHROP GRUMMAN CORP /DE/

Other • CIK: 0001133421

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Market Cap
$97.48B
P/E (TTM)
21.3x
Rev Growth (TTM)
+5.0%
Net Margin (TTM)
10.8%
FCF Yield (TTM)
3.4%
FCF Margin (TTM)
7.8%

LATEST EARNINGS

Q1 2026
27 days ago
View source
Revenue
$9.88B
+4.4%
Net Income
$875.00M
+81.9%
EPS
$6.14
+84.9%
Operating
10.0% +3.9%
Net
8.9% +3.8%
  • Total sales increased 4% year-over-year to $9.881 billion, with organic sales growing 5%.
  • Net earnings more than doubled to $875 million, or $6.14 per diluted share, an 85% increase from the prior year.
  • Operating income increased 73% to $989 million, and operating margin rate improved significantly to 10.0% from 6.1%.
  • Segment operating income surged 89% to $1.072 billion, with segment operating margin rate improving to 10.8% from 6.0%.

Cash Flow Health

Free Cash Flow6/8 positive
TTM$3.3B
Q1 '26
$-1.8B-156%
Q4 '25
$3.2B+158%
FCF Margin
TTM7.8%
Q1 '26-18.4%-167%
Sector: 0.0%Top 25%
OCF Margin11.0%
OCF/NI1.02x
CapEx Coverage3.4x
FCF Yield3.4%
FCF Growth (2Y)+41%
Cash Conversion Cycle
16 days
DSO: 16+DIO: DPO:

Capital Allocation & Returns

Balanced
Total Shareholder YieldTTM
TTM2.6%
Div Yield1.4%
+
Buyback (TTM)1.2%

Balancing returns with reinvestment

Dividend & Payout Metrics
Dividend Yield (TTM)1.4%
FCF Payout Ratio39.9%
Free Cash Flow (TTM)$3.3B
Stock Repurchases (TTM)$1.2B
Capital Return / FCF76.7%
Est. Dividends Paid (TTM)$1.3B
Shows how management rewards shareholders

Operational Efficiency & Returns

Return on Invested CapitalTTM
12.9%
Stable
+0.0% YoY+0.7%
P25MedianP75
75th pctl (med: 0.0%)
DuPont BreakdownROIC = Margin × Turn × (1+D/E)
NOPAT Margin
9.6%
8Q: 8.8%
Asset Turnover
0.85x
8Q: 0.85x
Leverage (1+D/E)
1.89x
D/E: 0.89x
DuPont: 15.5%12.9% ROIC
Asset & CapEx Efficiency
Fixed Asset Turn
3.99x
8Q:3.99x
-16.1%
Invested Cap Turn
1.36x
8Q:1.34x
+2.6%
CapEx Intensity
4.4%
8Q:4.0%
CapEx/Depreciation
0.90x
Asset-based ROIC formula

QUARTERLY TRENDS

Last 8 quarters + TTM

MetricTTMQ1 2026Q4 2025Q3 2025Q2 2025Q1 2025Q4 2024Q3 2024Q2 2024
Revenue
$42.4B
$9.9B15.6%
$11.7B12.4%
$10.4B0.7%
$10.4B9.3%
$9.5B11.4%
$10.7B6.9%
$10.0B2.2%
$10.2B
Operating Income
$4.9B
$989.0M22.2%
$1.3B2.3%
$1.2B12.8%
$1.4B148.7%
$573.0M47.4%
$1.1B2.8%
$1.1B2.8%
$1.1B
Net Income
$4.6B
$875.0M38.7%
$1.4B29.7%
$1.1B6.3%
$1.2B144.1%
$481.0M61.9%
$1.3B23.2%
$1.0B9.1%
$940.0M
Operating Cash Flow
$4.7B
$-1.7B142.5%
$3.9B150.3%
$1.6B79.4%
$868.0M155.5%
$-1.6B160.7%
$2.6B136.3%
$1.1B23.4%
$1.4B
Free Cash Flow
$3.3B
$-1.8B156.4%
$3.2B157.6%
$1.3B97.2%
$637.0M135.0%
$-1.8B203.3%
$1.8B141.4%
$730.0M33.9%
$1.1B
Total Equity
N/A

Valuation Analysis

Fair Value
Price-to-EarningsTTM
21.3x
Volatile
8Q: 71.8x+1569%
Multiple expansion without fundamental improvement
Valuation Lenses
Earnings
21.3x
vs sector
Cash Flow
33.4x
EV/FCF vs
Growth-Adj
0.8xPEG
Undervalued for growth
Quality-Adj
1.6P/E per %ROIC
ROIC: 12.9%
Shareholder Returns
Dividend
1.4%
Buyback
1.2%
Total Yield
2.6%
Market Cap$97.48B
EV$110.46B
Multi-angle valuation analysis with sector context

Business Quality & Moat

Overall Quality Score
96/100
Exceptional

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

Returns on Capital

Return on Equity (ROE)Top 10%
28.5%
8Q:
Return on Invested Capital (ROIC)Top 25%
12.9%
8Q:
Flat
vs Sector:0.0%

DuPont Analysis (ROIC = NOPAT Margin × Asset Turnover)

NOPAT Margin: 9.6%
Asset Turnover: 0.85x

Earnings Quality

Cash Conversion

1.02x

OCF / Net Income

FCF Consistency

Positive quarters

Competitive Moat Indicators

Pricing Power

Gross Margin

Capital Efficiency

Invested Capital Turnover1.36x

Working Capital

Cash Conversion Cycle16 days

Growth Quality & Momentum

Moderate Growth
Growth Quality Score
65/100
Growth 40%
Margins 30%
FCF 20%
Consistency 10%

Growth Rates

Revenue Growth YoY
5.0%
OpInc Growth YoY
72.6%
EPS Growth YoY
26.0%
FCF 3Y CAGR
40.7%

Growth Quality Analysis

Efficient Growth: Free cash flow growing faster than revenue

Margin Quality & Sustainability

Low Quality
Profitability Cascade
Gross
Operating
11.6%
Above Avg in sector
Net
10.8%
Margins Unknown
Earnings Quality Signals
SBC / Revenue
FCF vs Net Gap
-3.0 pts
FCF: 7.8% | Net: 10.8%

Quality = stability + cash conversion + low dilution

Balance Sheet & Solvency

Adequate
Net Debt / EBITDA
Net Debt: $13.08B
Interest Coverage
Leverage Metrics
Debt-to-Equity
0.89x
Balance sheet risk & solvency analysis