NOC

NORTHROP GRUMMAN CORP /DE/

Other • CIK: 0001133421

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Market Cap
$81.82B
P/E (TTM)
19.5x
Rev Growth (TTM)
+2.2%
Net Margin (TTM)
10.0%
FCF Yield (TTM)
4.0%
FCF Margin (TTM)
7.9%

Filing Intelligence

5.0/10
10-K filed Jan 27, 2026 • FYNone

Executive Summary

The company reported modest revenue growth, with increases in Mission, Defense, and Aeronautics Systems, but faced headwinds from program wind-downs in Space Systems.. Operating income was boosted by...

Key Concerns

  • ●The company reported modest revenue growth, with increases in Mission, Defense, and Aeronautics Systems, but faced headwinds from program...
  • ●Goodwill decreased by $85 million primarily due to a divestiture of a business segment, which is a significant event impacting asset base.
  • ●Significant unrecognized tax benefits of $1.6 billion.
View Full Quarterly Insights →

LATEST EARNINGS

•
Q3 FY2025
•
5 months ago
•View source
Revenue
$10.42B
+4.3%
Net Income
$1.10B
+7.2%
EPS
$7.67
+9.6%
Operating
11.9%↑ +0.7%
  • •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%.
View Full Earnings →

Cash Flow Health

Free Cash Flow6/8 positive
TTM$3.3B
Q4 '25
$3.2B+158%
Q3 '25
$1.3B+97%
FCF Margin
TTM7.9%
Q4 '2527.6%+129%
Sector: 0.0%Top 25%
OCF Margin11.3%
OCF/NI1.14x
CapEx Coverage3.3x
FCF Yield4.0%
FCF Growth (2Y)+31%
Cash Conversion Cycle
16 days
DSO: 16+DIO: –−DPO: –
View Insights from Latest Filing →View Full Cash Flow Statement →

Capital Allocation & Returns

Balanced
Total Shareholder YieldTTM
TTM3.6%
Div Yield1.6%
+
Buyback (TTM)2.0%

Balancing returns with reinvestment

Dividend & Payout Metrics
Dividend Yield (TTM)1.6%
FCF Payout Ratio39.0%
Free Cash Flow (TTM)$3.3B
Stock Repurchases (TTM)$1.6B
Capital Return / FCF88.2%
Est. Dividends Paid (TTM)$1.3B
Shows how management rewards shareholders

Operational Efficiency & Returns

Return on Invested CapitalTTM
12.0%
Stable
+0.0% YoY+1.8%
P25MedianP75
75th pctl (med: 0.0%)
DuPont BreakdownROIC = Margin × Turn × (1+D/E)
NOPAT Margin
8.9%
8Q: 8.9%
Asset Turnover
0.85x
8Q: 0.85x
Leverage (1+D/E)
1.94x
D/E: 0.94x
DuPont: 14.6% ≈ 12.0% ROIC
Asset & CapEx Efficiency
Fixed Asset Turn
3.96x
8Q:4.09x
-7.6%
Invested Cap Turn
1.37x
8Q:1.34x
+12.1%
CapEx Intensity
4.7%
8Q:4.0%
CapEx/Depreciation
0.99x
Asset-based ROIC formula
Full Analysis

QUARTERLY TRENDS

Last 8 quarters + TTM

MetricTTMQ4 2025Q3 2025Q2 2025Q1 2025Q4 2024Q3 2024Q2 2024Q1 2024
Revenue
$42.0B
$11.7B↑12.4%
$10.4B↑0.7%
$10.4B↑9.3%
$9.5B↓11.4%
$10.7B↑6.9%
$10.0B↓2.2%
$10.2B↑0.8%
$10.1B
Operating Income
$4.5B
$1.3B↑2.3%
$1.2B↓12.8%
$1.4B↑148.7%
$573.0M↓47.4%
$1.1B↓2.8%
$1.1B↑2.8%
$1.1B↑1.8%
$1.1B
Net Income
$4.2B
$1.4B↑29.7%
$1.1B↓6.3%
$1.2B↑144.1%
$481.0M↓61.9%
$1.3B↑23.2%
$1.0B↑9.1%
$940.0M↓0.4%
$944.0M
Operating Cash Flow
$4.8B
$3.9B↑150.3%
$1.6B↑79.4%
$868.0M↑155.5%
$-1.6B↓160.7%
$2.6B↑136.3%
$1.1B↓23.4%
$1.4B↑301.8%
$-706.0M
Free Cash Flow
$3.3B
$3.2B↑157.6%
$1.3B↑97.2%
$637.0M↑135.0%
$-1.8B↓203.3%
$1.8B↑141.4%
$730.0M↓33.9%
$1.1B↑213.2%
$-976.0M
Total Equity
N/A
Income StatementCash Flow StatementBalance Sheet

Valuation Analysis

Fair Value
Price-to-EarningsTTM
19.5x
Volatile
8Q: 71.8x-142%
Valuation Lenses
Earnings
19.5x
vs – sector
Cash Flow
28.7x
EV/FCF vs –
Growth-Adj
–PEG
N/A
Quality-Adj
1.6P/E per %ROIC
ROIC: 12.0%
Shareholder Returns
Dividend
1.6%
Buyback
2.0%
Total Yield
3.6%
Market Cap$81.82B
EV$94.88B
Multi-angle valuation analysis with sector context

Business Quality & Moat

Overall Quality Score
95/100
Exceptional

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

Returns on Capital

Return on Equity (ROE)Top 10%
26.8%
8Q:–
Return on Invested Capital (ROIC)Top 25%
12.0%
8Q:–
Flat
vs Sector:0.0%

DuPont Analysis (ROIC = NOPAT Margin × Asset Turnover)

NOPAT Margin: 8.9%
Asset Turnover: 0.85x

Earnings Quality

Cash Conversion

1.14x

OCF / Net Income ✓

FCF Consistency

–

Positive quarters

Competitive Moat Indicators

Pricing Power

Gross Margin–

Capital Efficiency

Invested Capital Turnover1.37x

Working Capital

Cash Conversion Cycle16 days

Growth Quality & Momentum

Moderate Growth
Growth Quality Score
62/100
Growth 40%
Margins 30%
FCF 20%
Consistency 10%

Growth Rates

Revenue Growth YoY
2.2%
OpInc Growth YoY
16.7%
EPS Growth YoY
2.7%
FCF 3Y CAGR
31.1%

Growth Quality Analysis

✓Efficient Growth: Free cash flow growing faster than revenue

Margin Quality & Sustainability

Moderate
Profitability Cascade
Gross
—
Operating
10.8%
Above Avg in sector
Net
10.0%
Margins Unknown
Earnings Quality Signals
SBC / Revenue
—
FCF vs Net Gap
-2.1 pts
FCF: 7.9% | Net: 10.0%

Quality = stability + cash conversion + low dilution

Balance Sheet & Solvency

Adequate
Net Debt / EBITDA
–Net Debt: $11.29B
Interest Coverage
–
Balance sheet risk & solvency analysis

Research

All research