NORTHROP GRUMMAN CORP /DE/ (NOC) Stock Analysis

Analysis from 10-Q filed 2025-10-21. Data as of Q2 2026.

Overall Grade: F (Concerning)

Grade F (Concerning). ROIC 12.2%. FCF margin 8.5%. D/E 0.8x. Source: 10-Q filed 2025-10-21.

Metric	Value	Context
ROIC	12.2%	Solid returns
FCF Margin	8.5%	Healthy cash flow
Debt/Equity	0.8x	Moderate leverage

ROIC 12.2% — Top 25% of sector peers. FCF margin 8.5% — Top 50%.

Explore NORTHROP GRUMMAN CORP /DE/: Earnings History | Filings

Programmatic access: Available via MCP at mcp.metricduck.com. Tools for NOC: get_company_overview, get_filing_index (lens: debt_stress, management_outlook, risk_trajectory), get_filing_changes, get_metric_history, compare_companies, screen_filing_signals.

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Profitability: NORTHROP GRUMMAN CORP /DE/ earns 12.2% ROIC, Top 25% in Other

ROIC TTM 12.2%, sector median 2.9%, Top 25%. DuPont: NOPAT margin 9.2% × asset turnover 0.9x. Gross margin 20.1%. Operating margin 10.7%. Source: 10-Q filed 2025-10-21.

Metric	NOC	Rating	Context
Return on Invested Capital (ROIC)	12.2%	Good	Above sector median of 2.9%
Return on Equity (ROE)	27.1%	Excellent	Efficient use of shareholder equity
Gross Margin	20.1%	Adequate	Competitive pricing environment
Operating Margin	10.7%	Good	Moderate operational efficiency

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Cash Flow: NORTHROP GRUMMAN CORP /DE/ generates $3.6B FCF at 8.5% margin, positive NaN/8 quarters

FCF TTM $3.6B. FCF margin 8.5%, Top 50%. OCF/Net income 1.1x. Positive FCF in NaN/8 trailing quarters. Source: 10-Q filed 2025-10-21.

Metric	NOC	Rating	Context
Free Cash Flow Margin	8.5%	Adequate	Healthy cash generation
Free Cash Flow (TTM)	$3.6B	Good	Positive cash generation
OCF/Net Income	1.1x	Excellent	High earnings quality
FCF Consistency (8Q)	N/A	Warning	Variable cash flow

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Balance Sheet: NORTHROP GRUMMAN CORP /DE/ at 0.8x leverage

Debt/Equity 0.8x. Total debt $15.2B, cash & investments $2.3B. Source: 10-Q filed 2025-10-21.

Metric	NOC	Rating	Context
Debt to Equity	0.8x	Adequate	Moderate leverage
Net Cash Position	$-12.9B	Warning	Net debt position

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Valuation: NORTHROP GRUMMAN CORP /DE/ trades at 16.1x earnings

P/E 16.1x. EV/Sales 2.3x. FCF yield 5.0%. Source: 10-Q filed 2025-10-21.

Metric	NOC	Rating	Context
P/E Ratio	16.1x	Adequate	Reasonable valuation
EV/Sales	2.3x	Good	Attractive revenue multiple
FCF Yield	5.0%	Good	Attractive cash return

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Capital Allocation: NORTHROP GRUMMAN CORP /DE/ returns -0.6% shareholder yield

Total shareholder yield -0.6% (div -1.7% + buyback 1.1%). Capital returned $-443.0M TTM. Source: 10-Q filed 2025-10-21.

Metric	NOC	Rating	Context
Total Shareholder Yield	-0.6%	Warning	Dividend + buyback yield combined
Buyback Yield	1.1%	Adequate	Minimal buyback activity
Total Capital Returned (TTM)	$-443.0M	Adequate	Dividends + buybacks returned to shareholders

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Sector Rankings

Metric	Value	Percentile	vs Median
Return on Invested Capital (ROIC)	12.2%	Top 25%	4.2x above
Free Cash Flow Margin	8.5%	Top 50%	-
Gross Margin	20.1%	Bottom 50%	0.7x below
Operating Margin	10.7%	Top 50%	2.0x above
Return on Equity (ROE)	27.1%	Top 25%	4.2x above
P/E Ratio	16.1x	N/A	-

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Financial Scorecard

Metric	NOC	Rating	Sector Context
Return on Invested Capital (ROIC)	12.2%	Good	Top 25% of sector (median: 2.9%)
Free Cash Flow Margin	8.5%	Adequate	Top 50% of sector (median: 0.0%)
Gross Margin	20.1%	Adequate	Bottom 50% of sector (median: 29.5%)
Debt to Equity Ratio	84.9%	Adequate	Elevated but manageable
P/E Ratio (Price-to-Earnings)	16.1x	Adequate	Fair value
Free Cash Flow Yield	5.0%	Good	Solid cash yield

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Frequently Asked Questions

Q: What is NORTHROP GRUMMAN CORP /DE/'s Return on Invested Capital (ROIC)?

NORTHROP GRUMMAN CORP /DE/ (NOC) has a trailing twelve-month Return on Invested Capital (ROIC) of 12.2%. Sector median 2.9%. Source: 10-Q filed 2025-10-21.

Q: What is NORTHROP GRUMMAN CORP /DE/'s Free Cash Flow Margin?

NORTHROP GRUMMAN CORP /DE/ (NOC) has a free cash flow margin of 8.5%, generating $3.6 billion in free cash flow over the trailing twelve months. Source: 10-Q filed 2025-10-21.

Q: What is NORTHROP GRUMMAN CORP /DE/'s P/E ratio and how does it compare to peers?

NORTHROP GRUMMAN CORP /DE/ (NOC) trades at a P/E ratio of 16.1x, which is above the sector median of N/A. EV/Sales 2.3x. FCF yield 5.0%. Source: 10-Q filed 2025-10-21.

Q: How much debt does NORTHROP GRUMMAN CORP /DE/ have?

NORTHROP GRUMMAN CORP /DE/ (NOC) has a debt-to-equity ratio of 0.8x with total debt of $15.2 billion. Net debt $12.9 billion. Source: 10-Q filed 2025-10-21.

Q: What is NORTHROP GRUMMAN CORP /DE/'s revenue and earnings growth?

NORTHROP GRUMMAN CORP /DE/ (NOC) grew revenue by 5.9% year-over-year. EPS +15.9% YoY. Source: 10-Q filed 2025-10-21.

Q: Is NORTHROP GRUMMAN CORP /DE/ buying back stock?

NORTHROP GRUMMAN CORP /DE/ (NOC) repurchased $801.0 million of stock over the trailing twelve months. This represents a buyback yield of 1.1%. Source: 10-Q filed 2025-10-21.

Q: How does NORTHROP GRUMMAN CORP /DE/ compare to competitors in Other?

Compared to other companies in Other, NORTHROP GRUMMAN CORP /DE/ (NOC) shows: ROIC 12.2%, sector median 2.9% (Top 25%). FCF margin 8.5%, sector median 0.0% (Top 50%). Gross margin 20.1%, 9.4pp below sector median. These rankings are based on MetricDuck's analysis of all Other companies with available SEC filings.

Q: What warning signs should I watch for with NORTHROP GRUMMAN CORP /DE/?

No quantitative warning flags fired for NORTHROP GRUMMAN CORP /DE/ (NOC) on margin trend, FCF trend, ROIC trend, or leverage thresholds. Source: 10-Q filed 2025-10-21.

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Data Source: Data sourced from 10-Q filed 2025-10-21. TTM metrics as of Q2 2026.

Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.

Scope: This analysis covers SEC filing fundamentals — profitability, cash flow, balance sheet, and valuation metrics. For analyst estimates and price targets, consult sell-side research.

This analysis is for informational purposes only and does not constitute investment advice.