NORTHROP GRUMMAN CORP /DE/ (NOC) Stock Analysis

Analysis from 10-Q filed 2025-10-21. Data as of Q1 2026.

Overall Grade: F (Concerning)

Grade F (Concerning). ROIC 12.9%. FCF margin 7.8%. D/E 0.9x. Source: 10-Q filed 2025-10-21.

Metric	Value	Context
ROIC	12.9%	Solid returns
FCF Margin	7.8%	Healthy cash flow
Debt/Equity	0.9x	Moderate leverage

ROIC 12.9% — Top 25% of sector peers. FCF margin 7.8% — Top 25%.

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

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.

---

Profitability: NORTHROP GRUMMAN CORP /DE/ earns 12.9% ROIC, Top 25% in Other

ROIC TTM 12.9%, sector median 3.8%, Top 25%. DuPont: NOPAT margin 9.6% × asset turnover 0.9x. Operating margin 11.6%. Source: 10-Q filed 2025-10-21.

Metric	NOC	Rating	Context
Return on Invested Capital (ROIC)	12.9%	Good	Above sector median of 3.8%
Return on Equity (ROE)	28.5%	Excellent	Efficient use of shareholder equity
Operating Margin	11.6%	Good	Moderate operational efficiency

---

Cash Flow: NORTHROP GRUMMAN CORP /DE/ generates $3.3B FCF at 7.8% margin, positive NaN/8 quarters

FCF TTM $3.3B. FCF margin 7.8%, Top 25%. OCF/Net income 1.0x. Positive FCF in NaN/8 trailing quarters. Source: 10-Q filed 2025-10-21.

Metric	NOC	Rating	Context
Free Cash Flow Margin	7.8%	Adequate	Healthy cash generation
Free Cash Flow (TTM)	$3.3B	Good	Positive cash generation
OCF/Net Income	1.0x	Excellent	High earnings quality
FCF Consistency (8Q)	N/A	Warning	Variable cash flow

---

Balance Sheet: NORTHROP GRUMMAN CORP /DE/ at 0.9x leverage

Debt/Equity 0.9x. Total debt $15.2B, cash & investments $2.1B. Source: 10-Q filed 2025-10-21.

Metric	NOC	Rating	Context
Debt to Equity	0.9x	Adequate	Moderate leverage
Net Cash Position	$-13.1B	Warning	Net debt position

---

Valuation: NORTHROP GRUMMAN CORP /DE/ trades at 21.3x earnings

P/E 21.3x. EV/Sales 2.6x. FCF yield 3.4%. Dividend yield 1.4%. Source: 10-Q filed 2025-10-21.

Metric	NOC	Rating	Context
P/E Ratio	21.3x	Adequate	Premium valuation
EV/Sales	2.6x	Good	Attractive revenue multiple
FCF Yield	3.4%	Adequate	Lower cash yield
Dividend Yield	1.4%	Adequate	Growth focus over income

---

Capital Allocation: NORTHROP GRUMMAN CORP /DE/ returns 2.6% shareholder yield

Total shareholder yield 2.6% (div 1.4% + buyback 1.2%). Capital returned $2.5B TTM. Source: 10-Q filed 2025-10-21.

Metric	NOC	Rating	Context
Total Shareholder Yield	2.6%	Adequate	Dividend + buyback yield combined
Buyback Yield	1.2%	Adequate	Minimal buyback activity
Total Capital Returned (TTM)	$2.5B	Good	Dividends + buybacks returned to shareholders

---

Sector Rankings

Metric	Value	Percentile	vs Median
Return on Invested Capital (ROIC)	12.9%	Top 25%	3.4x above
Free Cash Flow Margin	7.8%	Top 25%	-
Operating Margin	11.6%	Top 50%	2.2x above
Return on Equity (ROE)	28.5%	Top 10%	4.3x above
P/E Ratio	21.3x	N/A	-

---

Financial Scorecard

Metric	NOC	Rating	Sector Context
Return on Invested Capital (ROIC)	12.9%	Good	Top 25% of sector (median: 3.8%)
Free Cash Flow Margin	7.8%	Adequate	Top 25% of sector (median: 0.0%)
Debt to Equity Ratio	88.6%	Adequate	Elevated but manageable
P/E Ratio (Price-to-Earnings)	21.3x	Adequate	Fair value
Free Cash Flow Yield	3.4%	Adequate	Moderate yield

---

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 12.9%. Sector median 3.8%. 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 7.8%, generating $3.3 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 21.3x, which is above the sector median of N/A. EV/Sales 2.6x. FCF yield 3.4%. Source: 10-Q filed 2025-10-21.

Q: Does NORTHROP GRUMMAN CORP /DE/ pay a dividend?

NORTHROP GRUMMAN CORP /DE/ (NOC) currently pays a dividend yield of 1.4%. Total shareholder yield (dividend + buybacks) 2.6%. 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 0.9x with total debt of $15.2 billion. Net debt $13.1 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 5.0% year-over-year. EPS +26.0% YoY. Source: 10-Q filed 2025-10-21.

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

NORTHROP GRUMMAN CORP /DE/ (NOC) repurchased $1.2 billion of stock over the trailing twelve months. This represents a buyback yield of 1.2%. 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 12.9%, sector median 3.8% (Top 25%). FCF margin 7.8%, sector median 0.0% (Top 25%). 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.

---

Data Source: Data sourced from 10-Q filed 2025-10-21. TTM metrics as of Q1 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.