Northrop Grumman (NOC) Stock Fundamentals, Analysis & Risk Signals

Health score, price, valuation, risk signals, and key metrics at a glance.

Northrop Grumman

NYSE•Industrials•Aerospace & Defense

$557.54-4.82(-0.01%)Market closed

Market Cap

$78.91B

P/E

17.5x

P/S

1.8x

P/B

4.2x

Northrop Grumman Corporation operates as an aerospace and defense technology company in the United States, Asia/Pacific, Europe, and internationally. It operates through four segments: Aeronautics Systems, Defense Systems, Mission Systems and Space Systems. The Aeronautics Systems segment designs, develops, produces, integrates, sustains, and modernizes aircraft systems. This segment also offers unmanned autonomous aircraft systems, including high-altitude long-endurance strategic, surveillance and reconnaissance systems; and strategic long-range strike aircraft, tactical fighter and air dominance aircraft, and airborne battle management and command and control systems. Its Defense Systems segment designs, develops, integrates, and produces strategic deterrent systems, tactical weapons, and missile defense solutions; and provides sustainment, modernization, and training services for manned and unmanned aircraft and electronics systems. This segment also offers strategic missiles; integrated all-domain command and control systems; precision strike weapons; tactical solid rocket motors, and high-speed air-breathing and hypersonic systems; high-performance gun systems, ammunition, precision munitions, and advanced fuzes; and sustainment, operation, and modernization. The Mission Systems segment provides command, control, communication and computer, intelligence, surveillance, and reconnaissance systems; radar, electro-optical/infrared, and acoustic sensors; electronic warfare systems; advanced communications and network systems; microelectronics; navigation and positioning sensors; maritime power, propulsion, and payload launch systems; cyber solutions; and intelligence processing systems. Its Space Systems segment offers satellites, spacecraft systems, subsystems, sensors, and payloads; ground systems; missile defense systems and interceptors; and launch vehicles and related propulsion systems. The company was founded in 1939 and is based in Falls Church, Virginia.

How this company scores

ExcellentMetricSide Score: 81/100

Strongest: Profitability (23/25); weakest: Balance Sheet & Red Flags (16/25).

Profitability23/25

Growth19/25

Balance Sheet & Red Flags16/25

Cash & Earnings Quality23/25

Strengths

Rising free cash flowHigh ROECash-backed earningsProfit converts from growth

Valuation vs. 5-year range

Today's multiple positioned against its own trailing range — a visual premium/discount check.

P/E · 17.5x5y range 11.4x – 37.1x

Currently near its 20-quarter median.

P/S · 1.8x5y range 1.6x – 2.3x

Currently near its 20-quarter median.

P/B · 4.2x5y range 3.9x – 6.2x

Watch items

Data-driven signals worth keeping an eye on across the last 8 quarters

Some Concerns

Earnings Quality

Watch

FCF/Net Income has dropped below 0.7x in 3 quarters — monitor for earnings quality deterioration.

Cash Burn

Watch

FCF turned negative in 2 of the last 8 quarters — occasional cash consumption.

Price & Volume

Market Cap $78.91B

Metrics at a Glance

as of September 2026

Revenue & Profit

Revenue, EBITDA, operating income, net income, EPS, and shares

TTM Revenue: $43.59B
Q. Revenue: $11.12B
TTM EBITDA: $6.15B
TTM Op. Income: $4.63B
Q. Op. Income: $1.27B
TTM Net Income: $4.52B
Q. Net Income: $1.12B
EPS: $7.91
Shares Out.: $142.10M

$43.59B in TTM revenue grew 6.5% YoY, reaching $11.12B last quarter. TTM EBITDA of $6.15B and TTM operating income of $4.63B show growth is flowing through to the bottom line. TTM net income of $4.52B means revenue is converting into profit. Across the last 8 quarters, TTM revenue has risen for 6 consecutive quarters — an improving trend.

Margins

Gross, EBITDA, operating, and net margin trends

EBITDA Margin: 14.8%
Op. Margin: 11.4%
Net Margin: 10.1%

Op. margin of 11.4% is down 0.5% YoY — costs are rising relative to revenue. Net margin at 10.1% Across the last 8 quarters, operating margin has risen for 2 consecutive quarters — an improving trend.

Price Ratios

P/E, P/S, P/B, EV/EBITDA, FCF yield, and earnings yield

P/E Ratio: 17.5x
P/S Ratio: 1.8x
P/B Ratio: 4.2x

At 17.5x P/E, the stock trades within typical market levels. P/S of 1.8x and P/B of 4.2x provide additional context. Use the growth and margin sections to judge whether the multiple is justified. Over the past year, P/E is down 17% — a weakening trend.

Assets & Liabilities

Total assets, cash, debt, book value, and leverage

Total Assets: $52.50B
Cash: $3.74B
Long-Term Debt: $14.43B
Book Value: $18.68B
D/E Ratio: 0.8
Debt/EBITDA: 8.8

With $52.50B in assets and $14.43B in long-term debt, D/E is 0.8and book value is $18.68B — a conservative capital structure with a cushion to weather downturns. Across the last 8 quarters, debt/equity has fallen for 5 consecutive quarters — an improving trend.

Cash Flow

Operating cash flow, free cash flow, FCF margin, and earnings quality

Op. Cash Flow: $1.75B
TTM Free Cash Flow: $3.83B
FCF Margin: 8.8%
FCF / Net Income: 0.8

TTM FCF of $3.83B on $1.75B in operating cash flow. The FCF / Net Income ratio of 0.8x means free cash flow covers net income — earnings are backed by cash. Across the last 8 quarters, free cash flow has risen for 2 consecutive quarters — an improving trend.