NOCNOC
US • —
$509.35
P/E
15.94
PEG
0.61
FCF Yield
—
Rev Growth YoY
+5.0% YoY
Gross Margin
20.5%
Health Score
7/10
D/E Ratio
0.94
Confidence
MEDIUM
Business Snapshot
Northrop Grumman is a global aerospace and defense technology company that primarily generates revenue from advanced aircraft systems, space systems, mission systems, and defense electronics. It operates in the highly concentrated defense industry, where it competes as a major prime contractor alongside peers such as Lockheed Martin, Boeing, and Raytheon Technologies, benefiting from long-term government contracts. The company holds a dominant competitive position in areas like stealth bombers (B-21 Raider) and satellite systems, with significant barriers to entry due to security clearances and specialized manufacturing. Revenue growth of 5.0% over the trailing twelve months reflects steady demand from U.S. and allied defense budgets, though total revenue was not provided.
Financial Health
Northrop Grumman reports a gross margin of 20.5% and a net margin of 10.8%, indicating moderate profitability typical of capital-intensive defense contractors. The balance sheet is characterized by a debt-to-equity ratio of 0.94x and a current ratio of 1.1x, which suggests a manageable but not conservative leverage profile and adequate short-term liquidity...
Risk Assessment
- VALUATION DIVERGENCE — Two DCF estimates are unavailable (FMP DCF and Python DCF) due to negative or missing free cash flow data, preventing a reliable intrinsic value comparison.
- DEBT / LIQUIDITY — Debt/equity of 0.94x is below the 1.5x critical threshold but still elevated relative to a zero-debt baseline, indicating moderate financial leverage.
- FCF / CASH BURN — Free cash flow is reported as N/A, which prevents assessment of cash generation; negative or undisclosed FCF could indicate a cash-burning project phase.
- TECHNICALS — RSI, MACD, and moving average data are unavailable for this period; momentum cannot be independently confirmed....
Northrop Grumman reports a gross margin of 20.5% and a net margin of 10.8%, indicating moderate profitability typical of capital-intensive defense contractors. The balance sheet is characterized by a debt-to-equity ratio of 0.94x and a current ratio of 1.1x, which suggests a manageable but not conservative leverage profile and adequate short-term liquidity. Free cash flow data is unavailable, preventing a direct assessment of cash generation, though the 28.1% return on equity signals efficient profit generation relative to shareholder equity. Overall, the company's financial health is solid with moderate debt levels and reasonable margins, supporting ongoing reinvestment in large-scale defense programs and a sustained dividend.
- VALUATION DIVERGENCE — Two DCF estimates are unavailable (FMP DCF and Python DCF) due to negative or missing free cash flow data, preventing a reliable intrinsic value comparison. - DEBT / LIQUIDITY — Debt/equity of 0.94x is below the 1.5x critical threshold but still elevated relative to a zero-debt baseline, indicating moderate financial leverage. - FCF / CASH BURN — Free cash flow is reported as N/A, which prevents assessment of cash generation; negative or undisclosed FCF could indicate a cash-burning project phase. - TECHNICALS — RSI, MACD, and moving average data are unavailable for this period; momentum cannot be independently confirmed.
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