NOC Gross Margin Analysis

Gross margin is the percentage of revenue left after paying direct production costs, so NOC keeps $0.195 of every sales dollar before other expenses.

That 19.5% sits far below the sector median of 44.7%, placing the company in the 13th percentile among peers — meaning most comparable firms retain a much larger share of revenue. The trend data is limited: year-over-year change is N/A, while quarter-over-quarter the margin fell 1.5 percentage points, from 19.8% to 19.5%. Because the margin is already low and the only available change is negative, the combination signals a competitive cost structure that is not improving, which adds downside risk if input costs rise or pricing pressure continues. The clear underperformance versus peers, paired with a declining QoQ move, points to a structural disadvantage rather than a temporary blip. This metric contradicts the overall NEUTRAL verdict, as it suggests the stock carries more fundamental risk than a neutral stance would imply.

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