NOCNEUTRAL

NOC Gross Margin Analysis

19.8%

Updated 516h ago·SEC filings & market data

Key Takeaway

Northrop Grumman’s gross margin of 19.8% means that for every dollar of revenue, the company keeps about 19.8 cents after covering the direct costs of producing its goods and services.

Sector Performance

13th percentile

NOC

19.8%

Sector Median

44.6%

Sector Avg

45.5%

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Deep Analysis

Northrop Grumman’s gross margin of 19.8% means that for every dollar of revenue, the company keeps about 19.8 cents after covering the direct costs of producing its goods and services.

That figure sits well below the sector median of 44.4%, landing it in the 13th percentile among industry peers — indicating the company is far less profitable on a per‑sale basis than most competitors. The trend information is not available, with year‑over‑year change and quarter‑over‑quarter change both marked as N/A, so no recent direction can be assessed. The combination of a low gross margin and an absence of trend data leaves uncertainty about whether this weakness is improving or worsening, which raises the risk profile for investors seeking near‑term margin expansion. This metric contradicts the overall NEUTRAL verdict, because a gross margin that severely underperforms the sector median typically signals a structural disadvantage that would argue for a more cautious view.

Frequently Asked Questions

What does the Gross Margin tell investors about NOC?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

Who are NOC's closest peers by Gross Margin?

The closest peers by Gross Margin include: MSCI (82.7%), SYF (82.7%), EA (82.8%), THC (83.4%), INTU (83.9%).

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Learn More About Gross Margin

Gross Margin vs Net Margin: Why the Gap Between Them Tells You Everything

Gross margin vs net margin: learn what the spread between them reveals about operating leverage, cost structure, and early warning signs in any stock.

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.