NOCNEUTRAL

NOC Return on Equity (ROE) Analysis

27.0%

Updated 417h ago·SEC filings & market data

Key Takeaway

Return on equity (ROE) measures how much profit a company generates from each dollar of shareholder equity; NOC's current 27.0% means it earns $0.27 for every dollar invested by shareholders.

Sector Performance

79th percentile

NOC

27.0%

Sector Median

13.3%

Sector Avg

16.9%

Prior Period

28.5%(Jul 2026)

↓ Declining

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Deep Analysis

Return on equity (ROE) measures how much profit a company generates from each dollar of shareholder equity; NOC's current 27.0% means it earns $0.27 for every dollar invested by shareholders.

This level sits well above the sector median of 13.8%, placing NOC in the 78th percentile among sector peers. The year-over-year change is N/A, and the quarter-over-quarter change is -5.3%, confirming that the historical values provided (27.0% versus 28.5%) show a slippage in profitability efficiency over the most recent period. A high ROE that is eroding quarter over quarter signals that the company retains a strong competitive edge, but the momentum is cooling, which introduces a moderate risk if the decline continues. This mix of a high level with a negative near-term trend implies an opportunity for investors who accept some short-term weakness in exchange for above-average returns, balanced against the risk of further deterioration. Overall, this metric supports the NEUTRAL verdict, as the strong absolute performance justifies not selling, while the recent decline argues against adding exposure.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about NOC?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

Who are NOC's closest peers by Return on Equity (ROE)?

The closest peers by Return on Equity (ROE) include: LOW (-67.1%), MAR (-69.0%), BMBL (-76.9%), WBA (-82.7%), NIO (-84.0%).

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Learn More About Return on Equity (ROE)

What Is Return on Equity (ROE) and Is Higher Always Better?

Return on equity ROE measures how efficiently a company generates profit from shareholder capital. Learn how to decompose ROE using DuPont analysis and why high leverage can make it dangerous—with Apple and JPMorgan examples.

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.