NYSE · Industrials

Northrop Grumman Corporation

NOC · Aerospace & Defense

$567.00

▼ -1.14 (-0.2%)

Data cached · refreshes every 10 min

Mr. Market is currently offering Northrop Grumman Corporation at $567.00.

The business passes only 3 of 7 of Graham's defensive criteria — well below his required standard.

Overall Grade

Defensive

Enterprising

Profitability C

Gross Profit Margin 19.8%

Operating Margin 10.2%

Net Income Margin 10.0%

Fin. Health C

Years to Pay Off Debt 4.1 yrs

Working Capital vs Long-Term Debt -$13.8B

Working Capital $1.4B

Valuation F

Margin of Safety 0.0%

Price-to-Book 4.83x

Cash Flow B

Free Cash Flow $3.3B

CapEx % of Net Income 34.7%

Owner Earnings $7.1B

3/7

Graham Score

Speculative

Defensive — Graham's strict criteria (P/B, P/E, dividends, stability) · Enterprising — Profitability & cash flow focused, accepts higher valuations for quality

Market Data

Market Cap $80.5B

Enterprise Value $96.2B

P/E (TTM) 17.79

Dividend Yield 1.63%

Exchange NYSE

Key Margins

Gross Profit 19.8%

Operating Margin 10.2%

Net Margin 10.0%

Company Info

Sector Industrials

Industry Aerospace & Defense

Employees 95000

Country United States

Visit website

📖

Full Graham Analysis

Mr. Market is currently offering Northrop Grumman Corporation at $567.00.

The business passes only 3 of 7 of Graham's defensive criteria — well below his required standard.

At $567.00, the stock trades at a 105% premium to its Graham Number of $277.15. Graham would consider this price speculative.

There is no margin of safety at the current price. Graham would advise patience and waiting for a better entry point.

Negative NCAV — liabilities exceed current assets. Common in capital-return businesses (buybacks, debt-funded dividends) and capital-intensive industries. Not automatically a warning sign..

Conclusion: By Graham's standards, this stock is speculative at its current price. The intelligent investor would look elsewhere or wait.

About Northrop Grumman Corporation

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.

Showing Key Metrics

Income Highlights

Metric	2025	2024	2023	2022
Gross Profit %	19.8% ▼	20.4%	16.7%	20.4%
Operating Margin %	10.2% ▼	10.6%	6.5%	9.8%
Net Income %	10.0% ▼	10.2%	5.2%	13.4%
Diluted EPS	29.08 ▲	28.34	13.53	31.47

Balance Sheet Highlights

Metric	2025	2024	2023	2022	2021
Total Assets	$51.4B	$49.4B	$46.5B	$43.8B	N/A
Total Debt	$17.0B ↑	$16.5B	$15.7B	$13.6B	N/A
Working Capital	$1.4B ▲	$146M	$1.8B	$901M	N/A
Years to Pay Debt	4.07	3.95	7.63	2.78	N/A

Cash Flow Highlights

Metric	2025	2024	2023	2022	2021
Free Cash Flow	$3.3B ▲	$2.6B	$2.1B	$1.5B	N/A
Owner Earnings	$7.1B	$7.3B	$5.2B	$7.7B	N/A
CapEx % of Net Income	34.7%	42.3%	86.3%	29.3%	N/A

Income Statement

	2025	2024	2023	2022
Tax Effect Of Unusual Items	40,425	0	0	0
Tax Rate For Calcs	0	0	0	0
Normalized EBITDA	6,974,000	7,007,000	4,229,000	7,684,000
Total Unusual Items	231,000	0	0	0
Total Unusual Items Excluding Goodwill	231,000	0	0	0
Net Income From Continuing Operation Net Minority Interest	4,182,000	4,174,000	2,056,000	4,896,000
Reconciled Depreciation	1,472,000	1,370,000	1,338,000	1,342,000
Reconciled Cost Of Revenue	33,641,000	32,671,000	32,739,000	29,128,000
EBITDA	7,205,000	7,007,000	4,229,000	7,684,000
EBIT	5,733,000	5,637,000	2,891,000	6,342,000
Net Interest Income	-665,000	-621,000	-545,000	-506,000
Interest Expense	665,000	621,000	545,000	506,000
Normalized Income	3,991,425	4,174,000	2,056,000	4,896,000
Net Income From Continuing And Discontinued Operation	4,182,000	4,174,000	2,056,000	4,896,000
Total Expenses	37,674,000	36,663,000	36,753,000	33,001,000
Total Operating Income As Reported	4,511,000	4,370,000	2,537,000	3,601,000
Diluted Average Shares	143,800	147,300	152,000	155,600
Basic Average Shares	143,500	147,000	151,500	154,900
Diluted EPS	0	0	0	0
Basic EPS	0	0	0	0
Diluted NI Availto Com Stockholders	4,182,000	4,174,000	2,056,000	4,896,000
Net Income Common Stockholders	4,182,000	4,174,000	2,056,000	4,896,000
Net Income	4,182,000	4,174,000	2,056,000	4,896,000
Net Income Including Noncontrolling Interests	4,182,000	4,174,000	2,056,000	4,896,000
Net Income Continuous Operations	4,182,000	4,174,000	2,056,000	4,896,000
Tax Provision	886,000	842,000	290,000	940,000
Pretax Income	5,068,000	5,016,000	2,346,000	5,836,000
Other Income Expense	1,453,000	1,267,000	354,000	2,741,000
Other Non Operating Income Expenses	1,222,000	1,267,000	354,000	2,741,000
Special Income Charges	231,000	0	0	0
Gain On Sale Of Business	231,000	0	0	0
Net Non Operating Interest Income Expense	-665,000	-621,000	-545,000	-506,000
Interest Expense Non Operating	665,000	621,000	545,000	506,000
Operating Income	4,280,000	4,370,000	2,537,000	3,601,000
Operating Expense	4,033,000	3,992,000	4,014,000	3,873,000
Selling General And Administration	4,033,000	3,992,000	4,014,000	3,873,000
General And Administrative Expense	4,033,000	3,992,000	4,014,000	3,873,000
Other Gand A	4,033,000	3,992,000	4,014,000	3,873,000
Gross Profit	8,313,000	8,362,000	6,551,000	7,474,000
Cost Of Revenue	33,641,000	32,671,000	32,739,000	29,128,000
Total Revenue	41,954,000	41,033,000	39,290,000	36,602,000
Operating Revenue	41,954,000	41,033,000	39,290,000	36,602,000

Balance Sheet

	2025	2024	2023	2022	2021
Ordinary Shares Number	141,997	144,952	150,109	153,158
Share Issued	141,997	144,952	150,109	153,158
Net Debt	10,759,000	10,339,000	10,677,000	9,228,000
Total Debt	17,019,000	16,490,000	15,678,000	13,629,000
Tangible Book Value	-763,000	-2,222,000	-3,027,000	-2,588,000
Invested Capital	31,836,000	29,982,000	28,581,000	27,117,000
Working Capital	1,405,000	146,000	1,764,000	901,000
Net Tangible Assets	-763,000	-2,222,000	-3,027,000	-2,588,000
Capital Lease Obligations	1,857,000	1,798,000	1,892,000	1,824,000
Common Stock Equity	16,674,000	15,290,000	14,795,000	15,312,000
Total Capitalization	31,836,000	29,982,000	28,581,000	27,117,000
Total Equity Gross Minority Interest	16,674,000	15,290,000	14,795,000	15,312,000
Stockholders Equity	16,674,000	15,290,000	14,795,000	15,312,000
Gains Losses Not Affecting Retained Earnings	-126,000	-152,000	-128,000	-153,000
Other Equity Adjustments	5,000	-12,000	10,000	8,000
Foreign Currency Translation Adjustments	-131,000	-140,000	-138,000	-161,000
Retained Earnings	16,658,000	15,297,000	14,773,000	15,312,000
Capital Stock	142,000	145,000	150,000	153,000
Common Stock	142,000	145,000	150,000	153,000
Total Liabilities Net Minority Interest	34,703,000	34,069,000	31,749,000	28,443,000
Total Non Current Liabilities Net Minority Interest	20,821,000	19,941,000	19,807,000	16,856,000
Other Non Current Liabilities	2,692,000	2,331,000	2,839,000	2,039,000
Employee Benefits	1,110,000	1,120,000	1,290,000	1,188,000
Non Current Pension And Other Postretirement Benefit Plans	1,110,000	1,120,000	1,290,000	1,188,000
Non Current Deferred Liabilities				132,000	490,000
Non Current Deferred Taxes Liabilities				132,000	490,000
Long Term Debt And Capital Lease Obligation	17,019,000	16,490,000	15,678,000	13,629,000
Long Term Capital Lease Obligation	1,857,000	1,798,000	1,892,000	1,824,000
Long Term Debt	15,162,000	14,692,000	13,786,000	11,805,000
Current Liabilities	13,882,000	14,128,000	11,942,000	11,587,000
Other Current Liabilities	4,247,000	5,188,000	3,388,000	3,334,000
Current Deferred Liabilities	4,086,000	4,070,000	4,193,000	3,609,000
Current Deferred Revenue	4,086,000	4,070,000	4,193,000	3,609,000
Current Debt And Capital Lease Obligation				1,072,000	6,000
Current Debt				1,072,000	6,000
Pensionand Other Post Retirement Benefit Plans Current	2,309,000	2,271,000	2,251,000	2,057,000
Payables And Accrued Expenses	3,240,000	2,599,000	2,110,000	2,587,000
Payables	3,240,000	2,599,000	2,110,000	2,587,000
Accounts Payable	3,240,000	2,599,000	2,110,000	2,587,000
Total Assets	51,377,000	49,359,000	46,544,000	43,755,000
Total Non Current Assets	36,090,000	35,085,000	32,838,000	31,267,000
Other Non Current Assets	1,604,000	1,484,000	1,194,000	2,594,000
Defined Pension Benefit	3,167,000	2,184,000	1,331,000
Non Current Deferred Assets	1,051,000	1,599,000	1,020,000	162,000
Non Current Deferred Taxes Assets	1,051,000	1,599,000	1,020,000	162,000
Goodwill And Other Intangible Assets	17,437,000	17,512,000	17,822,000	17,900,000
Other Intangible Assets		254,000	305,000	384,000	578,000
Goodwill	17,437,000	17,512,000	17,517,000	17,516,000
Net PPE	12,831,000	12,306,000	11,471,000	10,611,000
Accumulated Depreciation	-9,648,000	-8,733,000	-7,964,000	-7,258,000
Gross PPE	22,479,000	21,039,000	19,435,000	17,869,000
Leases	3,551,000	3,288,000	3,076,000	2,747,000
Other Properties	1,859,000	1,770,000	1,818,000	1,811,000
Machinery Furniture Equipment	11,999,000	11,168,000	10,194,000	9,298,000
Buildings And Improvements	4,278,000	4,031,000	3,605,000	3,272,000
Land And Improvements	792,000	782,000	742,000	741,000
Current Assets	15,287,000	14,274,000	13,706,000	12,488,000
Other Current Assets	1,656,000	1,286,000	2,341,000	1,439,000
Prepaid Assets					1,126,000
Inventory	1,309,000	1,455,000	1,109,000	978,000
Finished Goods	58,000	44,000	52,000	48,000
Work In Process	945,000	1,118,000	719,000	605,000
Raw Materials	306,000	293,000	338,000	325,000
Receivables	7,919,000	7,180,000	7,147,000	7,494,000
Other Receivables	6,544,000	5,908,000	5,693,000	5,983,000
Accounts Receivable	1,375,000	1,272,000	1,454,000	1,511,000
Allowance For Doubtful Accounts Receivable	-5,000	-5,000	-6,000	-8,000
Gross Accounts Receivable	1,380,000	1,277,000	1,460,000	1,519,000
Cash Cash Equivalents And Short Term Investments	4,403,000	4,353,000	3,109,000	2,577,000
Cash And Cash Equivalents	4,403,000	4,353,000	3,109,000	2,577,000

Cash Flow

	2025	2024	2023	2022	2021
Free Cash Flow	3,307,000	2,621,000	2,100,000	1,466,000
Repurchase Of Capital Stock	-1,624,000	-2,514,000	-1,500,000	-1,504,000
Repayment Of Debt	-1,500,000	0	-1,050,000	0
Issuance Of Debt	998,000	2,495,000	1,995,000	0
Capital Expenditure	-1,450,000	-1,767,000	-1,775,000	-1,435,000
End Cash Position	4,403,000	4,353,000	3,109,000	2,577,000
Beginning Cash Position	4,353,000	3,109,000	2,577,000	3,530,000
Changes In Cash	50,000	1,244,000	532,000	-953,000
Financing Cash Flow	-3,552,000	-1,395,000	-1,761,000	-2,613,000
Cash Flow From Continuing Financing Activities	-3,552,000	-1,395,000	-1,761,000	-2,613,000
Net Other Financing Charges	-133,000	-190,000	-90,000	-57,000
Cash Dividends Paid	-1,293,000	-1,186,000	-1,116,000	-1,052,000
Common Stock Dividend Paid	-1,293,000	-1,186,000	-1,116,000	-1,052,000
Net Common Stock Issuance	-1,624,000	-2,514,000	-1,500,000	-1,504,000
Common Stock Payments	-1,624,000	-2,514,000	-1,500,000	-1,504,000
Net Issuance Payments Of Debt	-502,000	2,495,000	945,000	0
Net Long Term Debt Issuance	-502,000	2,495,000	945,000	0
Long Term Debt Payments	-1,500,000	0	-1,050,000	0
Long Term Debt Issuance	998,000	2,495,000	1,995,000	0
Investing Cash Flow	-1,155,000	-1,749,000	-1,582,000	-1,241,000
Cash Flow From Continuing Investing Activities	-1,155,000	-1,749,000	-1,582,000	-1,241,000
Net Other Investing Changes	-38,000	18,000	-4,000	39,000
Net Investment Purchase And Sale	0	0	197,000	0
Sale Of Investment	0	0	197,000	0
Net Business Purchase And Sale	333,000	0	0	0
Sale Of Business	333,000	0	0	0
Net PPE Purchase And Sale		0	0	155,000	84,000
Sale Of PPE		0	0	155,000	84,000
Capital Expenditure Reported	-1,450,000	-1,767,000	-1,775,000	-1,435,000
Operating Cash Flow	4,757,000	4,388,000	3,875,000	2,901,000
Cash Flow From Continuing Operating Activities	4,757,000	4,388,000	3,875,000	2,901,000
Change In Working Capital	-863,000	274,000	-144,000	-600,000
Change In Other Current Liabilities	-212,000	-875,000	401,000
Change In Payables And Accrued Expense	87,000	1,628,000	-1,127,000	293,000
Change In Payable	87,000	1,628,000	-1,127,000	293,000
Change In Account Payable	646,000	485,000	-469,000	572,000
Change In Tax Payable	-559,000	1,143,000	-658,000	-279,000
Change In Income Tax Payable	-559,000	1,143,000	-658,000	-279,000
Change In Prepaid Assets	27,000	-88,000	501,000	2,000
Change In Inventory	97,000	-358,000	-220,000	-205,000
Change In Receivables	-862,000	-33,000	301,000	-690,000
Changes In Account Receivables	-108,000	182,000	54,000	-44,000
Other Non Cash Items	403,000	-68,000	1,412,000	-90,000
Stock Based Compensation	119,000	101,000	87,000	99,000
Deferred Tax	548,000	-582,000	-988,000	-321,000
Deferred Income Tax	548,000	-582,000	-988,000	-321,000
Depreciation Amortization Depletion	1,472,000	1,370,000	1,338,000	1,342,000
Depreciation And Amortization	1,472,000	1,370,000	1,338,000	1,342,000
Operating Gains Losses	-1,104,000	-881,000	114,000	-2,425,000
Pension And Employee Benefit Expense	-873,000	-881,000	114,000	-2,425,000
Gain Loss On Sale Of Business	-231,000	0	0	0
Net Income From Continuing Operations	4,182,000	4,174,000	2,056,000	4,896,000

These metrics estimate what Northrop Grumman Corporation is worth based on its fundamentals — independent of what the market currently prices it at. Graham's Fair Value and NCAV are conservative floors rooted in 1930s–60s principles. EPV assumes zero growth. None are price targets — they are reference points for judging whether the current price offers a margin of safety.

Graham's Fair Value

$277.15

Margin of Safety

Market Cap ÷ Company Value

1.91

P/B Ratio

4.83

Warren's Owner Earnings

$7.1B

Latest fiscal year

Graham's 7 Criteria

Defensive Investor Checklist

3/7 — Speculative Investor

✅ Adequate Size

$42.0B

vs > $1.5B revenue

❌ Strong Financial Condition

1.10x

vs Current Ratio > 2.0x

✅ Earnings Stability

No loss years (4 yrs data)

vs No negative EPS years

✅ Dividend Record

1.63%

vs Uninterrupted dividends

❌ Earnings Growth

-7.6% EPS growth

vs > 33% EPS growth

❌ Moderate P/E Ratio

17.8x

vs P/E ≤ 15.0x

❌ Moderate Price-to-Book

4.83x P/B (P/E×P/B: 85.9)

vs P/B ≤ 1.5x | P/E × P/B ≤ 22.5

Net Current Asset Value

$-136.70

Negative NCAV — liabilities exceed current assets. Common in capital-return businesses (buybacks, debt-funded dividends) and capital-intensive industries. Not automatically a warning sign.

"Buy at two-thirds of net current assets." — Graham

Earnings Power Value

$334.82

Per share, no-growth floor. Compare to current price.

Cash Flow Analysis

Metric	2025	2024	2023	2022	2021
Capital Expenditure % of Net Income	34.7%	42.3%	86.3%	29.3%	N/A
Repurchase of Capital Stock	-$1.6B	-$2.5B	-$1.5B	-$1.5B	N/A
Free Cash Flow	$3.3B ▲	$2.6B ▲	$2.1B ▲	$1.5B •	N/A •
Warren's Owner Earnings	$7.1B	$7.3B	$5.2B	$7.7B	N/A

Peers & Industry Comparison

Aerospace & Defense — Auto-detected peers

Company	Price	Market Cap	P/E	Gross Margin	Net Margin	Revenue
NOC	$567.00	$80.5B	17.79	19.8%	10.0%	$42.0B
BA Boeing Company (The)	$221.30	$174.5B	87.8	4.8%	2.5%	$92.2B
LMT Lockheed Martin Corporation	$518.15	$119.5B	25.1	9.9%	6.4%	$75.1B
RTX RTX Corporation	$172.90	$232.8B	32.5	20.2%	8.0%	$90.4B
GD General Dynamics Corporation	$349.08	$94.4B	22.0	15.2%	8.1%	$53.8B

"The management of a business is its most important single factor — more important than market position, patents, or financial structure."

— Benjamin Graham

Capital Allocation & Alignment

Insider Ownership

0.22%

Low — management has little skin in the game

Return on Equity (ROE)

25.1%

Excellent — management generates strong returns on equity

Return on Assets (ROA)

8.1%

Strong — management uses assets efficiently

Share Buybacks (Latest Year)

$1.6B

Management is returning capital to shareholders via buybacks

Debt Trend YoY

+3.2% YoY

Debt is roughly stable

Leadership Team

Kathy Warden

Chair, CEO & President

Age 53

Pay: $7,337,196

0.175% of net income

Thomas Jones

Corporate VP & President of Aeronautics Systems Sector

Age 58

Pay: $2,082,923

0.050% of net income

Robert Fleming

Corporate VP & President of Northrop Grumman Space Systems Sector

Age 52

Pay: $2,364,748

0.057% of net income

Roshan Roeder

Corporate VP & President of Mission Systems Sector

Age 45

Pay: $1,895,395

0.045% of net income

John Thomas Greene

Corporate VP & CFO

Age 59

Top Institutional Holders

Institution	% Owned	Shares
Vanguard Group Inc	9.67%	13,740,721
State Street Corporation	9.30%	13,208,361
Capital International Investors	8.08%	11,477,634
Blackrock Inc.	7.31%	10,380,845
Morgan Stanley	2.58%	3,667,833
Capital World Investors	2.42%	3,434,041
Geode Capital Management, LLC	2.22%	3,149,478
Franklin Resources, Inc.	2.20%	3,125,139

Risk Analysis

Beta (Market Risk)

-0.11

Defensive — moves inversely to the market

Short Interest

1.2% of float

Low short interest — market is not heavily bearish

Debt-to-Equity

1.03x

Moderate leverage

Current Ratio

1.15x

Adequate liquidity

52-Week Price Range

Low: $453.01 Current: $567.00 High: $774.00

Currently at 36% of 52-week range

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