# Northrop Grumman Corp. (NOC) — Stock CV

Northrop Grumman Corp. is a $68.3B technology company. Revenue grew 5.9% over the last year, it keeps 10¢ of every dollar of sales as profit, and its net debt equals ~3.0 years of free cash flow. It trades at 15.2× earnings — around the middle of its own history.

> Northrop Grumman is a diversified defense contractor providing aeronautics, defense, and space systems.

## Identity

- **Ticker**: NOC
- **Sector**: Technology
- **Industry**: Search, Detection, Navigation, Guidance, Aeronautical Sys
- **Headquarters**: FALLS CHURCH, VA
- **Employees**: 95 000
- **Website**: https://www.northropgrumman.com
- **Market cap**: $68.3B
- **Last price**: $480.90
- **Financial profile**: Solid

## Vitals (TTM)

- **Revenue**: $42.9B
- **Net income**: $4.50B
- **Free cash flow**: $3.65B
- **Net debt**: $10.8B
- **P/E**: 15.2
- **Revenue growth (YoY)**: 5.9%

## Skills (profile scores, 0–100)

| Pillar | Score |
|---|---|
| Valuation | 77 |
| Growth | 18 |
| Profitability | 77 |
| Health | 60 |
| Quality | 82 |
| Moat | 69 |

## Qualifications (beginner checklist) — 10 of 11 passed

- [x] Revenue growing — +5.9% YoY
- [x] Profitable — $4.50B TTM
- [ ] Profit growing — -2.6% YoY
- [x] Generates cash — $3.65B TTM
- [x] Debt under control — ~3.0y of cash flow to repay
- [x] Established company — $68.3B market cap
- [x] Not printing shares — -14.2% shares over ~5y
- [x] Proven track record — 10/10 profitable years
- [x] Financially stable — Altman Z 2.3 — grey
- [x] Pays a dividend — yield 1.97%
- [x] Valuation not extreme — P/E 15.2

## Experience (career milestones)

- **FY2021** — Best year on record: $7.00B net income
- **2021** — Northrop Grumman and its industry partners have won the Collier Trophy nine times, including for the development and…
- **2018** — Northrop Grumman completed the purchase of Orbital ATK
- **2017** — Northrop announced the acquisition of missile and rocket manufacturer Orbital ATK Inc for $9.2…
- **FY2016** — Profitable every year on record: 10 consecutive profitable years in our data
- **FY2016** — Revenue already above $10B: $24.5B in first reported year
- **FY2016** — Positive free cash flow every year since: 10-year streak
- **Jul 20, 2007** — Northrop Grumman became the sole owner of Burt Rutan's Scaled Composites
- **2007** — Northrop Grumman created 'National Workforce Centers' as an alternative to offshoring
- **2007** — Northrop Grumman acquired Scaled Composites in which it had previously owned a 40% stake
- **2002** — Northrop Grumman acquired TRW Inc
- **2001** — During the acquisition process, a new Delaware holding company, NNG, Inc., was formed
- **1994** — Northrop Aircraft bought Grumman Aerospace, which built the Apollo Lunar Module, to create Northrop Grumman…
- **1988** — Navy; the B-2 Spirit, a strategic bomber introduced in 1988; the B-21 Raider, a strategic bomber with a first flight…

## Strengths

- Interest covered 8.6× by operating earnings
- High returns on invested capital (ROIC 15.2%)

## Watch-outs

- None stand out in the data.

## Track record

| Year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2021 | $35.7B | $7.00B | $2.15B |
| FY2022 | $36.6B | $4.90B | $1.47B |
| FY2023 | $39.3B | $2.06B | $2.10B |
| FY2024 | $41.0B | $4.17B | $2.62B |
| FY2025 | $42.0B | $4.18B | $3.31B |

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Source: https://stockcv.com/NOC — derived from company filings; may be delayed or incomplete. Information, not investment advice.