Northrop Grumman Corporation

NOC

Aerospace & Defense · Industrials

Also trades as: 0K92.L

Price

$551.03

-12.83 (-2.28%)

Market Cap

$78.28B

Winston Score

Winston is serious

Mixed quality — meaningful strengths and weaknesses.

Data as of Aug 23, 2026 · filings through Jun 30, 2026

How the score breaks down

Quality

Mixed

Growth

Good

Cash Flow

Strong

Stability

Good

Valuation

Good

Dividends

Good

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Share count falling — buybacks

−10.6% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 160.9M (2021) → 143.8M (2025)

Winston Score History

The full picture

Northrop Grumman builds weapons, aircraft, and technology systems for militaries and governments. Its main products include stealth bombers like the B-21 Raider, missile defense systems, satellites, radar, and cybersecurity tools. The U.S. government is its largest customer by far, making Northrop one of the biggest defense contractors in the world.

The company earns money through long-term government contracts, often worth billions of dollars and lasting many years. It operates primarily in the United States but also sells to allied governments abroad. Its moat comes from being one of only a few companies with the technical expertise and security clearances needed to build complex, classified defense systems — making it very hard for new competitors to enter. The biggest risk is that U.S. defense budget cuts could reduce contract awards, while the key growth driver is rising global demand for advanced defense technology, including space systems and nuclear modernization programs.

Politician Trades

8 trades / 12mo

3 Congressional buys and 5 sells on NOC in the last 12 months.

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Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+5.1% YoY

YoY Growth Rate

Slow revenue growth

EPS Growth

-5.8% YoY

YoY Growth Rate

Earnings declining

R&D Spend

$1.1B/ year

→ Flat (+0% vs prior year)

2.6% of revenue

Below sector average (4%)

Steady R&D investment year-over-year

Insider Activity

0.3%ownership

→ Flat

Insider ownership roughly steady over the past year

Cash Position

Cash flow positive

$2.3B cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

Company generates more cash than it spends — no dilution risk from fundraising

Growth context

Northrop Grumman Corporation is growing revenue at 5% year-over-year. The Winston Score measures business quality today — these growth metrics show what could matter tomorrow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

Each metric is explained in plain language so you know exactly what you're looking at. Start your free trial now.

Quality

Profit per sale

Gross Margin

19.5%

Thin — 19.5% gross margin

Profit after running costs

Operating Margin

10.1%

Modest — 10.1% operating margin

Return on the money invested

ROCE

13.5%

Good — 13.5% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales growth

Sales YoY

+5.9%

Slow sales growth (+5.9% YoY)

Profit growth

EPS YoY

+16.0%

Earnings growing fast (+16.0% YoY)

Healthy double-digit earnings growth — what compounders look like.

How steady the profit is

EPS Consistency

6/8 quarters

Earnings grew in most of the last 8 quarters

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Cash Flow

Profit that turns into cash

Cash Conversion

113%

Turns 113% of profit into real cash

Spare cash per sale

FCF Margin

8.5%

Modest free cash flow (8.5%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

What it owes vs what it owns

Debt / Equity

0.81

Moderate — manageable debt (0.81)

Covers its interest

Interest Cover

6.63x

Adequate interest coverage (6.6x)

Interest coverage between 3 and 8. Profits cover interest several times over.

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Valuation

Price vs profit

P/E Ratio (TTM)

17.5x

Fair value — P/E 17.5

P/E in the normal range. Price is roughly $15 for every $1 of yearly profit.

Cheaper or dearer next year

P/E vs Forward

+0.6

GROWING

Earnings roughly flat

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Dividends

Dividend

Dividend Yield

1.70%

Small dividend — 1.70% yield

Modest yield. The bulk of any return needs to come from price appreciation.

Dividend record

Dividend Growth

+10.7%

Dividend growing fast (10.7% YoY)

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