Northrop Grumman Corporation

NTH.DE

Aerospace & Defense · Industrials

Price

€474.60

+0.50 (+0.11%)

Market Cap

€67.42B

Exchange

Frankfurt Stock Exchange

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

Mixed

Dividends

Weak

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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 some of the most advanced military equipment in the world. Its main products include stealth bombers like the B-21 Raider, missile defense systems, military satellites, and cybersecurity tools. The U.S. government — mainly the Department of Defense — is its primary customer, making Northrop one of the largest defense contractors in the United States.

The company earns money through long-term government contracts, which provide fairly steady and predictable revenue. Northrop operates mostly in the United States but also sells to allied governments around the world, and it generates roughly $40 billion in annual revenue. Its deep expertise in classified programs and the high cost of switching suppliers give it a strong competitive position, but the business is heavily dependent on U.S. defense budgets — any significant cuts to government spending could directly reduce its revenue and profits.

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

+5.2% 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.

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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

14.2%

Good — 14.2% 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

+5.8%

Slow sales growth (+5.8% YoY)

Profit growth

EPS YoY

+16.2%

Earnings growing fast (+16.2% 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

6.98x

Adequate interest coverage (7.0x)

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

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Valuation

Price vs profit

P/E Ratio (TTM)

15.0x

Fair value — P/E 15.0

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

-2.5

SLOWING

Earnings expected to fall — forward P/E higher than today

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Dividends

Dividend

Dividend Yield

1.73%

Small dividend — 1.73% yield

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

Dividend record

Dividend Growth

-45.4%

Dividend cut (-45.4% YoY) — warning sign

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