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Northrop Grumman

BOVESPA:NOCG34
Snowflake Description

Average dividend payer with mediocre balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
NOCG34
BOVESPA
$55B
Market Cap
  1. Home
  2. BR
  3. Capital Goods
Company description

Northrop Grumman Corporation operates as a security company. The last earnings update was 70 days ago. More info.


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NOCG34 Share Price and Events
7 Day Returns
0%
BOVESPA:NOCG34
1.1%
Global Aerospace & Defense
6.5%
BR Market
1 Year Returns
-
BOVESPA:NOCG34
-21.9%
Global Aerospace & Defense
-16.8%
BR Market
NOCG34 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Northrop Grumman (NOCG34) 0% 5.2% 3.1% - - -
Global Aerospace & Defense 1.1% -17.9% -32.9% -21.9% -11.4% 3.2%
BR Market 6.5% -11.6% -31.6% -16.8% 13.8% 22.6%
1 Year Return vs Industry and Market
  • No trading data on NOCG34.
  • No trading data on NOCG34.
Price Volatility
NOCG34
Industry
5yr Volatility vs Market

NOCG34 Value

 Is Northrop Grumman undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Northrop Grumman to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Northrop Grumman.

BOVESPA:NOCG34 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 16 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 12.5%
Perpetual Growth Rate 10-Year BR Government Bond Rate 7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for BOVESPA:NOCG34
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year BR Govt Bond Rate 7%
Equity Risk Premium S&P Global 5.4%
Aerospace & Defense Unlevered Beta Simply Wall St/ S&P Global 0.85
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.851 (1 + (1- 21%) (28.01%))
1.026
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.03
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 6.96% + (1.026 * 5.44%)
12.54%

Discounted Cash Flow Calculation for BOVESPA:NOCG34 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Northrop Grumman is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

BOVESPA:NOCG34 DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 12.54%)
2020 3,260.10 Analyst x10 2,896.78
2021 3,565.70 Analyst x10 2,815.24
2022 3,874.43 Analyst x7 2,718.08
2023 4,121.33 Analyst x3 2,569.08
2024 4,114.50 Analyst x2 2,278.99
2025 4,196.02 Est @ 1.98% 2,065.13
2026 4,341.83 Est @ 3.47% 1,898.75
2027 4,538.10 Est @ 4.52% 1,763.41
2028 4,776.46 Est @ 5.25% 1,649.19
2029 5,051.81 Est @ 5.76% 1,549.87
Present value of next 10 years cash flows $22,204.00
BOVESPA:NOCG34 DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $5,051.81 × (1 + 6.96%) ÷ (12.54% – 6.96%)
$96,798.88
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $96,798.88 ÷ (1 + 12.54%)10
$29,697.52
BOVESPA:NOCG34 Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $22,204.00 + $29,697.52
$51,901.52
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $51,901.52 / 167.29
$310.24
BOVESPA:NOCG34 Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in BOVESPA:NOCG34 represents 0.95823x of NYSE:NOC
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.95823x
Value per Share
(Listing Adjusted, BRL)
= Value per Share (USD) x Listing Adjustment Factor
= $ 310.24 x 0.95823
R$297.28
Value per share (BRL) From above. R$297.28
Current discount Discount to share price of R$315.90
= -1 x (R$315.90 - R$297.28) / R$297.28
-6.3%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Northrop Grumman is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Northrop Grumman's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Northrop Grumman's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
BOVESPA:NOCG34 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in USD $13.28
NYSE:NOC Share Price ** NYSE (2020-04-01) in USD $329.67
Global Aerospace & Defense Industry PE Ratio Median Figure of 153 Publicly-Listed Aerospace & Defense Companies 17.14x
Brazil Market PE Ratio Median Figure of 230 Publicly-Listed Companies 11.82x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Northrop Grumman.

BOVESPA:NOCG34 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:NOC Share Price ÷ EPS (both in USD)

= 329.67 ÷ 13.28

24.83x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Northrop Grumman is overvalued based on earnings compared to the Global Aerospace & Defense industry average.
  • Northrop Grumman is overvalued based on earnings compared to the Brazil market.
Price based on expected Growth
Does Northrop Grumman's expected growth come at a high price?
Raw Data
BOVESPA:NOCG34 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 24.83x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 16 Analysts
14.9%per year
Global Aerospace & Defense Industry PEG Ratio Median Figure of 87 Publicly-Listed Aerospace & Defense Companies 1.57x
Brazil Market PEG Ratio Median Figure of 117 Publicly-Listed Companies 0.99x

*Line of best fit is calculated by linear regression .

BOVESPA:NOCG34 PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 24.83x ÷ 14.9%

1.66x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Northrop Grumman is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Northrop Grumman's assets?
Raw Data
BOVESPA:NOCG34 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in USD $52.54
NYSE:NOC Share Price * NYSE (2020-04-01) in USD $329.67
Global Aerospace & Defense Industry PB Ratio Median Figure of 204 Publicly-Listed Aerospace & Defense Companies 1.84x
Brazil Market PB Ratio Median Figure of 277 Publicly-Listed Companies 1.16x
BOVESPA:NOCG34 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:NOC Share Price ÷ Book Value per Share (both in USD)

= 329.67 ÷ 52.54

6.27x

* Primary Listing of Northrop Grumman.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Northrop Grumman is overvalued based on assets compared to the Global Aerospace & Defense industry average.
X
Value checks
We assess Northrop Grumman's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Aerospace & Defense industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Aerospace & Defense industry average (and greater than 0)? (1 check)
  5. Northrop Grumman has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

NOCG34 Future Performance

 How is Northrop Grumman expected to perform in the next 1 to 3 years based on estimates from 16 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
14.9%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Northrop Grumman expected to grow at an attractive rate?
  • Northrop Grumman's earnings growth is expected to exceed the low risk savings rate of 7%.
Growth vs Market Checks
  • Northrop Grumman's earnings growth is positive but not above the Brazil market average.
  • Northrop Grumman's revenue growth is positive but not above the Brazil market average.
Annual Growth Rates Comparison
Raw Data
BOVESPA:NOCG34 Future Growth Rates Data Sources
Data Point Source Value (per year)
BOVESPA:NOCG34 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 16 Analysts 14.9%
BOVESPA:NOCG34 Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 16 Analysts 5.5%
Global Aerospace & Defense Industry Earnings Growth Rate Market Cap Weighted Average 13.1%
Global Aerospace & Defense Industry Revenue Growth Rate Market Cap Weighted Average 4.1%
Brazil Market Earnings Growth Rate Market Cap Weighted Average 16.8%
Brazil Market Revenue Growth Rate Market Cap Weighted Average 8.6%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
BOVESPA:NOCG34 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 16 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
BOVESPA:NOCG34 Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2024-12-31 44,547 5,182 4,943 2
2023-12-31 42,543 5,189 4,739 2
2022-12-31 40,131 4,867 4,623 11
2021-12-31 37,765 4,893 4,287 16
2020-12-31 35,631 4,648 3,898 16
2020-04-09
BOVESPA:NOCG34 Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-12-31 33,841 4,297 2,248
2019-09-30 33,276 4,210 3,013
2019-06-30 32,886 3,883 3,324
2019-03-31 31,549 3,151 3,252
2018-12-31 30,095 3,827 3,229
2018-09-30 28,491 3,057 3,894
2018-06-30 26,975 3,183 3,293
2018-03-31 26,329 2,815 3,059
2017-12-31 26,004 2,613 2,869
2017-09-30 25,849 2,537 2,373
2017-06-30 25,435 2,337 2,332
2017-03-31 24,962 2,434 2,294

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Northrop Grumman's earnings are expected to grow by 14.9% yearly, however this is not considered high growth (20% yearly).
  • Northrop Grumman's revenue is expected to grow by 5.5% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
BOVESPA:NOCG34 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 16 Analyst Estimates (S&P Global) See Below

All data from Northrop Grumman Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

BOVESPA:NOCG34 Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2024-12-31 31.41 32.96 29.86 2.00
2023-12-31 29.40 30.10 28.70 2.00
2022-12-31 28.59 29.51 27.57 9.00
2021-12-31 26.12 27.53 24.94 12.00
2020-12-31 23.21 23.88 22.58 12.00
2020-04-09
BOVESPA:NOCG34 Past Financials Data
Date (Data in USD Millions) EPS *
2019-12-31 13.28
2019-09-30 17.71
2019-06-30 19.39
2019-03-31 18.84
2018-12-31 18.59
2018-09-30 22.35
2018-06-30 18.90
2018-03-31 17.55
2017-12-31 16.45
2017-09-30 13.57
2017-06-30 13.26
2017-03-31 12.94

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Northrop Grumman is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Northrop Grumman's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Global market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Global market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Northrop Grumman has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

NOCG34 Past Performance

  How has Northrop Grumman performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Northrop Grumman's growth in the last year to its industry (Aerospace & Defense).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Northrop Grumman's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.
  • Northrop Grumman's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Northrop Grumman's 1-year earnings growth is negative, it can't be compared to the Global Aerospace & Defense industry average.
Earnings and Revenue History
Northrop Grumman's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Northrop Grumman Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

BOVESPA:NOCG34 Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 33,841.00 2,248.00 4,290.00
2019-09-30 33,276.00 3,013.00 2,852.00
2019-06-30 32,886.00 3,324.00 2,823.00
2019-03-31 31,549.00 3,252.00 2,720.00
2018-12-31 30,095.00 3,229.00 2,617.00
2018-09-30 28,491.00 3,894.00 866.00
2018-06-30 26,975.00 3,293.00 996.00
2018-03-31 26,329.00 3,059.00 1,218.00
2017-12-31 26,004.00 2,869.00 1,477.00
2017-09-30 25,849.00 2,373.00 2,742.00
2017-06-30 25,435.00 2,332.00 2,727.00
2017-03-31 24,962.00 2,294.00 2,644.00
2016-12-31 24,706.00 2,043.00 2,971.00
2016-09-30 23,805.00 2,134.00 2,565.00
2016-06-30 23,629.00 2,048.00 2,566.00
2016-03-31 23,525.00 2,062.00 2,587.00
2015-12-31 23,526.00 1,990.00 2,566.00
2015-09-30 23,940.00 2,037.00 2,632.00
2015-06-30 23,945.00 1,994.00 2,549.00
2015-03-31 24,088.00 1,974.00 2,498.00
2014-12-31 23,979.00 2,069.00 2,405.00
2014-09-30 24,028.00 2,041.00 2,273.00
2014-06-30 24,150.00 2,065.00 2,248.00
2014-03-31 24,405.00 2,042.00 2,240.00
2013-12-31 24,661.00 1,952.00 2,256.00
2013-09-30 24,980.00 2,007.00 2,432.00
2013-06-30 25,144.00 1,969.00 2,449.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Whilst Northrop Grumman has efficiently used shareholders’ funds last year (Return on Equity greater than 20%), this is metric is skewed due to its high level of debt.
  • Northrop Grumman used its assets more efficiently than the Global Aerospace & Defense industry average last year based on Return on Assets.
  • Northrop Grumman's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Northrop Grumman's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Aerospace & Defense industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Northrop Grumman has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

NOCG34 Health

 How is Northrop Grumman's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Northrop Grumman's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Northrop Grumman is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Northrop Grumman's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Northrop Grumman's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.8x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Northrop Grumman Company Filings, last reported 3 months ago.

BOVESPA:NOCG34 Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 8,819.00 13,879.00 2,245.00
2019-09-30 9,731.00 14,270.00 1,127.00
2019-06-30 9,214.00 14,682.00 1,088.00
2019-03-31 8,739.00 15,386.00 755.00
2018-12-31 8,187.00 14,598.00 1,579.00
2018-09-30 9,103.00 14,905.00 1,228.00
2018-06-30 8,227.00 15,131.00 1,539.00
2018-03-31 7,680.00 15,260.00 10,369.00
2017-12-31 7,132.00 15,266.00 11,225.00
2017-09-30 6,493.00 7,090.00 1,878.00
2017-06-30 5,919.00 7,081.00 1,383.00
2017-03-31 5,558.00 7,060.00 1,403.00
2016-12-31 5,259.00 7,070.00 2,541.00
2016-09-30 5,767.00 6,390.00 1,103.00
2016-06-30 5,681.00 6,390.00 1,139.00
2016-03-31 5,621.00 6,387.00 1,277.00
2015-12-31 5,522.00 6,496.00 2,319.00
2015-09-30 5,697.00 6,527.00 1,292.00
2015-06-30 6,171.00 6,527.00 1,907.00
2015-03-31 6,748.00 6,418.00 2,646.00
2014-12-31 7,235.00 5,928.00 3,863.00
2014-09-30 9,893.00 5,929.00 3,402.00
2014-06-30 10,268.00 5,929.00 3,476.00
2014-03-31 10,569.00 5,929.00 3,885.00
2013-12-31 10,620.00 5,930.00 5,150.00
2013-09-30 9,356.00 5,928.00 4,944.00
2013-06-30 9,558.00 5,933.00 4,904.00
  • Northrop Grumman's level of debt (157.4%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (82.1% vs 157.4% today).
  • Debt is well covered by operating cash flow (31%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 5.6x coverage).
X
Financial health checks
We assess Northrop Grumman's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Northrop Grumman has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

NOCG34 Dividends

 What is Northrop Grumman's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.6%
Current annual income from Northrop Grumman dividends. Estimated to be 1.88% next year.
If you bought R$2,000 of Northrop Grumman shares you are expected to receive R$32 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Northrop Grumman's pays a lower dividend yield than the bottom 25% of dividend payers in Brazil (2.02%).
  • Northrop Grumman's dividend is below the markets top 25% of dividend payers in Brazil (6.38%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
BOVESPA:NOCG34 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 16 Analyst Estimates (S&P Global) See Below
Global Aerospace & Defense Industry Average Dividend Yield Market Cap Weighted Average of 99 Stocks 2.6%
Brazil Market Average Dividend Yield Market Cap Weighted Average of 166 Stocks 4.9%
Brazil Minimum Threshold Dividend Yield 10th Percentile 0.9%
Brazil Bottom 25% Dividend Yield 25th Percentile 2%
Brazil Top 25% Dividend Yield 75th Percentile 6.4%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

BOVESPA:NOCG34 Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2024-12-31 7.58 1.00
2023-12-31 7.03 1.00
2022-12-31 6.74 8.00
2021-12-31 6.17 11.00
2020-12-31 5.65 11.00
2020-04-09
BOVESPA:NOCG34 Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2020-02-11 5.280 1.628
2019-11-20 5.280 1.469
2019-08-21 5.280 1.463
2019-05-14 5.280 1.613
2019-02-12 4.800 1.710
2018-11-14 4.800 1.836
2018-08-15 4.800 1.615
2018-05-15 4.800 1.526
2018-01-25 4.400 1.293
2017-11-15 4.000 1.303
2017-08-16 4.000 1.407
2017-05-16 4.000 1.537
2017-02-17 3.600 1.480
2016-11-16 3.600 1.521
2016-08-17 3.600 1.642
2016-05-17 3.600 1.657
2016-02-16 3.200 1.610
2015-11-19 3.200 1.713
2015-10-28 3.200 1.725
2015-08-19 3.200 1.886
2015-05-20 3.200 1.940
2015-02-18 2.800 1.736
2014-11-19 2.800 1.860
2014-08-20 2.800 2.151
2014-05-21 2.800 2.284
2014-02-18 2.440 2.017
2013-11-20 2.440 2.149
2013-08-21 2.440 2.449
2013-05-15 2.440 2.827
2013-02-19 2.200 3.130
2013-02-05 2.200 3.345
2012-08-15 2.200 3.265
2012-05-16 2.200 3.523
2012-02-15 2.000 3.278
2011-11-17 2.000 3.460
2011-07-21 2.000 3.653
2011-04-27 2.000 3.064
2011-02-16 1.880 2.888
2010-11-17 1.880 2.845
2010-07-27 1.880 3.145
2010-05-19 1.880 3.231
2010-02-17 1.720 2.649
2009-10-19 1.720 3.107
2009-07-16 1.720 3.535
2009-05-20 1.720 3.685

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Northrop Grumman's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.6x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (4.3x coverage).
X
Income/ dividend checks
We assess Northrop Grumman's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.9%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Northrop Grumman afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Northrop Grumman has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

NOCG34 Management

 What is the CEO of Northrop Grumman's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Kathy Warden
COMPENSATION $13,342,307
AGE 47
TENURE AS CEO 1.3 years
CEO Bio

Ms. Kathy J. Warden has been President of Northrop Grumman Corporation since January 1, 2018, Chief Executive Officer since January 1, 2019 and Chairman of the Board August 1, 2019. Ms. Warden served as the Chief Operating Officer of Northrop Grumman Corporation from January 1, 2018 to January 1, 2019. Ms. Warden was Corporate Vice President of Northrop Grumman Corporation since January 01, 2013 and was its President of Northrop Grumman Mission Systems since January 01, 2016 to 2017. Ms. Warden served as Corporate Vice President and President of Information Systems Sector at Northrop Grumman Corporation from 2013 to 2015. Ms. Warden oversaw large-scale, mission-critical systems and complex hardware and software products within the U.S. and internationally in areas such as command, control, computing, communications, intelligence, surveillance and reconnaissance (C4ISR) and cybersecurity. Ms. Warden served as the President of The Information Systems Sector at Northrop Grumman Corporation from January 01, 2013 to January 01, 2016. Ms. Warden has executive leadership over key cyber or cyber-related mission areas, such as information security, cyber security and signals intelligence (SIGINT). She works closely with other parts of Northrop Grumman as cyber products and services are delivered to its intelligence customers. Ms. Warden has extensive experience in operational leadership and business development in government and commercial markets. She served as Vice President and General Manager of Cyber Intelligence Division at Northrop Grumman Corporation from March 2011 to December 31, 2012. Among her senior roles at Northrop Grumman, Ms. Warden led the intelligence business in cyber, special access and airborne intelligence, surveillance and reconnaissance (ISR). Before joining Northrop Grumman in 2008, she served as the Senior Vice President of a business unit supporting a secure space program and served in other executive roles supporting the intelligence community. Earlier, she was a Principal in a venture Internet firm where she consulted with Fortune 500 companies on Internet use to expand their business models and led development teams to deliver e-publishing, e-commerce and e-marketing solutions. Ms. Warden held leadership roles at General Dynamics Advanced Information Systems and the Veridian Corporation. Ms. Warden spent nearly a decade with General Electric Company working in commercial industries. She began her GE career as a Systems Engineer and later served as Corporate Auditor, Strategy and Merger and Acquisitions Director and Director of Global Services at GE Information Services. She serves as Chairman of the Board at Federal Reserve Bank of Richmond since 2018 and has been its Director since January 2015 and served as its Deputy Chairman of the Board since January 2018. She has been a Director of Northrop Grumman Corporation since July 12, 2018. She serves on the boards of directors for the Wolf Trap Foundation. Recently, she was Chair of the Executive Mosaic Cyber Group and served on the executive committee for the Intelligence and National Security Alliance. She served on the Clinton administration’s Internet Advisory Council. Ms. Warden is a member of the Northrop Grumman’s Corporate Policy Council. Ms. Warden holds a Bachelor's degree in Computer Systems from James Madison University and a Master's degree in Business Administration from George Washington University.

CEO Compensation
  • Kathy's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
  • Insufficient data for Kathy to establish whether their remuneration is reasonable compared to companies of similar size in .
Management Team Tenure

Average tenure and age of the Northrop Grumman management team in years:

2.3
Average Tenure
50.5
Average Age
  • The tenure for the Northrop Grumman management team is about average.
Management Team

Kathy Warden

TITLE
Chairman
COMPENSATION
$13M
AGE
47
TENURE
1.3 yrs

Mark Caylor

TITLE
Corporate VP & President of Mission Systems Sector
COMPENSATION
$6M
AGE
54
TENURE
2.3 yrs

Blake Larson

TITLE
Corporate VP & President of Space Systems Sector
COMPENSATION
$8M
AGE
59

Dave Keffer

TITLE
Corporate VP & CFO
AGE
41
TENURE
0.2 yrs

Raj Chandhok

TITLE
Vice President of Trust Administration and Investments
AGE
69
TENURE
16.9 yrs

Michael Hardesty

TITLE
Corporate VP
AGE
47
TENURE
7.2 yrs

Todd Ernst

TITLE
Vice President of Investor Relations
TENURE
0.7 yrs

Sheila Cheston

TITLE
Corporate VP & General Counsel
COMPENSATION
$6M
AGE
60
TENURE
9.7 yrs

Carl Hahn

TITLE
Chief Compliance Officer & VP
TENURE
5.3 yrs

Lucy Ryan

TITLE
Corporate Vice President of Communications
AGE
45
TENURE
1.3 yrs
Board of Directors Tenure

Average tenure and age of the Northrop Grumman board of directors in years:

8.2
Average Tenure
67
Average Age
  • The tenure for the Northrop Grumman board of directors is about average.
Board of Directors

Kathleen Thomas

TITLE
Chairman of the Learning & Development Council and Vice President of Learning & Development

Madeleine Kleiner

TITLE
Independent Director
COMPENSATION
$328K
AGE
67
TENURE
11.5 yrs

Kathy Warden

TITLE
Chairman
COMPENSATION
$13M
AGE
47
TENURE
0.7 yrs

Tom Schoewe

TITLE
Independent Director
COMPENSATION
$296K
AGE
66
TENURE
8.7 yrs

Bill Hernandez

TITLE
Independent Director
COMPENSATION
$321K
AGE
71
TENURE
6.6 yrs

Don Felsinger

TITLE
Lead Independent Director
COMPENSATION
$352K
AGE
71
TENURE
7.9 yrs

Karl Krapek

TITLE
Independent Director
COMPENSATION
$311K
AGE
70
TENURE
11.6 yrs

Bruce Gordon

TITLE
Independent Director
COMPENSATION
$323K
AGE
73
TENURE
11.5 yrs

Gary Roughead

TITLE
Independent Director
COMPENSATION
$295K
AGE
67
TENURE
8.2 yrs

Jim Turley

TITLE
Independent Director
COMPENSATION
$307K
AGE
64
TENURE
5.2 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (R$) Value (R$)
X
Management checks
We assess Northrop Grumman's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Northrop Grumman has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

NOCG34 News

Simply Wall St News

NOCG34 Company Info

Description

Northrop Grumman Corporation operates as a security company. It provides various systems, products, and solutions in autonomous systems, cyber, space, strike, and logistics and modernization, as well as in command, control, communications and computers, intelligence, surveillance, and reconnaissance (C4ISR) to customers in the United States and internationally. The company operates through Aeronautics Systems, Defense Systems, Mission Systems, and Space Systems segments. It designs, develops, integrates, and produces manned aircrafts, autonomous systems, spacecraft systems, high-energy laser systems, microelectronics, and other systems and sub-systems for use in the areas of intelligence, surveillance and reconnaissance, strike operations, communications, earth observations, and space science. The company also designs, develops, integrates, and produces flights, armaments, and space systems to enable national security, civil government, and commercial customers in achieving their critical missions. Its space systems include launch vehicles and related propulsion systems; missile products and defense electronics; precision weapons, armament systems and ammunition; satellites and associated space components and services; and aerospace structures. In addition, it offers C4ISR systems; radar, electro-optical/infrared, and acoustic sensors; electronic warfare systems; cyber solutions; space and intelligence processing systems; air and missile defense integration systems; navigation systems; and shipboard missiles and encapsulated payload launch systems. Further, the company provides life-cycle solutions and services in support of networks and systems, including sustainment, modernization, training and simulation, software, engineering services, cyber, rapidly-deployable global logistics, and information technology. The company was founded in 1939 and is based in Falls Church, Virginia.

Details
Name: Northrop Grumman Corporation
NOCG34
Exchange: BOVESPA
Founded: 1939
$285,028,723,348
167,293,201
Website: http://www.northropgrumman.com
Address: Northrop Grumman Corporation
2980 Fairview Park Drive,
Falls Church,
Virginia, 22042,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE NOC Common Stock New York Stock Exchange US USD 02. Jan 1968
DB NTH Common Stock Deutsche Boerse AG DE EUR 02. Jan 1968
XTRA NTH Common Stock XETRA Trading Platform DE EUR 02. Jan 1968
LSE 0K92 Common Stock London Stock Exchange GB USD 02. Jan 1968
WBAG NOCO Common Stock Wiener Boerse AG AT EUR 02. Jan 1968
BMV NOC * Common Stock Bolsa Mexicana de Valores MX MXN 02. Jan 1968
ETLX NTH Common Stock Eurotlx IT EUR 02. Jan 1968
BOVESPA NOCG34 BDR EACH 1 REP 0.2 COM USD1 Bolsa de Valores de Sao Paulo BR BRL 20. May 2019
Number of employees
Current staff
Staff numbers
90,000
Northrop Grumman employees.
Industry
Aerospace and Defense
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/04/09 18:58
End of day share price update: 2020/04/01 00:00
Last estimates confirmation: 2020/04/09
Last earnings filing: 2020/01/30
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.