Northrop Grumman (NOC) Stock Analysis

September 24, 2026

This is a peer-relative look at Northrop Grumman (NOC): its performance, risk, profitability, growth, financial strength, dividend, and valuation are each measured against its Capital Goods peers, so every number reads in context rather than in isolation.

Company Profile

Company profile fields for Northrop Grumman (NOC)
Profile Item	NOC
Name	Northrop Grumman Corporation
Country/Region	United States
GICS Sector	Industrials
GICS Industry Group	Capital Goods
GICS Industry	Aerospace & Defense
GICS Sub-Industry	Aerospace & Defense
Market Capitalization	72.43 billion USD
Currency	USD
Exchange	NYSE
Listing Date	December 31, 1981
Security Type	Common Stock

Price Performance

Cumulative Growth

NOC

GSPC

Northrop Grumman (NOC) vs. S&P 500 (GSPC): Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for Northrop Grumman (NOC) and S&P 500 (GSPC). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for Northrop Grumman (NOC) and S&P 500 (GSPC). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Northrop Grumman (NOC) metric values compared with Capital Goods industry-group medians
Metric	Current stock: NOC	Industry group median
Total Return (1Y)	-6.59%	7.86%
Total Return (3Y, Annualized)	8.20%	15.33%
Total Return (5Y, Annualized)	10.60%	10.92%

Risk Profile

Drawdown History

NOC

GSPC

Northrop Grumman (NOC) vs. S&P 500 (GSPC): Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for Northrop Grumman (NOC) and S&P 500 (GSPC). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Northrop Grumman (NOC) metric values compared with Capital Goods industry-group medians
Metric	Current stock: NOC	Industry group median
Volatility (1Y, Annualized)	27.16%	44.10%
Beta (5Y)	-0.13	1.21
Max Drawdown (5Y)	-35.13%	-49.28%

Risk-Adjusted Performance

Risk-Return Positioning

Each dot is a stock plotted by 1-year volatility (risk) and 1-year return. NOC is highlighted; the dashed line is the Capital Allocation Line from the risk-free rate through the industry median — dots above it are stronger on a risk-adjusted basis.

Risk-Adjusted Metrics

Northrop Grumman (NOC) metric values compared with Capital Goods industry-group medians
Metric	Current stock: NOC	Industry group median
Sharpe Ratio (1Y)	-0.41	0.10
Sortino Ratio (1Y)	-0.57	0.15

Profitability

ROE (TTM)

Northrop Grumman (NOC) posts ROE of 26.96%, in the upper peer quartile. That suggests the company earns more from each dollar of shareholders’ equity than most industry peers, a useful capital-efficiency signal.

NOC

Capital Goods industry group

26.96%

Group distribution

Max: 40.35%
NOC: 26.96%
Q3: 18.69%
Median: 11.55%
Q1: 2.89%
Min: -19.86%

Largest peers

BA: 173.54%
GEV: 82.58%
CAT: 56.97%
GE: 48.23%
NOC: 26.96%
DE: 18.24%
RTX: 12.27%

Where Northrop Grumman (NOC) stands on ROE within its Capital Goods peer group — the box is the group’s distribution and the dots its largest members.

Net Margin (TTM)

Northrop Grumman (NOC) keeps 10.48% of revenue as net profit, roughly in line with the peer group’s normal net margin range. Its full cost stack is taking a typical share of sales for the industry.

NOC

Capital Goods industry group

10.48%

Group distribution

Max: 27.47%
Q3: 11.71%
NOC: 10.48%
Median: 5.78%
Q1: 0.77%
Min: -14.15%

Largest peers

GEV: 23.04%
GE: 17.72%
CAT: 14.51%
NOC: 10.48%
DE: 10.17%
RTX: 8.28%
BA: 2.59%

Where Northrop Grumman (NOC) stands on net margin within its Capital Goods peer group — the box is the group’s distribution and the dots its largest members.

Operating Margin (TTM)

Northrop Grumman (NOC) turns 11.60% of revenue into operating profit, roughly in line with the peer group’s normal operating margin range. Its core cost structure looks typical for the industry.

NOC

Capital Goods industry group

11.60%

Group distribution

Max: 35.46%
Q3: 17.39%
NOC: 11.60%
Median: 10.58%
Q1: 4.59%
Min: -12.63%

Largest peers

CAT: 22.18%
GE: 20.57%
DE: 17.48%
RTX: 12.70%
NOC: 11.60%
GEV: 7.47%
BA: 0.00%

Where Northrop Grumman (NOC) stands on operating margin within its Capital Goods peer group — the box is the group’s distribution and the dots its largest members.

Profitability Metrics

Northrop Grumman (NOC) metric values compared with Capital Goods industry-group medians
Metric	Current stock: NOC	Industry group median
ROE (TTM)	26.96%	11.55%
ROA (TTM)	7.15%	5.06%
Net Margin (TTM)	10.48%	5.78%
Operating Margin (TTM)	11.60%	10.58%
Gross Margin (TTM)	20.06%	29.56%

Growth

Revenue Growth

Northrop Grumman (NOC) grew revenue 2.24%, roughly around the peer group's normal range. Top-line momentum looks broadly typical for the industry.

Northrop Grumman (NOC): Revenue Growth across different time periods, set against Capital Goods industry-group medians.

EPS Growth

Northrop Grumman (NOC) grew earnings per share 2.61%, roughly around the peer group's normal range. Bottom-line momentum looks broadly typical for the industry.

Northrop Grumman (NOC): EPS Growth across different time periods, set against Capital Goods industry-group medians.

Growth Metrics

Northrop Grumman (NOC) metric values compared with Capital Goods industry-group medians
Metric	Current stock: NOC	Industry group median
Revenue Growth (YoY)	2.24%	8.23%
Revenue Growth (3Y CAGR)	4.65%	6.36%
EPS Growth (YoY)	2.61%	4.97%
EPS Growth (3Y CAGR)	-2.60%	6.34%

Financial Strength

Current Ratio (MRQ)

Northrop Grumman (NOC) has current ratio of 1.17, in the tighter-liquidity quartile for its industry. The short-term cushion is thinner than most peers carry, even if the absolute comfort level still depends on the business model.

NOC

Capital Goods industry group

1.17

Group distribution

Max: 5.28
Q3: 2.99
Median: 2.09
Q1: 1.45
NOC: 1.17
Min: 0.76

Largest peers

DE: 2.13
CAT: 1.37
NOC: 1.17
BA: 1.14
RTX: 1.01
GE: 0.98
GEV: 0.85

Where Northrop Grumman (NOC) stands on current ratio within its Capital Goods peer group — the box is the group’s distribution and the dots its largest members.

Debt / Equity (MRQ)

Northrop Grumman (NOC) has debt-to-equity ratio of 0.95, roughly in line with the peer group’s normal leverage range. Its mix of debt and equity looks typical for the industry.

NOC

Capital Goods industry group

0.95

Group distribution

Max: 2.15
Q3: 1.09
NOC: 0.95
Median: 0.57
Q1: 0.27
Min: 0.00

Largest peers

BA: 7.91
DE: 3.76
CAT: 2.33
GE: 1.13
NOC: 0.95
RTX: 0.57
GEV: 0.28

Where Northrop Grumman (NOC) stands on debt-to-equity ratio within its Capital Goods peer group — the box is the group’s distribution and the dots its largest members.

Financial Strength Metrics

Northrop Grumman (NOC) metric values compared with Capital Goods industry-group medians
Metric	Current stock: NOC	Industry group median
Current Ratio (MRQ)	1.17	2.09
Debt / Equity (MRQ)	0.95	0.57
Net Debt / EBITDA	2.03	1.93

Dividends

Dividend Yield (TTM)

Northrop Grumman (NOC) has dividend yield of 1.78%, in the upper peer-yield quartile while still inside the industry range. The dividend offers more cash income per dollar of share price than most peers, though payout coverage still matters.

NOC

Capital Goods industry group

1.78%

Group distribution

Max: 2.75%
NOC: 1.78%
Q3: 1.11%
Median: 0.18%
Q1: 0.00%
Min: 0.00%

Largest peers

NOC: 1.78%
RTX: 1.40%
DE: 0.96%
CAT: 0.77%
GE: 0.51%
GEV: 0.19%
BA: 0.00%

Where Northrop Grumman (NOC) stands on dividend yield within its Capital Goods peer group — the box is the group’s distribution and the dots its largest members.

Dividend Payout Ratio (TTM)

Northrop Grumman (NOC) has payout ratio of 29.88%, above the industry’s usual payout band. A larger share of earnings is going to dividends, so the cushion narrows if profit weakens.

NOC

Capital Goods industry group

29.88%

Group distribution

Max: 72.00%
NOC: 29.88%
Q3: 28.86%
Median: 6.13%
Q1: 0.00%
Min: 0.00%

Largest peers

RTX: 48.77%
DE: 36.02%
NOC: 29.88%
CAT: 26.01%
GE: 19.58%
GEV: 5.73%
BA: 0.00%

Where Northrop Grumman (NOC) stands on payout ratio within its Capital Goods peer group — the box is the group’s distribution and the dots its largest members.

Dividend Metrics

Northrop Grumman (NOC) metric values compared with Capital Goods industry-group medians
Metric	Current stock: NOC	Industry group median
Dividend Yield (TTM)	1.78%	0.18%
Dividend Payout Ratio (TTM)	29.88%	6.13%

Valuation

P/E Ratio (TTM)

Northrop Grumman (NOC) trades at P/E ratio of 16.75, in the cheaper earnings-multiple quartile for its industry. Investors are paying less for each dollar of TTM earnings than they usually pay for comparable businesses.

NOC

Capital Goods industry group

16.75

Group distribution

Max: 66.10
Q3: 40.43
Median: 29.30
Q1: 21.19
NOC: 16.75
Min: 1.09

Largest peers

BA: 75.70
GE: 38.17
DE: 37.60
CAT: 35.21
RTX: 34.86
GEV: 27.48
NOC: 16.75

Where Northrop Grumman (NOC) stands on P/E ratio within its Capital Goods peer group — the box is the group’s distribution and the dots its largest members.

P/S Ratio (TTM)

Northrop Grumman (NOC) trades at 1.69 on P/S ratio, roughly in the peer group’s normal range. The market is not making a strong cheap-or-rich statement about its revenue base.

NOC

Capital Goods industry group

1.69

Group distribution

Max: 9.06
Q3: 4.40
Median: 2.41
NOC: 1.69
Q1: 1.19
Min: 0.05

Largest peers

GE: 6.63
GEV: 6.16
CAT: 5.04
DE: 3.80
RTX: 2.85
BA: 1.77
NOC: 1.69

Where Northrop Grumman (NOC) stands on P/S ratio within its Capital Goods peer group — the box is the group’s distribution and the dots its largest members.

P/B Ratio (MRQ)

Northrop Grumman (NOC) trades at 4.05 on P/B ratio, roughly in line with the industry’s normal price-to-book range. Its balance sheet is not being priced at a clear discount or premium versus peers.

NOC

Capital Goods industry group

4.05

Group distribution

Max: 11.10
Q3: 5.63
NOC: 4.05
Median: 3.31
Q1: 1.94
Min: -3.52

Largest peers

BA: 27.27
GEV: 21.32
CAT: 19.40
GE: 19.04
DE: 6.51
NOC: 4.05
RTX: 4.01

Where Northrop Grumman (NOC) stands on P/B ratio within its Capital Goods peer group — the box is the group’s distribution and the dots its largest members.

Valuation Metrics

Northrop Grumman (NOC) metric values compared with Capital Goods industry-group medians
Metric	Current stock: NOC	Industry group median
P/E Ratio (TTM)	16.75	29.30
P/S Ratio (TTM)	1.69	2.41
P/B Ratio (MRQ)	4.05	3.31
Free Cash Flow Yield (TTM)	3.42%	2.67%