Northrop Grumman (NOC): analysis in plain words
Is Northrop Grumman cheap or expensive? How it makes money, whether it grows and its risks, explained in plain words and with its official accounts.
Northrop Grumman (NOC) is listed on the NYSE and we classify it in aerospace and defence. Below are its key dated figures, how it makes money, how it compares with its sector, what works for and against Northrop Grumman according to those figures, and the questions people ask most about the stock. No buy or sell tips.
Northrop Grumman (NOC) key figures as of November 4, 2026
| Figure | Value | What it measures |
|---|---|---|
| Share price | $525.35 | Last price on November 4, 2026 |
| P/E ratio (TTM) | 16.6x | Price over earnings per share |
| Revenue growth | +6.7% | Latest quarter vs the same quarter a year earlier |
| Net margin (TTM) | 10.4% | Profit for every 100 of sales |
| Net debt / EBITDA | 1.9x | Years of operating profit to repay debt |
| Dividend yield | 1.80% | Annual dividend over price |
| Market cap | $74.6 billion | What the stock market values it at |
The Northrop Grumman figures come from Yahoo Finance, the same source the Fintols analysis uses, retrieved on November 4, 2026. Any NOC figure that is not available shows as N/A: we do not estimate it.
How Northrop Grumman makes money
Northrop Grumman sells defense systems, mostly to the U.S. government. Aeronautics Systems builds the Raider stealth bomber and drones, Defense Systems covers weapons and munitions, Mission Systems makes radars and electronics, and Space Systems produces satellites and solid rocket motors.
Over the last 12 months, Northrop Grumman brought in revenue of $43.6 billion. For every 100 it sells, Northrop Grumman keeps 20.0 after the direct cost of what it sells (gross margin) and 12.9 after all operating costs (operating margin). With 95,000 full-time employees, that is about $459,000 of revenue per employee.
Northrop Grumman against its sector
To know whether a Northrop Grumman figure is high or low you have to put it next to similar companies. This table compares Northrop Grumman with the median of the 12 aerospace and defence companies Fintols covers, with data as of November 4, 2026.
| Figure | Northrop Grumman | aerospace and defence median |
|---|---|---|
| P/E | 16.6x | 24.9x (12) |
| Revenue growth | +6.7% | +14.4% (14) |
| Net margin | 10.4% | 8.2% (14) |
| Dividend yield | 1.80% | 1.17% (14) |
| Net debt / EBITDA | 1.9x | 1.3x (12) |
In short, against the typical aerospace and defence company, Northrop Grumman trades on a lower P/E, grows more slowly and earns a wider margin. By size, Northrop Grumman ranks number 6 of 10 aerospace and defence companies quoted in USD on Fintols.
The bull case for Northrop Grumman
What works in favour of Northrop Grumman, according to its figures as of November 4, 2026:
- Northrop Grumman earns 26.1% a year on its shareholders' money (return on equity).
- On a P/E basis Northrop Grumman trades cheaper than its sector: 16.6x its annual earnings, against 24.9x for the aerospace and defence median (12 companies with data).
- Northrop Grumman generates real cash: $3.1 billion of free cash flow over 12 months, 4.2% of its stock market value.
The main risk for Northrop Grumman
Northrop Grumman stock sits 32% below its 52-week high ($774.00): the market has cut its expectations, and it is worth understanding why first.
And, like the rest of aerospace and defence, Northrop Grumman is exposed to production delays and problems, and changes in defence budgets.
Frequently asked questions about Northrop Grumman
Is it a good time to buy Northrop Grumman stock?
Fintols does not tell you whether to buy or sell Northrop Grumman, and nobody knows what the price will do tomorrow. What we can show you is where it stands today. As of November 4, 2026, Northrop Grumman stock trades at $525.35, 32% below its 52-week high ($774.00) and 12% above its low ($470.06). Its P/E is 16.6x against a aerospace and defence median of 24.9x, and 17.5x on the earnings analysts expect over the next 12 months. With Northrop Grumman, as with any stock, timing matters less than understanding the business, investing for the long run and not betting everything on a single company.
Does Northrop Grumman pay a dividend?
Yes. As of November 4, 2026, Northrop Grumman pays $9.88 per share a year, which at today's price is a yield of 1.80%. It uses 30% of its profit to pay it, which leaves room to keep paying it if profit dips. The aerospace and defence median on Fintols is 1.17%.
Is Northrop Grumman stock expensive?
It depends on what you compare it with. On P/E, Northrop Grumman trades at 16.6x its last 12 months of earnings: cheaper than the aerospace and defence median (24.9x). Including its debt, Northrop Grumman is valued at 12.6x its EBITDA (EV/EBITDA). A high P/E alone does not make Northrop Grumman expensive: it can be justified if earnings grow fast, and a low one can reflect a business in trouble.
Who are Northrop Grumman's competitors?
On Fintols we compare Northrop Grumman with L3Harris, TransDigm and RTX, which are also in aerospace and defence. As of November 4, 2026, L3Harris is worth $48.4 billion and trades on a P/E of 24.2; TransDigm is worth $67.3 billion and trades on a P/E of 36.9; RTX is worth $267.8 billion and trades on a P/E of 32.3. Each has a side-by-side comparison with Northrop Grumman below.
Northrop Grumman competitors
- L3Harris (LHX) analysis · Northrop Grumman vs L3Harris comparison
- TransDigm (TDG) analysis · Northrop Grumman vs TransDigm comparison
- RTX (RTX) analysis · Northrop Grumman vs RTX comparison
To understand Northrop Grumman better
- How to Write an Investment Thesis (Step by Step)
- P/E Ratio and EPS Explained: How to Read Them Without Traps
More companies like Northrop Grumman: aerospace and defence stocks and S&P 500 companies. Open the full NOC analysis with its valuation and scenarios. Educational content about Northrop Grumman, not investment advice.