Skip to Content

Northrop Grumman Corp NOC Stock Quote

| Rating as of

Morningstar‘s Stock Analysis NOC

Valuation
Currency in USD
Is it the right time to buy or sell?
Is it the right time to buy or sell?

1-Star Price

INVESTOR

5-Star Price

INVESTOR

Economic Moat

INVESTOR

Capital Allocation

INVESTOR

Northrop Grumman Has a Long Line of Revenue Visibility

Burkett Huey, CFA Equity Analyst

Business Strategy and Outlook

| David Whiston, CFA, CPA, CFE |

We view Northrop Grumman as a prime contractor that has exposure to younger development programs and one that has a greater focus on producing hardware for classified programs. The defense budget allocation is a political process, which is inherently difficult to predict, so we favor companies with tangible growth profiles through a steady stream of contract wins, ideally to contracts that are fulfilled over decades. And many programs are indeed procured and sustained over decades; for instance, the Ground Based Strategic Deterrent, for which Northrop was the only bidder, is intended to be deployed around 2029. Regulated margins, mature markets, customer-paid research and development, and long-term revenue visibility allow the defense primes to deliver a lot of cash to shareholders, which we view positively because we don’t see substantial growth in this industry.

Unlock Our Full Analysis With Morningstar Investor

Key Statistics NOC

Company Profile NOC

Business Description

Northrop Grumman is a defense contractor that is diversified across short-cycle and long-cycle businesses. The firm’s segments include aeronautics, mission systems, defense services, and space systems. The company’s aerospace segment creates the fuselage for the massive F-35 program and produces various piloted and autonomous flight systems. Mission systems creates a variety of sensors and processors for defense hardware. The defense systems segment is a long-range missile manufacturer. Finally, the company’s space systems segment produces various space structures, sensors, and satellites.

Contact
2980 Fairview Park Drive
Falls Church, VA, 22042
T +1 703 280-2900
Industry Aerospace & Defense
Most Recent Earnings Jun 30, 2022
Fiscal Year End Dec 31, 2022
Employees 88,000

Related News NOC