Is Northrop Grumman (NOC) Stock A Buy? – Northrop Grumman Stock Analysis

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. I review Northrop Grumman’s business, look at its key ratios, and derive the intrinsic value using Discounted Cash Flow (DCF) analysis. Since this is a long video, please feel free to use the time stamps in the video if you only wish to watch certain topics.

I review various key ratios such as Revenue, Net Income, Shares outstanding, Dividends, Payout Ratio, Free Cash Flows (FCF), Financial Leverage, Current Ratio, Debt to Equity Ratio, Return on Equity (ROE), Days Sales Outstanding (DSO), Days Inventory, Payable Period, Cash Conversion Cycle, Inventory Turnover, etc.

After taking into account Northrop Grumman’s 2021 free cash flow of $2,152 million figure, a 8% growth rate of FCF (growth for the next 10 years), 10% discount rate, 2.949% long term growth rate (growth from 10 year mark in the future to perpetuity), 161 million shares outstanding, and $12,777 million of long term debt, the DCF analysis yields us an intrinsic value of $201.13 per share.

0:00​ Introduction
0:27 Business Overview
8:14 Key Ratios Analysis
17:59 Discounted Cash Flow Analysis / Intrinsic Value
20:25 Conclusion

If you found my video above helpful and interesting, please do like, share, and subscribe to the YouTube channel

Audio / Podcast


Northrop Grumman’s Website: here.

Morningstar Key Ratios Link: here.

Useful Resources here.

You can sign up for our free mailing list here. Like us on our Facebook page here. Subscribe to our YouTube channel. Thank you!

Superior North LLC’s content is for educational purposes only. The calculators, videos, recommendations, and general investment ideas are not to be actioned with real money. Vyom Joshi is not a professional money manager or a financial advisor. Contact a professional and certified financial advisor before making any financial decisions. Please review the Disclaimer and Terms and Conditions.


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: