NYSE:NOC
$65.54
(3/19 4:00PM)
+0.8%
| Open | $65.19 |
Mkt Cap | $19.8 Billion |
| High | $65.62 |
52Wk High | $65.61 |
| Low | $64.91 |
52Wk Low | $42.51 |
| Volume | 4.3 Million |
Avg Vol 10D | 1.8 Million |
NOC Revenue
For a long time, value investors have used the current share price relative to sales per share levels as an important valuation tool. We utilize a historical weighted average methodology that treats recent years more importantly in the calculation. When looking at NOC through this framework, we can see that our weighted average historical high and low Price to Sales per share ratios over the last 10 years are 0.88x and 0.61x respectively.
Utilizing this range we can see that NOC’s current Price to Sales per share ratio of 0.59x is significantly below its average levels historically. In fact, with a current price of $65.54, NOC is a full 22% below its average Price to Sales ratio at comparable sales levels. This is a rare occurrence and, when taken in context of the other areas of our analysis, can be a strong positive for our outlook for NOC.
NOC Cash Earnings
As the old saying goes, "Cash is King!" We look at reported Cash Earnings, but the main emphasis of our analysis involves stripping out non-cash events such as depreciation from our cash earnings analysis. This helps us view the cash flows more clearly. Nevertheless, an analysis of Cash Earnings (both reported and otherwise) is absolutely pivotal to assessing a company's value, and currently NOC is significantly below their historical average multiples of Cash Earnings, as calculated by our proprietary analysis. It is incredibly important to understand that for NOC, the current level of Cash Earnings compared to its historical levels helps identify where NOC is in relation to what the investing community was willing to pay for this level of Cash Earnings in the past. With a historical high Cash Earnings per share ratio of 12.20 and a historical low Cash Earnings per share ratio of 9.19, an investor can relate where value becomes optimal.
So what does "significantly below" mean when we talk about Price to Cash Earnings numbers for NOC? From the Ockham perspective, we are looking specifically at NOC to see if the market is recognizing the huge disparity between NOC's past stock price to Cash Earnings ratio to today's levels. At a difference of 24% below the average historical Price to Cash Earnings ratio, our view would be quite positive at this point. However, as with all metrics, we need to also take other factors into account when looking at NOC. While we view better Cash Earnings metrics as very important, if the market is slow to identify this value, or if Cash Earnings were to fall from these levels, we would become more neutral in our stance.
NOC Dividends
A positive Ockham rating does not require a company to pay out an inviting dividend or a dividend at all. However, we believe dividends provide a useful measure of a company's inherent expectations.
Comparable to our analysis of Sales and Cash Earnings per share, we examine dividend yields from NOC against the historic high and low levels over an available data range. Because NOC has an established history of paying a dividend to shareholders, there is value in comparing recent dividends to historical dividends. In NOC’s case, the estimated annual dividend is $1.72 producing a current dividend yield of 2.62%. The highest dividend yield from NOC in recent history was 4.99% while the lowest dividend yield was 1.18%. It is never a good sign for a company to pay significantly lower dividends, in this case 15.07% below the median yield. Although, dividends are a relatively small portion of our analysis framework, we still see this as a negative factor.
Check Out Zero Hedge and News on NOC
The latest news on Zero Hedge in regards to NOC came through on RazorWire recently.
The Motley Fool CAPS crowd believes this stock will perform generally in line with the benchmark, or in other words the crowd is neutral. Based on our methodology, Northrop Grumman Corporation should hold some appeal to value investors as we view it as Undervalued. Ranking all stocks in terms of news coverage offers some interesting data. In the case of NOC, it is getting significantly more attention in recent news coverage than we are used to seeing.
“… RATING ACTIONSSUNTRUST BANKS INC (STI)HEXCEL CORP (HXL)AMR CORP (AMR)LTD BRANDS INC (LTD)TRINITY INDUSTRIES INC (TRN)REYNOLDS AMERICAN INC (RAI)NORTHROP GRUMMAN CORP (NOC)XL ... …”
Look Out for Northrop Grumman Corporation: Its Very Active in the News
NOC has been one of the most active stocks in the news today, so investors in it will want to pay attention to what is happening.
Based on our methodology, Northrop Grumman Corporation should hold some appeal to value investors as we view it as Undervalued. Crowd sentiment is leaning to the bearish side, according to the robust data set collected by the Motley Fool CAPS survey. We noticed recently that in comparison to all other stocks we analyze in the news; NOC has received less coverage from the financial media in business television and blogs.
“… Do you still believe there's a chance NORTHROP GRUMMAN won't drop its bid? > > I think it is highly unlikely liz first of all there's a change in the specs in my opinion it ... …”
More News Than Normal on NOC from Countdown to the Closing Bell
Something important is going on with NOC today, as it is getting a lot of attention on business television and influential blogs.
We noticed recently that in comparison to all other stocks we analyze in the news; NOC has received less coverage from the financial media in business television and blogs. Crowd sentiment is leaning to the bearish side, according to the robust data set collected by the Motley Fool CAPS survey. Based on our methodology, Northrop Grumman Corporation should hold some appeal to value investors as we view it as Undervalued.
“… I'm not sure I agree with you that NORTHROP GRUMMAN has already officially dropped out they have until may 20th at 2:00 to change their minds and things like that could happen. …”
Yearly Highs and NOC Recently Discussed on Countdown to the Closing Bell
An abnormally high price is obviously a joyous occasion for investors in that stock. See what Countdown to the Closing Bell was talking about for NOC below.
Based on our methodology, Northrop Grumman Corporation should hold some appeal to value investors as we view it as Undervalued. Crowd sentiment is leaning to the bearish side, according to the robust data set collected by the Motley Fool CAPS survey. We noticed recently that in comparison to all other stocks we analyze in the news; NOC has received less coverage from the financial media in business television and blogs.
“… Air war boeing hitting 52 week high after rival NORTHROP GRUMMAN drops out of 40 billion air force tanker competition leaving some key american allies pretty angry. …”
Stocks in the News: Northrop Grumman Corporation Among the Twenty Most Discussed Stocks
We are observing a lot of attention being paid to NOC in the news, so if you hold the stock you may want to take a look at what is going on.
Based on our methodology, Northrop Grumman Corporation should hold some appeal to value investors as we view it as Undervalued. We noticed recently that in comparison to all other stocks we analyze in the news; NOC has received less coverage from the financial media in business television and blogs. Crowd sentiment is leaning to the bearish side, according to the robust data set collected by the Motley Fool CAPS survey.
“… Boeing is also readying, as NORTHROP GRUMMAN is down and out of the bid for the u. S. Air force contract. We are seeing a real big drop in toyota. …”
NOC Having an Active Day in News, Now on Fox Business
Something important is going on with NOC today, as it is getting a lot of attention on business television and influential blogs.
Crowd sentiment is favorable on this stock, as measured by the Motley Fool CAPS survey. When taking into account the amount of news coverage each stock normally sees as a percentage of the total, Northrop Grumman Corporation has actually sunk a bit in comparison to the others. At present, Ockham has a valuation stance of Undervalued on NOC, as we could see significant price appreciation based on current fundamentals like cash earnings and revenue.
“… They will grab the military contract now that NORTHROP GRUMMAN has stepped down. Alcoa representation some of the material stocks are lagging. …”
Stocks to Watch: NOC Heavily Covered on Bloomberg News
NOC has been one of the most active stocks in the news today, so investors in it will want to pay attention to what is happening.
Crowd sentiment is favorable on this stock, as measured by the Motley Fool CAPS survey. At present, Ockham has a valuation stance of Undervalued on NOC, as we could see significant price appreciation based on current fundamentals like cash earnings and revenue. When taking into account the amount of news coverage each stock normally sees as a percentage of the total, Northrop Grumman Corporation has actually sunk a bit in comparison to the others.
“… NORTHROP GRUMMAN is flying a bid for the u. S. Air force tanker program, claiming that the government's election process is unfair. The u. S. …”
Discussion Turns to NOC and Merger Talk on Bloomberg News
News broke today regarding mergers and acquisitions and Northrop Grumman Corporation was discussed as well on Bloomberg News. Other sources will be required to know exactly what the context was in the discussion.
At present, Ockham has a valuation stance of Undervalued on NOC, as we could see significant price appreciation based on current fundamentals like cash earnings and revenue. Crowd sentiment is favorable on this stock, as measured by the Motley Fool CAPS survey. When taking into account the amount of news coverage each stock normally sees as a percentage of the total, Northrop Grumman Corporation has actually sunk a bit in comparison to the others.
“… Forecast for nationwide natural gas production for 2010, yet the crude oil average has increased NORTHROP GRUMMAN and withdrew -- has increased. > > …”
Fox Business Discusses Higher Prices and Northrop Grumman Corporation
Stick with it or dump it? Fox Business discusses what an abnormally high price means for NOC's investors. Take note of Ockham's valaution on the stock as well.
As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, NOC has been less covered in the news compared to the rest of our universe of stocks. The Motley Fool CAPS data suggests that investors believe Northrop Grumman Corporation will beat the market in the foreseeable future. We consider NOC as Undervalued at the current price of $64.04. According to our methodology, this stock has appreciation potential based on current fundamentals which only improves if earnings or revenue surprise.
“… Boeing and NORTHROP GRUMMAN were both bidding basically for the u. S. Air force 35 billion dollars tanker program, but now NORTHROP GRUMMAN says they will not bid, and though ... …”
Fox Business Discusses Higher Prices and Northrop Grumman Corporation
When a stock reaches a notable high point, investors have to ask themselves: take profits or let it run? See what Fox Business recommends for Northrop Grumman Corporation and obviously Ockham has an opinion as well.
The Motley Fool CAPS data suggests that investors believe Northrop Grumman Corporation will beat the market in the foreseeable future. We consider NOC as Undervalued at the current price of $63.98. According to our methodology, this stock has appreciation potential based on current fundamentals which only improves if earnings or revenue surprise. As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, NOC has been less covered in the news compared to the rest of our universe of stocks.
“… NORTHROP GRUMMAN dropped out and boeing is the sole bidder on a $35 billion contract to build refueling tankers for the air force. How is that stock doing? > > …”