NYSE:NOC
$55.27
(11/13 6:40PM)
+1.2%
| Open | $54.69 |
Mkt Cap | $17.1 Billion |
| High | $55.5 |
52Wk High | $54.93 |
| Low | $54.36 |
52Wk Low | $33.81 |
| Volume | 2.3 Million |
Avg Vol 10D | 2.6 Million |
Ockham’s Rating/Recommendation Summary
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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 0.94x and 0.65x respectively.
Utilizing this range we can see that NOC’s current Price to Sales per share ratio of 0.47x is significantly below its average levels historically. In fact, with a current price of $52.37, NOC is a full 42% 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
When reviewing a company and their prospects for success, it is necessary to analyze their ability to generate positive Cash Earnings. This is a vital component to our analysis, because as a long term investment research firm, there are few factors more closely tied to the valuation of a company as Cash Earnings. In the case of NOC, it appears that either the current estimate for Cash Earnings is negative or NOC is not likely to generate positive Cash Earnings based upon their prior performance in the last several quarters.
Remember that Cash Earnings is not the only way to value a company’s potential, but in our analysis it is the most important. Thus, for our analysis NOC receives a negative score from a Cash perspective. At Ockham, we are fond of saying "Cash is King," and in this case the company is not generating any. If a company is not able to generate a profit then there is no reason to invest in them. Unless of course you believe in the story, and hope it will eventually lead to a profitable enterprise.
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 3.28%. The highest dividend yield from NOC in recent history was 5.09% while the lowest dividend yield was 1.18%. A current dividend yield of 4.63% above the historical median is favorable in our analysis of NOC.
“…>>> a slew of s&p 500 stocks hitting new 52-week highs including radio shack, mastercard, NORTHROP GRUMMAN, newmont mining and google. And the angus burger and its excellent coffee fueling mcdonald’s. >>> as we wait for the results of that huge auction we have the all-stars with the pulse of the bob pisani, sharon epperson, and mike huckman down at the nasdaq. …” – NOC on Power Lunch
“…Northrup grumman, private equity atlantic and pay for the division that provides engineering and consulting services to the u.S. Military and state governments. NORTHROP GRUMMAN is selling to comply with stricter regulations. The stock is up half a dollar on that news and goldman sachs, chief lloyd blankfein tells the times london, he understands the public would celebrate if he slit his wrists, but says he’s quote, doing god’s work. Blankfein says that banks are an important part of the economic …” – NOC on Imus In The Morning
“…for more aid.Kraft is expected Monday to officially launch a hostile bid for Cadbury.Lear Corp. plans to emerge from bankruptcy protection Monday.NORTHROP GRUMMAN to sell its TASC consulting unit to PE firms, General Atlantic, KKR for $1.65B.Puma AG 3Q profit fell 24% after cutting prices to clear inventory left from recessionReynolds American in talks to buy Swedish maker of products that help people stop smoking.Sands China, Macau unit of …” – NOC on Zero Hedge
“…God’s work, he says the banks are an important part of the economic cycle and they have a he says they help companies to raise capital, create wealth and in turn create jobs. NORTHROP GRUMMAN selling its consulting unit the private equity firm’s general atlantic and kkr, they are going to pay 1.6 billion dollars for this division, provides engineering and consulting services to the u.S. Military and to state governments. NORTHROP GRUMMAN is selling to comply with some new conflict of interest regulations that have now been put in place. >>> then there’s china pledging billions of dollars to help african countries. China’s premier says in addition to giving 10 billion in loans, his nation is also going to cancel debts owed to china by some of the poorest of the the government also planning to build 100 new clean energy …” – NOC on Imus In The Morning
“…Northrop unloads TASC. NORTHROP GRUMMAN (NOC) agreed to sell its TASC consulting unit to a pair of private-equity firms – KKR and General Atlantic – for $1.65B. TASC unit provides engineering and consulting services to the U.S. military and state governments. Northrop said it expects the sale to generate net cash …” – NOC on Seeking Alpha Wall St Breakfast
“…buy in response to disparaging comments from television pundit Jim Cramer (Cramer Changes Tune on Lockheed Martin). Cramer was making the case for NORTHROP GRUMMAN (NOC) saying that NOC’s products rather than LMT’s were more closely aligned with the Pentagon’s new strategies under the Obama Administration. While he may be correct, we argued that Lockheed Martin’s management will not be left unaware of the shifting priorities and will find …” – NOC on The Razor’s Edge
“…is suffering from a priority shift at the Pentagon. According to Cramer, Lockheed is saddled with programs that the Pentagon no longer wants, while NORTHROP GRUMMAN (NOC) has the sort of capabilities that fit the goals that the military is looking to achieve in Iraq and Afghanistan. “The day after Lockheed disappointed NORTHROP GRUMMAN came out with a solid beat and a really nice outlook. The difference is stark. Lockheed seems to be losing programs left and right. NORTHROP GRUMMAN won $10 billion of contracts in the third quarter… This is all about what the pentagon wants and NORTHROP GRUMMAN has it and Northrop is getting tons of new contracts. A $2.4 billion contract to overhaul the USS Teddy Roosevelt. $3 billion for maintenance of the common ground system. $150 million for lighting targeting and sensor systems. All of NORTHROP GRUMMAN systems did well. Aerospace systems up 5%. Electronic systems up 2%. Information systems and technical up 4% and ship building up 14%. In the past NORTHROP GRUMMAN has been among the worst of the defense contractors, a company plagued by pension problems and crummy execution. Amazingly now it’s Lockheed Martin with the pension problem and NORTHROP GRUMMAN indicated it made a last sizable pension contribution for a while… Cheaper, faster growth, same yield. I think NORTHROP GRUMMAN is the better stock and the better company.” — CNBC’s Mad Money 10/26/2009 This is a clear reversal from his opinion of just two weeks prior, and it is his purgative to change his opinion as more evidence is made available. While he may be right about the shifting priorities from …” – NOC on The Razor’s Edge
“…From our perspective, he seems to have written off LMT for dead rather quickly (especially considering his bullishness two weeks ago). As for NORTHROP GRUMMAN, we have a Fairly Valued rating at the current price levels. They certainly had a nice quarter in terms of gaining business, which we cannot overlook. We will consider an upgrade on these shares when the new revenue begins to improve their ability to generate cash earnings. As …” – NOC on The Razor’s Edge
“…This was an exercise in comparative stock analysis that I want you to be able to do at lockheed versus northrop. They look exactly the same. But NORTHROP GRUMMAN is a buy lockheed martin is a sell and that’s the takeaway. You can do this at home. I can only encourage you. I know you’ve got the smarts. Stay with cramer. >> announcer: coming up, jim goes high-voltage in an electrifying fast-fire "lightning round." …” – NOC on Mad Money
“…Bolts for weapons for iraq and afghanistan than the flashy high-tech weapons systems that lockheed martin it made its bread and butter. NORTHROP GRUMMAN has the fastest growth rate, 12% in 2011. Lockheed’s only 7%. Yet it’s cheaper at eight times 2011 earnings versus nine times it’s got almost the exact same yield, 3.5%. Cheaper, faster growth, same yield. I think NORTHROP GRUMMAN is the better stock and the better company. You can do this kind of analysis. It’s all on the website. The world of defense spending has changed. That’s what these two quarters tell us. I would be a buyer of northrop it has exactly what the pentagon wants. And I would sell lockheed martin since it’s saddled with lots of …” – NOC on Mad Money
“…Our number one best-seller just because lockheed martin is getting hurt by the pentagon’s priority shift, though, doesn’t mean the whole industry should be shunned. And it was tarred and feathered because of this one company. The day after lock nooed disappointed NORTHROP GRUMMAN came out with a solid beat and a really nice outlook. The difference is stark. Lockheed seems to be losing programs left and right. NORTHROP GRUMMAN won $10 billion of contracts in the third how about this? Its backlog increased to 71.5 its book to bill ratio, which tells us whether or not the company has more orders than it can deliver, came in at 1.15. Anything above 1 is terrific. It means it’s got more demand than it can handle. Lockheed’s, by contrast, was .7. Wow. Hey, by the way, this doesn’t include NORTHROP GRUMMAN’s high-profile 3.8 billion ac-10 air to air tanker maintenance contract it won, displacing boeing just before the quarter. This is all about what the pentagon wants. And NORTHROP GRUMMAN has it and northrop is getting tons of new a $2.4 billion contract to overhaul the "uss teddy roosevelt. 3 billion for maintenance of the common ground system. 150 million for lighting targeting and sensor systems. All of NORTHROP GRUMMAN systems did well. Aerospace systems up 5%. Electronic systems up 2%. Information systems and technical up 4% and ship building up 14%. In the past NORTHROP GRUMMAN has been among the worst of the defense contractors, a company plagued by pension problems and crummy execution. Amazingly now it’s lockheed martin with the pension problem and NORTHROP GRUMMAN indicated it made a last sizable pension contribution for a while. Over the last decade this company has shifted its focus to electronics information intelligence which fits with the pentagon’s new buying …” – NOC on Mad Money
“…Guidance on tuesday, causing everyone in pure knee-jerk fashion to sell all the but then the very next day NORTHROP GRUMMAN, noc, comes out with a much better than expected quarter and a very positive outlook. So what’s really going on here? Which of these companies accurately reflects what’s happening in the defense this is not a copout. In a way they both do. You see, these are no longer the president bush years. Security’s still important in …” – NOC on Mad Money
“…Up about 3%. Some of the defense names. NORTHROP GRUMMAN defense >> i’m going to be talking about oil versus natural gas. Why the disparity. >> by the way, we should emphasize again, america has plenty of natural gas. America has plenty of coal. Frankly, oksy’s finding more oil in california. We’re not really short of any of it. We had ten seconds. …” – NOC on Squawk On The Street
“…Times the analysts post estimate. Fargo with numbers. Morgan stanley hit a 52-week northbound NORTHROP GRUMMAN, their profit fell. The casual dining stock. Brinker, the parent of chili’s, it’s interesting because you have raymond james on the one hand raising them to an out perform from market perform but goldman sachs cut brinker to neutral from a buy. Make it difficult for folks at home to say hey, should I buy this one or interested in this one? Then they get the conflicting …” – NOC on Fox Business
“…And you can see — >> back up by 1 1/2%, 2%. NORTHROP GRUMMAN back up today. And yahoo! Reported better than expected third quarter earnings after the close today. It talked about cost cutting not necessarily a return to the past. That stock up by about 5% this >> by the long way from what it could have been sold for by the previous management. >> right. >> $30. …” – NOC on Squawk Box
“…Wachovia merger is exceeding expectations and does expect losses to peak next year but the real estate portfolio is getting worse. Switching to NORTHROP GRUMMAN earning $1.52 per share better than the estimate of $1.18 and revenue between the estimate and freeport-mcmoran earning $2.7 much better but the stock is down and light on revenue. …” – NOC on Imus In The Morning
“…Organization.;. >> welcome back we’re waiting for breaking news forum freeport and NORTHROP GRUMMAN animals fargo and here we are it looks like the first number we’re $0.56 a share but that is expectation of $0.37 a looks like the first members through the information that we have it looks like 56 as compared also that would be …” – NOC on Imus In The Morning
“…A court examiner is reportedly eyeing up the federal reserve for improperly collecting money the fed lent lehman 46 billion dollars to the firm before the bankruptcy filing last year. We’re following that as well. Ashley: NORTHROP GRUMMAN contract from the pentagon to make aerial refuelling tankers. Northrup beating out rival boeing who has held the contract for 25 years. It is 8:15 eastern time. Time for a look at the markets on the quarter. Let’s go to peter dixon global commerzbank to give us a sense of where the markets are today. Good morning, peter. >> good morning. Ashley: what can you tell us? >> well, I mean basically you know we’re looking at a fairly weak session again after pretty miserable day yesterday. It just feels like markets have run out of steam a little bit. We had a big leg down yesterday but generally speaking since the middle of last week, markets have seemed to have looked at the macro picture, thought maybe the numbers being priced in are a little bit too strong and consequently decided to take a little bit of profit. We’re looking also in about 15 …” – NOC on Money For Breakfast
“…Xstrata’s proposal is not in the interests of our shareholders," Anglo chief John Parker reiterated today. Northrop hands Boeing stunning defeat. NORTHROP GRUMMAN (NOC) beat out Boeing (BA) for a $3.8B contract to maintain and service the U.S. Air Force’s fleet of KC-10 refueling tankers. Analysts said the win was a "stunning upset" for Northrop, given that Boeing has been servicing the KC-10 since its introduction. Boeing said it will …” – NOC on Seeking Alpha Wall St Breakfast
“…Management will handle new legislation. So those are the names to watch as far as dick bove. Now, let’s talk about boeing. Boeing has been a leader on the dow jones/industrials. Look at the other names in the defense sector. You can look at honeywell and lockheed martin and NORTHROP GRUMMAN doing so well. I didn’t put g.D. In there, general dynamics because they’ve been faltering but the group is doing well. Boeing a dow component average. It would be down more than 32 points if it weren’t for boeing 3 1/4% gain there. Last but not least, look at what is going on with the drugstores and the grocers. Walgreens come out. They’ve really — let’s attribute this to walgreens. The fourth quarter topped estimates and they’ve been working on the prescription drug plan getting people in the stores. Selling things you need, bread, soap, and the things you need. Essentials. All right, now for essential report from the nasdaq, go to >> thanks very much, nicole. If you’re craving the google wave, you may not be far off from testing out that new google announcing on its web blog today that it’s going for a select few. …” – NOC on Countdown to the Closing Bell
“…$10 fees. Luv is pulling back on the fee. The stock is down 10 cents on the trading volume of 4 billion. The pentagon slapping back at NORTHROP GRUMMAN. The companies are positioning themselves for a near competition for a potential $50 billion aerial tanker the competitions get bloody and brutal. Right now, both stocks are up. Boeing is better by 3 1/4%. NORTHROP GRUMMAN is trailing but still up 21/2 1/3%. Both moving higher in the war of words. At&t says it will invest $18 billion in infrastructure. They will also hire 3,000 tech workers this year. Get in your resume. They’re also warning that the department of justice review process will think some companies about thinking twice on making big on the news, moving down half a percent. Trading volume is 21.2 million shares. One-year short getting close to the 52-week high. Not there yet. Dueling data. We have a bigger than expected drop in consumer confidence which is important for the psychology of trading and the consumer. The other delivering good news on home prices. The case shiller home index. So we look right now at the markets that are mixed. A few minutes ago, the russell moved higher with the …” – NOC on Countdown to the Closing Bell
“…About your former life at lockheed martin and I want to talk about defense spending. Where do you see defense budgets a lot of talk right now especially in the investing sector about some programs on the books at your old company NORTHROP GRUMMAN, general dynamics, you name it. Where do you see the defense spending going? >> I can’t speak to my old company, retired 12 years. In terms of the overall sector I think we’re looking at a flat to declining real dollar defense budget for a period of time. And much of the money that goes into that is going to have to be to either operations or to replace systems that are just flat wearing out. >> brian: yeah, where do you see our biggest need right now? Where should the money be centered in terms of defense >> well, I think it clearly needs to be centered on the kind of conflict we seem to be caught in, the– not the very large wars which hopefully we won’t be facing for a while, but into things, how do we combat terrorism, how do we combat insurgencies, how do we build countries and so on. >> brian: norman augustine, thank you for joining us. >> thank you good to be with >> brian: where is chuck yager when you need him. …” – NOC on Fox Business
“…Loss, twelfth straight quarterly we will be watching all of the homebuilders, keeping an eye on winning a new contract, we will watch steve martin and NORTHROP GRUMMAN, always a fun sector to watch. We will keep an eye on costco, coles, j.C. Penney, getting different news about the retailer’s so they will be in focus as well and health-care stocks that everyone is waiting for, president obama next week, these are a few of the things we will be focusing on and looking forward to. Off on the retail issue, talking about costco and free-market, looking good after same-store sales results. …” – NOC on Money For Breakfast
“…Boeing has been unbelievable winner. When we have 29 dow components in the red, only boeing holding on. The whole area space and defense group taken off. Jo ann has been winner retailer. NORTHROP GRUMMAN have their own contract. Look at the upgrades we’re keeping an eye on here for you. The up arrows, eight days in see if we can hold on. Now to the nasdaq to see how it’s faring with shibani >> similar picture here. We have light volume and not a lot of big swings. We’re in a tight trading range. Pretty light for average day. …” – NOC on Countdown to the Closing Bell
“…Watching, sandra has been doing a great job covering boeing. Boeing is certainly a dow the name that everybody on wall street watches, 787 dreamliners and the first by the end of the year and great news and so everybody is loving that and they certainly were waiting for it. Also, NORTHROP GRUMMAN winning two contracts, one in the air force, another from the navy, a boost as well. Sprint nextel under some pressure again and we awesome of the telecom names dragging the market or at least being a drag on the market yesterday. After making 2009 highs yesterday, we are getting a little bit of a pull boyton beaching here. A little bit of a pullback here and today, well, we have been in the red most the day. Down about 62 points right now, >> dagen: nicole, thank you for coming up, the financial aid why some states are having tough …” – NOC on Fox Business
“…Other stocks that we continue to boeing has been the one name holding onto the green. Starting off early in the pre-market higher and moving higher this morning as well. Now you can see it up about nearly, almost 8% there. Jo-ann stores, NORTHROP GRUMMAN, aig, and vonage, aig and vonage, two names ben willis has been focuses on and trying it throw them in there this week. And you can see aig still up about 10% there. Last but not least, analyst upgrade you want to see how those are faring, everything from barclays to bed, bath and beyond. Dollar tree, also, dow chemical. Emc, williams-sonoma, all a mixed bag when you look at the williams-sonoma up nearly 3%. …” – NOC on Fox Business
“…Beat the street by 20 cents. I’m wearing guess shoes today. I’m helping that stock up 5%. >> very nice. I’m not wearing any NORTHROP GRUMMAN. They’re also up 1.27%. >>> it’s time to check on the headlines outside the world of business. Let’s get out to alex witt. >> good morning to you, mandy. Family members will attend a private mass for senator ted kennedy at the hyannis compound a member will carry his body through boston where thousands will be able to pay their president obama will deliver the eulogy the family will be buried at the family plot at arlington …” – NOC on Squawk Box
“…commitments, but as a percentage of the economy, the deficit will still be larger than any since World War II. Northrop may sell advisory unit. NORTHROP GRUMMAN (NOC) reportedly plans to sell its Tasc consulting unit, which advises military and intelligence agencies, as the government prepares to tighten scrutiny of firms that both advise and sell equipment to the government. Goldman Sachs (GS) and Credit Suisse (CS) have been hired to …” – NOC on Seeking Alpha Wall St Breakfast
“…Component. Give citigroup when I can because it has 25 million shares to buy. NORTHROP GRUMMAN doing well. Oil pulled back three cents. We have a group moving lower than commodity, itself. The other stocks we’re watching. Watching the retailers. Gap, limit, did well. Disappointing names were costco and target and also, the third one was macy’s. I didn’t want to miss it. There you go. Those are the names we’re …” – NOC on Countdown to the Closing Bell
“…American express got a buy rating at citigroup, enough to give an up arrow as well. Look at the stocks, we mentioned them. North NORTHROP GRUMMAN is doing citi has been on the move. It had a record volume close yesterday and today I am seeing 25 million shares to buy of citi. The one that people are watching here. One of them going into the close. You can see citi is up and bank of america, jpmorgan, down arrows. Stocks to watch is nasdaq. The second quarter profit sliding 31%. Saying they will voluntarily stop slashing orders. Back to you. …” – NOC on Countdown to the Closing Bell
“…Google up 2 1/2%. Amazon on the heels of that deal yesterday up 2 1/2%. I guess the question is what is not strong. Walmart is down as are a number of the defense names. NORTHROP GRUMMAN, lockheed both weaker today, aig, cit each but for the most part pretty much money moving into this >> and broad-based. It is time for the "fast money" final call. The markets are sharply higher …” – NOC on Closing Bell
“…Kimberly-clark posting a slight dip in quarterly profits, weighed down by cost-related job still, the consumer goods company managed to beat analysts’ estimates. NORTHROP GRUMMAN missing the profits fell in the second quarter due to pension costs and recent results in shift building. >>> president obama slapping a surtax on families making over a …” – NOC on Power Lunch
“…The loss was much less than had been anticipated burger ups the forecast was not a great although the earnings were right in line. NORTHROP GRUMMAN better than expected and also three umbro there are some earnings that are starting to come out from "the new york times" that is …” – NOC on Money For Breakfast
“…I think that is probably be comparable figure broke revenue was 8.Seven but instead they came in at almost nine. Better than expected profits and revenue at NORTHROP GRUMMAN. Those of the reports breaking here. Penny better on earnings and a …” – NOC on Money For Breakfast
“…But a touch below the so many companies as we have an outlining have done it exact that. Be on the bottom line but, short on the top line. Defense contractors, NORTHROP GRUMMAN the most recent adjusted at $1.36 per share. Their reported $1.21 for a …” – NOC on Money For Breakfast
“…>>> $2.50 billion army contract to upgrade a vehicle intercom it allows soldiers to speak2neachther more2o2o clearly in loud noise situations. NORTHROP GRUMMAN shares tonight down just a fraction. >>> and immucor which makes blood testing devices received an fda notice of intent to …” – NOC on Closing Bell
“…to the devices isn’t waning: 40% of users say they’d rather lose their wallet than their phone.Northrop contract cancelled. The Pentagon terminated NORTHROP GRUMMAN’s (NOC) missile-defense program, once valued at $6.3B, despite a push by the company to carry out a key test of the technology in September. The cancellation is part of a restructuring of missile-defense efforts under the proposed fiscal 2010 budget. Northrop had carried out about …” – NOC on Seeking Alpha Wall St Breakfast
“…Will benefit? >> well, asai — a lot of thing certainly a lot of stuff i’ve seen on the show, cybersecurity you associate with maybe the primes, the defense names, lockheed, NORTHROP GRUMMAN, gd, my thesis has been that’s all good. We have headwinds on the other parts of their businesses, the platforms they make, and certainly we’re under a tight budget environment. Who knows where those platforms …” – NOC on Fast Money
“…Figure to increase to $25 billion in the next four years. Major defense contractors including raytheon, general dynamic, boeing, lockheed martin, NORTHROP GRUMMAN are all competing for that cyber security business. >> from now on, our digital infrastructure, networks and computers we depend on every …” – NOC on Closing Bell
“…The butt of airbus and it’s going to be a big stock for multiple years, but zee to be price sensitive. We pull the trigger at 40. Okay, ladies and gentlemen, i’m releasing NORTHROP GRUMMAN from the st sell block. I falsely imprisoned it for the last 14 points. You may get out of jail, pass, and go fly away. …” – NOC on Mad Money