Northrop Piotroski F Score

NOC
 Stock
  

USD 485.63  1.24  0.25%   

This module uses fundamental data of Northrop Grumman to approximate its Piotroski F score. Northrop Grumman F Score is determined by combining nine binary scores representing 3 distinct fundamental categories of Northrop Grumman Corp. These three categories are profitability, efficiency, and funding. Some research analysts and sophisticated value traders use Piotroski F Score to find opportunities outside of the conventional market and financial statement analysis.They believe that some of the new information about Northrop Grumman financial position does not get reflected in the current market share price suggesting a possibility of arbitrage. Additionally, see Northrop Grumman Altman Z Score, Northrop Grumman Correlation, Northrop Grumman Valuation, as well as analyze Northrop Grumman Alpha and Beta and Northrop Grumman Hype Analysis.
  
As of August 16, 2022, Total Debt is expected to decline to about 14.5 B. In addition to that, Debt Current is expected to decline to about 701.5 M. Northrop Grumman Interest Coverage is projected to drop based on the last few years of reporting. The past year's Interest Coverage was at 6.60. The current year Calculated Tax Rate is expected to grow to 25.73, whereas Long Term Debt to Equity is forecasted to decline to 0.96.
At this time, it appears that Northrop Grumman's Piotroski F Score is Healthy. Although some professional money managers and academia have recently criticized Piotroski F-Score model, we still consider it an effective method of predicting the state of the financial strength of any organization that is not predisposed to accounting gimmicks and manipulations. Using this score on the criteria to originate an efficient long-term portfolio can help investors filter out the purely speculative stocks or equities playing fundamental games by manipulating their earnings..
5.0
Piotroski F Score - Healthy
1
Current Return On AssetsPositiveFocus
2
Change in Return on AssetsIncreasedFocus
3
Cash Flow Return on AssetsPositiveFocus
4
Current Quality of Earnings (accrual)DecreasingFocus
5
Asset Turnover GrowthIncreaseFocus
6
Current Ratio ChangeDecreaseFocus
7
Long Term Debt Over Assets ChangeLower LeverageFocus
8
Change In Outstending SharesIncreaseFocus
9
Change in Gross MarginNo ChangeFocus

Northrop Grumman Piotroski F Score Drivers

The critical factor to consider when applying the Piotroski F Score to Northrop Grumman is to make sure Northrop is not a subject of accounting manipulations and runs a healthy internal audit department. So, if Northrop Grumman's auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back. Below are the main accounts that are used in the Piotroski F Score model. By analyzing the historical trends of the mains drivers, investors can determine if Northrop Grumman's financial numbers are properly reported.
Current ValueLast YearChange From Last Year 10 Year Trend
Weighted Average Shares203.7 M160.3 M
Significantly Up
Decreasing
Slightly volatile
Weighted Average Shares Diluted205.4 M160.9 M
Significantly Up
Decreasing
Slightly volatile
Net Cash Flow from Operations3.1 B3.6 B
Fairly Down
Increasing
Slightly volatile
Total Assets36 B42.6 B
Fairly Down
Increasing
Slightly volatile
Total Liabilities25.3 B29.7 B
Fairly Down
Increasing
Slightly volatile
Current Assets10.8 B12.4 B
Fairly Down
Increasing
Slightly volatile
Current Liabilities8.1 B9.5 B
Fairly Down
Increasing
Slightly volatile
Total Debt14.5 B17.9 B
Significantly Down
Increasing
Slightly volatile
Return on Average Assets17.3716.0946
Significantly Up
Increasing
Slightly volatile
Gross Margin19.920.3774
Fairly Down
Decreasing
Very volatile
Asset Turnover0.960.8195
Fairly Up
Decreasing
Slightly volatile

Northrop Grumman Corp F Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to project the various growth rates. Understanding the correlation between Northrop Grumman's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Northrop Grumman in a much-optimized way.

About Northrop Grumman Piotroski F Score

F-Score is one of many stock grading techniques developed by Joseph Piotroski, a professor of accounting at the Stanford University Graduate School of Business. It was published in 2002 under the paper titled Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers. Piotroski F Score is based on binary analysis strategy in which stocks are given one point for passing 9 very simple fundamental tests, and zero point otherwise. According to Mr. Piotroski's analysis, his F-Score binary model can help to predict the performance of low price-to-book stocks.

Weighted Average Shares

203.72 Million

Northrop Grumman Weighted Average Shares is projected to decrease significantly based on the last few years of reporting. The past year's Weighted Average Shares was at 160.3 Million

Northrop Grumman Current Valuation Drivers

We derive many important indicators used in calculating different scores of Northrop Grumman from analyzing Northrop Grumman's financial statements. These drivers represent accounts that assess Northrop Grumman's ability to generate profits relative to its revenue, operating costs, and shareholders' equity. Below are some of Northrop Grumman's important valuation drivers and their relationship over time.
201720182019202020212022 (projected)
Net Income Per Employee28.79 K37.99 K24.98 K32.79 K79.6 K85.89 K
Revenue Per Employee368.61 K354.06 K376.01 K378.33 K405.31 K367.36 K
Average Assets28.22 B36.94 B40.24 B43.98 B50.58 B44.11 B
Earnings Before Interest Taxes and Depreciation Amortization EBITDA3.88 B5.1 B4.09 B5.59 B10.73 B11.58 B
Earnings Before Interest Taxes and Depreciation Amortization USD5.06 B5.1 B4.34 B5.59 B6.43 B5.77 B
Earnings before Tax4.23 B3.74 B2.55 B3.73 B4.29 B4.05 B
Average Equity6.28 B8.3 B9.13 B9.96 B8.96 B8.53 B
Enterprise Value57.78 B55.18 B71.97 B61.36 B70.56 B60.55 B
Free Cash Flow1.69 B2.58 B3.03 B3.09 B3.55 B3.13 B
Invested Capital18.7 B21.64 B23.74 B27.29 B31.38 B24.88 B
Invested Capital Average14.07 B21.59 B25.14 B26.04 B29.94 B23.93 B
Market Capitalization53.43 B42.52 B57.97 B50.8 B58.42 B51.07 B
Tangible Asset Value22.62 B17.61 B21.34 B26.17 B30.09 B25.68 B
Working Capital9.49 B1.41 B1.25 B5.76 B6.63 B5.24 B

Northrop Grumman ESG Sustainability

Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Northrop Grumman's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Northrop Grumman's managers, analysts, and investors.
Environment Score
Governance Score
Social Score

About Northrop Grumman Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Northrop Grumman Corp's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Northrop Grumman using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Northrop Grumman Corp based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Northrop Grumman Corporation operates as an aerospace and defense company worldwide. The company was founded in 19 and is based in Falls Church, Virginia. Northrop Grumman operates under Aerospace Defense classification in the United States and is traded on New York Stock Exchange. It employs 88000 people.

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Additionally, see Northrop Grumman Altman Z Score, Northrop Grumman Correlation, Northrop Grumman Valuation, as well as analyze Northrop Grumman Alpha and Beta and Northrop Grumman Hype Analysis. Note that the Northrop Grumman Corp information on this page should be used as a complementary analysis to other Northrop Grumman's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.

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Is Northrop Grumman's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Northrop Grumman. If investors know Northrop will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Northrop Grumman listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
-0.056
Market Capitalization
74.2 B
Quarterly Revenue Growth YOY
-0.038
Return On Assets
0.11
Return On Equity
0.46
The market value of Northrop Grumman Corp is measured differently than its book value, which is the value of Northrop that is recorded on the company's balance sheet. Investors also form their own opinion of Northrop Grumman's value that differs from its market value or its book value, called intrinsic value, which is Northrop Grumman's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Northrop Grumman's market value can be influenced by many factors that don't directly affect Northrop Grumman's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Northrop Grumman's value and its price as these two are different measures arrived at by different means. Investors typically determine Northrop Grumman value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Northrop Grumman's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.