Price to Operating Profit (P/OP)
since 2005
Calculation
Northrop Grumman Corp., P/OP, long-term trends, calculation
| P/OP | = | Share price1, 2, 3 | ÷ | Operating profit per share1 | Operating profit per share1 | = | Operating income (loss)1 (in millions) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Jan 26, 2023 | 18.85 | = | 443.47 | ÷ | 23.53 | 23.53 | = | 3,601 | ÷ | 153,053,371 | |
| Jan 27, 2022 | 10.33 | = | 373.99 | ÷ | 36.20 | 36.20 | = | 5,651 | ÷ | 156,101,934 | |
| Jan 28, 2021 | 12.02 | = | 293.03 | ÷ | 24.38 | 24.38 | = | 4,065 | ÷ | 166,718,384 | |
| Jan 30, 2020 | 16.26 | = | 384.87 | ÷ | 23.68 | 23.68 | = | 3,969 | ÷ | 167,637,130 | |
| Jan 31, 2019 | 12.37 | = | 275.55 | ÷ | 22.27 | 22.27 | = | 3,780 | ÷ | 169,737,507 | |
| Jan 29, 2018 | 17.85 | = | 338.34 | ÷ | 18.95 | 18.95 | = | 3,299 | ÷ | 174,087,585 | |
| Jan 30, 2017 | 12.55 | = | 229.48 | ÷ | 18.29 | 18.29 | = | 3,193 | ÷ | 174,599,406 | |
| Feb 1, 2016 | 11.10 | = | 188.64 | ÷ | 17.00 | 17.00 | = | 3,076 | ÷ | 180,943,220 | |
| Feb 2, 2015 | 9.88 | = | 159.19 | ÷ | 16.11 | 16.11 | = | 3,196 | ÷ | 198,405,799 | |
| Feb 3, 2014 | 7.86 | = | 113.25 | ÷ | 14.41 | 14.41 | = | 3,123 | ÷ | 216,737,248 | |
| Feb 5, 2013 | 4.92 | = | 64.88 | ÷ | 13.20 | 13.20 | = | 3,130 | ÷ | 237,126,501 | |
| Feb 8, 2012 | 4.67 | = | 60.50 | ÷ | 12.97 | 12.97 | = | 3,276 | ÷ | 252,631,776 | |
| Feb 9, 2011 | 6.82 | = | 71.87 | ÷ | 10.54 | 10.54 | = | 3,070 | ÷ | 291,312,990 | |
| Feb 9, 2010 | 7.26 | = | 59.55 | ÷ | 8.20 | 8.20 | = | 2,483 | ÷ | 302,771,417 | |
| Feb 10, 2009 | — | = | 44.54 | ÷ | -0.34 | -0.34 | = | -111 | ÷ | 327,180,490 | |
| Feb 20, 2008 | 9.11 | = | 81.00 | ÷ | 8.90 | 8.90 | = | 3,006 | ÷ | 337,919,384 | |
| Feb 21, 2007 | 10.75 | = | 75.29 | ÷ | 7.01 | 7.01 | = | 2,454 | ÷ | 350,262,436 | |
| Feb 17, 2006 | 10.58 | = | 65.71 | ÷ | 6.21 | 6.21 | = | 2,178 | ÷ | 350,705,853 |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
1 US$
2 Data adjusted for splits and stock dividends.
3 Closing price as at the filing date of Northrop Grumman Corp. Annual Report.
- Share Price Trend
- The share price exhibited an overall upward trend over the period, starting at $65.71 in February 2006 and rising to $443.47 by late January 2023. Initial growth was moderate, reaching $81 in February 2008, followed by a significant decline to $44.54 in February 2009. From 2010 onward, the share price generally increased, with notable spikes around 2014 to 2018, peaking at $338.34, then experiencing some volatility but maintaining a generally high level above $270. The latest years demonstrate continued growth, culminating in the highest recorded share price of $443.47.
- Operating Profit Per Share (OPPS)
- Operating profit per share showed a mostly positive trajectory. Starting at $6.21 in 2006, there was a steady increase to a peak of $8.90 in 2008. The value dropped sharply into negative territory (-$0.34) in 2009, likely reflecting adverse operational conditions. Recovery commenced in 2010, with OPPS increasing consistently through to 2021, where a substantial peak of $36.20 was recorded. In the final year, OPPS decreased to $23.53, which, although lower than the 2021 peak, remained considerably higher than earlier periods.
- Price to Operating Profit (P/OP) Ratio
- The P/OP ratio, indicating the market valuation relative to operating profit, fluctuated considerably. It started at 10.58 in 2006, peaking slightly to 10.75 in 2007, before falling to 9.11 in 2008. There is missing data for 2009, coinciding with the negative OPPS. From 2010, the ratio declined to as low as 4.67 in 2012, indicating that the share price was relatively low compared to operating profit. Post-2012, the ratio increased steadily, reaching a high of 18.85 in 2023, which suggests that the market price grew faster than operating profit in recent years, possibly indicating increased market optimism or higher valuation multiples.
- Overall Insights
- The data indicates a company recovering from a significant operational setback in 2009, with strong improvement in operating profitability thereafter. The share price growth reflects increased investor confidence, particularly notable in the post-2013 period. The rising P/OP ratio in recent years may imply a higher market premium placed on earnings, or expectations of future operational strength. Volatility in share price and profitability in earlier years contrasts with a more stable and upward trend later, demonstrating resilience and growth in the business fundamentals over the analyzed timeframe.
Comparison to Competitors
Northrop Grumman Corp., P/OP, long-term trends, comparison to competitors
| Northrop Grumman Corp. | Boeing Co. | Caterpillar Inc. | Lockheed Martin Corp. | RTX Corp. | |
|---|---|---|---|---|---|
| Jan 26, 2023 | 18.85 | — | 16.25 | 14.06 | 26.48 |
| Jan 27, 2022 | 10.33 | — | 15.87 | 11.56 | 28.68 |
| Jan 28, 2021 | 12.02 | — | 24.23 | 10.63 | — |
| Jan 30, 2020 | 16.26 | — | 9.08 | 14.49 | 15.07 |
| Jan 31, 2019 | 12.37 | 19.08 | 9.20 | 11.62 | 12.16 |
| Jan 29, 2018 | 17.85 | 19.69 | 21.70 | 16.47 | 11.53 |
| Jan 30, 2017 | 12.55 | 17.20 | 116.61 | 13.51 | 10.86 |
| Feb 1, 2016 | 11.10 | 10.36 | 11.66 | 12.17 | 9.71 |
| Feb 2, 2015 | 9.88 | 13.96 | 9.71 | 10.89 | 11.15 |
| Feb 3, 2014 | 7.86 | 14.75 | 10.94 | 11.62 | 10.88 |
| Feb 5, 2013 | 4.92 | 9.09 | 7.30 | 6.40 | 10.73 |
| Feb 8, 2012 | 4.67 | 9.69 | 10.41 | 7.21 | 9.40 |
| Feb 9, 2011 | 6.82 | 10.76 | 16.44 | 6.84 | 10.86 |
| Feb 9, 2010 | 7.26 | 20.91 | 63.07 | 6.47 | 9.67 |
| Feb 10, 2009 | — | 7.87 | 3.61 | 5.31 | 5.88 |
| Feb 20, 2008 | 9.11 | 11.17 | 9.03 | 9.48 | 9.95 |
| Feb 21, 2007 | 10.75 | 23.81 | 8.83 | 10.84 | 11.11 |
| Feb 17, 2006 | 10.58 | 20.69 | 12.95 | 10.66 | 11.11 |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).