Stock Analysis on Net

Northrop Grumman Corp. (NYSE:NOC)

$22.49

This company has been moved to the archive! The financial data has not been updated since April 27, 2023.

Price to Sales (P/S)
since 2005

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Calculation

Northrop Grumman Corp., P/S, long-term trends, calculation

Microsoft Excel

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.


The analysis of the financial data reveals distinct trends in share price, sales per share, and price-to-sales ratio (P/S) over the observed periods.

Share Price
The share price experienced significant fluctuations between 2006 and 2023. Initially, it rose modestly from $65.71 in early 2006 to a peak of $81 in early 2008, before dropping sharply to $44.54 in early 2009. Following this decline, there was a general upward trend, with some volatility, reaching a substantial high of $443.47 by early 2023. Notable peaks occurred in early 2015 ($159.19), early 2018 ($338.34), and early 2020 ($384.87), indicating periods of strong market confidence and growth potential.
Sales Per Share
Sales per share steadily increased throughout the period, growing from $87.60 in early 2006 to $239.15 by early 2023. This progression reflects consistent underlying revenue growth relative to the number of shares outstanding. Although the rate of increase exhibited minor variations, the overall trend was positive and fairly smooth, suggesting effective sales expansion and operational stability.
Price-to-Sales Ratio (P/S)
The P/S ratio demonstrated considerable variability, initially ranging between 0.75 and 0.87 until 2007. It then declined sharply to a low of 0.43 in early 2009, coinciding with the significant share price drop noted previously, likely reflecting investor risk aversion during that period. Subsequently, the ratio climbed steadily, reaching a peak of 2.28 in early 2018. Following some correction, it maintained elevated levels above 1.3, settling at 1.85 by early 2023. Elevated P/S ratios in recent years indicate increased market valuation relative to sales, possibly reflecting heightened investor expectations regarding growth or profitability.

Overall, the data suggests that while sales grew consistently, share price experienced more volatility, heavily influenced by broader market conditions and investor sentiment. The upward trajectory in the P/S ratio in recent years points to growing market optimism or potentially higher premium placed on sales achievements relative to earlier periods. The resilience and eventual strong growth in share price following the 2008-2009 downturn also highlight recovery and expansion phases within the company's operational lifecycle.


Comparison to Competitors

Northrop Grumman Corp., P/S, long-term trends, comparison to competitors

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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).


Comparison to Sector (Capital Goods)


Comparison to Industry (Industrials)