Stock Analysis on Net

Northrop Grumman Corp. (NYSE:NOC)

Price to FCFE (P/FCFE) 

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Free Cash Flow to Equity (FCFE)

Northrop Grumman Corp., FCFE calculation

US$ in millions

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12 months ended: Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Net earnings 4,896 7,005 3,189 2,248 3,229
Net noncash charges (1,395) (3,619) 889 1,921 1,746
Changes in assets and liabilities (600) 181 227 128 (1,148)
Net cash provided by operating activities 2,901 3,567 4,305 4,297 3,827
Capital expenditures (1,435) (1,415) (1,420) (1,264) (1,249)
Net proceeds from issuance of long-term debt 2,239
Payments of long-term debt (2,236) (1,027) (500) (2,276)
Payments to credit facilities (78) (31) (320)
Net borrowings on (repayments of) commercial paper (198) 198
Free cash flow to equity (FCFE) 1,466 (84) 4,019 2,304 180

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).

Item Description The company
FCFE Free cash flow to equity is the cash flow available to Northrop Grumman Corp. equity holders after all operating expenses, interest, and principal payments have been paid and necessary investments in working and fixed capital have been made. Northrop Grumman Corp. FCFE decreased from 2020 to 2021 but then slightly increased from 2021 to 2022.

Price to FCFE Ratio, Current

Northrop Grumman Corp., current P/FCFE calculation, comparison to benchmarks

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No. shares of common stock outstanding 153,053,371
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions) 1,466
FCFE per share 9.58
Current share price (P) 437.65
Valuation Ratio
P/FCFE 45.69
Benchmarks
P/FCFE, Competitors1
Boeing Co.
Caterpillar Inc. 20.63
General Electric Co.
Honeywell International Inc. 50.44
Lockheed Martin Corp. 11.63
Raytheon Technologies Corp. 36.12

Based on: 10-K (reporting date: 2022-12-31).

1 Click competitor name to see calculations.

If the company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.
Otherwise, if the company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.


Price to FCFE Ratio, Historical

Northrop Grumman Corp., historical P/FCFE calculation, comparison to benchmarks

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Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
No. shares of common stock outstanding1 153,053,371 156,101,934 166,718,384 167,637,130 169,737,507
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions)2 1,466 (84) 4,019 2,304 180
FCFE per share3 9.58 -0.54 24.11 13.74 1.06
Share price1, 4 443.47 373.99 293.03 384.87 275.55
Valuation Ratio
P/FCFE5 46.30 12.16 28.00 259.84
Benchmarks
P/FCFE, Competitors6
Boeing Co. 6.78 19.60 15.23
Caterpillar Inc. 16.36 25.22 11.07 11.89
General Electric Co.
Honeywell International Inc. 46.23 12.59 21.75 26.34
Lockheed Martin Corp. 11.63 14.65 15.57 28.62 49.82
Raytheon Technologies Corp. 35.07 28.09 6.94
P/FCFE, Sector
Capital Goods 61.96 29.74 35.08
P/FCFE, Industry
Industrials 32.46 23.59 24.28

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).

1 Data adjusted for splits and stock dividends.

2 See details »

3 2022 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 1,466,000,000 ÷ 153,053,371 = 9.58

4 Closing price as at the filing date of Northrop Grumman Corp. Annual Report.

5 2022 Calculation
P/FCFE = Share price ÷ FCFE per share
= 443.47 ÷ 9.58 = 46.30

6 Click competitor name to see calculations.