Northrop GrummanFRA:NTH -0.68%86 FCF Yield % is 4.65 as of Jun. 28, 2026, which is 31% above its 10-year median of 3.55. GuruFocus rates FRA:NTH with a GF Score™ of 86/100 and a GF Value™ of €488.57 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 356 Aerospace & Defense companies, Northrop Grumman ranks better than 82.87% on this metric.
FCF Yield % is calculated as Free Cash Flow divided by Market Capitalization. It is a financial solvency ratio that compares the free cash flow a company is expected to earn against its market value.
Similar to Earnings Yield %, FCF Yield % is financial solvency ratio. A lower ratio suggests a less attractive investment, indicating that investors might not receive substantial returns in proportion to their investment. Conversely, a high free cash flow yield signals that a company generates sufficient cash to comfortably meet its debts, obligations, and dividend payments, making it a promising investment choice.
Northrop Grumman FCF Yield % Related Terms
Northrop Grumman FCF Yield % Historical Data
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The historical data trend for Northrop Grumman's FCF Yield % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Aerospace & Defense subindustry, Northrop Grumman's FCF Yield %, along with its competitors' market caps and FCF Yield % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Northrop Grumman FCF Yield % vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Northrop Grumman's FCF Yield % distribution charts can be found below:
* The bar in red indicates where Northrop Grumman's FCF Yield % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Northrop Grumman (FRA:NTH) has a FCF Yield % of 4.65 as of Jun. 28, 2026. FCF Yield is calculated as Free Cash Flow divided by Market Capitalization. View historical data on Northrop Grumman and its competitors. This is 31% above median its historical median of 3.55. Over the past decade, Northrop Grumman's FCF Yield % has ranged from 0.56 to 7.98. According to the industry distribution chart, Northrop Grumman ranks #61 out of 356 companies in the Aerospace & Defense industry, placing it in the top 17.1%.
Is Northrop Grumman's FCF Yield % too high?
Northrop Grumman's current FCF Yield % of 4.65 is 31% above median its 10-year median of 3.55. Over the past 10 years, this metric has ranged from a low of 0.56 to a high of 7.98. Based on the distribution chart, Northrop Grumman ranks #61 out of 356 companies in the Aerospace & Defense industry, which is in the top quartile — a strong position relative to peers. Overall, Northrop Grumman has a GF Score™ of 86/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Northrop Grumman's FCF Yield % compare to RKLB and TDG?
According to the Aerospace & Defense industry distribution chart, Northrop Grumman ranks #61 out of 356 companies for FCF Yield %. This places Northrop Grumman in the top 17% of its industry — outperforming the majority of peers. Historically, Northrop Grumman's own FCF Yield % has ranged from 0.56 to 7.98 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good FCF Yield % for an Aerospace & Defense company?
A good FCF Yield % depends on the Aerospace & Defense industry context. However, FCF Yield % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high FCF Yield % mean?
A high FCF Yield % can signal that a stock is expensive relative to its fundamentals. FCF Yield is calculated as Free Cash Flow divided by Market Capitalization. View historical data on Northrop Grumman and its competitors. Northrop Grumman's current FCF Yield % is 4.65, which is 31% above median its own 10-year median of 3.55. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Northrop Grumman stock overvalued right now?
Based on GuruFocus' analysis, Northrop Grumman (FRA:NTH) is currently considered Modestly Undervalued. The stock's GF Value™ is €488.57, compared to a current price of €438.00 — trading 10.4% below its estimated fair value. The current FCF Yield % is 4.65, which is 31% above median its 10-year median of 3.55. Northrop Grumman's overall GF Score™ is 86/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is FCF Yield % calculated?
FCF Yield % is calculated from a company's financial statements. For Northrop Grumman (FRA:NTH), the current FCF Yield % is 4.65 as of Jun. 28, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Northrop Grumman (FRA:NTH) Overvalued in 2026?
Based on GuruFocus' analysis, Northrop Grumman stock appears to be undervalued.
The current stock price of €438.00 is trading 10.4% below its estimated GF Value™ of €488.57.
GuruFocus considers Northrop Grumman to be Modestly Undervalued.
Key valuation signals for FRA:NTH:
FCF Yield %: 4.65 (31% above median its 10-year median of 3.55)
GF Value™: €488.57 vs. price of €438.00 (10.4% below fair value)
No single metric tells the full story. See the FRA:NTH stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Northrop Grumman is a diversified defense contractor providing aeronautics, defense, and space systems. The company's aerospace segment produces autonomous and piloted aircraft such as Global Hawk drones and the new B-21 bomber, creates the fuselage for the massive F-35 program, and maintains and upgrades numerous other military aircraft. Defense systems makes artillery and missile ammunition and guidance systems, long-range missiles, and missile defense systems. Mission systems creates and integrates a variety of radar, navigation, and communication systems for avionics, weapons control, and countermeasures on a range of platforms from helicopters to destroyers. Space systems produces satellites, sensors, space structures, and rocket motors.
86GF Score
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