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Northrop Grumman Piotroski F-Score

: 5 (As of Today)
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The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Northrop Grumman has an F-score of 5 indicating the company's financial situation is typical for a stable company.

The historical rank and industry rank for Northrop Grumman's Piotroski F-Score or its related term are showing as below:

NOC' s Piotroski F-Score Range Over the Past 10 Years
Min: 1   Med: 6   Max: 9
Current: 5

During the past 13 years, the highest Piotroski F-Score of Northrop Grumman was 9. The lowest was 1. And the median was 6.


Northrop Grumman Piotroski F-Score Historical Data

The historical data trend for Northrop Grumman's Piotroski F-Score 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.

* Premium members only.

Northrop Grumman Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Piotroski F-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 6.00 5.00 6.00 6.00 6.00

Northrop Grumman Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
Piotroski F-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 6.00 6.00 6.00 5.00 5.00

Competitive Comparison

For the Aerospace & Defense subindustry, Northrop Grumman's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score 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 Piotroski F-Score Distribution

For the Aerospace & Defense industry and Industrials sector, Northrop Grumman's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where Northrop Grumman's Piotroski F-Score falls into.


How is the Piotroski F-Score calculated?

* 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.

This Year (Jun22) TTM:Last Year (Jun21) TTM:
Net Income was 1063 + 2710 + 955 + 946 = $5,674 Mil.
Cash Flow from Operations was 1163 + 1442 + -488 + -197 = $1,920 Mil.
Revenue was 8720 + 8639 + 8797 + 8801 = $34,957 Mil.
Gross Profit was 1934 + 1551 + 1873 + 1959 = $7,317 Mil.
Average Total Assets from the begining of this year (Jun21)
to the end of this year (Jun22) was
(42142 + 42346 + 42579 + 41903 + 41914) / 5 = $42176.8 Mil.
Total Assets at the begining of this year (Jun21) was $42,142 Mil.
Long-Term Debt & Capital Lease Obligation was $14,488 Mil.
Total Current Assets was $11,637 Mil.
Total Current Liabilities was $8,976 Mil.
Net Income was 986 + 330 + 2195 + 1037 = $4,548 Mil.

Revenue was 9083 + 10212 + 9157 + 9151 = $37,603 Mil.
Gross Profit was 1840 + 2090 + 1740 + 2043 = $7,713 Mil.
Average Total Assets from the begining of last year (Jun20)
to the end of last year (Jun21) was
(43475 + 44772 + 44469 + 41423 + 42142) / 5 = $43256.2 Mil.
Total Assets at the begining of last year (Jun20) was $43,475 Mil.
Long-Term Debt & Capital Lease Obligation was $14,153 Mil.
Total Current Assets was $12,762 Mil.
Total Current Liabilities was $8,591 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Northrop Grumman's current Net Income (TTM) was 5,674. ==> Positive ==> Score 1.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Northrop Grumman's current Cash Flow from Operations (TTM) was 1,920. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets (Jun21)
=5674/42142
=0.13464003

ROA (Last Year)=Net Income/Total Assets (Jun20)
=4548/43475
=0.10461185

Northrop Grumman's return on assets of this year was 0.13464003. Northrop Grumman's return on assets of last year was 0.10461185. ==> This year is higher. ==> Score 1.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

Northrop Grumman's current Net Income (TTM) was 5,674. Northrop Grumman's current Cash Flow from Operations (TTM) was 1,920. ==> 1,920 <= 5,674 ==> CFROA <= ROA ==> Score 0.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Jun22)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Jun21 to Jun22
=14488/42176.8
=0.34350638

Gearing (Last Year: Jun21)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Jun20 to Jun21
=14153/43256.2
=0.32719009

Northrop Grumman's gearing of this year was 0.34350638. Northrop Grumman's gearing of last year was 0.32719009. ==> Last year is lower than this year ==> Score 0.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

Current Ratio (This Year: Jun22)=Total Current Assets/Total Current Liabilities
=11637/8976
=1.29645722

Current Ratio (Last Year: Jun21)=Total Current Assets/Total Current Liabilities
=12762/8591
=1.48550809

Northrop Grumman's current ratio of this year was 1.29645722. Northrop Grumman's current ratio of last year was 1.48550809. ==> Last year's current ratio is higher ==> Score 0.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

Northrop Grumman's number of shares in issue this year was 156. Northrop Grumman's number of shares in issue last year was 161.5. ==> There is smaller number of shares in issue this year, or the same. ==> Score 1.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=7317/34957
=0.2093143

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=7713/37603
=0.20511661

Northrop Grumman's gross margin of this year was 0.2093143. Northrop Grumman's gross margin of last year was 0.20511661. ==> This year's gross margin is higher. ==> Score 1.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (Jun21)
=34957/42142
=0.82950501

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Jun20)
=37603/43475
=0.86493387

Northrop Grumman's asset turnover of this year was 0.82950501. Northrop Grumman's asset turnover of last year was 0.86493387. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+1+0+0+0+1+1+0
=5

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Northrop Grumman has an F-score of 5 indicating the company's financial situation is typical for a stable company.

Northrop Grumman  (NYSE:NOC) Piotroski F-Score Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


Northrop Grumman Piotroski F-Score Related Terms

Thank you for viewing the detailed overview of Northrop Grumman's Piotroski F-Score provided by GuruFocus.com. Please click on the following links to see related term pages.


Northrop Grumman Business Description

Northrop Grumman logo
Address
2980 Fairview Park Drive, Falls Church, VA, USA, 22042
Northrop Grumman is a defense contractor that is diversified across short-cycle and long-cycle businesses. The firm's segments include aeronautics, mission systems, defense services, and space systems. The company's aerospace segment creates the fuselage for the massive F-35 program and produces various piloted and autonomous flight systems. Mission systems creates a variety of sensors and processors for defense hardware. The defense systems segment is a mix between a long-range missile manufacturer and a defense IT service provider. Finally, the company's space systems segment produces various space structures, sensors, and satellites.
Executives
Bromberg Matthew Fox officer: CVP, Global Operations 2980 FAIRVIEW PARK DRIVE FALLS CHURCH VA 22042
Wilson Thomas L Jr officer: CVP and Pres. Space Systems 2980 FAIRVIEW PARK DRIVE FALLS CHURCH VA 22042
Robinson Graham director 1000 STANLEY DRIVE NEW BRITAIN CT 06053
Jones Thomas H officer: CVP & Pres Aeronautics Systems 2980 FAIRVIEW PARK DRIVE FALLS CHURCH VA 22042
Abney David P director 55 GLENLAKE PARWAY, NE ATLANTA GA 30328
Brown Marianne Catherine director 4094 TIMUQUANA ROAD JACKSONVILLE FL 33210-8571
Keffer David F officer: CVP & Chief Financial Officer 3170 FAIRVIEW PARK DRIVE FALLS CHURCH VA 22042
Petryszyn Mary D officer: CVP, Pres, Defense Systems 2980 FAIRVIEW PARK DRIVE FALLS CHURCH VA 22042
Bush Wesley G director, officer: Chairman 333 MAPLE AVENUE EAST #3080 VIENNA VA 22180
Ryan Lucy C officer: Corp VP, Communications 2980 FAIRVIEW PARK DRIVE FALLS CHURCH VA 22042
Addison Ann M officer: Corporate Vice President 11951 FREEDOM DRIVE RESTON VA 20190
Larson Blake E officer: Vice President, other: Corp VP & Pres, NGIS 5050 LINCOLN DRIVE EDINA MN 55436
Kalan Lesley A officer: Corp VP, Government Relations 805 VASSAR ROAD ALEXANDRIA VA 22314
Purvis Shawn N officer: CVP, President, Enterprise Svc 9672 CRECY LANE MANASSAS VA 20110
Pamiljans Janis G officer: Corp VP & President AS Systems 212 LANSING ISLAND DRIVE INDIAN HARBOUR BEACH FL 32937

Northrop Grumman Headlines

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