Northrop GrummanMEX:NOC 77 Gross Margin % is 19.84% as of Mar. 2026, which is 3% below its 10-year median of 20.40. GuruFocus rates MEX:NOC with a GF Score™ of 77/100 and a GF Value™ of MXN10,501.99 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 342 Aerospace & Defense companies, Northrop Grumman ranks worse than 63.45% on this metric.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Northrop Grumman had a gross margin of 19.84% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Northrop Grumman Gross Margin % Related Terms
Northrop Grumman Gross Margin % Historical Data
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The historical data trend for Northrop Grumman's Gross Margin % 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.
MEX:NOC vs RKLB, TDG, GD: Gross Margin % Comparison
For the Aerospace & Defense subindustry, Northrop Grumman's Gross Margin %, along with its competitors' market caps and Gross Margin % 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 Gross Margin % vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Northrop Grumman's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Northrop Grumman's Gross Margin % 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.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Northrop Grumman (MEX:NOC) has a Gross Margin % of 19.84% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Northrop Grumman and its competitors. This is near median its historical median of 20.40. Over the past decade, Northrop Grumman's Gross Margin % has ranged from 16.67 to 23.92. According to the industry distribution chart, Northrop Grumman ranks #217 out of 342 companies in the Aerospace & Defense industry, placing it in the top 63.5%.
Is Northrop Grumman's Gross Margin % too high?
Northrop Grumman's current Gross Margin % of 19.84% is near median its 10-year median of 20.40. Over the past 10 years, this metric has ranged from a low of 16.67 to a high of 23.92. The Aerospace & Defense industry median Gross Margin % is 26.65. Northrop Grumman's value of 19.84% is 25.6% below this industry median. Based on the distribution chart, Northrop Grumman ranks #217 out of 342 companies in the Aerospace & Defense industry, which is below the industry midpoint. Overall, Northrop Grumman has a GF Score™ of 77/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Northrop Grumman's Gross Margin % compare to RKLB and TDG?
According to the Aerospace & Defense industry distribution chart, Northrop Grumman ranks #217 out of 342 companies for Gross Margin %. This places Northrop Grumman in the lower half of its industry. The industry median Gross Margin % is 26.65. Northrop Grumman's value of 19.84% is 25.6% below this benchmark. Historically, Northrop Grumman's own Gross Margin % has ranged from 16.67 to 23.92 over the past decade. While the company's 10-year median is 20.40 vs. the industry median of 26.65, Northrop Grumman has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for an Aerospace & Defense company?
The median Gross Margin % among Aerospace & Defense companies is 26.65, based on 342 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Northrop Grumman's current Gross Margin % of 19.84% is 25.6% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Northrop Grumman and its competitors. For the Aerospace & Defense industry, the median Gross Margin % is 26.65 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Northrop Grumman's current Gross Margin % is 19.84%, which is near median its own 10-year median of 20.40. 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 (MEX:NOC) is currently considered Modestly Undervalued. The stock's GF Value™ is MXN10,501.99, compared to a current price of MXN9,415.00 — trading 10.4% below its estimated fair value. The current Gross Margin % is 19.84%, which is near median its 10-year median of 20.40 and 25.6% below the Aerospace & Defense industry median of 26.65. Northrop Grumman's overall GF Score™ is 77/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Northrop Grumman (MEX:NOC), the current Gross Margin % is 19.84% as of Mar. 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 (MEX:NOC) Overvalued in 2026?
Based on GuruFocus' analysis, Northrop Grumman stock appears to be undervalued.
The current stock price of MXN9,415.00 is trading 10.4% below its estimated GF Value™ of MXN10,501.99.
GuruFocus considers Northrop Grumman to be Modestly Undervalued.
Key valuation signals for MEX:NOC:
Gross Margin %: 19.84% (near median its 10-year median of 20.40)
GF Value™: MXN10,501.99 vs. price of MXN9,415.00 (10.4% below fair value)
Industry Position: 25.6% below the Aerospace & Defense median (#217 of 342)
No single metric tells the full story. See the MEX:NOC 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.
77GF Score
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