Northrop GrummanMIL:1NOC -0.34%58 Net Margin % is 8.86% as of Mar. 2026, which is 12% below its 10-year median of 10.07. GuruFocus rates MIL:1NOC with a GF Score™ of 58/100 and a GF Value™ of €497.07 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 347 Aerospace & Defense companies, Northrop Grumman ranks better than 74.06% on this metric.
The historical rank and industry rank for Northrop Grumman's Net Margin % or its related term are showing as below:
MIL:1NOC'
s Net Margin % Range Over the Past 10 Years
Min: 5.23 Med: 10.07 Max: 19.64
Current: 10.8
MIL:1NOC's Net Margin % is ranked better than 74.06% of 347
companies
in the Aerospace & Defense industry
Industry Median: 4.9
vs MIL:1NOC: 10.80
Northrop Grumman (MIL:1NOC) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
Northrop Grumman Net Margin % Related Terms
Northrop Grumman Net Margin % Historical Data
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The historical data trend for Northrop Grumman's Net 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.
MIL:1NOC vs RKLB, TDG, GD: Net Margin % Comparison
For the Aerospace & Defense subindustry, Northrop Grumman's Net Margin %, along with its competitors' market caps and Net 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 Net Margin % vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Northrop Grumman's Net Margin % distribution charts can be found below:
* The bar in red indicates where Northrop Grumman's Net 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.
Northrop Grumman (MIL:1NOC) has a Net Margin % of 8.86% as of Mar. 2026. Net margin is the ratio of total net income to net sales. View historical data on Northrop Grumman and its competitors. This is 12% below median its historical median of 10.07. Over the past decade, Northrop Grumman's Net Margin % has ranged from 5.23 to 19.64. According to the industry distribution chart, Northrop Grumman ranks #90 out of 347 companies in the Aerospace & Defense industry, placing it in the top 25.9%.
Is Northrop Grumman's Net Margin % too high?
Northrop Grumman's current Net Margin % of 8.86% is 12% below median its 10-year median of 10.07. Over the past 10 years, this metric has ranged from a low of 5.23 to a high of 19.64. The Aerospace & Defense industry median Net Margin % is 4.90. Northrop Grumman's value of 8.86% is 80.8% above this industry median. Based on the distribution chart, Northrop Grumman ranks #90 out of 347 companies in the Aerospace & Defense industry, which is above the industry midpoint. Overall, Northrop Grumman has a GF Score™ of 58/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Northrop Grumman's Net Margin % compare to RKLB and TDG?
According to the Aerospace & Defense industry distribution chart, Northrop Grumman ranks #90 out of 347 companies for Net Margin %. This puts Northrop Grumman in the upper half of its industry. The industry median Net Margin % is 4.90. Northrop Grumman's value of 8.86% is 80.8% above this benchmark. Historically, Northrop Grumman's own Net Margin % has ranged from 5.23 to 19.64 over the past decade. While the company's 10-year median is 10.07 vs. the industry median of 4.90, Northrop Grumman has consistently been above 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 Net Margin % for an Aerospace & Defense company?
The median Net Margin % among Aerospace & Defense companies is 4.90, based on 347 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Northrop Grumman's current Net Margin % of 8.86% is 80.8% above 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 Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on Northrop Grumman and its competitors. For the Aerospace & Defense industry, the median Net Margin % is 4.90 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Northrop Grumman's current Net Margin % is 8.86%, which is 12% below median its own 10-year median of 10.07. 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 (MIL:1NOC) is currently considered Modestly Undervalued. The stock's GF Value™ is €497.07, compared to a current price of €445.00 — trading 10.5% below its estimated fair value. The current Net Margin % is 8.86%, which is 12% below median its 10-year median of 10.07 and 80.8% above the Aerospace & Defense industry median of 4.90. Northrop Grumman's overall GF Score™ is 58/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For Northrop Grumman (MIL:1NOC), the current Net Margin % is 8.86% 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 (MIL:1NOC) Overvalued in 2026?
Based on GuruFocus' analysis, Northrop Grumman stock appears to be undervalued.
The current stock price of €445.00 is trading 10.5% below its estimated GF Value™ of €497.07.
GuruFocus considers Northrop Grumman to be Modestly Undervalued.
Key valuation signals for MIL:1NOC:
Net Margin %: 8.86% (12% below median its 10-year median of 10.07)
GF Value™: €497.07 vs. price of €445.00 (10.5% below fair value)
Industry Position: 80.8% above the Aerospace & Defense median (#90 of 347)
No single metric tells the full story. See the MIL:1NOC 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.
58GF Score
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