Northrop GrummanLTS:0K92 -1.45%87 Operating Margin % is 10.01% as of Mar. 2026, which is 8% below its 10-year median of 10.85. GuruFocus rates LTS:0K92 with a GF Score™ of 87/100 and a GF Value™ of $562.28 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 347 Aerospace & Defense companies, Northrop Grumman ranks better than 65.71% on this metric.
Northrop Grumman Corp operating margin has been in a 5-year decline. The average rate of decline per year is -2%.
The historical rank and industry rank for Northrop Grumman's Operating Margin % or its related term are showing as below:
LTS:0K92'
s Operating Margin % Range Over the Past 10 Years
Min: 6.46 Med: 10.85 Max: 13.26
Current: 11.08
LTS:0K92's Operating Margin % is ranked better than 65.71% of 347
companies
in the Aerospace & Defense industry
Industry Median: 7.75
vs LTS:0K92: 11.08
Northrop Grumman's 5-Year Average Operating Margin % Growth Rate was -2.00% per year.
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Northrop Grumman Operating Margin % Related Terms
Northrop Grumman Operating Margin % Historical Data
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The historical data trend for Northrop Grumman's Operating 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.
LTS:0K92 vs RKLB, TDG, GD: Operating Margin % Comparison
For the Aerospace & Defense subindustry, Northrop Grumman's Operating Margin %, along with its competitors' market caps and Operating 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 Operating Margin % vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Northrop Grumman's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Northrop Grumman's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Northrop Grumman's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as
* 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 (LTS:0K92) has a Operating Margin % of 10.01% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Northrop Grumman and its competitors. This is near median its historical median of 10.85. Over the past decade, Northrop Grumman's Operating Margin % has ranged from 6.46 to 13.26. According to the industry distribution chart, Northrop Grumman ranks #119 out of 347 companies in the Aerospace & Defense industry, placing it in the top 34.3%.
Is Northrop Grumman's Operating Margin % too high?
Northrop Grumman's current Operating Margin % of 10.01% is near median its 10-year median of 10.85. Over the past 10 years, this metric has ranged from a low of 6.46 to a high of 13.26. The Aerospace & Defense industry median Operating Margin % is 7.75. Northrop Grumman's value of 10.01% is 29.2% above this industry median. Based on the distribution chart, Northrop Grumman ranks #119 out of 347 companies in the Aerospace & Defense industry, which is above the industry midpoint. Overall, Northrop Grumman has a GF Score™ of 87/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Northrop Grumman's Operating Margin % compare to RKLB and TDG?
According to the Aerospace & Defense industry distribution chart, Northrop Grumman ranks #119 out of 347 companies for Operating Margin %. This puts Northrop Grumman in the upper half of its industry. The industry median Operating Margin % is 7.75. Northrop Grumman's value of 10.01% is 29.2% above this benchmark. Historically, Northrop Grumman's own Operating Margin % has ranged from 6.46 to 13.26 over the past decade. While the company's 10-year median is 10.85 vs. the industry median of 7.75, 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 Operating Margin % for an Aerospace & Defense company?
The median Operating Margin % among Aerospace & Defense companies is 7.75, based on 347 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Northrop Grumman's current Operating Margin % of 10.01% is 29.2% 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 Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Northrop Grumman and its competitors. For the Aerospace & Defense industry, the median Operating Margin % is 7.75 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Northrop Grumman's current Operating Margin % is 10.01%, which is near median its own 10-year median of 10.85. 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 (LTS:0K92) is currently considered Modestly Undervalued. The stock's GF Value™ is $562.28, compared to a current price of $507.16 — trading 9.8% below its estimated fair value. The current Operating Margin % is 10.01%, which is near median its 10-year median of 10.85 and 29.2% above the Aerospace & Defense industry median of 7.75. Northrop Grumman's overall GF Score™ is 87/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Northrop Grumman (LTS:0K92), the current Operating Margin % is 10.01% 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 (LTS:0K92) Overvalued in 2026?
Based on GuruFocus' analysis, Northrop Grumman stock appears to be undervalued.
The current stock price of $507.16 is trading 9.8% below its estimated GF Value™ of $562.28.
GuruFocus considers Northrop Grumman to be Modestly Undervalued.
Key valuation signals for LTS:0K92:
Operating Margin %: 10.01% (near median its 10-year median of 10.85)
GF Value™: $562.28 vs. price of $507.16 (9.8% below fair value)
Industry Position: 29.2% above the Aerospace & Defense median (#119 of 347)
No single metric tells the full story. See the LTS:0K92 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.
87GF Score
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