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Northrop GrummanMEX:NOC 87 Return-on-Tangible-Asset is 10.53% as of Mar. 2026, which is 29% below its 10-year median of 14.91. GuruFocus rates MEX:NOC with a GF Score™ of 87/100 and a GF Value™ of MXN10,104.38. The stock has 2 warning signs investors should review. Among 359 Aerospace & Defense companies, Northrop Grumman ranks better than 89.97% on this metric.
Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. Northrop Grumman's annualizedNet Income for the quarter that ended in Mar. 2026 was MXN63,114 Mil. Northrop Grumman's average total tangible assets for the quarter that ended in Mar. 2026 was MXN599,201 Mil. Therefore, Northrop Grumman's annualized Return-on-Tangible-Asset for the quarter that ended in Mar. 2026 was 10.53%.
The historical rank and industry rank for Northrop Grumman's Return-on-Tangible-Asset or its related term are showing as below:
MEX:NOC'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 7.53 Med: 14.91 Max: 27.66
Current: 14.24
During the past 13 years, Northrop Grumman's highest Return-on-Tangible-Asset was 27.66%. The lowest was 7.53%. And the median was 14.91%.
MEX:NOC's Return-on-Tangible-Asset is ranked better than 89.97% of 359
companies
in the Aerospace & Defense industry
Industry Median: 3.05
vs MEX:NOC: 14.24
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
Northrop Grumman Return-on-Tangible-Asset Related Terms
Northrop Grumman Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for Northrop Grumman's Return-on-Tangible-Asset 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 HONAV, TDG, LHX: Return-on-Tangible-Asset Comparison
For the Aerospace & Defense subindustry, Northrop Grumman's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset 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 Return-on-Tangible-Asset vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Northrop Grumman's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Northrop Grumman's Return-on-Tangible-Asset 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.
In the calculation of annual Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Mar. 2026) net income data.
What does a Return-on-Tangible-Asset of 10.53% mean?
Northrop Grumman (MEX:NOC) has a Return-on-Tangible-Asset of 10.53% as of Mar. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Northrop Grumman and its competitors. This is 29% below median its historical median of 14.91. Over the past decade, Northrop Grumman's Return-on-Tangible-Asset has ranged from 7.53 to 27.66. According to the industry distribution chart, Northrop Grumman ranks #36 out of 359 companies in the Aerospace & Defense industry, placing it in the top 10%.
Is Northrop Grumman's Return-on-Tangible-Asset too high?
Northrop Grumman's current Return-on-Tangible-Asset of 10.53% is 29% below median its 10-year median of 14.91. Over the past 10 years, this metric has ranged from a low of 7.53 to a high of 27.66. The Aerospace & Defense industry median Return-on-Tangible-Asset is 3.05. Northrop Grumman's value of 10.53% is 245.2% above this industry median. Based on the distribution chart, Northrop Grumman ranks #36 out of 359 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 87/100, reflecting its overall financial health beyond just this single metric.
How does Northrop Grumman's Return-on-Tangible-Asset compare to HONAV and TDG?
According to the Aerospace & Defense industry distribution chart, Northrop Grumman ranks #36 out of 359 companies for Return-on-Tangible-Asset. This places Northrop Grumman in the top 10% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Asset is 3.05. Northrop Grumman's value of 10.53% is 245.2% above this benchmark. Historically, Northrop Grumman's own Return-on-Tangible-Asset has ranged from 7.53 to 27.66 over the past decade. While the company's 10-year median is 14.91 vs. the industry median of 3.05, 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 Return-on-Tangible-Asset for an Aerospace & Defense company?
The median Return-on-Tangible-Asset among Aerospace & Defense companies is 3.05, based on 359 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Northrop Grumman's current Return-on-Tangible-Asset of 10.53% is 245.2% 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 Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Northrop Grumman and its competitors. For the Aerospace & Defense industry, the median Return-on-Tangible-Asset is 3.05 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Northrop Grumman's current Return-on-Tangible-Asset is 10.53%, which is 29% below median its own 10-year median of 14.91. 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?
Northrop Grumman (MEX:NOC) has a current Return-on-Tangible-Asset of 10.53%. The stock's GF Value™ is MXN10,104.38, compared to a current price of MXN9,415.00 — trading 6.8% below its estimated fair value. The current Return-on-Tangible-Asset is 10.53%, which is 29% below median its 10-year median of 14.91 and 245.2% above the Aerospace & Defense industry median of 3.05. 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 Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For Northrop Grumman (MEX:NOC), the current Return-on-Tangible-Asset is 10.53% 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 6.8% below its estimated GF Value™ of MXN10,104.38.
Key valuation signals for MEX:NOC:
Return-on-Tangible-Asset: 10.53% (29% below median its 10-year median of 14.91)
GF Value™: MXN10,104.38 vs. price of MXN9,415.00 (6.8% below fair value)
Industry Position: 245.2% above the Aerospace & Defense median (#36 of 359)
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.
87GF Score
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