ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Northrop Grumman's annualized ROCE % for the quarter that ended in Mar. 2026 was 12.78%.
Northrop Grumman (MEX:NOC) ROCE % Explanation
ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.
Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.
Northrop Grumman ROCE % Related Terms
Northrop Grumman ROCE % Historical Data
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The historical data trend for Northrop Grumman's ROCE % 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.
(1) Note:
The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.
* 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 (MEX:NOC) has a ROCE % of 12.78% as of Mar. 2026.
Is Northrop Grumman's ROCE % too high?
Northrop Grumman's current ROCE % is 12.78%. The Aerospace & Defense industry median ROCE % is 6.29. Northrop Grumman's value of 12.78% is 103.2% above this industry median. 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 ROCE % compare to RKLB and TDG?
Northrop Grumman's ROCE % of 12.78% can be compared against companies in the Aerospace & Defense industry. The industry median ROCE % is 6.29. Northrop Grumman's value of 12.78% is 103.2% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROCE % for an Aerospace & Defense company?
The median ROCE % among Aerospace & Defense companies is 6.29, based on 350 companies in the industry. Companies in the top quartile (top 25%) have a ROCE % significantly above this median, while those in the bottom quartile fall well below. However, ROCE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Northrop Grumman's current ROCE % of 12.78% is 103.2% 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 ROCE % mean?
A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the Aerospace & Defense industry, the median ROCE % is 6.29 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Northrop Grumman's current ROCE % is 12.78%. 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 MXN10,438.28, compared to a current price of MXN9,415.00 — trading 9.8% below its estimated fair value. The current ROCE % is 12.78% and 103.2% above the Aerospace & Defense industry median of 6.29. 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 ROCE % calculated?
ROCE % is calculated from a company's financial statements. For Northrop Grumman (MEX:NOC), the current ROCE % is 12.78% 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 9.8% below its estimated GF Value™ of MXN10,438.28.
GuruFocus considers Northrop Grumman to be Modestly Undervalued.
Key valuation signals for MEX:NOC:
ROCE %: 12.78%
GF Value™: MXN10,438.28 vs. price of MXN9,415.00 (9.8% below fair value)
Industry Position: 103.2% above the Aerospace & Defense median
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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