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Northrop GrummanMEX:NOC 87 5-Year Yield-on-Cost % is 2.79 as of Jul. 18, 2026, which is 16% above its 10-year median of 2.41. 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 172 Aerospace & Defense companies, Northrop Grumman ranks better than 76.16% on this metric.
Northrop Grumman's yield on cost for the quarter that ended in Mar. 2026 was 2.79.
The historical rank and industry rank for Northrop Grumman's 5-Year Yield-on-Cost % or its related term are showing as below:
MEX:NOC'
s 5-Year Yield-on-Cost % Range Over the Past 10 Years
Min: 1.73 Med: 2.41 Max: 3.12
Current: 2.79
During the past 13 years, Northrop Grumman's highest Yield on Cost was 3.12. The lowest was 1.73. And the median was 2.41.
MEX:NOC's 5-Year Yield-on-Cost % is ranked better than 76.16% of 172
companies
in the Aerospace & Defense industry
Industry Median: 1.04
vs MEX:NOC: 2.79
Of course the risk here is that the company may not raise its dividends as it did before. The key is to select the companies that can consistently raise its dividends. Usually companies with long history of raising dividends tend to do so.
Northrop Grumman 5-Year Yield-on-Cost % Related Terms
MEX:NOC vs HONAV, TDG, LHX: 5-Year Yield-on-Cost % Comparison
For the Aerospace & Defense subindustry, Northrop Grumman's 5-Year Yield-on-Cost %, along with its competitors' market caps and 5-Year Yield-on-Cost % 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 5-Year Yield-on-Cost % vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Northrop Grumman's 5-Year Yield-on-Cost % distribution charts can be found below:
* The bar in red indicates where Northrop Grumman's 5-Year Yield-on-Cost % falls into.
Dividend Yield % and dividend growth of a stock is an important factor for income investors. But if company A raises its dividend constantly faster than company B, company A's future dividend yield might be much higher than Company B's even if their yields are the same now and their stock prices do not change.
Yield on Cost assumes that you buy and the stock today, and hold it for 5 years. If the company raises it dividends at the same rate as it did over the past 5 years, the dividends investors receive annually in 5 years relative to the stock price today.
Northrop Grumman (MEX:NOC) has a 5-Year Yield-on-Cost % of 2.79 as of Jul. 18, 2026. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Northrop Grumman and its competitors. This is 16% above median its historical median of 2.41. Over the past decade, Northrop Grumman's 5-Year Yield-on-Cost % has ranged from 1.73 to 3.12. According to the industry distribution chart, Northrop Grumman ranks #41 out of 172 companies in the Aerospace & Defense industry, placing it in the top 23.8%.
Is Northrop Grumman's 5-Year Yield-on-Cost % too high?
Northrop Grumman's current 5-Year Yield-on-Cost % of 2.79 is 16% above median its 10-year median of 2.41. Over the past 10 years, this metric has ranged from a low of 1.73 to a high of 3.12. The Aerospace & Defense industry median 5-Year Yield-on-Cost % is 1.04. Northrop Grumman's value of 2.79 is 168.3% above this industry median. Based on the distribution chart, Northrop Grumman ranks #41 out of 172 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 5-Year Yield-on-Cost % compare to HONAV and TDG?
According to the Aerospace & Defense industry distribution chart, Northrop Grumman ranks #41 out of 172 companies for 5-Year Yield-on-Cost %. This places Northrop Grumman in the top 24% of its industry — outperforming the majority of peers. The industry median 5-Year Yield-on-Cost % is 1.04. Northrop Grumman's value of 2.79 is 168.3% above this benchmark. Historically, Northrop Grumman's own 5-Year Yield-on-Cost % has ranged from 1.73 to 3.12 over the past decade. While the company's 10-year median is 2.41 vs. the industry median of 1.04, 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 5-Year Yield-on-Cost % for an Aerospace & Defense company?
The median 5-Year Yield-on-Cost % among Aerospace & Defense companies is 1.04, based on 172 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year Yield-on-Cost % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year Yield-on-Cost % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Northrop Grumman's current 5-Year Yield-on-Cost % of 2.79 is 168.3% 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 5-Year Yield-on-Cost % mean?
A high 5-Year Yield-on-Cost % can signal that a stock is expensive relative to its fundamentals. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Northrop Grumman and its competitors. For the Aerospace & Defense industry, the median 5-Year Yield-on-Cost % is 1.04 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Northrop Grumman's current 5-Year Yield-on-Cost % is 2.79, which is 16% above median its own 10-year median of 2.41. 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 5-Year Yield-on-Cost % of 2.79. 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 5-Year Yield-on-Cost % is 2.79, which is 16% above median its 10-year median of 2.41 and 168.3% above the Aerospace & Defense industry median of 1.04. 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 5-Year Yield-on-Cost % calculated?
5-Year Yield-on-Cost % is calculated from a company's financial statements. For Northrop Grumman (MEX:NOC), the current 5-Year Yield-on-Cost % is 2.79 as of Jul. 18, 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:
5-Year Yield-on-Cost %: 2.79 (16% above median its 10-year median of 2.41)
GF Value™: MXN10,104.38 vs. price of MXN9,415.00 (6.8% below fair value)
Industry Position: 168.3% above the Aerospace & Defense median (#41 of 172)
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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