Northrop Grumman Profit Margin vs. Current Valuation
| NOCG34 Stock | BRL 572.47 6.95 1.20% |
For Northrop Grumman profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Northrop Grumman to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Northrop Grumman utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Northrop Grumman's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Northrop Grumman over time as well as its relative position and ranking within its peers.
Northrop |
Northrop Grumman Current Valuation vs. Profit Margin Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Northrop Grumman's current stock value. Our valuation model uses many indicators to compare Northrop Grumman value to that of its competitors to determine the firm's financial worth. Northrop Grumman is considered to be number one stock in profit margin category among its peers. It also is rated top company in current valuation category among its peers reporting about 3,770,360,717,885 of Current Valuation per Profit Margin. Comparative valuation analysis is a catch-all model that can be used if you cannot value Northrop Grumman by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Northrop Grumman's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued.Northrop Current Valuation vs. Profit Margin
Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.
Northrop Grumman |
| = | 0.13 % |
In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.
Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
Northrop Grumman |
| = | 504.47 B |
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
Northrop Current Valuation vs Competition
Northrop Grumman is rated top company in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Aerospace & Defense industry is now estimated at about 1.65 Trillion. Northrop Grumman totals roughly 504.47 Billion in current valuation claiming about 31% of stocks in Aerospace & Defense industry.
Northrop Grumman Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Northrop Grumman, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Northrop Grumman will eventually generate negative long term returns. The profitability progress is the general direction of Northrop Grumman's change in net profit over the period of time. It can combine multiple indicators of Northrop Grumman, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Northrop Grumman Corporation operates as an aerospace and defense company worldwide. Northrop Grumman Corporation was founded in 19 and is based in Falls Church, Virginia. NORTHROP GRUDRN operates under Aerospace Defense classification in Brazil and is traded on Sao Paolo Stock Exchange. It employs 97000 people.
Northrop Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Northrop Grumman. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Northrop Grumman position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Northrop Grumman's important profitability drivers and their relationship over time.
Use Northrop Grumman in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Northrop Grumman position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Northrop Grumman will appreciate offsetting losses from the drop in the long position's value.Northrop Grumman Pair Trading
Northrop Grumman Pair Trading Analysis
The ability to find closely correlated positions to Northrop Grumman could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Northrop Grumman when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Northrop Grumman - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Northrop Grumman to buy it.
The correlation of Northrop Grumman is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Northrop Grumman moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Northrop Grumman moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Northrop Grumman can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Northrop Grumman position
In addition to having Northrop Grumman in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Entertainment Thematic Idea Now
Entertainment
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Entertainment theme has 61 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Entertainment Theme or any other thematic opportunities.
| View All Next | Launch |
Additional Information and Resources on Investing in Northrop Stock
When determining whether Northrop Grumman offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Northrop Grumman's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Northrop Grumman Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Northrop Grumman Stock:Check out Correlation Analysis. For information on how to trade Northrop Stock refer to our How to Trade Northrop Stock guide.You can also try the Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
To fully project Northrop Grumman's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Northrop Grumman at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Northrop Grumman's income statement, its balance sheet, and the statement of cash flows.