| Valuation method | Value, € | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 334.10 | -42 |
| Intrinsic value (DCF) | 200.26 | -65 |
| Graham-Dodd Method | 5.10 | -99 |
| Graham Formula | 303.30 | -47 |
Northrop Grumman Corporation (NTH.DE) is a global leader in aerospace and defense, specializing in advanced technology systems for military, government, and commercial applications. Headquartered in Falls Church, Virginia, the company operates through four key segments: Aeronautics Systems, Defense Systems, Mission Systems, and Space Systems. Northrop Grumman is renowned for its cutting-edge unmanned aircraft, strategic missile systems, cyber solutions, and space technologies, including satellites and missile defense systems. With a strong focus on innovation, the company plays a pivotal role in national security and defense modernization programs. Its diversified portfolio ensures resilience in the highly regulated aerospace and defense sector, making it a critical player in global defense supply chains. Northrop Grumman’s long-standing government contracts, R&D investments, and technological expertise position it as a key contractor for the U.S. Department of Defense and allied nations.
Northrop Grumman presents a stable investment opportunity due to its strong government-backed revenue streams, consistent dividend payouts, and leadership in next-generation defense technologies. The company benefits from long-term defense contracts, particularly in hypersonic weapons, space systems, and unmanned aircraft, ensuring steady cash flows. However, risks include dependency on U.S. defense budgets, geopolitical uncertainties, and high capital expenditures in R&D. With a low beta (0.147), the stock exhibits lower volatility compared to broader markets, appealing to conservative investors. The company’s solid balance sheet, with €4.35 billion in cash and €16.49 billion in debt, supports continued growth but requires monitoring of leverage. Trading on Deutsche Börse (XETRA), Northrop Grumman offers European investors exposure to U.S. defense sector stability.
Northrop Grumman holds a competitive edge through its technological leadership in autonomous systems, space exploration, and missile defense. Its Aeronautics segment dominates high-altitude unmanned systems (e.g., RQ-4 Global Hawk), while its Space Systems division is critical to U.S. satellite and missile defense infrastructure. The company’s vertical integration—spanning R&D, manufacturing, and sustainment—enhances cost efficiency and contract bidding strength. Unlike pure-play defense contractors, Northrop’s diversified capabilities in cyber, space, and AI-driven systems provide cross-segment synergies. However, competition is intense, with rivals like Lockheed Martin and Boeing boasting larger scale in fighter jets and commercial aerospace. Northrop’s focus on niche high-tech segments mitigates direct competition but exposes it to budget shifts in next-gen programs. Its €59.9 billion market cap reflects investor confidence in its innovation pipeline, though reliance on U.S. government spending remains a vulnerability compared to more internationally diversified peers.