NOC – Market expectations are for Uniform ROA to decline, but management is confident about growth, Skyborg, and bipartisan support

December 29, 2020

  • Northrop Grumman Corporation (NOC:USA) currently trades below corporate averages relative to UAFRS-based (Uniform) earnings, with a 16.6x Uniform P/E. At these levels, the market has bearish expectations for the firm, but management is confident about their backlog growth, Skyborg capabilities, and bipartisan support

  • Specifically, management is confident in their Gamebreaker program and in their ability to grow backlog across all sectors. In addition, they are confident about the capabilities of the Skyborg systems to operate unaided and the continued bipartisan support for key programs like B-21, GBSD, and F-35