Framework Journal · one stock, one dated entry

Recorded 2026-07-24 · Permanent

Northrop Grumman NOC

Outside both standards

An entry written while the outcome is still unknown. It will be scored by what the market does next, and it will never be edited to look cleverer than it was.

In plain words · Northrop Grumman Corporation operates as an aerospace and defense technology company in the United States, Asia/Pacific, Europe, and internationally.

The label
Distribution

read at $542.24

Northrop Grumman holds its Distribution at $542.24.

PHINPOOPSC
  • PHPhase · the trend structure carries the Distribution label
  • INInsiders · no filings inside 60 days, left as found
  • POPositioning · no disclosures inside 60 days, left as found
  • OPOptions · no verdict drawn today, left as found
  • SCScreen · does not pass the values gate
  • edge confirmed
  • edge broken
  • edge forming

Each arm is one independent read. Conviction is not a single call, it is how many edges converge.

The investor read · the season, not the day

As held on the ledger · 2026-07-24
PhaseDistribution · caution
Quantitative stateThe statistical read favours the sellers, held for 23 days
Price$542.24
Valuation17.22 trailing · 17.86 forward price to earnings
Values screenFAIL · score 10.0
Beta-0.10

The opportunity · what the numbers say it is worth

Our framework reads AVOID — it trades above our $490.65 fair value estimate, moderate competitive moat, 5.10% revenue growth.

Read at
$542.24
17.22 P/E · 17.86 fwd
Our fair value
$490.65
10% premium
Analyst target (avg)
$630.00
+16% to current
Target low $533.00Analyst target rangeTarget high $815.00
▲ current $542.24 · | average target

Price history & projections · where it has been, where the models see it going

$853$580$308TODAY5y agoPROJECTIONAnalyst high$815.00 +50%Analyst avg$630.00 +16%Our fair value$490.65 -10%Conservative$479.70 -12%

The valuation journey · where the price sits against fair value and the Street

Current
$542.24
you are here
Conservative
$479.70
-12%
Analyst avg
$630.00
+16%
Our fair value
$490.65
-10%
Analyst high
$815.00
+50%

Green marks levels above today's price, red below; the shaded band is the gap between the price and our fair value.

Reading the gap · Our more conservative model reads it as fully-to-richly valued here, while the Street is more bullish — a quality-at-a-fair-price name rather than a deep-value one.

Revenue growth5.10%
Profit margin10.48%
Debt to equity95.35
Analyst consensusBuy · 21 covering

Fair value and rating are our own model estimates; target range reflects third-party analyst estimates. Analysis, not advice.

The values screen, explained · five checks, plain English

This company is excluded by both standards. There are two widely recognised ways to check whether a company is suitable for a Muslim investor. It fails on both:

The common standard · AAOIFI
Used by most halal investing apps
✗ DOES NOT PASS
Our stricter standard · asset-based
The one Titan applies
✗ DOES NOT PASS

Why it fails. The problem is its business activity screen. Because both standards agree on this, it is a clear exclusion, not a borderline case.

What these two standards are, and how they differ →

  • Business activity Business activity: Aerospace & Defense Fail

Every security is read against two recognised standards: our stricter asset-based screen (ratios measured against total assets) and the more widely used market-value standard (measured against market capitalisation). Where they agree we say so plainly; where they part ways — almost always on the debt check — we show both readings and mark it, because that disagreement is the finding, not a fault. We report the score; you and your scholar make the call.

The business, in plain words · what the numbers mean

Defence Giant Fails Our Ethical Screen

Northrop Grumman turns government cheques into fighters, missiles and satellites that keep the defence budgets flowing. We are staying away, for two reasons that have nothing to do with whether the business is good. First, the shares trade above our fair value with a negative margin of safety. Second, it fails our ethical screen on business activity.

Revenue edges up just 4 percent while margins sit at 11 percent and ROE reaches 29 percent. The moderate moat and forward multiple of 17.3 times look steady, yet the ethical flag overrides any surface appeal. Twenty-one analysts still rate it a buy with a much higher median target, but that is not our call.

Risk sits with prolonged government spending cycles and shifting political priorities that can swing results fast. The ethical screen exists precisely to keep us out of sectors we choose not to own. Analysis, not advice.

The fundamentals · plain-English read
Forward P/E17.9x
expensive even after accounting for its growth
Trailing P/E17.2x
reasonably valued
Revenue growth5.1%
slow but positive growth
Profit margin10.5%
thin but positive margins
Return on equity27.0%
an exceptional return on shareholder capital
Debt to equity0.95
moderate, manageable leverage
Current ratio1.17
adequate liquidity, worth monitoring
Beta-0.10
barely tracks the market's swings
Market cap$77.0B
Employees95,000

The risks · The main risks here are ordinary market swings and the chance our fair-value read proves too optimistic.

Plain-English interpretation of our own screen data. Analysis, not advice.

Latest news · what the market is reading on NOC

Headlines from third-party outlets, linked for reference — not our reporting, not advice.

Related securities · others in NOC's space worth a look

Screened names in the same industry · explore each on its own page.

Where & how to trade · wherever in the world you are

NOC trades on a US exchange. As a US-listed security it is accessible through almost any international broker offering US markets. New to this, or investing from outside the US? Our guide to accessing global markets covers brokers, currencies and the practical steps.

The trader read · the latest dated commentary

The framework reads markdown. Price is trending lower. Sellers are in control and the prior trend has reversed. Price has moved down 0.0% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows good risk-adjusted returns. Our composite framework grades it C, carrying a low risk profile. Technically it is holding around 10% above its long-term trend line with momentum reading neutral. Over the past year the shares are up 13%. Our forward projection puts the odds of a 10% gain over the next month near 17%. The street (21 analysts) rates it buy, with a mean price target of $705. Insiders have been net sellers over the past quarter. It reported earnings in this window, a natural checkpoint for the thesis. Entered 2026-07-21 · Markdown

The dated journal · newest first, never edited

2026-07-21 Markdown $521.57 +0.0% Entry 8

The framework reads markdown. Price is trending lower. Sellers are in control and the prior trend has reversed. Price has moved down 0.0% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows good risk-adjusted returns. Our composite framework grades it C, carrying a low risk profile. Technically it is holding around 10% above its long-term trend line with momentum reading neutral. Over the past year the shares are up 13%. Our forward projection puts the odds of a 10% gain over the next month near 17%. The street (21 analysts) rates it buy, with a mean price target of $705. Insiders have been net sellers over the past quarter. It reported earnings in this window, a natural checkpoint for the thesis.

2026-07-20 Markdown $521.57 +0.0% Entry 7

The framework reads markdown. Price is trending lower. Sellers are in control and the prior trend has reversed. Price has moved down 0.0% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows good risk-adjusted returns. Our composite framework grades it C, carrying a low risk profile. Technically it is holding around 10% above its long-term trend line with momentum reading neutral. Over the past year the shares are up 13%. Our forward projection puts the odds of a 10% gain over the next month near 17%. The street (21 analysts) rates it buy, with a mean price target of $705. Insiders have been net sellers over the past quarter. It reported earnings in this window, a natural checkpoint for the thesis.

2026-07-19 Markdown $521.57 -4.2% Entry 6

The framework reads markdown. Price is trending lower. Sellers are in control and the prior trend has reversed. Price has moved down 4.2% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows good risk-adjusted returns. Our composite framework grades it C, carrying a low risk profile. Technically it is holding around 10% above its long-term trend line with momentum reading neutral. Over the past year the shares are up 13%. Our forward projection puts the odds of a 10% gain over the next month near 17%. The street (21 analysts) rates it buy, with a mean price target of $705. Insiders have been net sellers over the past quarter. It reported earnings in this window, a natural checkpoint for the thesis.

2026-07-18 Markdown $544.40 +0.0% Entry 5

The framework reads markdown. Price is trending lower. Sellers are in control and the prior trend has reversed. Price has moved down 0.0% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows good risk-adjusted returns. Our composite framework grades it C, carrying a low risk profile. Technically it is holding around 10% above its long-term trend line with momentum reading neutral. Over the past year the shares are up 13%. Our forward projection puts the odds of a 10% gain over the next month near 17%. The street (21 analysts) rates it buy, with a mean price target of $705. Insiders have been net sellers over the past quarter. It reported earnings in this window, a natural checkpoint for the thesis.

2026-07-17 Markdown $544.40 +0.0% Entry 4

The framework reads markdown. Price is trending lower. Sellers are in control and the prior trend has reversed. Price has moved down 0.0% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows good risk-adjusted returns. Our composite framework grades it C, carrying a low risk profile. Technically it is holding around 10% above its long-term trend line with momentum reading neutral. Over the past year the shares are up 13%. Our forward projection puts the odds of a 10% gain over the next month near 17%. The street (21 analysts) rates it buy, with a mean price target of $705. Insiders have been net sellers over the past quarter. It reported earnings in this window, a natural checkpoint for the thesis.

2026-07-16 Markdown $544.40 +0.0% Entry 3

The framework reads markdown. Price is trending lower. Sellers are in control and the prior trend has reversed. Price has moved down 0.0% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows good risk-adjusted returns. Our composite framework grades it C, carrying a low risk profile. Technically it is holding around 10% above its long-term trend line with momentum reading neutral. Over the past year the shares are up 13%. Our forward projection puts the odds of a 10% gain over the next month near 17%. The street (21 analysts) rates it buy, with a mean price target of $705. Insiders have been net sellers over the past quarter. It reported earnings in this window, a natural checkpoint for the thesis.

2026-07-03 Markdown $544.40 +0.0% Entry 2

The framework reads markdown. Price is trending lower. Sellers are in control and the prior trend has reversed. Price has moved down 0.0% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows good risk-adjusted returns.

2026-07-02 Markdown $544.40 Entry 1

The framework reads markdown. Price is trending lower. Sellers are in control and the prior trend has reversed. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows good risk-adjusted returns.

Each entry above was written on its date, before the outcome. A journal you can prune is not a journal.

The insider ledger · Form 4 filings, as filed

Most recent filings · NOC
DateInsiderTitleTypeSharesValue
2026-05-04 Welsh Mark A III Dir Sale 95 $54,310
2026-03-02 Simpson Kathryn G Corp VP, GC Sale 873 $650,385
2026-02-27 Roeder Roshan S CVP, Pres Mission Systems Sale 1,754 $1,262,880
2026-02-19 Simpson Kathryn G Corp VP, GC Sale 194 $141,158
2026-02-19 Roeder Roshan S CVP, Pres Mission Systems Sale 512 $372,541
2026-02-19 Hardesty Michael A Corp VP, Controller, CAO Sale 147 $107,748
2026-02-18 Davies Benjamin R. CVP, Pres Defense Systems Sale 2,189 $1,575,255
2026-02-17 Hardesty Michael A Corp VP, Controller, CAO Sale 716 $501,609
2026-02-17 Simpson Kathryn G Corp VP, GC Sale 779 $547,294
2026-02-17 Roeder Roshan S CVP, Pres Mission Systems Sale 318 $223,414

Public filings, recorded as found. The full tape lives at Insider Intelligence.

The political ledger · congressional disclosures

Disclosures naming NOC
DatePoliticianPartyTypeAmount
2026-05-08 Bill Keating Democrat Purchase 1K–15K

What holding actually paid · price plus dividends

If $1,000 had been placed · historical, not a promise
PeriodPrice thenPrice returnDivs per share$1,000 becameTotal return
1 month $545.81 -0.5% $2.47 $1,000 0.0%
2 months $670.78 -19.0% $2.47 $813 -18.7%
3 months $733.07 -25.9% $2.47 $744 -25.6%
6 months $555.81 -2.3% $4.78 $986 -1.4%
1 year $481.25 +12.9% $9.40 $1,148 +14.8%
2 years $421.64 +28.8% $17.89 $1,331 +33.1%
3 years $432.19 +25.7% $25.56 $1,316 +31.6%
5 years $345.91 +57.0% $39.06 $1,683 +68.3%

Historical returns from market close data. Past performance does not guarantee future results.

This entry now belongs to the ledger. Whatever NOC does next, these words stay.

Northrop Grumman · NOC · Distribution · $542.24
Recorded 2026-07-24 · before the outcome · scored mechanically

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