Northrop Grumman ended the year with an all-around beat and had a strong performance in 2022 overall. Its bookings were fueled by a rising worldwide demand environment and the management’s effectiveness in seizing market possibilities. Top-line growth quickened throughout the year. Besides, their rocket boosters helped NASA’s base launch system during the Artemis 1 flight. In support of Amazon’s Project Kuiper, they were also given a $2 billion contract for GEM 63 solid rocket boosters. Together, SLS and Kuiper confirm the significant investments they have made in solid rocket motor capabilities. Besides, they provided customers with cutting-edge architectures with in-built sensors like IBCS to give them unmatched situational awareness. Northrop also focused on innovating and leveraging its position in advanced technology, including creating a new F-35 radar. The management has had the consistent support for national security in the U.S. as the administration and Congress strongly support their capabilities and portfolio. Another good news is that Northrop is also maintaining a laser-like focus on performance and promoting cost savings across the board to expand margins. We give Northrop a ‘Hold’ rating with a revised target price.
Our Report Structure:
⦁ Company Overview
⦁ Investment Thesis
⦁ Key Drivers
⦁ Historical Quarterly Statement Analysis – Income Statement & Cash Flows
⦁ Historical Quarterly Balance Sheet Analysis
⦁ Historical Annual Financial Statement Analysis
⦁ Analysis Of Key Financial Ratios
⦁ Financial Forecasts For 3 Years
⦁ Forecasting The Capital Structure & Net Debt
⦁ Discounted Cash Flow Valuation
⦁ Trading Multiples
⦁ Key Risks
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