Background

8th Stock

Today’s Stock: Northrop Grumman Corporation (NOC)Today’s Stock: Northrop Grumman Corporation (NOC)

Northrop Grumman Corporation operates as an aerospace and defense technology company in the United States, Asia/Pacific, Europe, and internationally. It operates through four segments: Aeronautics Systems, Defense Systems, Mission Systems and Space Systems. The Aeronautics Systems segment designs, develops, produces, integrates, sustains, and modernizes aircraft systems.

This segment also offers unmanned autonomous aircraft systems, including high-altitude long-endurance strategic, surveillance and reconnaissance systems; and strategic long-range strike aircraft, tactical fighter and air dominance aircraft, and airborne battle management and command and control systems. Its Defense Systems segment designs, develops, integrates, and produces strategic deterrent systems, tactical weapons, and missile defense solutions; and provides sustainment, modernization, and training services for manned and unmanned aircraft and electronics systems.

Its Space Systems segment offers satellites, spacecraft systems, subsystems, sensors, and payloads; ground systems; missile defense systems and interceptors; and launch vehicles and related propulsion systems. The company was founded in 1939 and is based in Falls Church, Virginia.

My Thoughts 💭My Thoughts 💭

More military industrial complex stocks. The fact their ticker is NOC is hilarious as it reminds me of Mission Impossible. I’m not a fan of any of these war stocks but I am a space buff. The fact they have space operations is interesting to me. Let’s see how the fundamentals look.

At 1M sats per share ($70,137), and a 13.2k sat per share yearly dividend. It would take 73 years to break even.

The company trades at a PE 25 which means investors are paying $25 access $1 of earnings. An elevated stock price which appears may offer some value at this price.

Let review some key fundamentals to determine if this stock is worth spending sats on.

PE:PE:

Expected Growth:Expected Growth:

Revenues and expenses:Revenues and expenses:

Balance Sheet:Balance Sheet:

Dividend:Dividend:

Bitcoin per share:Bitcoin per share:

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Ownership breakdown :Ownership breakdown :

Leadership:Leadership:

The fundamentals of this company are very decent. The balance sheet is weak loaded with debt, the growth prospects are poor (projected grow much slower than bitcoin), good free cash flow, and basically a quasi government company thus have inelastic revenue.

The elevated valuation may deter some value investors but the stock does pay a dividend this investors can see a return soon after purchasing a share of this company.

From a Bitcoiner perspective. Paying 1M sats for one share is something no one should ever do. The price is way too high and the dividend payment is too low to make it worth while to fork over 1M sats for this war company.

Here is the performance according to Simply Wall Street

This portfolio is way overweight war stocks. Re industrialization shouldn’t mean starting world war 3. Maybe Ansel is using this as insurance/safety but I think a little bit more work could have been done especially with materials and engineering stocks instead of loading up on war stocks.