Tomahawk, WI 10/24/2013 (BasicsMedia) – Northrop Grumman Corporation (NYSE:NOC) products and services are in great demand across a wide variety of industries, including aerospace, electronics and information as well as services. NOC has a global base of customers it serves through its wide array of products and services. It does this while in direct competition with rivals such as Lockheed Martin, The Boeing Company, General Dynamics and Raytheon Company to mention but a few. A number of factors have contributed greatly to the third quarter 2013 financial results that NOC has just posted.

NOC Still a Global Leader in Security Matters

NOC is a global leader where it comes to security matters. Its systems are in great demand worldwide and are used by the military as well as individuals. NOC is currently trading at a level that is the highest it has ever attained. This is primarily due to the remarkably good financial results it has posted in its recent third quarter reports. I have always insisted in rating NOC stock as a buy due to various strengths it keeps demonstrating in a number of areas. It performs well in revenue growth, while its stock price does extremely well in the market on a consistent basis.

NOC enjoys a largely solid financial health that is devoid of too much drama, as you would probably expect to find with similar stocks. Its debt levels are within reasonable limits and it can pay these without much difficulty. NOC always comes through for investors in terms of good return on equity. Its valuation levels are quite attractive thus giving investors the opportunity of getting back a better return on every investment. However, if there is an area where NOC has consistently shown its weakness, it is in the area of operating cash flow.

NOC Needs to Work on Improving its Operating Cash Flow

A lot of work is needed here if NOC is to turn its operating cash flow from the negative to positive levels. Fr a long time, investors were less interested in buying NOC. I think this was because they were unable to appreciate the strengths of this company. Nevertheless, lately I have noticed that more investors are taking interest in NOC and buying it. NOC has a ready market for its products on a global basis. The huge interest from investors has helped the company’s shares to increase by close to 42.35% over the last one year, and there is no sign that this will change.

There is no doubting the fact that NOC has enjoyed growth in revenue for quite some time now. The latest quarterly financials also point to this fact. However, what I noticed is that the level of growth is way below what as been reported within the industry in general. Revenue growth in the industry averages 8.6% and NOC is yet to attain similar levels, where it has only reported a mere 0.3% in revenue growth. All the same, the revenue growth has contributed a lot to improving the company’s earnings per share. NOC is in an enviable condition in many aspects.

NOC’s return on equity has improved significantly compared to the similar period a year ago, and the company is in a generally better position than it was a year ago.

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