NORTHERN TRUST CORP (NTRS) Stock Fundamental Analysis
USA - NASDAQ:NTRS - US6658591044 - Common Stock
125.48 USD
-3.04 (-2.37%)
125.48 USD
0 (0%)
Overall NTRS gets a fundamental rating of 3 out of 10. We evaluated NTRS against 236 industry peers in the Capital Markets industry. NTRS may be in some trouble as it scores bad on both profitability and health. NTRS has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
NTRS had positive earnings in the past year.
In the past year NTRS had a positive cash flow from operations.
Each year in the past 5 years NTRS has been profitable.
NTRS had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
NTRS has a worse Return On Assets (0.98%) than 66.95% of its industry peers.
Looking at the Return On Equity, with a value of 13.03%, NTRS is in the better half of the industry, outperforming 68.64% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 1.01%, NTRS is doing worse than 70.34% of the companies in the same industry.
NTRS had an Average Return On Invested Capital over the past 3 years of 1.06%. This is significantly below the industry average of 7.56%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.98% | ||
| ROE | 13.03% | ||
| ROIC | 1.01% |
ROA(3y)0.93%
ROA(5y)0.86%
ROE(3y)11.89%
ROE(5y)11.57%
ROIC(3y)1.06%
ROIC(5y)0.96%
1.3 Margins
NTRS has a Profit Margin of 11.98%. This is comparable to the rest of the industry: NTRS outperforms 43.64% of its industry peers.
NTRS's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 16.30%, NTRS is doing worse than 62.71% of the companies in the same industry.
In the last couple of years the Operating Margin of NTRS has declined.
The Gross Margin of NTRS (56.19%) is better than 67.80% of its industry peers.
NTRS's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.3% | ||
| PM (TTM) | 11.98% | ||
| GM | 56.19% |
OM growth 3Y-16.14%
OM growth 5Y-8.62%
PM growth 3Y-17.54%
PM growth 5Y-9.62%
GM growth 3Y-18.4%
GM growth 5Y-9.82%
2. Health
2.1 Basic Checks
NTRS has less shares outstanding than it did 1 year ago.
NTRS has less shares outstanding than it did 5 years ago.
The debt/assets ratio for NTRS is higher compared to a year ago.
2.2 Solvency
NTRS has an Altman-Z score of -0.63. This is a bad value and indicates that NTRS is not financially healthy and even has some risk of bankruptcy.
NTRS has a Altman-Z score of -0.63. This is amonst the worse of the industry: NTRS underperforms 80.93% of its industry peers.
The Debt to FCF ratio of NTRS is 87.39, which is on the high side as it means it would take NTRS, 87.39 years of fcf income to pay off all of its debts.
NTRS has a Debt to FCF ratio (87.39) which is comparable to the rest of the industry.
A Debt/Equity ratio of 11.95 is on the high side and indicates that NTRS has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 11.95, NTRS is doing worse than 91.10% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 11.95 | ||
| Debt/FCF | 87.39 | ||
| Altman-Z | -0.63 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 0.04 indicates that NTRS may have some problems paying its short term obligations.
NTRS's Current ratio of 0.04 is on the low side compared to the rest of the industry. NTRS is outperformed by 95.76% of its industry peers.
NTRS has a Quick Ratio of 0.04. This is a bad value and indicates that NTRS is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.04, NTRS is not doing good in the industry: 95.76% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.04 | ||
| Quick Ratio | 0.04 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 28.66% over the past year.
Measured over the past 5 years, NTRS shows a small growth in Earnings Per Share. The EPS has been growing by 2.76% on average per year.
The Revenue has been growing slightly by 0.57% in the past year.
Measured over the past years, NTRS shows a quite strong growth in Revenue. The Revenue has been growing by 18.02% on average per year.
EPS 1Y (TTM)28.66%
EPS 3Y2.26%
EPS 5Y2.76%
EPS Q2Q%19.66%
Revenue 1Y (TTM)0.57%
Revenue growth 3Y33.14%
Revenue growth 5Y18.02%
Sales Q2Q%7.8%
3.2 Future
The Earnings Per Share is expected to grow by 7.66% on average over the next years.
The Revenue is expected to grow by 3.48% on average over the next years.
EPS Next Y12.62%
EPS Next 2Y10.03%
EPS Next 3Y9.72%
EPS Next 5Y7.66%
Revenue Next Year4.42%
Revenue Next 2Y4.03%
Revenue Next 3Y4.23%
Revenue Next 5Y3.48%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 15.19 indicates a correct valuation of NTRS.
Compared to the rest of the industry, the Price/Earnings ratio of NTRS is on the same level as its industry peers.
When comparing the Price/Earnings ratio of NTRS to the average of the S&P500 Index (27.57), we can say NTRS is valued slightly cheaper.
The Price/Forward Earnings ratio is 13.46, which indicates a correct valuation of NTRS.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NTRS is on the same level as its industry peers.
NTRS's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.09.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.19 | ||
| Fwd PE | 13.46 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NTRS is valued cheaply inside the industry as 88.98% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, NTRS is valued a bit cheaper than 65.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.64 | ||
| EV/EBITDA | 8.88 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.2
PEG (5Y)5.5
EPS Next 2Y10.03%
EPS Next 3Y9.72%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.57%, NTRS has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 8.46, NTRS has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.32, NTRS has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.57% |
5.2 History
The dividend of NTRS has a limited annual growth rate of 3.64%.
NTRS has been paying a dividend for at least 10 years, so it has a reliable track record.
NTRS has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)3.64%
Div Incr Years0
Div Non Decr Years25
5.3 Sustainability
37.49% of the earnings are spent on dividend by NTRS. This is a low number and sustainable payout ratio.
NTRS's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP37.49%
EPS Next 2Y10.03%
EPS Next 3Y9.72%
125.48
-3.04 (-2.37%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners88.38%
Inst Owner Change-0.02%
Ins Owners0.84%
Ins Owner Change0.19%
Market Cap24.00B
Revenue(TTM)14.00B
Net Income(TTM)1.68B
Analysts56.19
Price Target128.44 (2.36%)
Short Float %1.53%
Short Ratio2.43
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.57% |
Yearly Dividend3.21
Dividend Growth(5Y)3.64%
DP37.49%
Div Incr Years0
Div Non Decr Years25
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.33%
Min EPS beat(2)0.77%
Max EPS beat(2)1.89%
EPS beat(4)4
Avg EPS beat(4)5.82%
Min EPS beat(4)0.77%
Max EPS beat(4)10.78%
EPS beat(8)6
Avg EPS beat(8)5.68%
EPS beat(12)6
Avg EPS beat(12)-2.3%
EPS beat(16)9
Avg EPS beat(16)-1.13%
Revenue beat(2)1
Avg Revenue beat(2)-0.37%
Min Revenue beat(2)-2.11%
Max Revenue beat(2)1.37%
Revenue beat(4)1
Avg Revenue beat(4)-0.93%
Min Revenue beat(4)-2.43%
Max Revenue beat(4)1.37%
Revenue beat(8)2
Avg Revenue beat(8)-3.01%
Revenue beat(12)4
Avg Revenue beat(12)-0.59%
Revenue beat(16)5
Avg Revenue beat(16)-0.72%
PT rev (1m)1.92%
PT rev (3m)7.9%
EPS NQ rev (1m)1.94%
EPS NQ rev (3m)9.27%
EPS NY rev (1m)0.13%
EPS NY rev (3m)4.86%
Revenue NQ rev (1m)0.53%
Revenue NQ rev (3m)3.25%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)1.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.19 | ||
| Fwd PE | 13.46 | ||
| P/S | 1.71 | ||
| P/FCF | 13.64 | ||
| P/OCF | 9.24 | ||
| P/B | 1.86 | ||
| P/tB | 2.46 | ||
| EV/EBITDA | 8.88 |
EPS(TTM)8.26
EY6.58%
EPS(NY)9.32
Fwd EY7.43%
FCF(TTM)9.2
FCFY7.33%
OCF(TTM)13.57
OCFY10.82%
SpS73.21
BVpS67.28
TBVpS50.93
PEG (NY)1.2
PEG (5Y)5.5
Graham Number111.82
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.98% | ||
| ROE | 13.03% | ||
| ROCE | 9.1% | ||
| ROIC | 1.01% | ||
| ROICexc | 1.04% | ||
| ROICexgc | 1.11% | ||
| OM | 16.3% | ||
| PM (TTM) | 11.98% | ||
| GM | 56.19% | ||
| FCFM | 12.57% |
ROA(3y)0.93%
ROA(5y)0.86%
ROE(3y)11.89%
ROE(5y)11.57%
ROIC(3y)1.06%
ROIC(5y)0.96%
ROICexc(3y)1.09%
ROICexc(5y)0.98%
ROICexgc(3y)1.2%
ROICexgc(5y)1.07%
ROCE(3y)10.14%
ROCE(5y)9.75%
ROICexgc growth 3Y19.04%
ROICexgc growth 5Y4.26%
ROICexc growth 3Y17.62%
ROICexc growth 5Y3.85%
OM growth 3Y-16.14%
OM growth 5Y-8.62%
PM growth 3Y-17.54%
PM growth 5Y-9.62%
GM growth 3Y-18.4%
GM growth 5Y-9.82%
F-Score7
Asset Turnover0.08
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 11.95 | ||
| Debt/FCF | 87.39 | ||
| Debt/EBITDA | 50.67 | ||
| Cap/Depr | 111.16% | ||
| Cap/Sales | 5.97% | ||
| Interest Coverage | 0.33 | ||
| Cash Conversion | 85.55% | ||
| Profit Quality | 104.9% | ||
| Current Ratio | 0.04 | ||
| Quick Ratio | 0.04 | ||
| Altman-Z | -0.63 |
F-Score7
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)113.73%
Cap/Depr(5y)110.62%
Cap/Sales(3y)6.87%
Cap/Sales(5y)7.55%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)28.66%
EPS 3Y2.26%
EPS 5Y2.76%
EPS Q2Q%19.66%
EPS Next Y12.62%
EPS Next 2Y10.03%
EPS Next 3Y9.72%
EPS Next 5Y7.66%
Revenue 1Y (TTM)0.57%
Revenue growth 3Y33.14%
Revenue growth 5Y18.02%
Sales Q2Q%7.8%
Revenue Next Year4.42%
Revenue Next 2Y4.03%
Revenue Next 3Y4.23%
Revenue Next 5Y3.48%
EBIT growth 1Y-1.07%
EBIT growth 3Y11.65%
EBIT growth 5Y7.85%
EBIT Next Year-6.97%
EBIT Next 3Y0.82%
EBIT Next 5YN/A
FCF growth 1Y-23.02%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-13.25%
OCF growth 3YN/A
OCF growth 5YN/A