148.63 USD
-4.49 (-2.93%)
148.63 USD
0 (0%)
We assign a fundamental rating of 3 out of 10 to NTRS. NTRS was compared to 237 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 valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- In the past year NTRS was profitable.
- In the past year NTRS had a positive cash flow from operations.
- Of the past 5 years NTRS 4 years were profitable.
- The reported operating cash flow has been mixed in the past 5 years: NTRS reported negative operating cash flow in multiple years.
1.2 Ratios
- NTRS has a Return On Assets of 0.98%. This is in the lower half of the industry: NTRS underperforms 68.91% of its industry peers.
- NTRS's Return On Equity of 12.88% is fine compared to the rest of the industry. NTRS outperforms 71.85% of its industry peers.
- With a Return On Invested Capital value of 1.03%, NTRS is not doing good in the industry: 66.39% of the companies in the same industry are doing better.
- NTRS had an Average Return On Invested Capital over the past 3 years of 1.06%. This is significantly below the industry average of 7.27%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.98% | ||
| ROE | 12.88% | ||
| ROIC | 1.03% |
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
- Looking at the Profit Margin, with a value of 12.22%, NTRS is in line with its industry, outperforming 40.76% of the companies in the same industry.
- In the last couple of years the Profit Margin of NTRS has declined.
- NTRS has a Operating Margin (16.83%) which is in line with its industry peers.
- NTRS's Operating Margin has declined in the last couple of years.
- NTRS's Gross Margin of 57.99% is fine compared to the rest of the industry. NTRS outperforms 65.97% of its industry peers.
- NTRS's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.83% | ||
| PM (TTM) | 12.22% | ||
| GM | 57.99% |
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
- There is no outstanding debt for NTRS. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
- Based on the Altman-Z score of -0.61, we must say that NTRS is in the distress zone and has some risk of bankruptcy.
- NTRS has a Altman-Z score of -0.61. This is amonst the worse of the industry: NTRS underperforms 83.19% of its industry peers.
- NTRS has a debt to FCF ratio of 88.33. This is a negative value and a sign of low solvency as NTRS would need 88.33 years to pay back of all of its debts.
- The Debt to FCF ratio of NTRS (88.33) is comparable to the rest of the industry.
- NTRS has a Debt/Equity ratio of 11.69. This is a high value indicating a heavy dependency on external financing.
- With a Debt to Equity ratio value of 11.69, NTRS is not doing good in the industry: 89.50% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 11.69 | ||
| Debt/FCF | 88.33 | ||
| Altman-Z | -0.61 |
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 has a Current ratio of 0.04. This is amonst the worse of the industry: NTRS underperforms 94.12% of its industry peers.
- A Quick Ratio of 0.04 indicates that NTRS may have some problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 0.04, NTRS is doing worse than 94.12% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.04 | ||
| Quick Ratio | 0.04 |
3. Growth
3.1 Past
- NTRS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 17.01%, which is quite good.
- NTRS shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.54% yearly.
EPS 1Y (TTM)17.01%
EPS 3Y13.64%
EPS 5Y8.54%
EPS Q2Q%19.03%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%8.99%
3.2 Future
- The Earnings Per Share is expected to grow by 5.44% on average over the next years.
- NTRS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.14% yearly.
EPS Next Y7.87%
EPS Next 2Y8.16%
EPS Next 3Y5.22%
EPS Next 5Y5.44%
Revenue Next Year5.77%
Revenue Next 2Y4.99%
Revenue Next 3Y5.7%
Revenue Next 5Y3.14%
3.3 Evolution
- The EPS 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
- The Price/Earnings ratio is 16.50, which indicates a correct valuation of NTRS.
- NTRS's Price/Earnings is on the same level as the industry average.
- NTRS is valuated rather cheaply when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 15.29, NTRS is valued correctly.
- The rest of the industry has a similar Price/Forward Earnings ratio as NTRS.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. NTRS is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.5 | ||
| Fwd PE | 15.29 |
4.2 Price Multiples
- NTRS's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. NTRS is cheaper than 87.82% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of NTRS indicates a somewhat cheap valuation: NTRS is cheaper than 68.49% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.39 | ||
| EV/EBITDA | 10.24 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)2.09
PEG (5Y)1.93
EPS Next 2Y8.16%
EPS Next 3Y5.22%
5. Dividend
5.1 Amount
- NTRS has a Yearly Dividend Yield of 2.09%.
- NTRS's Dividend Yield is comparable with the industry average which is at 5.87.
- NTRS's Dividend Yield is comparable with the S&P500 average which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.09% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)3.64%
Div Incr Years0
Div Non Decr Years25
5.3 Sustainability
- NTRS pays out 37.83% of its income as dividend. This is a sustainable payout ratio.
- The dividend of NTRS is growing, but earnings are growing more, so the dividend growth is sustainable.
DP37.83%
EPS Next 2Y8.16%
EPS Next 3Y5.22%
NORTHERN TRUST CORP / NTRS FAQ
What is the ChartMill fundamental rating of NORTHERN TRUST CORP (NTRS) stock?
ChartMill assigns a fundamental rating of 3 / 10 to NTRS.
What is the valuation status for NTRS stock?
ChartMill assigns a valuation rating of 4 / 10 to NORTHERN TRUST CORP (NTRS). This can be considered as Fairly Valued.
What is the profitability of NTRS stock?
NORTHERN TRUST CORP (NTRS) has a profitability rating of 3 / 10.
What are the PE and PB ratios of NORTHERN TRUST CORP (NTRS) stock?
The Price/Earnings (PE) ratio for NORTHERN TRUST CORP (NTRS) is 16.5 and the Price/Book (PB) ratio is 2.17.
How financially healthy is NORTHERN TRUST CORP?
The financial health rating of NORTHERN TRUST CORP (NTRS) is 1 / 10.