NORTHERN TRUST CORP (NTRS)
US6658591044 - Common Stock
Overall NTRS gets a fundamental rating of 4 out of 10. We evaluated NTRS against 218 industry peers in the Capital Markets industry. NTRS has a bad profitability rating. Also its financial health evaluation is rather negative. NTRS has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
NTRS had positive earnings in the past year.
NTRS had a positive operating cash flow in the past year.
NTRS had positive earnings in each of the past 5 years.
Each year in the past 5 years NTRS had a positive operating cash flow.
1.2 Ratios
NTRS has a Return On Assets of 1.05%. This is in the lower half of the industry: NTRS underperforms 68.37% of its industry peers.
Looking at the Return On Equity, with a value of 12.80%, NTRS is in the better half of the industry, outperforming 67.91% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 1.20%, NTRS is doing worse than 75.35% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for NTRS is significantly below the industry average of 6.96%.
The 3 year average ROIC (0.88%) for NTRS is below the current ROIC(1.20%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.05% | ||
| ROE | 12.8% | ||
| ROIC | 1.2% |
ROA(3y)0.78%
ROA(5y)0.81%
ROE(3y)10.88%
ROE(5y)11.06%
ROIC(3y)0.88%
ROIC(5y)0.9%
1.3 Margins
The Profit Margin of NTRS (11.11%) is worse than 60.93% of its industry peers.
In the last couple of years the Profit Margin of NTRS has declined.
NTRS's Operating Margin of 16.84% is on the low side compared to the rest of the industry. NTRS is outperformed by 63.72% of its industry peers.
NTRS's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 53.63%, NTRS is in line with its industry, outperforming 54.88% of the companies in the same industry.
NTRS's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.84% | ||
| PM (TTM) | 11.11% | ||
| GM | 53.63% |
OM growth 3Y-18.92%
OM growth 5Y-14.49%
PM growth 3Y-20.36%
PM growth 5Y-16.63%
GM growth 3Y-15.32%
GM growth 5Y-8.33%
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.
Compared to 1 year ago, NTRS has an improved debt to assets ratio.
2.2 Solvency
NTRS has an Altman-Z score of -0.58. This is a bad value and indicates that NTRS is not financially healthy and even has some risk of bankruptcy.
NTRS has a worse Altman-Z score (-0.58) than 90.23% of its industry peers.
NTRS has a debt to FCF ratio of 32.66. This is a negative value and a sign of low solvency as NTRS would need 32.66 years to pay back of all of its debts.
NTRS has a Debt to FCF ratio (32.66) which is comparable to the rest of the industry.
NTRS has a Debt/Equity ratio of 10.82. This is a high value indicating a heavy dependency on external financing.
NTRS has a Debt to Equity ratio of 10.82. This is amonst the worse of the industry: NTRS underperforms 91.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 10.82 | ||
| Debt/FCF | 32.66 | ||
| Altman-Z | -0.58 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 0.05 indicates that NTRS may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.05, NTRS is doing worse than 96.28% of the companies in the same industry.
NTRS has a Quick Ratio of 0.05. 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 0.05, NTRS is not doing good in the industry: 96.28% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.05 | ||
| Quick Ratio | 0.05 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 30.93% over the past year.
NTRS shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -1.46% yearly.
Looking at the last year, NTRS shows a very strong growth in Revenue. The Revenue has grown by 43.86%.
The Revenue has been growing by 11.92% on average over the past years. This is quite good.
EPS 1Y (TTM)30.93%
EPS 3Y0.22%
EPS 5Y-1.46%
EPS Q2Q%32.21%
Revenue 1Y (TTM)43.86%
Revenue growth 3Y22.28%
Revenue growth 5Y11.92%
Sales Q2Q%9.65%
3.2 Future
Based on estimates for the next years, NTRS will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.40% on average per year.
NTRS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.77% yearly.
EPS Next Y26.38%
EPS Next 2Y13.52%
EPS Next 3Y10.52%
EPS Next 5Y9.4%
Revenue Next Year8.39%
Revenue Next 2Y5.69%
Revenue Next 3Y4.77%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 15.86, NTRS is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of NTRS is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 29.20. NTRS is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 14.11, the valuation of NTRS can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NTRS is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 24.00. NTRS is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.86 | ||
| Fwd PE | 14.11 |
4.2 Price Multiples
90.70% of the companies in the same industry are more expensive than NTRS, based on the Enterprise Value to EBITDA ratio.
83.26% of the companies in the same industry are more expensive than NTRS, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.14 | ||
| EV/EBITDA | 7.25 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.6
PEG (5Y)N/A
EPS Next 2Y13.52%
EPS Next 3Y10.52%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.83%, NTRS has a reasonable but not impressive dividend return.
NTRS's Dividend Yield is comparable with the industry average which is at 9.01.
Compared to an average S&P500 Dividend Yield of 2.23, NTRS pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.83% |
5.2 History
The dividend of NTRS is nicely growing with an annual growth rate of 9.60%!
NTRS has paid a dividend for at least 10 years, which is 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)9.6%
Div Incr Years2
Div Non Decr Years24
5.3 Sustainability
39.87% of the earnings are spent on dividend by NTRS. This is a low number and sustainable payout ratio.
NTRS's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP39.87%
EPS Next 2Y13.52%
EPS Next 3Y10.52%
NORTHERN TRUST CORP
NASDAQ:NTRS (11/22/2024, 8:00:02 PM)
After market: 109.46 0 (0%)109.46
+0.52 (+0.48%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap21.70B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.83% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
Avg Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.86 | ||
| Fwd PE | 14.11 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.6
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.05% | ||
| ROE | 12.8% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 16.84% | ||
| PM (TTM) | 11.11% | ||
| GM | 53.63% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.09
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 10.82 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.05 | ||
| Quick Ratio | 0.05 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)30.93%
EPS 3Y0.22%
EPS 5Y
EPS Q2Q%
EPS Next Y26.38%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)43.86%
Revenue growth 3Y22.28%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y