149.65 USD
+1.02 (+0.69%)
149.65 USD
0 (0%)
NTRS gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 237 industry peers in the Capital Markets industry. While NTRS is still in line with the averages on profitability rating, there are concerns on its financial health. NTRS is valued correctly, 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.
- NTRS had positive earnings in each of the past 5 years.
- 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
- The Return On Assets of NTRS (0.98%) is worse than 69.20% of its industry peers.
- Looking at the Return On Equity, with a value of 12.88%, NTRS is in the better half of the industry, outperforming 71.73% of the companies in the same industry.
- NTRS's Return On Invested Capital of 1.02% is on the low side compared to the rest of the industry. NTRS is outperformed by 66.67% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for NTRS is significantly below the industry average of 7.27%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.98% | ||
| ROE | 12.88% | ||
| ROIC | 1.02% |
ROA(3y)0.97%
ROA(5y)0.91%
ROE(3y)12.41%
ROE(5y)12.21%
ROIC(3y)1.07%
ROIC(5y)1%
1.3 Margins
- The Profit Margin of NTRS (12.22%) is comparable to the rest of the industry.
- In the last couple of years the Profit Margin of NTRS has grown nicely.
- NTRS's Operating Margin of 16.83% is in line compared to the rest of the industry. NTRS outperforms 40.51% of its industry peers.
- In the last couple of years the Operating Margin of NTRS has grown nicely.
- The Gross Margin of NTRS (57.99%) is better than 65.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.83% | ||
| PM (TTM) | 12.22% | ||
| GM | 57.99% |
OM growth 3Y6.17%
OM growth 5Y1.82%
PM growth 3Y6.64%
PM growth 5Y2.3%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
- Compared to 1 year ago, NTRS has less shares outstanding
- The number of shares outstanding for NTRS has been reduced compared to 5 years ago.
- NTRS has a worse debt/assets ratio than last year.
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.
- With a Altman-Z score value of -0.61, NTRS is not doing good in the industry: 83.12% of the companies in the same industry are doing better.
- The Debt to FCF ratio of NTRS is 88.33, which is on the high side as it means it would take NTRS, 88.33 years of fcf income to pay off 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: 89.45% 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 worse Current ratio (0.04) than 94.09% of its industry peers.
- A Quick Ratio of 0.04 indicates that NTRS may have some problems paying its short term obligations.
- NTRS has a worse Quick ratio (0.04) than 94.09% of its industry peers.
| 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.
- The Earnings Per Share has been growing by 8.54% on average over the past years. This is quite good.
- The Revenue for NTRS has decreased by -18.69% in the past year. This is quite bad
- The Revenue has been growing slightly by 5.60% on average over the past years.
EPS 1Y (TTM)17.01%
EPS 3Y13.64%
EPS 5Y8.54%
EPS Q2Q%19.03%
Revenue 1Y (TTM)-18.69%
Revenue growth 3Y2.59%
Revenue growth 5Y5.6%
Sales Q2Q%8.99%
3.2 Future
- The Earnings Per Share is expected to grow by 5.44% on average over the next years.
- Based on estimates for the next years, NTRS will show a small growth in Revenue. The Revenue will grow by 3.14% on average per year.
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
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
- 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
- NTRS is valuated correctly with a Price/Earnings ratio of 16.61.
- The rest of the industry has a similar Price/Earnings ratio as NTRS.
- NTRS is valuated rather cheaply when we compare the Price/Earnings ratio to 27.25, which is the current average of the S&P500 Index.
- NTRS is valuated correctly with a Price/Forward Earnings ratio of 15.40.
- NTRS's Price/Forward Earnings ratio is in line with the industry average.
- When comparing the Price/Forward Earnings ratio of NTRS to the average of the S&P500 Index (25.98), we can say NTRS is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.61 | ||
| Fwd PE | 15.4 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, NTRS is valued cheaply inside the industry as 87.76% of the companies are valued more expensively.
- Based on the Price/Free Cash Flow ratio, NTRS is valued a bit cheaper than 68.35% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.51 | ||
| EV/EBITDA | 10.24 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates NTRS does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)2.11
PEG (5Y)1.94
EPS Next 2Y8.16%
EPS Next 3Y5.22%
5. Dividend
5.1 Amount
- NTRS has a Yearly Dividend Yield of 2.15%.
- 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 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.15% |
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
- 37.83% 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.
DP37.83%
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 4 / 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 16.61 and the Price/Book (PB) ratio is 2.18.
How financially healthy is NORTHERN TRUST CORP?
The financial health rating of NORTHERN TRUST CORP (NTRS) is 1 / 10.