NORTHERN TRUST CORP (NTRS) Stock Fundamental Analysis
NASDAQ:NTRS - Nasdaq - US6658591044 - Common Stock - Currency: USD
Taking everything into account, NTRS scores 4 out of 10 in our fundamental rating. NTRS was compared to 222 industry peers in the Capital Markets industry. NTRS has a medium profitability rating, but doesn't score so well on its financial health evaluation. NTRS is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year NTRS was profitable.
NTRS had a positive operating cash flow in the past year.
NTRS had positive earnings in each of the past 5 years.
NTRS had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
The Return On Assets of NTRS (1.05%) is worse than 67.74% of its industry peers.
NTRS's Return On Equity of 12.80% is fine compared to the rest of the industry. NTRS outperforms 71.43% of its industry peers.
NTRS's Return On Invested Capital of 1.21% is on the low side compared to the rest of the industry. NTRS is outperformed by 75.58% of its industry peers.
NTRS had an Average Return On Invested Capital over the past 3 years of 1.03%. This is significantly below the industry average of 6.67%.
The last Return On Invested Capital (1.21%) for NTRS is above the 3 year average (1.03%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.05% | ||
| ROE | 12.8% | ||
| ROIC | 1.21% |
ROA(3y)0.93%
ROA(5y)0.86%
ROE(3y)11.89%
ROE(5y)11.57%
ROIC(3y)1.03%
ROIC(5y)0.94%
1.3 Margins
NTRS has a Profit Margin of 11.11%. This is comparable to the rest of the industry: NTRS outperforms 40.09% of its industry peers.
In the last couple of years the Profit Margin of NTRS has grown nicely.
Looking at the Operating Margin, with a value of 16.84%, NTRS is doing worse than 63.13% of the companies in the same industry.
In the last couple of years the Operating Margin of NTRS has grown nicely.
NTRS's Gross Margin of 53.63% is in line compared to the rest of the industry. NTRS outperforms 55.30% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.84% | ||
| PM (TTM) | 11.11% | ||
| GM | 53.63% |
OM growth 3Y0.27%
OM growth 5Y1.73%
PM growth 3Y0.74%
PM growth 5Y1.91%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
Compared to 1 year ago, NTRS has less shares outstanding
Compared to 5 years ago, NTRS has less shares outstanding
Compared to 1 year ago, NTRS has a worse 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 89.40% of its industry peers.
The Debt to FCF ratio of NTRS is 32.66, which is on the high side as it means it would take NTRS, 32.66 years of fcf income to pay off all of its debts.
NTRS's Debt to FCF ratio of 32.66 is in line compared to the rest of the industry. NTRS outperforms 43.32% of its industry peers.
NTRS has a Debt/Equity ratio of 10.82. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 10.82, NTRS is not doing good in the industry: 91.24% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 10.82 | ||
| Debt/FCF | 32.66 | ||
| Altman-Z | -0.58 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
NTRS has a Current 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.
The Current ratio of NTRS (0.05) is worse than 96.77% of its industry peers.
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.
NTRS has a Quick ratio of 0.05. This is amonst the worse of the industry: NTRS underperforms 96.77% of its industry peers.
| 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 27.91% 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.
Looking at the last year, NTRS shows a very strong growth in Revenue. The Revenue has grown by 20.65%.
The Revenue has been growing slightly by 4.66% on average over the past years.
EPS 1Y (TTM)27.91%
EPS 3Y2.26%
EPS 5Y2.76%
EPS Q2Q%54.79%
Revenue 1Y (TTM)20.65%
Revenue growth 3Y8.98%
Revenue growth 5Y4.66%
Sales Q2Q%25.35%
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 8.18% on average per year.
Based on estimates for the next years, NTRS will show a small growth in Revenue. The Revenue will grow by 4.06% on average per year.
EPS Next Y7.57%
EPS Next 2Y7.18%
EPS Next 3Y8.42%
EPS Next 5Y8.18%
Revenue Next Year3.88%
Revenue Next 2Y3.76%
Revenue Next 3Y4.06%
Revenue Next 5YN/A
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 accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 14.64, NTRS is valued correctly.
NTRS's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of NTRS to the average of the S&P500 Index (28.51), we can say NTRS is valued slightly cheaper.
The Price/Forward Earnings ratio is 13.61, which indicates a correct valuation of NTRS.
NTRS's Price/Forward Earnings is on the same level as the industry average.
NTRS's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 93.88.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.64 | ||
| Fwd PE | 13.61 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NTRS indicates a rather cheap valuation: NTRS is cheaper than 92.17% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, NTRS is valued cheaper than 82.03% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.29 | ||
| EV/EBITDA | 7.47 |
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)1.93
PEG (5Y)5.3
EPS Next 2Y7.18%
EPS Next 3Y8.42%
5. Dividend
5.1 Amount
NTRS has a Yearly Dividend Yield of 2.67%.
NTRS's Dividend Yield is comparable with the industry average which is at 9.42.
Compared to an average S&P500 Dividend Yield of 2.27, NTRS has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.67% |
5.2 History
The dividend of NTRS is nicely growing with an annual growth rate of 9.60%!
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)9.6%
Div Incr Years2
Div Non Decr Years25
5.3 Sustainability
NTRS pays out 39.87% of its income as dividend. This is a sustainable payout ratio.
The dividend of NTRS is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP39.87%
EPS Next 2Y7.18%
EPS Next 3Y8.42%
NORTHERN TRUST CORP
NASDAQ:NTRS (1/30/2025, 8:00:01 PM)
After market: 112.74 0 (0%)112.74
+0.14 (+0.12%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners84.5%
Inst Owner Change0.45%
Ins Owners0.7%
Ins Owner Change-1.99%
Market Cap22.35B
Analysts55
Price Target119.73 (6.2%)
Short Float %1.07%
Short Ratio1.76
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.67% |
Yearly Dividend3.21
Dividend Growth(5Y)9.6%
DP39.87%
Div Incr Years2
Div Non Decr Years25
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.19%
Min EPS beat(2)-8.4%
Max EPS beat(2)10.78%
EPS beat(4)3
Avg EPS beat(4)8.83%
Min EPS beat(4)-8.4%
Max EPS beat(4)18.24%
EPS beat(8)3
Avg EPS beat(8)-4.52%
EPS beat(12)5
Avg EPS beat(12)-3.03%
EPS beat(16)8
Avg EPS beat(16)-1.1%
Revenue beat(2)0
Avg Revenue beat(2)-5.97%
Min Revenue beat(2)-11.65%
Max Revenue beat(2)-0.29%
Revenue beat(4)1
Avg Revenue beat(4)-4.56%
Min Revenue beat(4)-11.65%
Max Revenue beat(4)3.39%
Revenue beat(8)2
Avg Revenue beat(8)-1.59%
Revenue beat(12)4
Avg Revenue beat(12)-0.56%
Revenue beat(16)5
Avg Revenue beat(16)-0.69%
PT rev (1m)3.13%
PT rev (3m)16.94%
EPS NQ rev (1m)0%
EPS NQ rev (3m)4.34%
EPS NY rev (1m)0%
EPS NY rev (3m)6.85%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.05%
Revenue NY rev (1m)0.09%
Revenue NY rev (3m)1.53%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.64 | ||
| Fwd PE | 13.61 | ||
| P/S | 1.52 | ||
| P/FCF | 5.29 | ||
| P/OCF | 4.51 | ||
| P/B | 1.75 | ||
| P/tB | 2.25 | ||
| EV/EBITDA | 7.47 |
EPS(TTM)7.7
EY6.83%
EPS(NY)8.28
Fwd EY7.35%
FCF(TTM)21.3
FCFY18.9%
OCF(TTM)24.98
OCFY22.16%
SpS74.09
BVpS64.32
TBVpS50.03
PEG (NY)1.93
PEG (5Y)5.3
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.05% | ||
| ROE | 12.8% | ||
| ROCE | 10% | ||
| ROIC | 1.21% | ||
| ROICexc | 1.25% | ||
| ROICexgc | 1.35% | ||
| OM | 16.84% | ||
| PM (TTM) | 11.11% | ||
| GM | 53.63% | ||
| FCFM | 28.75% |
ROA(3y)0.93%
ROA(5y)0.86%
ROE(3y)11.89%
ROE(5y)11.57%
ROIC(3y)1.03%
ROIC(5y)0.94%
ROICexc(3y)1.06%
ROICexc(5y)0.97%
ROICexgc(3y)1.15%
ROICexgc(5y)1.04%
ROCE(3y)9.78%
ROCE(5y)9.54%
ROICexcg growth 3Y15.7%
ROICexcg growth 5Y2.49%
ROICexc growth 3Y14.95%
ROICexc growth 5Y2.43%
OM growth 3Y0.27%
OM growth 5Y1.73%
PM growth 3Y0.74%
PM growth 5Y1.91%
GM growth 3YN/A
GM growth 5YN/A
F-Score8
Asset Turnover0.09
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 10.82 | ||
| Debt/FCF | 32.66 | ||
| Debt/EBITDA | 43.43 | ||
| Cap/Depr | 103.76% | ||
| Cap/Sales | 4.97% | ||
| Interest Coverage | 0.33 | ||
| Cash Conversion | 155.93% | ||
| Profit Quality | 258.74% | ||
| Current Ratio | 0.05 | ||
| Quick Ratio | 0.05 | ||
| Altman-Z | -0.58 |
F-Score8
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)27.91%
EPS 3Y2.26%
EPS 5Y2.76%
EPS Q2Q%54.79%
EPS Next Y7.57%
EPS Next 2Y7.18%
EPS Next 3Y8.42%
EPS Next 5Y8.18%
Revenue 1Y (TTM)20.65%
Revenue growth 3Y8.98%
Revenue growth 5Y4.66%
Sales Q2Q%25.35%
Revenue Next Year3.88%
Revenue Next 2Y3.76%
Revenue Next 3Y4.06%
Revenue Next 5YN/A
EBIT growth 1Y59.24%
EBIT growth 3Y9.28%
EBIT growth 5Y6.47%
EBIT Next Year-18.32%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y28.69%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y24.6%
OCF growth 3YN/A
OCF growth 5YN/A