148.63 USD
-4.49 (-2.93%)
148.63 USD
0 (0%)
NTRS gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 238 industry peers in the Capital Markets industry. Both the profitability and financial health of NTRS have multiple concerns. NTRS is valued correctly, but it does not seem to be growing. Finally NTRS also has an excellent dividend rating.
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 4 of the past 5 years.
- In multiple years NTRS reported negative operating cash flow during the last 5 years.
1.2 Ratios
- With a Return On Assets value of 0.98%, NTRS is not doing good in the industry: 68.91% of the companies in the same industry are doing better.
- With a decent Return On Equity value of 12.88%, NTRS is doing good in the industry, outperforming 71.85% of the companies in the same industry.
- The Return On Invested Capital of NTRS (1.03%) is worse than 66.39% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for NTRS 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.
- NTRS's Profit Margin has declined in the last couple of years.
- NTRS has a Operating Margin (16.83%) which is comparable to the rest of the industry.
- In the last couple of years the Operating Margin of NTRS has declined.
- With a decent Gross Margin value of 57.99%, NTRS is doing good in the industry, outperforming 65.97% of the companies in the same industry.
- NTRS's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.83% | ||
| 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
- NTRS has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the 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.
- With a Altman-Z score value of -0.61, NTRS is not doing good in the industry: 83.61% 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.
- NTRS has a Debt to FCF ratio (88.33) which is in line with its industry peers.
- NTRS has a Debt/Equity ratio of 11.69. This is a high value indicating a heavy dependency on external financing.
- NTRS's Debt to Equity ratio of 11.69 is on the low side compared to the rest of the industry. NTRS is outperformed by 89.50% of its industry peers.
| 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.
- The Current ratio of NTRS (0.04) is worse than 94.12% 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.
- The Quick ratio of NTRS (0.04) is worse than 94.12% 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.
- Measured over the past years, NTRS shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.54% on average per year.
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%8.34%
3.2 Future
- NTRS is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.44% yearly.
- 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 Year4.59%
Revenue Next 2Y4.3%
Revenue Next 3Y3.24%
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.
4. Valuation
4.1 Price/Earnings Ratio
- NTRS is valuated correctly with a Price/Earnings ratio of 16.50.
- The rest of the industry has a similar Price/Earnings ratio as NTRS.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, NTRS is valued a bit cheaper.
- With a Price/Forward Earnings ratio of 15.29, NTRS is valued correctly.
- NTRS's Price/Forward Earnings is on the same level as the industry average.
- The average S&P500 Price/Forward Earnings ratio is at 24.26. NTRS is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.5 | ||
| Fwd PE | 15.29 |
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 87.82% of the companies listed in the same industry.
- Based on the Price/Free Cash Flow ratio, NTRS is valued a bit cheaper than the industry average as 68.07% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.39 | ||
| EV/EBITDA | 10.52 |
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
- With a Yearly Dividend Yield of 2.22%, NTRS has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 6.10, NTRS has a dividend in line with its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.82, NTRS pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.22% |
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.