NORTHERN TRUST CORP (NTRS) Stock Fundamental Analysis
USA - NASDAQ:NTRS - US6658591044 - Common Stock
129.25 USD
-1.01 (-0.78%)
129.25 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. NTRS may be in some trouble as it scores bad on both profitability and health. NTRS has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
NTRS had positive earnings in the past year.
In the past year NTRS had a positive cash flow from operations.
In the past 5 years NTRS has always been profitable.
NTRS had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
NTRS's Return On Assets of 0.98% is on the low side compared to the rest of the industry. NTRS is outperformed by 65.82% of its industry peers.
NTRS's Return On Equity of 13.03% is fine compared to the rest of the industry. NTRS outperforms 70.04% of its industry peers.
NTRS's Return On Invested Capital of 1.01% is on the low side compared to the rest of the industry. NTRS is outperformed by 70.89% of its industry peers.
NTRS had an Average Return On Invested Capital over the past 3 years of 1.06%. This is significantly below the industry average of 7.61%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.98% | ||
| ROE | 13.03% | ||
| ROIC | 1.01% |
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
NTRS has a Profit Margin of 11.98%. This is comparable to the rest of the industry: NTRS outperforms 43.04% of its industry peers.
In the last couple of years the Profit Margin of NTRS has declined.
NTRS has a Operating Margin of 16.30%. This is in the lower half of the industry: NTRS underperforms 63.71% of its industry peers.
In the last couple of years the Operating Margin of NTRS has declined.
Looking at the Gross Margin, with a value of 56.19%, NTRS is in the better half of the industry, outperforming 66.24% of the companies in the same industry.
NTRS's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.3% | ||
| PM (TTM) | 11.98% | ||
| GM | 56.19% |
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
The number of shares outstanding for NTRS has been reduced compared to 1 year ago.
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
Based on the Altman-Z score of -0.63, we must say that NTRS is in the distress zone and has some risk of bankruptcy.
NTRS has a worse Altman-Z score (-0.63) than 78.90% of its industry peers.
The Debt to FCF ratio of NTRS is 87.39, which is on the high side as it means it would take NTRS, 87.39 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 87.39, NTRS is in line with its industry, outperforming 42.62% of the companies in the same industry.
NTRS has a Debt/Equity ratio of 11.95. This is a high value indicating a heavy dependency on external financing.
NTRS has a worse Debt to Equity ratio (11.95) than 90.72% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 11.95 | ||
| Debt/FCF | 87.39 | ||
| Altman-Z | -0.63 |
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 95.36% 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.
NTRS has a Quick ratio of 0.04. This is amonst the worse of the industry: NTRS underperforms 95.36% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.04 | ||
| Quick Ratio | 0.04 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 28.66% over the past year.
NTRS shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.76% yearly.
The Revenue has been growing slightly by 0.57% in the past year.
NTRS shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 18.02% yearly.
EPS 1Y (TTM)28.66%
EPS 3Y2.26%
EPS 5Y2.76%
EPS Q2Q%19.66%
Revenue 1Y (TTM)0.57%
Revenue growth 3Y33.14%
Revenue growth 5Y18.02%
Sales Q2Q%7.8%
3.2 Future
The Earnings Per Share is expected to grow by 7.66% 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 3.48% yearly.
EPS Next Y12.47%
EPS Next 2Y9.98%
EPS Next 3Y9.36%
EPS Next 5Y7.66%
Revenue Next Year4.34%
Revenue Next 2Y3.99%
Revenue Next 3Y4.18%
Revenue Next 5Y3.48%
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
The Price/Earnings ratio is 15.65, which indicates a correct valuation of NTRS.
NTRS's Price/Earnings is on the same level as the industry average.
NTRS's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.20.
A Price/Forward Earnings ratio of 13.88 indicates a correct valuation of NTRS.
NTRS's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.71, NTRS is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.65 | ||
| Fwd PE | 13.88 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NTRS is valued cheaply inside the industry as 89.45% of the companies are valued more expensively.
65.40% 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 | 14.05 | ||
| EV/EBITDA | 8.99 |
4.3 Compensation for Growth
NTRS's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.25
PEG (5Y)5.67
EPS Next 2Y9.98%
EPS Next 3Y9.36%
5. Dividend
5.1 Amount
NTRS has a Yearly Dividend Yield of 2.47%. Purely for dividend investing, there may be better candidates out there.
NTRS's Dividend Yield is comparable with the industry average which is at 7.96.
Compared to an average S&P500 Dividend Yield of 2.38, NTRS has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.47% |
5.2 History
The dividend of NTRS has a limited annual growth rate of 3.64%.
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)3.64%
Div Incr Years0
Div Non Decr Years25
5.3 Sustainability
NTRS pays out 37.49% of its income as dividend. This is a sustainable payout ratio.
NTRS's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP37.49%
EPS Next 2Y9.98%
EPS Next 3Y9.36%
129.25
-1.01 (-0.78%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners87.01%
Inst Owner Change-1.44%
Ins Owners0.81%
Ins Owner Change-0.29%
Market Cap24.72B
Analysts55
Price Target126.02 (-2.5%)
Short Float %1.51%
Short Ratio2.24
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.47% |
Yearly Dividend3.21
Dividend Growth(5Y)3.64%
DP37.49%
Div Incr Years0
Div Non Decr Years25
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.33%
Min EPS beat(2)0.77%
Max EPS beat(2)1.89%
EPS beat(4)4
Avg EPS beat(4)5.82%
Min EPS beat(4)0.77%
Max EPS beat(4)10.78%
EPS beat(8)6
Avg EPS beat(8)5.68%
EPS beat(12)6
Avg EPS beat(12)-2.3%
EPS beat(16)9
Avg EPS beat(16)-1.13%
Revenue beat(2)1
Avg Revenue beat(2)-0.37%
Min Revenue beat(2)-2.11%
Max Revenue beat(2)1.37%
Revenue beat(4)1
Avg Revenue beat(4)-0.93%
Min Revenue beat(4)-2.43%
Max Revenue beat(4)1.37%
Revenue beat(8)2
Avg Revenue beat(8)-3.01%
Revenue beat(12)4
Avg Revenue beat(12)-0.59%
Revenue beat(16)5
Avg Revenue beat(16)-0.72%
PT rev (1m)2.1%
PT rev (3m)18.09%
EPS NQ rev (1m)0.66%
EPS NQ rev (3m)9.73%
EPS NY rev (1m)4.73%
EPS NY rev (3m)7.21%
Revenue NQ rev (1m)0.1%
Revenue NQ rev (3m)3.26%
Revenue NY rev (1m)0.52%
Revenue NY rev (3m)2.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.65 | ||
| Fwd PE | 13.88 | ||
| P/S | 1.77 | ||
| P/FCF | 14.05 | ||
| P/OCF | 9.52 | ||
| P/B | 1.92 | ||
| P/tB | 2.54 | ||
| EV/EBITDA | 8.99 |
EPS(TTM)8.26
EY6.39%
EPS(NY)9.31
Fwd EY7.21%
FCF(TTM)9.2
FCFY7.12%
OCF(TTM)13.57
OCFY10.5%
SpS73.21
BVpS67.28
TBVpS50.93
PEG (NY)1.25
PEG (5Y)5.67
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.98% | ||
| ROE | 13.03% | ||
| ROCE | 9.1% | ||
| ROIC | 1.01% | ||
| ROICexc | 1.04% | ||
| ROICexgc | 1.11% | ||
| OM | 16.3% | ||
| PM (TTM) | 11.98% | ||
| GM | 56.19% | ||
| FCFM | 12.57% |
ROA(3y)0.93%
ROA(5y)0.86%
ROE(3y)11.89%
ROE(5y)11.57%
ROIC(3y)1.06%
ROIC(5y)0.96%
ROICexc(3y)1.09%
ROICexc(5y)0.98%
ROICexgc(3y)1.2%
ROICexgc(5y)1.07%
ROCE(3y)10.14%
ROCE(5y)9.75%
ROICexcg growth 3Y19.04%
ROICexcg growth 5Y4.26%
ROICexc growth 3Y17.62%
ROICexc growth 5Y3.85%
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%
F-Score7
Asset Turnover0.08
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 11.95 | ||
| Debt/FCF | 87.39 | ||
| Debt/EBITDA | 50.67 | ||
| Cap/Depr | 111.16% | ||
| Cap/Sales | 5.97% | ||
| Interest Coverage | 0.33 | ||
| Cash Conversion | 85.55% | ||
| Profit Quality | 104.9% | ||
| Current Ratio | 0.04 | ||
| Quick Ratio | 0.04 | ||
| Altman-Z | -0.63 |
F-Score7
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)113.73%
Cap/Depr(5y)110.62%
Cap/Sales(3y)6.87%
Cap/Sales(5y)7.55%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)28.66%
EPS 3Y2.26%
EPS 5Y2.76%
EPS Q2Q%19.66%
EPS Next Y12.47%
EPS Next 2Y9.98%
EPS Next 3Y9.36%
EPS Next 5Y7.66%
Revenue 1Y (TTM)0.57%
Revenue growth 3Y33.14%
Revenue growth 5Y18.02%
Sales Q2Q%7.8%
Revenue Next Year4.34%
Revenue Next 2Y3.99%
Revenue Next 3Y4.18%
Revenue Next 5Y3.48%
EBIT growth 1Y-1.07%
EBIT growth 3Y11.65%
EBIT growth 5Y7.85%
EBIT Next Year-6.97%
EBIT Next 3Y0.82%
EBIT Next 5YN/A
FCF growth 1Y-23.02%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-13.25%
OCF growth 3YN/A
OCF growth 5YN/A