149.14 USD
+0.51 (+0.34%)
We assign a fundamental rating of 3 out of 10 to NTRS. NTRS was compared to 237 industry peers in the Capital Markets industry. There are concerns on the financial health of NTRS while its profitability can be described as average. NTRS has a valuation in line with the averages, but on the other hand it scores bad on growth.
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.
- Each year in the past 5 years NTRS has been profitable.
- 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
- NTRS has a Return On Assets of 0.98%. This is in the lower half of the industry: NTRS underperforms 69.20% of its industry peers.
- The Return On Equity of NTRS (12.88%) is better than 71.73% of its industry peers.
- NTRS has a worse Return On Invested Capital (1.02%) than 66.67% 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 | 1.02% |
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
- NTRS's Profit Margin of 12.22% 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 Profit Margin of NTRS has grown nicely.
- Looking at the Operating Margin, with a value of 16.83%, NTRS is in line with its industry, outperforming 40.51% of the companies in the same industry.
- NTRS's Operating Margin has improved in the last couple of years.
- 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
- 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
- NTRS has an Altman-Z score of -0.61. This is a bad value and indicates that NTRS is not financially healthy and even has some risk of bankruptcy.
- The Altman-Z score of NTRS (-0.61) is worse than 83.12% of its industry peers.
- 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.
- A Debt/Equity ratio of 11.69 is on the high side and indicates that NTRS has dependencies on debt 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.
- Looking at the Current ratio, with a value of 0.04, NTRS is doing worse than 94.09% of the companies in the same industry.
- 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.
- Looking at the Quick ratio, with a value of 0.04, NTRS is doing worse than 94.09% of the companies in the same industry.
| 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.
- Looking at the last year, NTRS shows a very negative growth in Revenue. The Revenue has decreased by -18.69% in the last year.
- 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
- Based on estimates for the next years, NTRS will show a small growth in Earnings Per Share. The EPS will grow by 5.44% on average per year.
- The Revenue is expected to grow by 3.14% on average over the next years.
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
- The EPS growth rate is decreasing: in the next years the growth will be less 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
- A Price/Earnings ratio of 16.55 indicates a correct valuation of NTRS.
- NTRS's Price/Earnings is on the same level as the industry average.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, NTRS is valued a bit cheaper.
- NTRS is valuated correctly with a Price/Forward Earnings ratio of 15.34.
- NTRS's Price/Forward Earnings ratio is in line with the industry average.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. NTRS is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.55 | ||
| Fwd PE | 15.34 |
4.2 Price Multiples
- 87.76% of the companies in the same industry are more expensive than NTRS, based on the Enterprise Value to EBITDA ratio.
- 68.35% 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 | 16.45 | ||
| EV/EBITDA | 10.24 |
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)2.1
PEG (5Y)1.94
EPS Next 2Y8.16%
EPS Next 3Y5.22%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 2.15%, NTRS has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 5.87, NTRS has a dividend in line with its industry peers.
- NTRS's Dividend Yield is comparable with the S&P500 average which is at 1.81.
| 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 paid a dividend for at least 10 years, which is a reliable track record.
- NTRS has not decreased their dividend for at least 10 years, which is a reliable track record.
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 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 16.55 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.