BANK OF N.T. BUTTERFIELD&SON (NTB) Stock Fundamental Analysis
NYSE:NTB - New York Stock Exchange, Inc. - BMG0772R2087 - Common Stock - Currency: USD
Overall NTB gets a fundamental rating of 5 out of 10. We evaluated NTB against 504 industry peers in the Banks industry. Both the profitability and the financial health of NTB get a neutral evaluation. Nothing too spectacular is happening here. NTB has a correct valuation and a medium growth rate. NTB also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year NTB was profitable.
In the past year NTB had a positive cash flow from operations.
In the past 5 years NTB has always been profitable.
In the past 5 years NTB always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 1.55%, NTB belongs to the top of the industry, outperforming 90.91% of the companies in the same industry.
NTB has a Return On Equity of 20.48%. This is amongst the best in the industry. NTB outperforms 98.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.55% | ||
| ROE | 20.48% | ||
| ROIC | N/A |
ROA(3y)1.57%
ROA(5y)1.35%
ROE(3y)22.8%
ROE(5y)20.01%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
The Profit Margin of NTB (36.91%) is better than 93.69% of its industry peers.
NTB's Profit Margin has improved in the last couple of years.
NTB does not have Operating Margin and Gross Margin available, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | 36.91% | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y4.31%
PM growth 5Y2.26%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
NTB does not have a ROIC to compare to the WACC, probably because it is not profitable.
The number of shares outstanding for NTB has been reduced compared to 1 year ago.
The number of shares outstanding for NTB has been reduced compared to 5 years ago.
NTB has a worse debt/assets ratio than last year.
2.2 Solvency
NTB has a debt to FCF ratio of 0.36. This is a very positive value and a sign of high solvency as it would only need 0.36 years to pay back of all of its debts.
NTB has a better Debt to FCF ratio (0.36) than 84.60% of its industry peers.
NTB has a Debt/Equity ratio of 0.09. This is a healthy value indicating a solid balance between debt and equity.
NTB has a Debt to Equity ratio of 0.09. This is in the better half of the industry: NTB outperforms 73.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | 0.36 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC18.72%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.31% over the past year.
Measured over the past 5 years, NTB shows a small growth in Earnings Per Share. The EPS has been growing by 7.49% on average per year.
Looking at the last year, NTB shows a small growth in Revenue. The Revenue has grown by 1.58% in the last year.
The Revenue has been growing slightly by 1.78% on average over the past years.
EPS 1Y (TTM)8.31%
EPS 3Y13.25%
EPS 5Y7.49%
EPS Q2Q%8.85%
Revenue 1Y (TTM)1.58%
Revenue growth 3Y5.41%
Revenue growth 5Y1.78%
Sales Q2Q%3.78%
3.2 Future
Based on estimates for the next years, NTB will show a small growth in Earnings Per Share. The EPS will grow by 7.50% on average per year.
The Revenue is expected to grow by 1.76% on average over the next years.
EPS Next Y8.7%
EPS Next 2Y6.12%
EPS Next 3Y7.5%
EPS Next 5YN/A
Revenue Next Year3.45%
Revenue Next 2Y1.88%
Revenue Next 3Y1.76%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 8.86, which indicates a very decent valuation of NTB.
Based on the Price/Earnings ratio, NTB is valued cheaper than 86.36% of the companies in the same industry.
When comparing the Price/Earnings ratio of NTB to the average of the S&P500 Index (26.31), we can say NTB is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 8.03, the valuation of NTB can be described as reasonable.
NTB's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. NTB is cheaper than 73.99% of the companies in the same industry.
NTB is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.06, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.86 | ||
| Fwd PE | 8.03 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, NTB is valued cheaper than 84.60% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.8 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
NTB's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.02
PEG (5Y)1.18
EPS Next 2Y6.12%
EPS Next 3Y7.5%
5. Dividend
5.1 Amount
NTB has a Yearly Dividend Yield of 4.16%, which is a nice return.
NTB's Dividend Yield is a higher than the industry average which is at 2.38.
NTB's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.16% |
5.2 History
The dividend of NTB has a limited annual growth rate of 0.17%.
NTB has been paying a dividend for at least 10 years, so it has a reliable track record.
NTB has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)0.17%
Div Incr Years0
Div Non Decr Years8
5.3 Sustainability
35.93% of the earnings are spent on dividend by NTB. This is a low number and sustainable payout ratio.
The dividend of NTB is growing, but earnings are growing more, so the dividend growth is sustainable.
DP35.93%
EPS Next 2Y6.12%
EPS Next 3Y7.5%
42.69
-0.22 (-0.51%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners69.15%
Inst Owner Change3.33%
Ins Owners1.18%
Ins Owner ChangeN/A
Market Cap1.86B
Analysts77.5
Price Target46.92 (9.91%)
Short Float %0.61%
Short Ratio1.47
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.16% |
Yearly Dividend1.75
Dividend Growth(5Y)0.17%
DP35.93%
Div Incr Years0
Div Non Decr Years8
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)12.17%
Min EPS beat(2)10.94%
Max EPS beat(2)13.4%
EPS beat(4)4
Avg EPS beat(4)7.01%
Min EPS beat(4)0.75%
Max EPS beat(4)13.4%
EPS beat(8)6
Avg EPS beat(8)4.08%
EPS beat(12)10
Avg EPS beat(12)4.61%
EPS beat(16)12
Avg EPS beat(16)3.97%
Revenue beat(2)2
Avg Revenue beat(2)4.75%
Min Revenue beat(2)4.21%
Max Revenue beat(2)5.3%
Revenue beat(4)3
Avg Revenue beat(4)2.44%
Min Revenue beat(4)-0.83%
Max Revenue beat(4)5.3%
Revenue beat(8)5
Avg Revenue beat(8)1.1%
Revenue beat(12)8
Avg Revenue beat(12)1.09%
Revenue beat(16)11
Avg Revenue beat(16)0.88%
PT rev (1m)3.37%
PT rev (3m)3.37%
EPS NQ rev (1m)2.88%
EPS NQ rev (3m)14.26%
EPS NY rev (1m)10.56%
EPS NY rev (3m)11.4%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)4.06%
Revenue NY rev (1m)3.49%
Revenue NY rev (3m)3.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.86 | ||
| Fwd PE | 8.03 | ||
| P/S | 3.17 | ||
| P/FCF | 6.8 | ||
| P/OCF | 6.2 | ||
| P/B | 1.76 | ||
| P/tB | 1.92 | ||
| EV/EBITDA | N/A |
EPS(TTM)4.82
EY11.29%
EPS(NY)5.32
Fwd EY12.45%
FCF(TTM)6.27
FCFY14.7%
OCF(TTM)6.89
OCFY16.14%
SpS13.48
BVpS24.3
TBVpS22.24
PEG (NY)1.02
PEG (5Y)1.18
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.55% | ||
| ROE | 20.48% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 36.91% | ||
| GM | N/A | ||
| FCFM | 46.54% |
ROA(3y)1.57%
ROA(5y)1.35%
ROE(3y)22.8%
ROE(5y)20.01%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y4.31%
PM growth 5Y2.26%
GM growth 3YN/A
GM growth 5YN/A
F-Score6
Asset Turnover0.04
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | 0.36 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 63.65% | ||
| Cap/Sales | 4.57% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 126.08% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score6
WACC18.72%
ROIC/WACCN/A
Cap/Depr(3y)89.29%
Cap/Depr(5y)64.69%
Cap/Sales(3y)5.96%
Cap/Sales(5y)5.03%
Profit Quality(3y)103.92%
Profit Quality(5y)114.09%
High Growth Momentum
Growth
EPS 1Y (TTM)8.31%
EPS 3Y13.25%
EPS 5Y7.49%
EPS Q2Q%8.85%
EPS Next Y8.7%
EPS Next 2Y6.12%
EPS Next 3Y7.5%
EPS Next 5YN/A
Revenue 1Y (TTM)1.58%
Revenue growth 3Y5.41%
Revenue growth 5Y1.78%
Sales Q2Q%3.78%
Revenue Next Year3.45%
Revenue Next 2Y1.88%
Revenue Next 3Y1.76%
Revenue Next 5YN/A
EBIT growth 1YN/A
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y31.07%
FCF growth 3Y1.16%
FCF growth 5Y1.46%
OCF growth 1Y27.49%
OCF growth 3Y1.84%
OCF growth 5Y1.24%