NORTHERN TRUST CORP (NTRS) Stock Fundamental Analysis
USA - NASDAQ:NTRS - US6658591044 - Common Stock
124.57 USD
-5.31 (-4.09%)
124.5 USD
-0.07 (-0.06%)
Overall NTRS gets a fundamental rating of 3 out of 10. We evaluated NTRS against 237 industry peers in the Capital Markets industry. Both the profitability and financial health of NTRS have multiple concerns. 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.
Each year in the past 5 years NTRS has been profitable.
NTRS had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
NTRS has a worse Return On Assets (0.98%) than 66.67% of its industry peers.
NTRS has a Return On Equity of 13.03%. This is in the better half of the industry: NTRS outperforms 68.78% of its industry peers.
NTRS has a worse Return On Invested Capital (1.01%) than 70.04% 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 7.58%.
| 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
The Profit Margin of NTRS (11.98%) is comparable to the rest of the industry.
NTRS's Profit Margin has declined in the last couple of years.
The Operating Margin of NTRS (16.30%) is worse than 62.45% of its industry peers.
In the last couple of years the Operating Margin of NTRS has declined.
NTRS's Gross Margin of 56.19% is fine compared to the rest of the industry. NTRS outperforms 67.51% of its industry peers.
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.
The number of shares outstanding for NTRS has been reduced compared to 5 years ago.
Compared to 1 year ago, NTRS has a worse debt to assets ratio.
2.2 Solvency
NTRS has an Altman-Z score of -0.63. This is a bad value and indicates that NTRS is not financially healthy and even has some risk of bankruptcy.
NTRS has a Altman-Z score of -0.63. This is amonst the worse of the industry: NTRS underperforms 80.59% 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.
NTRS has a Debt to FCF ratio (87.39) which is in line with its industry peers.
A Debt/Equity ratio of 11.95 is on the high side and indicates that NTRS has dependencies on debt financing.
The Debt to Equity ratio of NTRS (11.95) is worse than 91.14% 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.
NTRS's Current ratio of 0.04 is on the low side compared to the rest of the industry. NTRS is outperformed by 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.
Looking at the Quick ratio, with a value of 0.04, NTRS is doing worse than 95.36% of the companies in the same industry.
| 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.
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.
NTRS shows a small growth in Revenue. In the last year, the Revenue has grown by 0.57%.
The Revenue has been growing by 18.02% on average over the past years. This is quite good.
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 Y12.62%
EPS Next 2Y10.03%
EPS Next 3Y9.72%
EPS Next 5Y7.66%
Revenue Next Year4.42%
Revenue Next 2Y4.03%
Revenue Next 3Y4.23%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 15.08 indicates a correct valuation of NTRS.
Compared to the rest of the industry, the Price/Earnings ratio of NTRS is on the same level as its industry peers.
NTRS is valuated rather cheaply when we compare the Price/Earnings ratio to 27.29, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 13.36, NTRS is valued correctly.
The rest of the industry has a similar Price/Forward Earnings ratio as NTRS.
When comparing the Price/Forward Earnings ratio of NTRS to the average of the S&P500 Index (22.85), we can say NTRS is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.08 | ||
| Fwd PE | 13.36 |
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 88.61% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of NTRS indicates a somewhat cheap valuation: NTRS is cheaper than 65.40% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.54 | ||
| EV/EBITDA | 8.63 |
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)1.2
PEG (5Y)5.46
EPS Next 2Y10.03%
EPS Next 3Y9.72%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.46%, NTRS has a reasonable but not impressive dividend return.
NTRS's Dividend Yield is comparable with the industry average which is at 8.24.
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 | 2.46% |
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 2Y10.03%
EPS Next 3Y9.72%
124.57
-5.31 (-4.09%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners88.38%
Inst Owner Change-0.02%
Ins Owners0.84%
Ins Owner Change0.19%
Market Cap23.82B
Analysts56.19
Price Target128.44 (3.11%)
Short Float %1.53%
Short Ratio2.43
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.46% |
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)4.14%
PT rev (3m)16.76%
EPS NQ rev (1m)-0.06%
EPS NQ rev (3m)7.13%
EPS NY rev (1m)0.13%
EPS NY rev (3m)4.86%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.7%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)1.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.08 | ||
| Fwd PE | 13.36 | ||
| P/S | 1.7 | ||
| P/FCF | 13.54 | ||
| P/OCF | 9.18 | ||
| P/B | 1.85 | ||
| P/tB | 2.45 | ||
| EV/EBITDA | 8.63 |
EPS(TTM)8.26
EY6.63%
EPS(NY)9.32
Fwd EY7.48%
FCF(TTM)9.2
FCFY7.38%
OCF(TTM)13.57
OCFY10.9%
SpS73.21
BVpS67.28
TBVpS50.93
PEG (NY)1.2
PEG (5Y)5.46
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 Y12.62%
EPS Next 2Y10.03%
EPS Next 3Y9.72%
EPS Next 5Y7.66%
Revenue 1Y (TTM)0.57%
Revenue growth 3Y33.14%
Revenue growth 5Y18.02%
Sales Q2Q%7.8%
Revenue Next Year4.42%
Revenue Next 2Y4.03%
Revenue Next 3Y4.23%
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