NORTHERN TRUST CORP (NTRS) Stock Fundamental Analysis
NASDAQ:NTRS - Nasdaq - US6658591044 - Common Stock - Currency: USD
Taking everything into account, NTRS scores 4 out of 10 in our fundamental rating. NTRS was compared to 233 industry peers in the Capital Markets industry. NTRS has a medium profitability rating, but doesn't score so well on its financial health evaluation. NTRS has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year NTRS was profitable.
NTRS had a positive operating cash flow in the past year.
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
With a Return On Assets value of 1.30%, NTRS is not doing good in the industry: 60.52% of the companies in the same industry are doing better.
With an excellent Return On Equity value of 16.68%, NTRS belongs to the best of the industry, outperforming 81.55% of the companies in the same industry.
The Return On Invested Capital of NTRS (1.41%) is worse than 68.67% 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 7.86%.
The last Return On Invested Capital (1.41%) for NTRS is above the 3 year average (1.06%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.3% | ||
| ROE | 16.68% | ||
| ROIC | 1.41% |
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 14.25%. This is comparable to the rest of the industry: NTRS outperforms 52.36% of its industry peers.
NTRS's Profit Margin has declined in the last couple of years.
NTRS has a Operating Margin (20.26%) which is comparable to the rest of the industry.
NTRS's Operating Margin has declined in the last couple of years.
NTRS has a Gross Margin of 56.93%. This is in the better half of the industry: NTRS outperforms 65.67% of its industry peers.
NTRS's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.26% | ||
| PM (TTM) | 14.25% | ||
| GM | 56.93% |
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
Compared to 1 year ago, NTRS has less shares outstanding
The number of shares outstanding for NTRS has been reduced compared to 5 years ago.
The debt/assets ratio for NTRS is higher compared to a year ago.
2.2 Solvency
NTRS has an Altman-Z score of -0.60. This is a bad value and indicates that NTRS is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of -0.60, NTRS is not doing good in the industry: 83.26% of the companies in the same industry are doing better.
NTRS has a debt to FCF ratio of 50.48. This is a negative value and a sign of low solvency as NTRS would need 50.48 years to pay back of all of its debts.
NTRS's Debt to FCF ratio of 50.48 is in line compared to the rest of the industry. NTRS outperforms 42.92% of its industry peers.
A Debt/Equity ratio of 11.43 is on the high side and indicates that NTRS has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 11.43, NTRS is doing worse than 90.99% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 11.43 | ||
| Debt/FCF | 50.48 | ||
| Altman-Z | -0.6 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 0.03 indicates that NTRS may have some problems paying its short term obligations.
NTRS has a Current ratio of 0.03. This is amonst the worse of the industry: NTRS underperforms 95.28% of its industry peers.
A Quick Ratio of 0.03 indicates that NTRS may have some problems paying its short term obligations.
NTRS has a worse Quick ratio (0.03) than 95.28% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.03 | ||
| Quick Ratio | 0.03 |
3. Growth
3.1 Past
NTRS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 27.58%, which is quite impressive.
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.
The Revenue has grown by 23.93% in the past year. This is a very strong growth!
The Revenue has been growing by 18.02% on average over the past years. This is quite good.
EPS 1Y (TTM)27.58%
EPS 3Y2.26%
EPS 5Y2.76%
EPS Q2Q%12.43%
Revenue 1Y (TTM)23.93%
Revenue growth 3Y33.14%
Revenue growth 5Y18.02%
Sales Q2Q%5.23%
3.2 Future
The Earnings Per Share is expected to grow by 5.70% on average over the next years.
Based on estimates for the next years, NTRS will show a small growth in Revenue. The Revenue will grow by 4.21% on average per year.
EPS Next Y7.39%
EPS Next 2Y7.16%
EPS Next 3Y7.29%
EPS Next 5Y5.7%
Revenue Next Year4.11%
Revenue Next 2Y3.99%
Revenue Next 3Y4.21%
Revenue Next 5YN/A
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
With a Price/Earnings ratio of 15.87, NTRS is valued correctly.
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 27.51.
Based on the Price/Forward Earnings ratio of 14.20, the valuation of NTRS can be described as correct.
NTRS's Price/Forward Earnings is on the same level as the industry average.
NTRS's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 35.58.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.87 | ||
| Fwd PE | 14.2 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NTRS is valued cheaply inside the industry as 92.70% of the companies are valued more expensively.
78.54% 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 | 8.38 | ||
| EV/EBITDA | 7.37 |
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)2.15
PEG (5Y)5.75
EPS Next 2Y7.16%
EPS Next 3Y7.29%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.37%, NTRS has a reasonable but not impressive dividend return.
NTRS's Dividend Yield is comparable with the industry average which is at 7.77.
NTRS's Dividend Yield is comparable with the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.37% |
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
29.63% of the earnings are spent on dividend by NTRS. This is a low number and sustainable payout ratio.
NTRS's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP29.63%
EPS Next 2Y7.16%
EPS Next 3Y7.29%
NASDAQ:NTRS (7/15/2025, 10:14:01 AM)
125.505
-1.06 (-0.84%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners87.18%
Inst Owner Change-0.02%
Ins Owners0.81%
Ins Owner Change11.84%
Market Cap24.42B
Analysts54.29
Price Target110 (-12.35%)
Short Float %2.89%
Short Ratio2.69
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.37% |
Yearly Dividend3.21
Dividend Growth(5Y)3.64%
DP29.63%
Div Incr Years0
Div Non Decr Years25
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.21%
Min EPS beat(2)0.59%
Max EPS beat(2)9.83%
EPS beat(4)3
Avg EPS beat(4)3.2%
Min EPS beat(4)-8.4%
Max EPS beat(4)10.78%
EPS beat(8)5
Avg EPS beat(8)4.75%
EPS beat(12)5
Avg EPS beat(12)-2.91%
EPS beat(16)9
Avg EPS beat(16)-1.1%
Revenue beat(2)0
Avg Revenue beat(2)-1.52%
Min Revenue beat(2)-2.37%
Max Revenue beat(2)-0.68%
Revenue beat(4)0
Avg Revenue beat(4)-3.74%
Min Revenue beat(4)-11.65%
Max Revenue beat(4)-0.29%
Revenue beat(8)1
Avg Revenue beat(8)-3.18%
Revenue beat(12)4
Avg Revenue beat(12)-0.55%
Revenue beat(16)4
Avg Revenue beat(16)-0.87%
PT rev (1m)3.09%
PT rev (3m)-7.46%
EPS NQ rev (1m)1.07%
EPS NQ rev (3m)-0.22%
EPS NY rev (1m)2.36%
EPS NY rev (3m)-1.77%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.5%
Revenue NY rev (1m)0.59%
Revenue NY rev (3m)-0.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.87 | ||
| Fwd PE | 14.2 | ||
| P/S | 1.62 | ||
| P/FCF | 8.38 | ||
| P/OCF | 6.57 | ||
| P/B | 1.9 | ||
| P/tB | 2.49 | ||
| EV/EBITDA | 7.37 |
EPS(TTM)7.91
EY6.3%
EPS(NY)8.84
Fwd EY7.04%
FCF(TTM)14.99
FCFY11.94%
OCF(TTM)19.1
OCFY15.22%
SpS77.51
BVpS66.2
TBVpS50.39
PEG (NY)2.15
PEG (5Y)5.75
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.3% | ||
| ROE | 16.68% | ||
| ROCE | 12.32% | ||
| ROIC | 1.41% | ||
| ROICexc | 1.44% | ||
| ROICexgc | 1.56% | ||
| OM | 20.26% | ||
| PM (TTM) | 14.25% | ||
| GM | 56.93% | ||
| FCFM | 19.33% |
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-Score8
Asset Turnover0.09
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 11.43 | ||
| Debt/FCF | 50.48 | ||
| Debt/EBITDA | 38.81 | ||
| Cap/Depr | 108.68% | ||
| Cap/Sales | 5.31% | ||
| Interest Coverage | 0.42 | ||
| Cash Conversion | 98% | ||
| Profit Quality | 135.68% | ||
| Current Ratio | 0.03 | ||
| Quick Ratio | 0.03 | ||
| Altman-Z | -0.6 |
F-Score8
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)27.58%
EPS 3Y2.26%
EPS 5Y2.76%
EPS Q2Q%12.43%
EPS Next Y7.39%
EPS Next 2Y7.16%
EPS Next 3Y7.29%
EPS Next 5Y5.7%
Revenue 1Y (TTM)23.93%
Revenue growth 3Y33.14%
Revenue growth 5Y18.02%
Sales Q2Q%5.23%
Revenue Next Year4.11%
Revenue Next 2Y3.99%
Revenue Next 3Y4.21%
Revenue Next 5YN/A
EBIT growth 1Y111.39%
EBIT growth 3Y11.65%
EBIT growth 5Y7.85%
EBIT Next Year-15.33%
EBIT Next 3Y-3.84%
EBIT Next 5YN/A
FCF growth 1Y275.19%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y151.01%
OCF growth 3YN/A
OCF growth 5YN/A