NORTHERN TRUST CORP (NTRS) Stock Fundamental Analysis
USA - NASDAQ:NTRS - US6658591044 - Common Stock
128.3 USD
+0.11 (+0.09%)
128.3 USD
0 (0%)
Taking everything into account, NTRS scores 3 out of 10 in our fundamental rating. NTRS was compared to 237 industry peers in the Capital Markets industry. NTRS may be in some trouble as it scores bad on both profitability and health. NTRS is not valued too expensively and it also shows a decent growth rate.
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.
Of the past 5 years NTRS 4 years had a positive operating cash flow.
1.2 Ratios
The Return On Assets of NTRS (0.98%) is worse than 66.24% of its industry peers.
NTRS has a better Return On Equity (13.03%) than 69.62% of its industry peers.
Looking at the Return On Invested Capital, with a value of 1.01%, NTRS is doing worse than 69.20% of the companies in the same industry.
NTRS had an Average Return On Invested Capital over the past 3 years of 1.06%. This is significantly below the industry average of 7.63%.
| 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 (11.98%) which is comparable to the rest of the industry.
NTRS's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 16.30%, NTRS is doing worse than 62.45% of the companies in the same industry.
In the last couple of years the Operating Margin of NTRS has declined.
NTRS has a Gross Margin of 56.19%. This is in the better half of the industry: NTRS outperforms 67.93% of its industry peers.
In the last couple of years the Gross Margin of NTRS has declined.
| 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
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.
NTRS has a worse debt/assets ratio than last year.
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's Altman-Z score of -0.63 is on the low side compared to the rest of the industry. NTRS is outperformed by 81.01% 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's Debt to FCF ratio of 87.39 is in line compared to the rest of the industry. NTRS outperforms 43.88% of its industry peers.
NTRS has a Debt/Equity ratio of 11.95. This is a high value indicating a heavy dependency on external financing.
NTRS has a Debt to Equity ratio of 11.95. This is amonst the worse of the industry: NTRS underperforms 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
NTRS has a Current 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 Current ratio of 0.04. This is amonst the worse of the industry: NTRS underperforms 95.78% 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 worse Quick ratio (0.04) than 95.78% 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 24.35% 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 very negative growth in Revenue. In the last year, the Revenue has decreased by -16.36%.
Measured over the past years, NTRS shows a quite strong growth in Revenue. The Revenue has been growing by 18.02% on average per year.
EPS 1Y (TTM)24.35%
EPS 3Y2.26%
EPS 5Y2.76%
EPS Q2Q%16.24%
Revenue 1Y (TTM)-16.36%
Revenue growth 3Y33.14%
Revenue growth 5Y18.02%
Sales Q2Q%6.47%
3.2 Future
NTRS is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.66% yearly.
The Revenue is expected to grow by 3.48% on average over the next years.
EPS Next Y13.59%
EPS Next 2Y10.68%
EPS Next 3Y10.1%
EPS Next 5Y7.66%
Revenue Next Year4.62%
Revenue Next 2Y4.19%
Revenue Next 3Y4.35%
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
With a Price/Earnings ratio of 14.95, NTRS is valued correctly.
NTRS's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 25.67, NTRS is valued a bit cheaper.
The Price/Forward Earnings ratio is 13.60, which indicates a correct valuation of NTRS.
NTRS's Price/Forward Earnings ratio is in line with the industry average.
NTRS is valuated cheaply when we compare the Price/Forward Earnings ratio to 31.86, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.95 | ||
| Fwd PE | 13.6 |
4.2 Price Multiples
88.19% of the companies in the same industry are more expensive than NTRS, based on the Enterprise Value to EBITDA ratio.
NTRS's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. NTRS is cheaper than 65.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.95 | ||
| EV/EBITDA | 8.86 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.1
PEG (5Y)5.42
EPS Next 2Y10.68%
EPS Next 3Y10.1%
5. Dividend
5.1 Amount
NTRS has a Yearly Dividend Yield of 2.52%.
Compared to an average industry Dividend Yield of 8.39, NTRS has a dividend in line with its industry peers.
NTRS's Dividend Yield is comparable with the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.52% |
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
37.49% of the earnings are spent on dividend by NTRS. This is a low number and sustainable payout ratio.
The dividend of NTRS is growing, but earnings are growing more, so the dividend growth is sustainable.
DP37.49%
EPS Next 2Y10.68%
EPS Next 3Y10.1%
128.3
+0.11 (+0.09%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners88.38%
Inst Owner Change-0.79%
Ins Owners0.84%
Ins Owner Change-1.49%
Market Cap24.53B
Revenue(TTM)12.28B
Net Income(TTM)1.68B
Analysts56.19
Price Target137.77 (7.38%)
Short Float %1.33%
Short Ratio2.26
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.52% |
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)9.33%
PT rev (3m)15.75%
EPS NQ rev (1m)1.99%
EPS NQ rev (3m)2.81%
EPS NY rev (1m)0.86%
EPS NY rev (3m)5.77%
Revenue NQ rev (1m)0.53%
Revenue NQ rev (3m)0.68%
Revenue NY rev (1m)0.2%
Revenue NY rev (3m)0.79%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.95 | ||
| Fwd PE | 13.6 | ||
| P/S | 1.75 | ||
| P/FCF | 13.95 | ||
| P/OCF | 9.45 | ||
| P/B | 1.91 | ||
| P/tB | 2.52 | ||
| EV/EBITDA | 8.86 |
EPS(TTM)8.58
EY6.69%
EPS(NY)9.43
Fwd EY7.35%
FCF(TTM)9.2
FCFY7.17%
OCF(TTM)13.57
OCFY10.58%
SpS73.21
BVpS67.28
TBVpS50.93
PEG (NY)1.1
PEG (5Y)5.42
Graham Number113.97
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%
ROICexgc growth 3Y19.04%
ROICexgc 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)24.35%
EPS 3Y2.26%
EPS 5Y2.76%
EPS Q2Q%16.24%
EPS Next Y13.59%
EPS Next 2Y10.68%
EPS Next 3Y10.1%
EPS Next 5Y7.66%
Revenue 1Y (TTM)-16.36%
Revenue growth 3Y33.14%
Revenue growth 5Y18.02%
Sales Q2Q%6.47%
Revenue Next Year4.62%
Revenue Next 2Y4.19%
Revenue Next 3Y4.35%
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
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 of NORTHERN TRUST CORP (NTRS) stock?
ChartMill assigns a valuation rating of 5 / 10 to NORTHERN TRUST CORP (NTRS). This can be considered as Fairly Valued.
How profitable is NORTHERN TRUST CORP (NTRS) stock?
NORTHERN TRUST CORP (NTRS) has a profitability rating of 3 / 10.
What is the expected EPS growth for NORTHERN TRUST CORP (NTRS) stock?
The Earnings per Share (EPS) of NORTHERN TRUST CORP (NTRS) is expected to grow by 13.59% in the next year.
How sustainable is the dividend of NORTHERN TRUST CORP (NTRS) stock?
The dividend rating of NORTHERN TRUST CORP (NTRS) is 6 / 10 and the dividend payout ratio is 37.49%.