NORTHERN TRUST CORP (NTRS)
US6658591044 - Common Stock
Taking everything into account, NTRS scores 3 out of 10 in our fundamental rating. NTRS was compared to 210 industry peers in the Capital Markets industry. NTRS may be in some trouble as it scores bad on both profitability and health. 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.
Each year in the past 5 years NTRS has been profitable.
Each year in the past 5 years NTRS had a positive operating cash flow.
1.2 Ratios
NTRS has a Return On Assets of 0.70%. This is in the lower half of the industry: NTRS underperforms 72.12% of its industry peers.
NTRS has a Return On Equity (8.86%) which is comparable to the rest of the industry.
NTRS's Return On Invested Capital of 0.84% is on the low side compared to the rest of the industry. NTRS is outperformed by 78.85% 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 8.34%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.7% | ||
| ROE | 8.86% | ||
| ROIC | 0.84% |
ROA(3y)0.78%
ROA(5y)0.81%
ROE(3y)10.88%
ROE(5y)11.06%
ROIC(3y)0.88%
ROIC(5y)0.9%
1.3 Margins
Looking at the Profit Margin, with a value of 9.36%, NTRS is doing worse than 65.87% of the companies in the same industry.
In the last couple of years the Profit Margin of NTRS has declined.
NTRS has a Operating Margin of 14.09%. This is in the lower half of the industry: NTRS underperforms 67.79% of its industry peers.
NTRS's Operating Margin has declined in the last couple of years.
NTRS has a better Gross Margin (60.17%) than 61.54% of its industry peers.
In the last couple of years the Gross Margin of NTRS has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.09% | ||
| PM (TTM) | 9.36% | ||
| GM | 60.17% |
OM growth 3Y-18.92%
OM growth 5Y-14.49%
PM growth 3Y-20.36%
PM growth 5Y-16.63%
GM growth 3Y-15.32%
GM growth 5Y-8.33%
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 an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of -0.66, we must say that NTRS is in the distress zone and has some risk of bankruptcy.
NTRS has a Altman-Z score of -0.66. This is amonst the worse of the industry: NTRS underperforms 90.87% of its industry peers.
The Debt to FCF ratio of NTRS is 68.42, which is on the high side as it means it would take NTRS, 68.42 years of fcf income to pay off all of its debts.
NTRS's Debt to FCF ratio of 68.42 is on the low side compared to the rest of the industry. NTRS is outperformed by 60.10% of its industry peers.
A Debt/Equity ratio of 10.66 is on the high side and indicates that NTRS has dependencies on debt financing.
NTRS has a Debt to Equity ratio of 10.66. This is amonst the worse of the industry: NTRS underperforms 91.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 10.66 | ||
| Debt/FCF | 68.42 | ||
| Altman-Z | -0.66 |
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 worse Current ratio (0.04) than 96.15% 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's Quick ratio of 0.04 is on the low side compared to the rest of the industry. NTRS is outperformed by 96.15% 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 for NTRS have decreased by -1.95% in the last year.
Measured over the past years, NTRS shows a decrease in Earnings Per Share. The EPS has been decreasing by -1.46% on average per year.
The Revenue has grown by 50.32% in the past year. This is a very strong growth!
Measured over the past years, NTRS shows a quite strong growth in Revenue. The Revenue has been growing by 11.92% on average per year.
EPS 1Y (TTM)-1.95%
EPS 3Y0.22%
EPS 5Y-1.46%
EPS growth Q2Q105.63%
Revenue 1Y (TTM)50.32%
Revenue growth 3Y22.28%
Revenue growth 5Y11.92%
Revenue growth Q2Q51.93%
3.2 Future
NTRS is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.77% yearly.
The Revenue is expected to grow by 4.03% on average over the next years.
EPS Next Y8.26%
EPS Next 2Y7.81%
EPS Next 3Y8.31%
EPS Next 5Y11.77%
Revenue Next Year4.29%
Revenue Next 2Y3.61%
Revenue Next 3Y4.03%
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
A Price/Earnings ratio of 13.86 indicates a correct valuation of NTRS.
The rest of the industry has a similar Price/Earnings ratio as NTRS.
NTRS's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.20.
A Price/Forward Earnings ratio of 12.80 indicates a correct valuation of NTRS.
NTRS's Price/Forward Earnings is on the same level as the industry average.
NTRS is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.63, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.86 | ||
| Fwd PE | 12.8 |
4.2 Price Multiples
76.92% 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 76.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.73 | ||
| EV/EBITDA | 11.6 |
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)1.68
PEG (5Y)N/A
EPS Next 2Y7.81%
EPS Next 3Y8.31%
5. Dividend
5.1 Amount
NTRS has a Yearly Dividend Yield of 3.56%. Purely for dividend investing, there may be better candidates out there.
NTRS's Dividend Yield is comparable with the industry average which is at 7.77.
NTRS's Dividend Yield is a higher than the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.56% |
5.2 History
On average, the dividend of NTRS grows each year by 9.60%, which is quite nice.
NTRS has been paying a dividend for at least 10 years, so it has a reliable track record.
NTRS has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)9.6%
Div Incr Years2
Div Non Decr Years19
5.3 Sustainability
62.94% of the earnings are spent on dividend by NTRS. This is not a sustainable payout ratio.
The dividend of NTRS is growing, but earnings are growing more, so the dividend growth is sustainable.
DP62.94%
EPS Next 2Y7.81%
EPS Next 3Y8.31%
NORTHERN TRUST CORP
NASDAQ:NTRS (4/25/2024, 7:08:21 PM)
Premarket: 83.5 +0.06 (+0.07%)83.44
-0.86 (-1.02%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap17.02B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.56% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
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Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.86 | ||
| Fwd PE | 12.8 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.68
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.7% | ||
| ROE | 8.86% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 14.09% | ||
| PM (TTM) | 9.36% | ||
| GM | 60.17% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.07
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 10.66 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.04 | ||
| Quick Ratio | 0.04 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-1.95%
EPS 3Y0.22%
EPS 5Y
EPS growth Q2Q
EPS Next Y8.26%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)50.32%
Revenue growth 3Y22.28%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y