NORTHERN TRUST CORP (NTRS) Stock Fundamental Analysis
NASDAQ:NTRS - US6658591044 - Common Stock
131.28 USD
+0.29 (+0.22%)
131.28 USD
0 (0%)
We assign a fundamental rating of 3 out of 10 to NTRS. NTRS was compared to 238 industry peers in the Capital Markets industry. NTRS has a bad profitability rating. Also its financial health evaluation is rather negative. 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.
NTRS had a positive operating cash flow in the past year.
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 Return On Assets of 0.98%. This is in the lower half of the industry: NTRS underperforms 64.71% of its industry peers.
NTRS has a Return On Equity of 13.03%. This is in the better half of the industry: NTRS outperforms 70.17% of its industry peers.
With a Return On Invested Capital value of 1.01%, NTRS is not doing good in the industry: 70.59% of the companies in the same industry are doing better.
Measured over the past 3 years, the Average Return On Invested Capital for NTRS is significantly below the industry average of 7.60%.
| 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
With a Profit Margin value of 11.98%, NTRS perfoms like the industry average, outperforming 43.70% of the companies in the same industry.
NTRS's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 16.30%, NTRS is not doing good in the industry: 63.87% of the companies in the same industry are doing better.
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 66.39% 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
NTRS has less shares outstanding than it did 1 year ago.
NTRS has less shares outstanding than it did 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 78.99% of its industry peers.
NTRS has a debt to FCF ratio of 87.39. This is a negative value and a sign of low solvency as NTRS would need 87.39 years to pay back of all of its debts.
The Debt to FCF ratio of NTRS (87.39) is comparable to the rest of the industry.
NTRS has a Debt/Equity ratio of 11.95. This is a high value indicating a heavy dependency on external financing.
NTRS has a worse Debt to Equity ratio (11.95) than 90.34% 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.
With a Current ratio value of 0.04, NTRS is not doing good in the industry: 94.96% of the companies in the same industry are doing better.
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 94.96% 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 28.66% over the past year.
NTRS shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.76% yearly.
Looking at the last year, NTRS shows a small growth in Revenue. The Revenue has grown by 0.57% in the last year.
NTRS shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 18.02% yearly.
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%7.52%
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 Y12.47%
EPS Next 2Y9.98%
EPS Next 3Y9.36%
EPS Next 5Y7.66%
Revenue Next Year4.3%
Revenue Next 2Y3.98%
Revenue Next 3Y4.15%
Revenue Next 5Y3.48%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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 15.89, NTRS is valued correctly.
The rest of the industry has a similar Price/Earnings ratio as NTRS.
NTRS is valuated rather cheaply when we compare the Price/Earnings ratio to 27.08, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 14.09, NTRS is valued correctly.
NTRS's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.72, NTRS is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.89 | ||
| Fwd PE | 14.09 |
4.2 Price Multiples
NTRS's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. NTRS is cheaper than 89.92% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, NTRS is valued a bit cheaper than 67.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.27 | ||
| EV/EBITDA | 9.04 |
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)1.27
PEG (5Y)5.76
EPS Next 2Y9.98%
EPS Next 3Y9.36%
5. Dividend
5.1 Amount
NTRS has a Yearly Dividend Yield of 2.51%.
Compared to an average industry Dividend Yield of 7.99, NTRS has a dividend in line with its industry peers.
NTRS's Dividend Yield is comparable with the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.51% |
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
NTRS pays out 37.49% of its income as dividend. This is a sustainable payout ratio.
The dividend of NTRS is growing, but earnings are growing more, so the dividend growth is sustainable.
DP37.49%
EPS Next 2Y9.98%
EPS Next 3Y9.36%
131.28
+0.29 (+0.22%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners87.01%
Inst Owner Change-1.44%
Ins Owners0.81%
Ins Owner Change-3.16%
Market Cap25.10B
Analysts55.24
Price Target123.33 (-6.06%)
Short Float %1.57%
Short Ratio1.5
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.51% |
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)-0.5%
Min Revenue beat(2)-2.11%
Max Revenue beat(2)1.11%
Revenue beat(4)1
Avg Revenue beat(4)-0.49%
Min Revenue beat(4)-2.11%
Max Revenue beat(4)1.11%
Revenue beat(8)2
Avg Revenue beat(8)-2.79%
Revenue beat(12)4
Avg Revenue beat(12)-0.45%
Revenue beat(16)5
Avg Revenue beat(16)-0.61%
PT rev (1m)3.61%
PT rev (3m)16.86%
EPS NQ rev (1m)5.16%
EPS NQ rev (3m)3.56%
EPS NY rev (1m)4.73%
EPS NY rev (3m)7.21%
Revenue NQ rev (1m)1.73%
Revenue NQ rev (3m)1.13%
Revenue NY rev (1m)1.52%
Revenue NY rev (3m)2.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.89 | ||
| Fwd PE | 14.09 | ||
| P/S | 1.79 | ||
| P/FCF | 14.27 | ||
| P/OCF | 9.67 | ||
| P/B | 1.95 | ||
| P/tB | 2.58 | ||
| EV/EBITDA | 9.04 |
EPS(TTM)8.26
EY6.29%
EPS(NY)9.31
Fwd EY7.09%
FCF(TTM)9.2
FCFY7.01%
OCF(TTM)13.57
OCFY10.34%
SpS73.21
BVpS67.28
TBVpS50.93
PEG (NY)1.27
PEG (5Y)5.76
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 Y12.47%
EPS Next 2Y9.98%
EPS Next 3Y9.36%
EPS Next 5Y7.66%
Revenue 1Y (TTM)0.57%
Revenue growth 3Y33.14%
Revenue growth 5Y18.02%
Sales Q2Q%7.52%
Revenue Next Year4.3%
Revenue Next 2Y3.98%
Revenue Next 3Y4.15%
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