NORTHERN TRUST CORP (NTRS)
US6658591044 - Common Stock
NTRS gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 222 industry peers in the Capital Markets industry. Both the profitability and financial health of NTRS have multiple concerns. 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.
NTRS had a positive operating cash flow in the past year.
NTRS had positive earnings in each of the past 5 years.
Each year in the past 5 years NTRS had a positive operating cash flow.
1.2 Ratios
NTRS's Return On Assets of 0.60% is on the low side compared to the rest of the industry. NTRS is outperformed by 71.76% of its industry peers.
NTRS has a Return On Equity (7.72%) which is in line with its industry peers.
Looking at the Return On Invested Capital, with a value of 0.73%, NTRS is doing worse than 79.17% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for NTRS is significantly below the industry average of 7.96%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.6% | ||
| ROE | 7.72% | ||
| ROIC | 0.73% |
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
NTRS's Profit Margin of 7.68% is on the low side compared to the rest of the industry. NTRS is outperformed by 67.13% of its industry peers.
In the last couple of years the Profit Margin of NTRS has declined.
The Operating Margin of NTRS (11.88%) is worse than 69.44% of its industry peers.
NTRS's Operating Margin has declined in the last couple of years.
NTRS's Gross Margin of 54.87% is in line compared to the rest of the industry. NTRS outperforms 57.87% of its industry peers.
In the last couple of years the Gross Margin of NTRS has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.88% | ||
| PM (TTM) | 7.68% | ||
| GM | 54.87% |
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
NTRS has less shares outstanding than it did 1 year ago.
NTRS has less shares outstanding than it did 5 years ago.
The debt/assets ratio for NTRS has been reduced compared to a year ago.
2.2 Solvency
NTRS has an Altman-Z score of -0.67. This is a bad value and indicates that NTRS is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of NTRS (-0.67) is worse than 89.81% of its industry peers.
The Debt to FCF ratio of NTRS is 211.63, which is on the high side as it means it would take NTRS, 211.63 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of NTRS (211.63) is worse than 65.74% of its industry peers.
A Debt/Equity ratio of 11.06 is on the high side and indicates that NTRS has dependencies on debt financing.
The Debt to Equity ratio of NTRS (11.06) is worse than 92.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 11.06 | ||
| Debt/FCF | 211.63 | ||
| Altman-Z | -0.67 |
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's Current ratio of 0.04 is on the low side compared to the rest of the industry. NTRS is outperformed by 96.76% of its industry peers.
A Quick Ratio of 0.04 indicates that NTRS may have some problems paying its short term obligations.
With a Quick ratio value of 0.04, NTRS is not doing good in the industry: 96.76% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.04 | ||
| Quick Ratio | 0.04 |
3. Growth
3.1 Past
NTRS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.05%, which is quite good.
The Earnings Per Share has been decreasing by -1.46% on average over the past years.
The Revenue has grown by 31.83% 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)15.05%
EPS 3Y0.22%
EPS 5Y-1.46%
EPS Q2Q%14.1%
Revenue 1Y (TTM)31.83%
Revenue growth 3Y22.28%
Revenue growth 5Y11.92%
Sales Q2Q%4.97%
3.2 Future
The Earnings Per Share is expected to grow by 9.40% on average over the next years. This is quite good.
NTRS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.05% yearly.
EPS Next Y17.23%
EPS Next 2Y9.69%
EPS Next 3Y9.5%
EPS Next 5Y9.4%
Revenue Next Year5.45%
Revenue Next 2Y4.17%
Revenue Next 3Y4.05%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 13.93, NTRS is valued correctly.
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 24.41, which is the current average of the S&P500 Index.
NTRS is valuated correctly with a Price/Forward Earnings ratio of 12.35.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NTRS is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 20.59. NTRS is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.93 | ||
| Fwd PE | 12.35 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NTRS is valued cheaper than 81.02% of the companies in the same industry.
NTRS's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.58 | ||
| EV/EBITDA | 12.74 |
4.3 Compensation for Growth
NTRS's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.81
PEG (5Y)N/A
EPS Next 2Y9.69%
EPS Next 3Y9.5%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.47%, NTRS has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 7.46, NTRS has a dividend in line with its industry peers.
NTRS's Dividend Yield is rather good when compared to the S&P500 average which is at 2.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.47% |
5.2 History
On average, the dividend of NTRS grows each year by 9.60%, which is quite nice.
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)9.6%
Div Incr Years2
Div Non Decr Years24
5.3 Sustainability
NTRS pays out 70.65% of its income as dividend. This is not a sustainable payout ratio.
The dividend of NTRS is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP70.65%
EPS Next 2Y9.69%
EPS Next 3Y9.5%
NORTHERN TRUST CORP
NASDAQ:NTRS (7/26/2024, 7:00:01 PM)
After market: 89.43 0 (0%)89.43
+1.45 (+1.65%)
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 Cap18.30B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.47% |
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)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
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 | 13.93 | ||
| Fwd PE | 12.35 | ||
| 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)0.81
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.6% | ||
| ROE | 7.72% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 11.88% | ||
| PM (TTM) | 7.68% | ||
| GM | 54.87% | ||
| 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 Turnover0.08
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 11.06 | ||
| 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)
High Growth Momentum
Growth
EPS 1Y (TTM)15.05%
EPS 3Y0.22%
EPS 5Y
EPS Q2Q%
EPS Next Y17.23%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)31.83%
Revenue growth 3Y22.28%
Revenue growth 5Y
Sales 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