NORTHERN TRUST CORP (NTRS)

US6658591044 - Common Stock

81.2  -0.28 (-0.34%)

After market: 81.2 0 (0%)

Fundamental Rating

4

Taking everything into account, NTRS scores 4 out of 10 in our fundamental rating. NTRS was compared to 206 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.



3

1. Profitability

1.1 Basic Checks

NTRS had positive earnings in the past year.
In the past year NTRS had a positive cash flow from operations.
In the past 5 years NTRS has always been profitable.
Of the past 5 years NTRS 4 years had a positive operating cash flow.

1.2 Ratios

NTRS has a worse Return On Assets (0.75%) than 73.13% of its industry peers.
NTRS has a Return On Equity of 9.25%. This is comparable to the rest of the industry: NTRS outperforms 50.25% of its industry peers.
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 82.09% 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 9.89%.
Industry RankSector Rank
ROA 0.75%
ROE 9.25%
ROIC 0.84%
ROA(3y)0.78%
ROA(5y)0.81%
ROE(3y)10.88%
ROE(5y)11.06%
ROIC(3y)0.87%
ROIC(5y)0.9%

1.3 Margins

With a Profit Margin value of 10.74%, NTRS is not doing good in the industry: 62.69% of the companies in the same industry are doing better.
In the last couple of years the Profit Margin of NTRS has declined.
Looking at the Operating Margin, with a value of 15.21%, NTRS is doing worse than 69.15% of the companies in the same industry.
NTRS's Operating Margin has declined in the last couple of years.
NTRS has a Gross Margin of 66.09%. This is in the better half of the industry: NTRS outperforms 64.68% of its industry peers.
Industry RankSector Rank
OM 15.21%
PM (TTM) 10.74%
GM 66.09%
OM growth 3Y-4.71%
OM growth 5Y-5.79%
PM growth 3Y-5.66%
PM growth 5Y-7.71%
GM growth 3YN/A
GM growth 5YN/A

2

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

NTRS has an Altman-Z score of -0.65. This is a bad value and indicates that NTRS is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of -0.65, NTRS is doing worse than 93.03% of the companies in the same industry.
NTRS has a debt to FCF ratio of 39.58. This is a negative value and a sign of low solvency as NTRS would need 39.58 years to pay back of all of its debts.
NTRS has a Debt to FCF ratio (39.58) which is comparable to the rest of the industry.
A Debt/Equity ratio of 10.38 is on the high side and indicates that NTRS has dependencies on debt financing.
NTRS has a Debt to Equity ratio of 10.38. This is amonst the worse of the industry: NTRS underperforms 90.05% of its industry peers.
Industry RankSector Rank
Debt/Equity 10.38
Debt/FCF 39.58
Altman-Z -0.65
ROIC/WACCN/A
WACCN/A

2.3 Liquidity

A Current Ratio of 0.04 indicates that NTRS may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.04, NTRS is doing worse than 96.52% of the companies in the same industry.
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 96.52% of its industry peers.
Industry RankSector Rank
Current Ratio 0.04
Quick Ratio 0.04

5

3. Growth

3.1 Past

The earnings per share for NTRS have decreased strongly by -28.20% 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.
NTRS shows a strong growth in Revenue. In the last year, the Revenue has grown by 43.35%.
Measured over the past years, NTRS shows a small growth in Revenue. The Revenue has been growing by 1.11% on average per year.
EPS 1Y (TTM)-28.2%
EPS 3Y0.22%
EPS 5Y-1.46%
EPS growth Q2Q-17.22%
Revenue 1Y (TTM)43.35%
Revenue growth 3Y3.23%
Revenue growth 5Y1.11%
Revenue growth Q2Q51.19%

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.
Based on estimates for the next years, NTRS will show a small growth in Revenue. The Revenue will grow by 3.86% on average per year.
EPS Next Y5.06%
EPS Next 2Y7.1%
EPS Next 3Y7.9%
EPS Next 5Y11.77%
Revenue Next Year2.18%
Revenue Next 2Y3.24%
Revenue Next 3Y3.86%
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 accelerating: in the next years the growth will be better than in the last years.

5

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 15.41, the valuation of NTRS can be described as correct.
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 25.81.
NTRS is valuated correctly with a Price/Forward Earnings ratio of 12.84.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NTRS is on the same level as its industry peers.
NTRS's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.49.
Industry RankSector Rank
PE 15.41
Fwd PE 12.84

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NTRS indicates a rather cheap valuation: NTRS is cheaper than 80.60% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, NTRS is valued cheaply inside the industry as 90.05% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 5.08
EV/EBITDA 10.17

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates NTRS does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)3.04
PEG (5Y)N/A
EPS Next 2Y7.1%
EPS Next 3Y7.9%

6

5. Dividend

5.1 Amount

NTRS has a Yearly Dividend Yield of 3.75%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 7.98, 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 2.45.
Industry RankSector Rank
Dividend Yield 3.75%

5.2 History

The dividend of NTRS is nicely growing with an annual growth rate of 16.47%!
NTRS has paid a dividend for at least 10 years, which is 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)16.47%
Div Incr Years2
Div Non Decr Years20

5.3 Sustainability

NTRS pays out 76.45% of its income as dividend. This is not a sustainable payout ratio.
NTRS's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP76.45%
EPS Next 2Y7.1%
EPS Next 3Y7.9%

NORTHERN TRUST CORP

NASDAQ:NTRS (2/26/2024, 7:00:01 PM)

After market: 81.2 0 (0%)

81.2

-0.28 (-0.34%)

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 Cap16.66B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 3.75%
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 RankSector Rank
PE 15.41
Fwd PE 12.84
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)3.04
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 0.75%
ROE 9.25%
ROCE
ROIC
ROICexc
ROICexgc
OM 15.21%
PM (TTM) 10.74%
GM 66.09%
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 RankSector Rank
Debt/Equity 10.38
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)-28.2%
EPS 3Y0.22%
EPS 5Y
EPS growth Q2Q
EPS Next Y5.06%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)43.35%
Revenue growth 3Y3.23%
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