NORTHERN TRUST CORP (NTRS) Stock Fundamental Analysis
USA - NASDAQ:NTRS - US6658591044 - Common Stock
131.6 USD
-0.62 (-0.47%)
Overall NTRS gets a fundamental rating of 3 out of 10. We evaluated NTRS against 237 industry peers in the Capital Markets industry. NTRS has a bad profitability rating. Also its financial health evaluation is rather negative. NTRS has a correct valuation and a medium 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.
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
NTRS's Return On Assets of 0.98% is on the low side compared to the rest of the industry. NTRS is outperformed by 65.82% of its industry peers.
NTRS's Return On Equity of 13.03% is fine compared to the rest of the industry. NTRS outperforms 70.04% of its industry peers.
The Return On Invested Capital of NTRS (1.01%) is worse than 70.89% of its industry peers.
The Average Return On Invested Capital over the past 3 years for NTRS is significantly below the industry average of 7.61%.
| 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 in line with its industry peers.
NTRS's Profit Margin has declined in the last couple of years.
NTRS's Operating Margin of 16.30% is on the low side compared to the rest of the industry. NTRS is outperformed by 63.71% of its industry peers.
NTRS's Operating Margin has declined in the last couple of years.
NTRS's Gross Margin of 56.19% is fine compared to the rest of the industry. NTRS outperforms 66.24% 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.
The number of shares outstanding for NTRS has been reduced compared to 5 years ago.
Compared to 1 year ago, NTRS has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of -0.63, we must say that NTRS is in the distress zone and has some risk of bankruptcy.
NTRS has a worse Altman-Z score (-0.63) than 78.90% 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.
Looking at the Debt to FCF ratio, with a value of 87.39, NTRS is in line with its industry, outperforming 42.62% of the companies in the same industry.
A Debt/Equity ratio of 11.95 is on the high side and indicates that NTRS has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 11.95, NTRS is doing worse than 90.72% of the companies in the same industry.
| 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 worse Current ratio (0.04) than 95.36% of its industry peers.
A Quick Ratio of 0.04 indicates that NTRS may have some problems paying 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 95.36% 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.
The Earnings Per Share has been growing slightly by 2.76% on average over the past years.
The Revenue has been growing slightly by 0.57% in the past year.
The Revenue has been growing by 18.02% on average over the past years. This is quite good.
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%7.8%
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 Year4.34%
Revenue Next 2Y3.99%
Revenue Next 3Y4.18%
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.
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
The Price/Earnings ratio is 15.93, which indicates a correct valuation of NTRS.
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 27.41, which is the current average of the S&P500 Index.
NTRS is valuated correctly with a Price/Forward Earnings ratio of 14.13.
NTRS's Price/Forward Earnings is on the same level as the industry average.
NTRS's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.88.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.93 | ||
| Fwd PE | 14.13 |
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 89.45% of the companies listed in the same industry.
NTRS's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. NTRS is cheaper than 64.98% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.31 | ||
| EV/EBITDA | 9.11 |
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)1.28
PEG (5Y)5.77
EPS Next 2Y9.98%
EPS Next 3Y9.36%
5. Dividend
5.1 Amount
NTRS has a Yearly Dividend Yield of 2.47%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 7.96, NTRS has a dividend in line with its industry peers.
NTRS's Dividend Yield is comparable with the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.47% |
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%
NASDAQ:NTRS (9/19/2025, 2:37:46 PM)
131.6
-0.62 (-0.47%)
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-0.29%
Market Cap25.17B
Analysts55
Price Target126.02 (-4.24%)
Short Float %1.51%
Short Ratio2.24
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.47% |
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)2.1%
PT rev (3m)18.09%
EPS NQ rev (1m)0.66%
EPS NQ rev (3m)9.73%
EPS NY rev (1m)4.73%
EPS NY rev (3m)7.21%
Revenue NQ rev (1m)0.1%
Revenue NQ rev (3m)3.26%
Revenue NY rev (1m)0.52%
Revenue NY rev (3m)2.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.93 | ||
| Fwd PE | 14.13 | ||
| P/S | 1.8 | ||
| P/FCF | 14.31 | ||
| P/OCF | 9.7 | ||
| P/B | 1.96 | ||
| P/tB | 2.58 | ||
| EV/EBITDA | 9.11 |
EPS(TTM)8.26
EY6.28%
EPS(NY)9.31
Fwd EY7.08%
FCF(TTM)9.2
FCFY6.99%
OCF(TTM)13.57
OCFY10.31%
SpS73.21
BVpS67.28
TBVpS50.93
PEG (NY)1.28
PEG (5Y)5.77
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%7.8%
Revenue Next Year4.34%
Revenue Next 2Y3.99%
Revenue Next 3Y4.18%
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