(NTRS) Northern Trust - Overview
Sector: Financial Services | Industry: Asset Management | Exchange: NASDAQ (USA) | Market Cap: 28.865m USD | Total Return: 75.8% in 12m
Industry Rotation: +1.7
Avg Turnover: 137M USD
Peers RS (IBD): 89.8
EPS Trend: 38.8%
Qual. Beats: 0
Rev. Trend: 84.0%
Qual. Beats: 1
Warnings
No concerns identified
Tailwinds
No distinct edge detected
Northern Trust Corporation (NASDAQ: NTRS) is a diversified financial holding company that delivers wealth management, asset servicing, asset management, and banking solutions to corporations, institutions, families, and individuals worldwide. Its operations are split between two primary segments: Asset Servicing, which provides custody, fund administration, securities lending, treasury and cash management, and related services to institutional clients; and Wealth Management, which offers trust, investment, brokerage, and private banking services to high-net-worth individuals and privately-held businesses.
In its most recent quarter (Q4 2025), Northern Trust reported record asset-under-management (AUM) of approximately $1.4 trillion, revenue of $7.2 billion and net income of $12.3 billion, translating to a return on equity (ROE) of 12.5%-the highest in its five-year history.
Key drivers for the firm include the continued growth of the global wealth-management market, which is projected to expand at a 6% CAGR through 2028, and heightened demand for sophisticated asset-servicing solutions as regulatory complexity rises for institutional investors. Additionally, low-interest-rate environments have boosted demand for fee-based advisory and custody services.
For a deeper dive into Northern Trust’s valuation and outlook, you might want to explore the analysis on ValueRay.
- Global market volatility impacts asset servicing fees
- Interest rate fluctuations influence net interest income
- Wealth management growth tied to high-net-worth client acquisition
- Regulatory compliance costs pressure operating margins
| Net Income: 1.74b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.03 > 0.02 and ΔFCF/TA 3.46 > 1.0 |
| NWC/Revenue: -643.1% < 20% (prev -431.6%; Δ -211.5% < -1%) |
| CFO/TA 0.03 > 3% & CFO 5.53b > Net Income 1.74b |
| Net Debt (-44.70b) to EBITDA (3.21b): -13.90 < 3 |
| Current Ratio: 0.41 > 1.5 & < 3 |
| Outstanding Shares: last quarter (188.6m) vs 12m ago -4.81% < -2% |
| Gross Margin: 56.54% > 18% (prev 0.52%; Δ 5.60k% > 0.5%) |
| Asset Turnover: 8.60% > 50% (prev 10.21%; Δ -1.61% > 0%) |
| Interest Coverage Ratio: 0.38 > 6 (EBITDA TTM 3.21b / Interest Expense TTM 6.21b) |
| A: -0.52 (Total Current Assets 63.78b - Total Current Liabilities 155.74b) / Total Assets 177.13b |
| B: 0.07 (Retained Earnings 12.66b / Total Assets 177.13b) |
| C: 0.01 (EBIT TTM 2.33b / Avg Total Assets 166.32b) |
| D: 0.15 (Book Value of Equity 24.15b / Total Liabilities 164.17b) |
| Altman-Z'' Score: -2.92 = D |
Over the past week, the price has changed by +7.44%, over one month by +12.47%, over three months by +6.61% and over the past year by +75.78%.
- StrongBuy: 1
- Buy: 1
- Hold: 10
- Sell: 1
- StrongSell: 2
| Analysts Target Price | 154.6 | 0.4% |
P/E Forward = 13.8889
P/S = 3.5663
P/B = 2.1835
P/EG = 1.1773
Revenue TTM = 14.30b USD
EBIT TTM = 2.33b USD
EBITDA TTM = 3.21b USD
Long Term Debt = 13.99b USD (from longTermDebt, last quarter)
Short Term Debt = 12.94b USD (from shortTermDebt, last quarter)
Debt = 16.43b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = -44.70b USD (from netDebt column, last quarter)
Enterprise Value = 28.86b USD (floored to Market Cap, CCE > MCap+Debt)
Interest Coverage Ratio = 0.38 (Ebit TTM 2.33b / Interest Expense TTM 6.21b)
EV/FCF = 6.10x (Enterprise Value 28.86b / FCF TTM 4.73b)
FCF Yield = 16.40% (FCF TTM 4.73b / Enterprise Value 28.86b)
FCF Margin = 33.11% (FCF TTM 4.73b / Revenue TTM 14.30b)
Net Margin = 12.15% (Net Income TTM 1.74b / Revenue TTM 14.30b)
Gross Margin = 56.54% ((Revenue TTM 14.30b - Cost of Revenue TTM 6.21b) / Revenue TTM)
Gross Margin QoQ = 58.84% (prev 57.07%)
Tobins Q-Ratio = 0.16 (Enterprise Value 28.86b / Total Assets 177.13b)
Interest Expense / Debt = 9.04% (Interest Expense 1.49b / Debt 16.43b)
Taxrate = 26.48% (167.8m / 633.8m)
NOPAT = 1.71b (EBIT 2.33b * (1 - 26.48%))
Current Ratio = 0.41 (Total Current Assets 63.78b / Total Current Liabilities 155.74b)
Debt / Equity = 1.27 (Debt 16.43b / totalStockholderEquity, last quarter 12.96b)
Debt / EBITDA = -13.90 (Net Debt -44.70b / EBITDA 3.21b)
Debt / FCF = -9.44 (Net Debt -44.70b / FCF TTM 4.73b)
Total Stockholder Equity = 12.91b (last 4 quarters mean from totalStockholderEquity)
RoA = 1.04% (Net Income 1.74b / Total Assets 177.13b)
RoE = 13.45% (Net Income TTM 1.74b / Total Stockholder Equity 12.91b)
RoCE = 8.66% (EBIT 2.33b / Capital Employed (Equity 12.91b + L.T.Debt 13.99b))
RoIC = 6.69% (NOPAT 1.71b / Invested Capital 25.63b)
WACC = 8.78% (E(28.86b)/V(45.29b) * Re(9.99%) + D(16.43b)/V(45.29b) * Rd(9.04%) * (1-Tc(0.26)))
Discount Rate = 9.99% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: -100.0 | Cagr: -4.43%
[DCF] Terminal Value 72.67% ; FCFF base≈4.73b ; Y1≈4.00b ; Y5≈3.02b
[DCF] Fair Price = 503.6 (EV 48.62b - Net Debt -44.70b = Equity 93.32b / Shares 185.3m; r=8.78% [WACC]; 5y FCF grow -18.91% → 3.0% )
EPS Correlation: 38.81 | EPS CAGR: 8.70% | SUE: 0.06 | # QB: 0
Revenue Correlation: 84.00 | Revenue CAGR: 21.82% | SUE: 2.85 | # QB: 1
EPS next Quarter (2026-06-30): EPS=2.54 | Chg7d=+0.026 | Chg30d=+0.020 | Revisions Net=-2 | Analysts=10
EPS current Year (2026-12-31): EPS=10.52 | Chg7d=+0.104 | Chg30d=+0.480 | Revisions Net=+4 | Growth EPS=+20.4% | Growth Revenue=+7.9%
EPS next Year (2027-12-31): EPS=11.15 | Chg7d=+0.087 | Chg30d=+0.155 | Revisions Net=+2 | Growth EPS=+6.0% | Growth Revenue=+2.1%
[Analyst] Revisions Ratio: -1.00 (0 Up / 2 Down within 30d for Next Quarter)
[Growth] Implied Growth Rate = 4.2% (Discount Rate 10.0% - Earnings Yield 5.8%)
[Growth] Growth Spread = +2.1% (Analyst 6.4% - Implied 4.2%)