(NTRS) Northern Trust - Overview
Sector: Financial Services | Industry: Asset Management | Exchange: NASDAQ (USA) | Market Cap: 31.045m USD | Total Return: 57.9% in 12m
Avg Turnover: 159M
EPS Trend: 79.9%
Qual. Beats: 0
Rev. Trend: 72.9%
Qual. Beats: 0
Warnings
No concerns identified
Tailwinds
Confidence
Northern Trust Corporation is a Chicago-based financial holding company specializing in asset servicing, wealth management, and investment solutions. The firm operates through two primary segments: Asset Servicing, which provides custody and fund administration to institutional investors, and Wealth Management, which offers fiduciary and private banking services to high-net-worth individuals and family offices.
As a custody bank, Northern Trust generates a significant portion of its revenue from asset-based fees rather than traditional net interest margins, making its performance closely tied to global equity and fixed-income market valuations. The companys business model relies on high switching costs for institutional clients, as transitioning large-scale custody and administrative data to competitors is operationally complex.
The firm manages a diverse range of investment products, including active and passive equities, alternative assets like private equity, and multi-manager advisory services. Its global infrastructure supports complex functions such as securities lending, foreign exchange, and investment risk analytics for sovereign wealth funds and corporate retirement plans.
Investors should consult ValueRay for deeper insights into the companys valuation metrics and historical performance.
- Net interest margin sensitivity to Federal Reserve monetary policy shifts
- Growth in assets under custody drives recurring servicing fee revenue
- Expenses related to technology modernization and staff compensation impact margins
- Global equity market performance dictates asset management fee levels
- Regulatory capital requirements influence share buyback and dividend capacity
| Net Income: 1.87b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.01 > 0.02 and ΔFCF/TA -0.10 > 1.0 |
| NWC/Revenue: -772.5% < 20% (prev -407.1%; Δ -365.4% < -1%) |
| CFO/TA 0.01 > 3% & CFO 2.46b > Net Income 1.87b |
| Net Debt (-12.3b) to EBITDA (3.30b): -3.74 < 3 |
| Current Ratio: 0.28 > 1.5 & < 3 |
| Outstanding Shares: last quarter (186.5m) vs 12m ago -4.89% < -2% |
| Gross Margin: 57.34% > 18% (prev 0.54%; Δ 5.68k% > 0.5%) |
| Asset Turnover: 8.58% > 50% (prev 9.59%; Δ -1.00% > 0%) |
| Interest Coverage Ratio: 0.40 > 6 (EBITDA TTM 3.30b / Interest Expense TTM 6.22b) |
| A: -0.64 (Total Current Assets 43.2b - Total Current Liabilities 156b) / Total Assets 175b |
| B: 0.10 (Retained Earnings 17.1b / Total Assets 175b) |
| C: 0.01 (EBIT TTM 2.51b / Avg Total Assets 170b) |
| D: 0.10 (Book Value of Equity 16.8b / Total Liabilities 162b) |
| Altman-Z'' = -3.70 = D |
| DSRI: 14.15 (Receivables 535.7m/41.1m, Revenue 14.6b/15.8b) |
| GMI: 0.95 (GM 57.34% / 54.20%) |
| AQI: 1.30 (AQ_t 0.75 / AQ_t-1 0.58) |
| SGI: 0.92 (Revenue 14.6b / 15.8b) |
| TATA: -0.00 (NI 1.87b - CFO 2.46b) / TA 175b) |
| Beneish M = 7.87 (Cap -4..+1) = D |
As of May 25, 2026, the stock is trading at USD 167.77 with a total of 691,641 shares traded.
Over the past week, the price has changed by +2.39%,
over one month by +2.29%,
over three months by +19.31% and
over the past year by +57.87%.
Northern Trust has received a consensus analysts rating of 2.87. Therefore, it is recommended to hold NTRS.
- StrongBuy: 1
- Buy: 1
- Hold: 10
- Sell: 1
- StrongSell: 2
| Analysts Target Price | 171 | 1.9% |
P/E Trailing = 17.586
P/E Forward = 16.0514
P/S = 3.712
P/B = 2.5652
P/EG = 1.3147
Revenue TTM = 14.6b USD
EBIT TTM = 2.51b USD
EBITDA TTM = 3.30b USD
Long Term Debt = 14.1b USD (from longTermDebt, last quarter)
Short Term Debt = 10.1b USD (from shortTermDebt, last quarter)
Debt = 17.0b USD (from shortLongTermDebtTotal, last quarter) + Leases 663.1m
Net Debt = -12.3b USD (calculated: Debt 17.0b - CCE 29.4b)
Enterprise Value = 18.7b USD (31.0b + Debt 17.0b - CCE 29.4b)
Interest Coverage Ratio = 0.40 (Ebit TTM 2.51b / Interest Expense TTM 6.22b)
EV/FCF = 9.22x (Enterprise Value 18.7b / FCF TTM 2.03b)
FCF Yield = 10.85% (FCF TTM 2.03b / Enterprise Value 18.7b)
FCF Margin = 13.94% (FCF TTM 2.03b / Revenue TTM 14.6b)
Net Margin = 12.83% (Net Income TTM 1.87b / Revenue TTM 14.6b)
Gross Margin = 57.34% ((Revenue TTM 14.6b - Cost of Revenue TTM 6.22b) / Revenue TTM)
Gross Margin QoQ = 58.34% (prev 58.84%)
Tobins Q-Ratio = 0.11 (Enterprise Value 18.7b / Total Assets 175b)
Interest Expense / Debt = 36.52% (Interest Expense 6.22b / Debt 17.0b)
Taxrate = 24.99% (175.1m / 700.6m)
NOPAT = 1.88b (EBIT 2.51b * (1 - 24.99%))
Current Ratio = 0.16 (Total Current Assets 43.2b / Total Current Liabilities 266b)
Debt / Equity = 1.31 (Debt 17.0b / totalStockholderEquity, last quarter 13.0b)
Debt / EBITDA = -3.74 (Net Debt -12.3b / EBITDA 3.30b)
Debt / FCF = -6.07 (Net Debt -12.3b / FCF TTM 2.03b)
Total Stockholder Equity = 12.9b (last 4 quarters mean from totalStockholderEquity)
RoA = 1.10% (Net Income 1.87b / Total Assets 175b)
RoE = 14.45% (Net Income TTM 1.87b / Total Stockholder Equity 12.9b)
RoCE = 9.30% (EBIT 2.51b / Capital Employed (Equity 12.9b + L.T.Debt 14.1b))
RoIC = 1.08% (NOPAT 1.88b / Invested Capital 174b)
WACC = 16.08% (E(31.0b)/V(48.1b) * Re(9.88%) + D(17.0b)/V(48.1b) * Rd(36.52%) * (1-Tc(0.25)))
Discount Rate = 9.88% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -95.56 | Cagr: -4.62%
[DCF] Terminal Value 52.75% ; FCFF base≈2.05b ; Y1≈2.02b ; Y5≈2.06b
[DCF] Fair Price = 142.1 (EV 14.0b - Net Debt -12.3b = Equity 26.3b / Shares 185.0m; r=16.08% [WACC]; 5y FCF grow -2.27% → 2.50% )
EPS Correlation: 79.86 | EPS CAGR: 25.12% | SUE: 0.41 | # QB: 0
Revenue Correlation: 72.89 | Revenue CAGR: 12.97% | SUE: 0.64 | # QB: 0
EPS current Quarter (2026-06-30): EPS=3.12 | Chg30d=+22.47% | Revisions=+69% | Analysts=12
EPS next Quarter (2026-09-30): EPS=2.65 | Chg30d=-12.38% | Revisions=+38% | Analysts=11
EPS current Year (2026-12-31): EPS=11.23 | Chg30d=+6.25% | Revisions=+60% | GrowthEPS=+28.4% | GrowthRev=+8.9%
EPS next Year (2027-12-31): EPS=11.76 | Chg30d=+5.38% | Revisions=+75% | GrowthEPS=+4.8% | GrowthRev=+3.7%
[Analyst] Revisions Ratio: +75%