(NTRS) Northern Trust - Overview
Sector: Financial Services | Industry: Asset Management | Exchange: NASDAQ (USA) | Market Cap: 29.683m USD | Total Return: 56.3% in 12m
Industry Rotation: +5.0
Avg Turnover: 169M
EPS Trend: 46.9%
Qual. Beats: 0
Rev. Trend: 79.2%
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 -0.71 > 1.0 |
| NWC/Revenue: 226.6% < 20% (prev -407.1%; Δ 633.7% < -1%) |
| CFO/TA 0.01 > 3% & CFO 2.46b > Net Income 1.87b |
| Net Debt (-43.80b) to EBITDA (3.20b): -13.67 < 3 |
| Current Ratio: 4.26 > 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: 0.29 > 6 (EBITDA TTM 3.20b / Interest Expense TTM 6.22b) |
| A: 0.19 (Total Current Assets 43.16b - Total Current Liabilities 10.14b) / Total Assets 174.57b |
| B: 0.10 (Retained Earnings 17.07b / Total Assets 174.57b) |
| C: 0.01 (EBIT TTM 1.81b / Avg Total Assets 169.82b) |
| D: 0.10 (Book Value of Equity 16.84b / Total Liabilities 161.59b) |
| Altman-Z'' Score: 1.74 = BBB |
| DSRI: 14.15 (Receivables 535.7m/41.1m, Revenue 14.57b/15.82b) |
| GMI: 0.95 (GM 57.34% / 54.20%) |
| AQI: 1.30 (AQ_t 0.75 / AQ_t-1 0.58) |
| SGI: 0.92 (Revenue 14.57b / 15.82b) |
| TATA: -0.00 (NI 1.87b - CFO 2.46b) / TA 174.57b) |
| Beneish M-Score: 7.87 (Cap -4..+1) = D |
Over the past week, the price has changed by +2.15%, over one month by +4.99%, over three months by +11.92% and over the past year by +56.31%.
- StrongBuy: 1
- Buy: 1
- Hold: 10
- Sell: 1
- StrongSell: 2
| Analysts Target Price | 169.7 | 3.6% |
P/E Forward = 15.3374
P/S = 3.5492
P/B = 2.4527
P/EG = 1.257
Revenue TTM = 14.57b USD
EBIT TTM = 1.81b USD
EBITDA TTM = 3.20b USD
Long Term Debt = 14.07b USD (from longTermDebt, last quarter)
Short Term Debt = 10.14b USD (from shortTermDebt, last quarter)
Debt = 16.37b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = -43.80b USD (recalculated: Debt 16.37b - CCE 60.17b)
Enterprise Value = 29.68b USD (floored to Market Cap, CCE > MCap+Debt)
Interest Coverage Ratio = 0.29 (Ebit TTM 1.81b / Interest Expense TTM 6.22b)
EV/FCF = 16.14x (Enterprise Value 29.68b / FCF TTM 1.84b)
FCF Yield = 6.19% (FCF TTM 1.84b / Enterprise Value 29.68b)
FCF Margin = 12.62% (FCF TTM 1.84b / Revenue TTM 14.57b)
Net Margin = 12.83% (Net Income TTM 1.87b / Revenue TTM 14.57b)
Gross Margin = 57.34% ((Revenue TTM 14.57b - Cost of Revenue TTM 6.22b) / Revenue TTM)
Gross Margin QoQ = 58.34% (prev 58.84%)
Tobins Q-Ratio = 0.17 (Enterprise Value 29.68b / Total Assets 174.57b)
Interest Expense / Debt = 9.65% (Interest Expense 1.58b / Debt 16.37b)
Taxrate = 24.99% (175.1m / 700.6m)
NOPAT = 1.36b (EBIT 1.81b * (1 - 24.99%))
Current Ratio = 4.26 (Total Current Assets 43.16b / Total Current Liabilities 10.14b)
Debt / Equity = 1.26 (Debt 16.37b / totalStockholderEquity, last quarter 12.99b)
Debt / EBITDA = -13.67 (Net Debt -43.80b / EBITDA 3.20b)
Debt / FCF = -23.82 (Net Debt -43.80b / FCF TTM 1.84b)
Total Stockholder Equity = 12.94b (last 4 quarters mean from totalStockholderEquity)
RoA = 1.10% (Net Income 1.87b / Total Assets 174.57b)
RoE = 14.45% (Net Income TTM 1.87b / Total Stockholder Equity 12.94b)
RoCE = 6.70% (EBIT 1.81b / Capital Employed (Equity 12.94b + L.T.Debt 14.07b))
RoIC = 5.26% (NOPAT 1.36b / Invested Capital 25.82b)
WACC = 8.96% (E(29.68b)/V(46.05b) * Re(9.91%) + D(16.37b)/V(46.05b) * Rd(9.65%) * (1-Tc(0.25)))
Discount Rate = 9.91% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: -100.0 | Cagr: -2.97%
[DCF] Terminal Value 71.01% ; FCFF base≈2.27b ; Y1≈1.83b ; Y5≈1.25b
[DCF] Fair Price = 344.0 (EV 19.86b - Net Debt -43.80b = Equity 63.66b / Shares 185.0m; r=8.96% [WACC]; 5y FCF grow -23.43% → 3.0% )
EPS Correlation: 46.86 | EPS CAGR: 10.56% | SUE: 0.41 | # QB: 0
Revenue Correlation: 79.25 | Revenue CAGR: 21.39% | SUE: 0.64 | # QB: 0
EPS current Quarter (2026-06-30): EPS=2.95 | Chg30d=+16.22% | Revisions=+73% | Analysts=12
EPS next Quarter (2026-09-30): EPS=2.83 | Chg30d=-4.16% | Revisions=+73% | Analysts=11
EPS current Year (2026-12-31): EPS=11.20 | Chg30d=+6.66% | Revisions=+73% | GrowthEPS=+28.2% | GrowthRev=+8.9%
EPS next Year (2027-12-31): EPS=11.70 | Chg30d=+5.00% | Revisions=+73% | GrowthEPS=+4.5% | GrowthRev=+3.6%
[Analyst] Revisions Ratio: +73%