Northern Trust Corporation, a financial holding company, provides wealth management, asset servicing, asset management, and banking solutions for corporations, institutions, families, and individuals worldwide.
Flawless balance sheet established dividend payer.
Share Price & News
How has Northern Trust's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: NT4 has not had significant price volatility in the past 3 months.
7 Day Return
DE Capital Markets
1 Year Return
DE Capital Markets
Return vs Industry: NT4 underperformed the German Capital Markets industry which returned 20.1% over the past year.
Return vs Market: NT4 underperformed the German Market which returned 8.3% over the past year.
Price Volatility Vs. Market
How volatile is Northern Trust's share price compared to the market and industry in the last 5 years?
Simply Wall St News
No news available
Is Northern Trust undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: NT4 (€67.5) is trading below our estimate of fair value (€75.31)
Significantly Below Fair Value: NT4 is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: NT4 is good value based on its PE Ratio (12.3x) compared to the DE Capital Markets industry average (22.3x).
PE vs Market: NT4 is good value based on its PE Ratio (12.3x) compared to the German market (20.9x).
Price to Earnings Growth Ratio
PEG Ratio: NT4 is poor value based on its PEG Ratio (20.6x)
Price to Book Ratio
PB vs Industry: NT4's PB Ratio (1.6x) is in line with the DE Capital Markets industry average.
How is Northern Trust forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: NT4's forecast earnings growth (0.6% per year) is above the savings rate (0.2%).
Earnings vs Market: NT4's earnings (0.6% per year) are forecast to grow slower than the German market (23.2% per year).
High Growth Earnings: NT4's earnings are forecast to grow, but not significantly.
Revenue vs Market: NT4's revenue (1.5% per year) is forecast to grow slower than the German market (5.9% per year).
High Growth Revenue: NT4's revenue (1.5% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: NT4's Return on Equity is forecast to be low in 3 years time (11.5%).
How has Northern Trust performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: NT4 has high quality earnings.
Growing Profit Margin: NT4's current net profit margins (22.4%) are lower than last year (24.3%).
Past Earnings Growth Analysis
Earnings Trend: NT4's earnings have grown by 11.4% per year over the past 5 years.
Accelerating Growth: NT4's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: NT4 had negative earnings growth (-7%) over the past year, making it difficult to compare to the Capital Markets industry average (29.2%).
Return on Equity
High ROE: NT4's Return on Equity (12.6%) is considered low.
How is Northern Trust's financial position? (This company is analysed differently as a bank or financial institution)
Financial Position Analysis
Debt to Equity History and Analysis
Financial Institutions Analysis
Asset Level: NT4's Assets to Equity ratio (13.3x) is moderate.
Allowance for Bad Loans: NT4 has a sufficient allowance for bad loans (221%).
Low Risk Liabilities: 87% of NT4's liabilities are made up of primarily low risk sources of funding.
Loan Level: NT4 has an appropriate level of Loans to Assets ratio (22%).
Low Risk Deposits: NT4's Loans to Deposits ratio (27%) is appropriate.
Level of Bad Loans: NT4 has an appropriate level of bad loans (0.3%).
What is Northern Trust current dividend yield, its reliability and sustainability?
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: NT4's dividend (3.53%) is higher than the bottom 25% of dividend payers in the German market (1.25%).
High Dividend: NT4's dividend (3.53%) is low compared to the top 25% of dividend payers in the German market (3.82%).
Stability and Growth of Payments
Stable Dividend: NT4's dividends per share have been stable in the past 10 years.
Growing Dividend: NT4's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (43.4%), NT4's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: NT4's dividends in 3 years are forecast to be well covered by earnings (47.2% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Mike O’Grady (54 yo)
Mr. Michael G. O'Grady, also known as Mike, has been the Chairman of Northern Trust Corporation and Northern Trust Company since January 23, 2019. Mr. O'Grady has been the President and Chief Executive off ...
CEO Compensation Analysis
Compensation vs Market: Mike's total compensation ($USD9.46M) is above average for companies of similar size in the German market ($USD5.27M).
Compensation vs Earnings: Mike's compensation has been consistent with company performance over the past year.
|Executive VP & Chief Investment Officer||11.58yrs||US$3.87m||0.0043% |
|Executive VP & President of Wealth Management||17.58yrs||US$6.20m||0.084% |
|Executive VP and President of Corporate & Institutional Services||no data||US$4.47m||0.026% |
|CFO & Executive VP||0.58yr||no data||0.0062% |
|Head of Depositary Regulatory & Technical Services||no data||no data||no data|
|Executive VP & Chief Information Officer||2.58yrs||no data||0.0047% |
|Senior VP & Director of Investor Relations||no data||no data||no data|
|Executive VP||6.25yrs||no data||0.022% |
|Chief Marketing & Communications Officer||no data||no data||no data|
|Head of Global Sales & Senior VP of Corporate & Institutional Services||no data||no data||no data|
|Executive VP & Chief Human Resources Officer||2.58yrs||no data||no data|
Experienced Management: NT4's management team is considered experienced (2.6 years average tenure).
|President & Representative Director of Northern Trust Global Investments Japan||8.17yrs||no data||no data|
|Independent Director||9.33yrs||US$240.75k||0.0080% |
|Independent Director||23.58yrs||US$231.95k||0.17% |
|Independent Director||14.33yrs||US$234.95k||0.00096% |
|Independent Director||10.33yrs||US$254.95k||0.67% |
|Independent Director||15.58yrs||US$234.95k||0.00048% |
|Independent Director||5.08yrs||US$229.95k||0.0054% |
|Vice Chairman for Wealth Management||1.58yrs||no data||no data|
|Independent Director||5.58yrs||US$250.29k||0.00050% |
|Independent Director||7.83yrs||US$223.05k||0.00094% |
|Independent Lead Director||1.33yrs||US$257.19k||0.0036% |
Experienced Board: NT4's board of directors are considered experienced (8 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: NT4 insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Northern Trust Corporation's company bio, employee growth, exchange listings and data sources
- Name: Northern Trust Corporation
- Ticker: NT4
- Exchange: DB
- Founded: 1889
- Industry: Asset Management and Custody Banks
- Sector: Diversified Financials
- Market Cap: US$16.498b
- Listing Market Cap: US$14.016b
- Shares outstanding: 208.09m
- Website: https://www.northerntrust.com
Number of Employees
- Northern Trust Corporation
- 50 South La Salle Street
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|NTRS||NasdaqGS (Nasdaq Global Select)||Yes||Common Stock||US||USD||Jan 1969|
|NT4||DB (Deutsche Boerse AG)||Yes||Common Stock||DE||EUR||Jan 1969|
|NTRS *||BMV (Bolsa Mexicana de Valores)||Yes||Common Stock||MX||MXN||Jan 1969|
|0K91||LSE (London Stock Exchange)||Yes||Common Stock||GB||USD||Jan 1969|
|NTRE.L||OTCPK (Pink Sheets LLC)||4.7 DPRP PFD E||US||USD||Oct 2019|
|NTRS.O||NasdaqGS (Nasdaq Global Select)||4.7 DPRP PFD E||US||USD||Oct 2019|
|N1TR34||BOVESPA (Bolsa de Valores de Sao Paulo)||BDR EACH 2 REPR 1 COM||BR||BRL||Jan 2020|
Northern Trust Corporation, a financial holding company, provides wealth management, asset servicing, asset management, and banking solutions for corporations, institutions, families, and individuals world ...
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/08/04 21:58|
|End of Day Share Price||2020/08/04 00:00|
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.