NTB

Bank of N.T. Butterfield & SonNYSE:NTB Stock Report

Market Cap

US$1.6b

7D

0%

1Y

31.2%

Updated

16 Sep, 2021

Data

Company Financials +
NTB fundamental analysis
Snowflake Score
Valuation4/6
Future Growth1/6
Past Performance2/6
Financial Health5/6
Dividends4/6

NTB Overview

The Bank of N.T. Butterfield & Son Limited provides a range of community, commercial, and private banking services to individuals and small to medium-sized businesses.

Share Price & News

How has Bank of N.T. Butterfield & Son's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: NTB is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: NTB's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

0%

NTB

0.05%

US Banks

-0.6%

US Market


1 Year Return

31.2%

NTB

62.7%

US Banks

33.7%

US Market

Return vs Industry: NTB underperformed the US Banks industry which returned 60.8% over the past year.

Return vs Market: NTB matched the US Market which returned 30.7% over the past year.


Shareholder returns

NTBIndustryMarket
7 Day0%0.05%-0.6%
30 Day-3.3%-0.8%1.4%
90 Day-9.9%4.7%5.4%
1 Year38.0%31.2%67.1%62.7%35.7%33.7%
3 Year-26.4%-37.4%21.3%10.9%61.2%51.2%
5 Year69.2%34.9%94.4%69.9%123.8%99.4%

Long-Term Price Volatility Vs. Market

How volatile is Bank of N.T. Butterfield & Son's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Bank of N.T. Butterfield & Son Fundamentals Summary

How do Bank of N.T. Butterfield & Son's earnings and revenue compare to its market cap?
NTB fundamental statistics
Market CapUS$1.58b
Earnings (TTM)US$153.84m
Revenue (TTM)US$496.18m

10.3x

P/E Ratio

1.6x

P/B Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
NTB income statement (TTM)
RevenueUS$496.18m
Cost of RevenueUS$0
Gross ProfitUS$496.18m
ExpensesUS$342.34m
EarningsUS$153.84m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)3.10
Gross Margin100.00%
Net Profit Margin31.00%
Debt/Equity Ratio18.7%

How did NTB perform over the long term?

See historical performance and comparison

Dividends

5.4%

Current Dividend Yield

57%

Payout Ratio

Valuation

Is Bank of N.T. Butterfield & Son undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NTB ($32.39) is trading below our estimate of fair value ($72.47)

Significantly Below Fair Value: NTB is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: NTB is good value based on its PE Ratio (10.3x) compared to the US Banks industry average (10.6x).

PE vs Market: NTB is good value based on its PE Ratio (10.3x) compared to the US market (17.1x).


Price to Earnings Growth Ratio

PEG Ratio: NTB is poor value based on its PEG Ratio (2x)


Price to Book Ratio

PB vs Industry: NTB is overvalued based on its PB Ratio (1.6x) compared to the US Banks industry average (1.1x).


Future Growth

How is Bank of N.T. Butterfield & Son forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

5.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NTB's forecast earnings growth (5.2% per year) is above the savings rate (2%).

Earnings vs Market: NTB's earnings (5.2% per year) are forecast to grow slower than the US market (14.8% per year).

High Growth Earnings: NTB's earnings are forecast to grow, but not significantly.

Revenue vs Market: NTB's revenue (2.6% per year) is forecast to grow slower than the US market (9.5% per year).

High Growth Revenue: NTB's revenue (2.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NTB's Return on Equity is forecast to be low in 3 years time (17.3%).


Past Performance

How has Bank of N.T. Butterfield & Son performed over the past 5 years?

14.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NTB has high quality earnings.

Growing Profit Margin: NTB's current net profit margins (31%) are lower than last year (31.2%).


Past Earnings Growth Analysis

Earnings Trend: NTB's earnings have grown by 14.2% per year over the past 5 years.

Accelerating Growth: NTB's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: NTB had negative earnings growth (-4.4%) over the past year, making it difficult to compare to the Banks industry average (36%).


Return on Equity

High ROE: NTB's Return on Equity (15.9%) is considered low.


Financial Health

How is Bank of N.T. Butterfield & Son's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet


Financial Institutions Analysis

Asset Level: NTB's Assets to Equity ratio (16.2x) is moderate.

Allowance for Bad Loans: NTB has a low allowance for bad loans (33%).

Low Risk Liabilities: 97% of NTB's liabilities are made up of primarily low risk sources of funding.

Loan Level: NTB has an appropriate level of Loans to Assets ratio (33%).

Low Risk Deposits: NTB's Loans to Deposits ratio (37%) is appropriate.

Level of Bad Loans: NTB has an appropriate level of bad loans (1.7%).


Dividend

What is Bank of N.T. Butterfield & Son current dividend yield, its reliability and sustainability?

5.43%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: NTB's dividend (5.43%) is higher than the bottom 25% of dividend payers in the US market (1.36%).

High Dividend: NTB's dividend (5.43%) is in the top 25% of dividend payers in the US market (3.6%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, NTB has been paying a dividend for less than 10 years.

Growing Dividend: NTB's dividend payments have increased, but the company has only paid a dividend for 5 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (56.8%), NTB's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: NTB's dividends in 3 years are forecast to be covered by earnings (51% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.7yrs

Average management tenure


CEO

Michael Collins (58 yo)

6yrs

Tenure

Mr. Michael W. Collins has been the Chairman of the Board of Bank of N.T. Butterfield & Son Ltd.(Known as Bank Butterfield & Son Ltd) since July 25, 2017 and has been its Chief Executive Officer since Sept...


Leadership Team

Experienced Management: NTB's management team is seasoned and experienced (5.7 years average tenure).


Board Members

Experienced Board: NTB's board of directors are considered experienced (3.2 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

The Bank of N.T. Butterfield & Son Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: The Bank of N.T. Butterfield & Son Limited
  • Ticker: NTB
  • Exchange: NYSE
  • Founded: 1858
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: US$1.583b
  • Shares outstanding: 48.88m
  • Website: https://www.butterfieldgroup.com

Number of Employees


Location

  • The Bank of N.T. Butterfield & Son Limited
  • 65 Front Street
  • Hamilton
  • HM 12
  • Bermuda

Listings


Biography

The Bank of N.T. Butterfield & Son Limited provides a range of community, commercial, and private banking services to individuals and small to medium-sized businesses. It accepts retail and corporate check...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/16 05:09
End of Day Share Price2021/09/15 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.