Northern Trust
Market Cap
US$21.2b
Last Updated
2020/02/16 23:42 UTC
Data Sources
Company Financials +
Executive Summary
Northern Trust Corporation, a financial holding company, provides wealth management, asset servicing, asset management, and banking solutions for corporations, institutions, families, and individuals worldwide.
Rewards
Risk Analysis
No risks detected for NTRS from our risk checks.
Snowflake Analysis
Flawless balance sheet established dividend payer.
Similar Companies
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: NTRS has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
-0.06%
NTRS
1.7%
US Capital Markets
1.5%
US Market
1 Year Return
8.7%
NTRS
19.0%
US Capital Markets
20.1%
US Market
Return vs Industry: NTRS underperformed the US Capital Markets industry which returned 19% over the past year.
Return vs Market: NTRS underperformed the US Market which returned 20.1% over the past year.
Shareholder returns
| NTRS | Industry | Market | |
|---|---|---|---|
| 7 Day | -0.06% | 1.7% | 1.5% |
| 30 Day | -7.5% | 0.5% | 1.4% |
| 90 Day | -5.0% | 8.6% | 8.7% |
| 1 Year | 11.7%8.7% | 21.4%19.0% | 22.7%20.1% |
| 3 Year | 23.7%16.1% | 40.0%32.1% | 50.1%40.5% |
| 5 Year | 60.3%44.4% | 83.6%66.5% | 73.1%54.1% |
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
2 days ago | Simply Wall St
You Have To Love Northern Trust Corporation's (NASDAQ:NTRS) Dividend3 weeks ago | Simply Wall St
Should You Investigate Northern Trust Corporation (NASDAQ:NTRS) At US$104?1 month ago | Simply Wall St
What Kind Of Shareholders Own Northern Trust Corporation (NASDAQ:NTRS)?Valuation
Is Northern Trust undervalued compared to its fair value and its price relative to the market?
8.1%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: NTRS ($101.2) is trading below our estimate of fair value ($110.08)
Significantly Below Fair Value: NTRS is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: NTRS is good value based on its PE Ratio (15.2x) compared to the Capital Markets industry average (36x).
PE vs Market: NTRS is good value based on its PE Ratio (15.2x) compared to the US market (18.4x).
Price to Earnings Growth Ratio
PEG Ratio: NTRS is poor value based on its PEG Ratio (6.1x)
Price to Book Ratio
PB vs Industry: NTRS is good value based on its PB Ratio (2.2x) compared to the US Capital Markets industry average (6.7x).
Next Steps
Future Growth
How is Northern Trust forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?
2.5%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: NTRS's forecast earnings growth (2.5% per year) is above the savings rate (1.7%).
Earnings vs Market: NTRS's earnings (2.5% per year) are forecast to grow slower than the US market (14.5% per year).
High Growth Earnings: NTRS's earnings are forecast to grow, but not significantly.
Revenue vs Market: NTRS's revenue (3.1% per year) is forecast to grow slower than the US market (7.6% per year).
High Growth Revenue: NTRS's revenue (3.1% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: NTRS's Return on Equity is forecast to be low in 3 years time (14.6%).
Next Steps
Past Performance
How has Northern Trust performed over the past 5 years?
13.2%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: NTRS has high quality earnings.
Growing Profit Margin: NTRS's current net profit margins (23.5%) are lower than last year (25%).
Past Earnings Growth Analysis
Earnings Trend: NTRS's earnings have grown by 13.2% per year over the past 5 years.
Accelerating Growth: NTRS's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: NTRS had negative earnings growth (-4.1%) over the past year, making it difficult to compare to the Capital Markets industry average (8.4%).
Return on Equity
High ROE: NTRS's Return on Equity (13.5%) is considered low.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
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
Balance Sheet
Inventory Level: NTRS has a low level of unsold assets or inventory.
Debt Coverage by Assets: NTRS's debt is covered by short term assets (assets are 3.4x debt).
Financial Institutions Analysis
Asset Level: NTRS's level of assets compared to its equity is moderate.
Allowance for Bad Loans: NTRS has a sufficient allowance for bad loans.
Low Risk Liabilities: NTRS's liabilities are made up of primarily low risk sources of funding.
Loan Level: NTRS has an acceptable proportion of non-loan assets held.
Low Risk Deposits: NTRS's loans are broadly funded by customer deposits.
Level of Bad Loans: NTRS has an appropriate level of bad loans (0.22%)
Next Steps
Dividend
What is Northern Trust's current dividend yield, its reliability and sustainability?
2.77%
Current Dividend Yield
Upcoming Dividend Payment
Purchase Northern Trust before the 'Buy Limit' to receive their next dividend payment.
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: NTRS's dividend (2.77%) is higher than the bottom 25% of dividend payers in the US market (1.44%).
High Dividend: NTRS's dividend (2.77%) is low compared to the top 25% of dividend payers in the US market (3.69%).
Stability and Growth of Payments
Stable Dividend: NTRS's dividends per share have been stable in the past 10 years.
Growing Dividend: NTRS's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (39%), NTRS's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: NTRS's dividends in 3 years are forecast to be well covered by earnings (46.3% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
5.8yrs
Average management tenure
CEO
Mike O’Grady (53yo)
2.1yrs
Tenure
US$7,971,986
Compensation
Mr. Michael G. O'Grady, also known as Mike, has been the Chairman of Northern Trust Corporation and Northern Trust Company since January 23, 2019. Mr. O'Grady has been the President and Chief Executive off ...
CEO Compensation Analysis
Compensation vs Market: Mike's total compensation ($USD7.97M) is about average for companies of similar size in the US market ($USD10.81M).
Compensation vs Earnings: Mike's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | 2.1yrs | US$7.97m | 0.052% $10.9m | |
| Executive VP & President of Wealth Management | 17.1yrs | US$4.10m | 0.080% $16.9m | |
| Executive VP and President of Corporate & Institutional Services | 0yrs | US$4.08m | 0.023% $4.9m | |
| CFO & Executive VP | 0yrs | no data | 0.0054% $1.2m | |
| Executive VP & Chief Investment Officer | 11.1yrs | no data | 0.0085% $1.8m | |
| Head of Depositary Regulatory & Technical Services | 0yrs | no data | no data | |
| Executive VP & Chief Information Officer | 2.1yrs | no data | 0.0027% $566.6k | |
| Senior VP | 0yrs | no data | no data | |
| Executive VP | 5.8yrs | no data | 0.019% $4.1m | |
| Chief Marketing & Communications Officer | 0yrs | no data | no data |
5.8yrs
Average Tenure
54yo
Average Age
Experienced Management: NTRS's management team is seasoned and experienced (5.8 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | 2.1yrs | US$7.97m | 0.052% $10.9m | |
| President & Representative Director of Northern Trust Global Investments Japan | 7.7yrs | no data | no data | |
| Independent Director | 8.8yrs | US$254.96k | 0.0071% $1.5m | |
| Independent Director | 23.1yrs | US$229.96k | 0.17% $36.6m | |
| Independent Director | 13.8yrs | US$234.96k | 0.00095% $201.6k | |
| Independent Director | 9.8yrs | US$254.96k | 0.67% $141.7m | |
| Independent Director | 15.1yrs | US$234.96k | 0.00048% $101.9k | |
| Vice Chairman for Wealth Management | 1.1yrs | no data | no data | |
| Independent Director | 5.1yrs | US$239.96k | 0.00050% $106.1k | |
| Lead Director | 0.8yrs | US$239.96k | 0.0035% $749.2k |
8.3yrs
Average Tenure
63yo
Average Age
Experienced Board: NTRS's board of directors are considered experienced (8.3 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: NTRS insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Northern Trust Corporation's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Northern Trust Corporation
- Ticker: NTRS
- Exchange: NasdaqGS
- Founded: 1889
- Industry: Asset Management and Custody Banks
- Sector: Diversified Financials
- Market Cap: US$21.223b
- Shares outstanding: 209.71m
- Website: https://www.northerntrust.com
Number of Employees
Location
- Northern Trust Corporation
- 50 South La Salle Street
- Chicago
- Illinois
- 60603
- United States
Listings
| 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 |
| 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 |
Biography
Northern Trust Corporation, a financial holding company, provides wealth management, asset servicing, asset management, and banking solutions for corporations, institutions, families, and individuals worldwide. It operates in two segments, Corporate & Institutional Services (C&IS) and Wealth Management. The C&IS segment offers asset servicing and related services, including custody, fund administration, investment operations outsourcing, investment management, investment risk and analytical services, employee benefit services, securities lending, foreign exchange, treasury management, brokerage services, transition management services, banking, and cash management services. This segment serves corporate and public retirement funds, foundations, endowments, fund managers, insurance companies, sovereign wealth funds, and other institutional investors. The Wealth Management segment offers trust, investment management, custody, and philanthropic; financial consulting; guardianship and estate administration; family business consulting; family financial education; brokerage services; and private and business banking services. This segment serves high-net-worth individuals and families, business owners, executives, professionals, retirees, and established privately-held businesses. The company also provides asset management services, such as active and passive equity; active and passive fixed income; cash management; alternative asset classes comprising private equity and hedge funds of funds; and multi-manager advisory services and products through separately managed accounts, bank common and collective funds, registered investment companies, exchange traded funds, non-U.S. collective investment funds, and unregistered private investment funds. In addition, it offers overlay and other risk management services. The company was founded in 1889 and is headquartered in Chicago, Illinois.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/16 23:42 |
| End of Day Share Price | 2020/02/14 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
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.