Northern Trust
Northern Trust Corporation, a financial holding company, provides wealth management, asset servicing, asset management, and banking solutions for corporations, institutions, families, and individuals worldwide. The last earnings update was 54 days ago. More info.
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NTRS Share Price and Events
7 Day Returns
1 Year Returns
NTRS Shareholder Return
| 7 Day | 30 Day | 90 Day | 1 Year | 3 Year | 5 Year | |
|---|---|---|---|---|---|---|
| Northern Trust (NTRS) | -2.8% | 3.7% | 0.8% | -14.7% | 27% | 54.5% |
| US Capital Markets | 0.1% | 5.6% | 3.5% | -7.4% | 53.5% | 71.2% |
| US Market | -0.3% | 2% | 8.5% | 7% | 37.7% | 46.8% |
1 Year Return vs Industry and Market
- NTRS underperformed the Capital Markets industry which returned -7.4% over the past year.
- NTRS underperformed the Market in United States of America which returned 7% over the past year.
NTRS Value
Is Northern Trust undervalued based on future cash flows and its price relative to the stock market?
Value is all about what a company is worth versus what price it is
available for. If you went into a grocery store and all the bananas were on sale
at half price, they could be considered
undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current
share
price of
Northern Trust
to its discounted cash flow analysis.value.The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Below are the data sources, inputs and calculation used to determine the intrinsic value for Northern Trust.
| Data Point | Source | Value |
|---|---|---|
| Valuation Model | Excess Returns Model | |
| Stable EPS |
Weighted future Return on Equity estimates from 13 analysts.
= Stable Book Value * Return on Equity = $47.11 * 15.4% |
$7.25 |
| Book Value of Equity per Share | Weighted future Book Value estimates from 11 analysts. | $47.11 |
| Discount Rate (Cost of Equity) | See below | 9.3% |
| Perpetual Growth Rate | 10-Year US Government Bond Rate | 2.7% |
An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.
| Data Point | Calculation/ Source | Result |
|---|---|---|
| Risk-Free Rate | 10-Year US Govt Bond Rate | 2.7% |
| Equity Risk Premium | S&P Global | 6% |
| Capital Markets Unlevered Beta | Simply Wall St/ S&P Global | 0.73 |
| Re-levered Beta | = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.727 (1 + (1- 21%) (73.02%)) |
1.098 |
| Levered Beta | Levered Beta limited to 0.8 to 2.0 (practical range for a stable firm) |
1.1 |
| Discount Rate/ Cost of Equity |
= Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.098 * 5.96%) |
9.27% |
Discounted Cash Flow Calculation for NasdaqGS:NTRS using Excess Returns Model Model
The calculations below outline how an intrinsic value for Northern Trust is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.
In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.
The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.
Note the calculations below are per share.
See our documentation to learn about this calculation.
| Calculation | Result | |
|---|---|---|
| Excess Returns |
= (Stable Return on equity – Cost of equity) (Book Value of
Equity per share)
= (15.4% – 9.27%) * $47.11) |
$2.88 |
| Terminal Value of Excess Returns |
= Excess Returns / (Cost of Equity -
Expected Growth Rate)
= $2.88 / (9.27% - 2.73%) |
$44.06 |
| Value of Equity |
= Book Value per share + Terminal Value of
Excess Returns
= $47.11 + $44.06 |
$91.17 |
| Calculation | Result | |
|---|---|---|
| Value per share (USD) | From above. | $91.17 |
| Current discount | Discount to share price of
$91.87
= -1 x ($91.87 - $91.17) / $91.17 |
-0.8% |
Learn more about our DCF calculations in Simply Wall St’s analysis model .
- The current share price of Northern Trust is above its future cash flow value.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.The amount the stock market is willing to pay for Northern Trust's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are
Northern Trust's earnings available for a low price, and how does
this compare to other companies in the same industry?
| Data Point | Source | Value |
|---|---|---|
| Earnings Per Share * | Company Filings (2018-12-31) in USD | $6.68 |
| NasdaqGS:NTRS Share Price ** | NasdaqGS (2019-04-18) in USD | $91.87 |
| United States of America Capital Markets Industry PE Ratio | Median Figure of 87 Publicly-Listed Capital Markets Companies | 30.77x |
| United States of America Market PE Ratio | Median Figure of 3,081 Publicly-Listed Companies | 18.18x |
* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.
** Primary Listing of Northern Trust.
| Calculation | Outcome | |
|---|---|---|
| PE Ratio | = NasdaqGS:NTRS Share Price ÷ EPS (both in USD) = 91.87 ÷ 6.68 |
13.76x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Northern Trust is good value based on earnings compared to the US Capital Markets industry average.
- Northern Trust is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does
Northern Trust's expected growth come at a high price?
| Data Point | Source | Value |
|---|---|---|
| PE Ratio | See PE Ratio Section | 13.76x |
| Net Income Annual Growth Rate | See Future Growth Section. Line of Best Fit* through Consensus Estimate Earnings of 13 Analysts |
2.4%per year |
| United States of America Capital Markets Industry PEG Ratio | Median Figure of 34 Publicly-Listed Capital Markets Companies | 2.67x |
| United States of America Market PEG Ratio | Median Figure of 2,109 Publicly-Listed Companies | 1.56x |
*Line of best fit is calculated by linear regression .
| Calculation | Outcome | |
|---|---|---|
| PEG Ratio | = PE Ratio ÷ Net Income Annual Growth Rate = 13.76x ÷ 2.4% |
5.7x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Northern Trust is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on
Northern Trust's
assets?
| Data Point | Source | Value |
|---|---|---|
| Book Value per Share | Company Filings (2018-12-31) in USD | $43.95 |
| NasdaqGS:NTRS Share Price * | NasdaqGS (2019-04-18) in USD | $91.87 |
| United States of America Capital Markets Industry PB Ratio | Median Figure of 170 Publicly-Listed Capital Markets Companies | 7.11x |
| United States of America Market PB Ratio | Median Figure of 5,184 Publicly-Listed Companies | 1.91x |
| Calculation | Outcome | |
|---|---|---|
| PB Ratio | = NasdaqGS:NTRS Share Price ÷ Book Value per Share (both in USD) = 91.87 ÷ 43.95 |
2.09x |
* Primary Listing of Northern Trust.
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Northern Trust is good value based on assets compared to the US Capital Markets industry average.
Value checks
We assess Northern Trust's value by looking at:- Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
- Is the PE ratio less than the market average, and/ or less than the Capital Markets industry average (and greater than 0)? (2 checks)
- Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
- Is the PB ratio less than the Capital Markets industry average (and greater than 0)? (1 check) Northern Trust has a total score of 3/6, see the detailed checks below.
Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.
Full details on the Value part of the Simply Wall St company analysis model.
NTRS Future Performance
The future performance of a company is measured in the same way as past
performance, by looking at estimated
growth
and how much profit it is expected to make.Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Earnings growth vs Low Risk Savings
- Northern Trust's earnings growth is positive but not above the low risk savings rate of 2.7%.
Growth vs Market Checks
- Northern Trust's earnings growth is positive but not above the United States of America market average.
- Northern Trust's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
| Data Point | Source | Value (per year) |
|---|---|---|
| NasdaqGS:NTRS Future Earnings Growth Rate | Line of Best Fit* through Consensus Estimate Earnings of 13 Analysts | 2.4% |
| NasdaqGS:NTRS Future Revenue Growth Rate | Line of Best Fit* through Consensus Estimate Revenue of 13 Analysts | 3.1% |
| United States of America Capital Markets Industry Earnings Growth Rate | Market Cap Weighted Average | 6.9% |
| United States of America Capital Markets Industry Revenue Growth Rate | Market Cap Weighted Average | 4.1% |
| United States of America Market Earnings Growth Rate | Market Cap Weighted Average | 13.4% |
| United States of America Market Revenue Growth Rate | Market Cap Weighted Average | 7% |
*Line of best fit is calculated by linear regression .
Industry and Market average data is calculated daily.
Learn more about our growth rate calculations in Simply Wall St’s analysis model.
Analysts growth expectations
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (3 months ago) | See Below |
| Future Estimates | Average of up to 13 Analyst Estimates (S&P Global) | See Below |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * | Avg. No. Analysts |
|---|---|---|---|---|
| 2021-12-31 | 6,526 | 1,680 | 5 | |
| 2020-12-31 | 6,341 | 1,525 | 12 | |
| 2019-12-31 | 6,095 | 1,431 | 12 |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * |
|---|---|---|---|
| 2018-12-31 | 5,955 | 1,768 | 1,490 |
| 2018-09-30 | 5,892 | 2,159 | 1,437 |
| 2018-06-30 | 5,761 | 1,262 | 1,361 |
| 2018-03-31 | 5,584 | 458 | 1,239 |
| 2017-12-31 | 5,391 | 1,720 | 1,130 |
| 2017-09-30 | 5,239 | 1,708 | 1,041 |
| 2017-06-30 | 5,103 | 2,330 | 1,011 |
| 2017-03-31 | 5,100 | 2,590 | 1,006 |
| 2016-12-31 | 5,007 | 1,510 | 990 |
| 2016-09-30 | 4,904 | 2,022 | 964 |
| 2016-06-30 | 4,852 | -200 | 942 |
| 2016-03-31 | 4,794 | 1,048 | 949 |
*GAAP earnings excluding extraordinary items.
Past and Future Earnings per Share
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (3 months ago) | See Below |
| Future Estimates | Average of up to 13 Analyst Estimates (S&P Global) | See Below |
All data from Northern Trust Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | EPS * | EPS High Estimate | EPS Low Estimate | Avg. No. Analysts |
|---|---|---|---|---|
| 2021-12-31 | 7.72 | 8.80 | 6.54 | 5.00 |
| 2020-12-31 | 7.26 | 7.90 | 6.82 | 17.00 |
| 2019-12-31 | 6.62 | 6.95 | 6.35 | 18.00 |
| Date (Data in USD Millions) | EPS * |
|---|---|
| 2018-12-31 | 6.68 |
| 2018-09-30 | 6.39 |
| 2018-06-30 | 6.02 |
| 2018-03-31 | 5.45 |
| 2017-12-31 | 4.95 |
| 2017-09-30 | 4.56 |
| 2017-06-30 | 4.43 |
| 2017-03-31 | 4.42 |
| 2016-12-31 | 4.35 |
| 2016-09-30 | 4.22 |
| 2016-06-30 | 4.10 |
| 2016-03-31 | 4.11 |
*GAAP earnings excluding extraordinary items.
Future performance checks
We assess Northern Trust's future performance by looking at:- Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
- Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
- Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
- Is the annual earnings growth rate expected to be above 20%? (1 check)
- Is the annual revenue growth rate expected to be above 20%? (1 check)
- Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Northern Trust has a total score of 0/6, see the detailed checks below.
Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.
Full details on the Future part of the Simply Wall St company analysis model.
NTRS Past Performance
How has Northern Trust performed over the past 5 years?
The past performance of a company can be measured by how much
growth
it has experienced and how much profit it makes relative to the funds and assets
it has available.
Past earnings growth
Past Earnings growth analysis
- Northern Trust's year on year earnings growth rate has been positive over the past 5 years.
- Northern Trust's 1-year earnings growth exceeds its 5-year average (31.8% vs 13.8%)
- Northern Trust's earnings growth has not exceeded the US Capital Markets industry average in the past year (31.8% vs 37.1%).
Earnings and Revenue History
All data from Northern Trust Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | Revenue | Net Income * | G+A Expenses | R&D Expenses |
|---|---|---|---|---|
| 2018-12-31 | 5,954.90 | 1,489.90 | 3,784.60 | |
| 2018-09-30 | 5,891.70 | 1,436.90 | 3,746.80 | |
| 2018-06-30 | 5,760.60 | 1,360.50 | 3,661.30 | |
| 2018-03-31 | 5,584.20 | 1,238.60 | 3,578.60 | |
| 2017-12-31 | 5,390.60 | 1,130.40 | 3,533.20 | |
| 2017-09-30 | 5,238.90 | 1,040.90 | 3,384.20 | |
| 2017-06-30 | 5,103.40 | 1,011.10 | 3,301.90 | |
| 2017-03-31 | 5,099.70 | 1,005.90 | 3,239.60 | |
| 2016-12-31 | 5,006.70 | 990.40 | 3,189.90 | |
| 2016-09-30 | 4,903.80 | 964.30 | 3,127.90 | |
| 2016-06-30 | 4,852.40 | 942.40 | 3,104.50 | |
| 2016-03-31 | 4,793.80 | 949.30 | 3,075.10 | |
| 2015-12-31 | 4,745.60 | 935.00 | 3,037.70 | |
| 2015-09-30 | 4,697.30 | 936.10 | 2,998.20 | |
| 2015-06-30 | 4,610.80 | 912.10 | 2,955.20 | |
| 2015-03-31 | 4,426.60 | 831.60 | 2,924.60 | |
| 2014-12-31 | 4,325.20 | 789.00 | 2,899.40 | |
| 2014-09-30 | 4,238.20 | 725.20 | 2,809.90 | |
| 2014-06-30 | 4,201.60 | 727.20 | 2,776.10 | |
| 2014-03-31 | 4,135.40 | 736.40 | 2,729.90 | |
| 2013-12-31 | 4,069.30 | 719.40 | 2,771.20 | |
| 2013-09-30 | 3,993.80 | 717.80 | 2,715.90 | |
| 2013-06-30 | 3,914.10 | 690.80 | 2,675.10 | |
| 2013-03-31 | 3,882.10 | 679.70 | 2,655.70 | |
| 2012-12-31 | 3,871.10 | 677.30 | 2,565.10 | |
| 2012-09-30 | 3,849.50 | 640.60 | 2,650.70 | |
| 2012-06-30 | 3,841.10 | 633.00 | 2,648.90 |
*GAAP earnings excluding extraordinary items.
Performance last year
We want to ensure a company is making the most of what it has available. This is
done by comparing the return (profit) to a company's available
funds,
assets
and
capital.
- Northern Trust has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
- Northern Trust used its assets less efficiently than the US Capital Markets industry average last year based on Return on Assets.
- Unable to establish if Northern Trust improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.
Past performance checks
We assess Northern Trust's performance over the past 5 years by checking for:- Has earnings increased in past 5 years? (1 check)
- Has the earnings growth in the last year exceeded that of the Capital Markets industry? (1 check)
- Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
- Is the Return on Equity (ROE) higher than 20%? (1 check)
- Is the Return on Assets (ROA) above industry average? (1 check)
- Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
Northern Trust has a total score of 2/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Full details on the Past part of the Simply Wall St company analysis model.
NTRS Health
How is Northern Trust's financial health and their level of debt?
A company's financial position is much like your own financial position,
it includes everything you own
(assets)
and owe
(liabilities).The boxes below represent the relative size of what makes up Northern Trust's finances.
The net worth of a company is the difference between its assets and liabilities.
- Northern Trust's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
- Northern Trust's cash and other short term assets cover its long term commitments.
Balance sheet
Assets
Liabilities and shares
- Low level of unsold assets.
- Debt is covered by short term assets, assets are 3x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t
bad,
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
All data from Northern Trust Company Filings, last reported 3 months ago.
| Date (Data in USD Millions) | Total Equity | Total Debt | Cash & Short Term Investments |
|---|---|---|---|
| 2018-12-31 | 10,508.30 | 14,657.60 | 11,262.80 |
| 2018-09-30 | 10,364.50 | 14,422.70 | 10,398.80 |
| 2018-06-30 | 10,357.60 | 15,774.10 | 12,163.40 |
| 2018-03-31 | 10,226.00 | 12,033.40 | 13,585.80 |
| 2017-12-31 | 10,216.20 | 13,603.10 | 12,292.70 |
| 2017-09-30 | 10,165.20 | 13,347.00 | 13,616.00 |
| 2017-06-30 | 10,067.90 | 9,422.80 | 13,922.10 |
| 2017-03-31 | 9,977.70 | 8,813.00 | 14,137.20 |
| 2016-12-31 | 9,770.40 | 9,837.80 | 14,399.60 |
| 2016-09-30 | 9,579.80 | 8,241.30 | 14,553.60 |
| 2016-06-30 | 8,951.50 | 11,316.60 | 17,798.00 |
| 2016-03-31 | 8,832.80 | 9,297.70 | 22,966.50 |
| 2015-12-31 | 8,705.90 | 9,043.10 | 16,849.40 |
| 2015-09-30 | 8,784.50 | 8,767.20 | 21,743.60 |
| 2015-06-30 | 8,749.30 | 7,986.20 | 26,249.50 |
| 2015-03-31 | 8,607.60 | 8,422.80 | 23,884.50 |
| 2014-12-31 | 8,448.90 | 7,946.50 | 22,221.00 |
| 2014-09-30 | 8,542.60 | 8,297.10 | 21,506.10 |
| 2014-06-30 | 8,042.60 | 5,962.70 | 22,482.10 |
| 2014-03-31 | 7,948.30 | 7,008.30 | 22,376.20 |
| 2013-12-31 | 7,912.00 | 8,598.80 | 25,523.80 |
| 2013-09-30 | 7,817.10 | 7,755.70 | 22,619.80 |
| 2013-06-30 | 7,724.60 | 9,775.50 | 27,156.00 |
| 2013-03-31 | 7,612.10 | 7,662.90 | 24,844.80 |
| 2012-12-31 | 7,527.00 | 6,567.30 | 25,258.40 |
| 2012-09-30 | 7,532.20 | 6,313.00 | 24,485.20 |
| 2012-06-30 | 7,390.30 | 7,933.50 | 24,704.70 |
- Northern Trust's level of debt (139.5%) compared to net worth is high (greater than 40%).
- The level of debt compared to net worth has increased over the past 5 years (108.5% vs 139.5% today).
- Debt is not well covered by operating cash flow (12.1%, less than 20% of total debt).
- Unable to confirm if the interest payments on Northern Trust's debt are well covered by earnings due to lack of past financial data.
Financial health checks
We assess Northern Trust's financial health by checking for:- Are short term assets greater than short term liabilities? (1 check)
- Are short term assets greater than long term liabilities? (1 check)
- Has the debt to equity ratio increased in the past 5 years? (1 check)
- Is the debt to equity ratio over 40%? (1 check)
- Is the debt covered by operating cash flow? (1 check)
- Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check) Northern Trust has a total score of 1/6, see the detailed checks below.
- Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
- Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
Full details on the Health part of the Simply Wall St company analysis model.
NTRS Dividends
What is Northern Trust's current dividend yield, its reliability and sustainability?
Dividends are regular cash payments to you from the company, similar to a
bank paying you interest on a savings account.
Annual Dividend Income
If you bought
$2,000 of
Northern Trust
shares you are expected to receive
$52
in your first year as a dividend.
Dividend Amount
- Northern Trust's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.39%).
- Northern Trust's dividend is below the markets top 25% of dividend payers in United States of America (3.62%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not
wildly increasing/decreasing each year. This graph shows you the historical rate
to count toward your assessment of the stock.We also check to see if the dividend has increased in the past 10 years.
| Data Point | Source | Value |
|---|---|---|
| Past Annualized Dividend Yield | S&P Global Market Data | See Below |
| Past Dividends per Share | Company Filings/ Annualized Dividend Payments | See Below |
| Future Dividends per Share Estimates | Average of up to 13 Analyst Estimates (S&P Global) | See Below |
| United States of America Capital Markets Industry Average Dividend Yield | Market Cap Weighted Average of 43 Stocks | 2% |
| United States of America Market Average Dividend Yield | Market Cap Weighted Average of 2009 Stocks | 2.4% |
| United States of America Minimum Threshold Dividend Yield | 10th Percentile | 0.8% |
| United States of America Bottom 25% Dividend Yield | 25th Percentile | 1.4% |
| United States of America Top 25% Dividend Yield | 75th Percentile | 3.6% |
Industry and Market average data is calculated daily.
Note all dividend per share amounts are annualized and not quarterly or other period.
| Date (Data in $) | Dividend per Share (annual) | Avg. No. Analysts |
|---|---|---|
| 2021-12-31 | 2.80 | 6.00 |
| 2020-12-31 | 2.68 | 16.00 |
| 2019-12-31 | 2.45 | 17.00 |
| Date (Data in $) | Dividend per share (annual) | Avg. Yield (%) |
|---|---|---|
| 2019-01-22 | 2.400 | 2.614 |
| 2018-10-16 | 2.200 | 2.440 |
| 2018-07-17 | 2.200 | 2.063 |
| 2018-04-17 | 1.680 | 1.585 |
| 2018-01-23 | 1.680 | 1.610 |
| 2017-10-17 | 1.680 | 1.722 |
| 2017-07-18 | 1.680 | 1.877 |
| 2017-04-26 | 1.520 | 1.648 |
| 2017-01-17 | 1.520 | 1.757 |
| 2016-10-18 | 1.520 | 1.854 |
| 2016-07-20 | 1.520 | 2.206 |
| 2016-04-19 | 1.440 | 2.075 |
| 2016-01-20 | 1.440 | 2.304 |
| 2015-10-20 | 1.440 | 2.019 |
| 2015-07-22 | 1.440 | 2.016 |
| 2015-04-22 | 1.440 | 1.899 |
| 2015-01-21 | 1.320 | 1.892 |
| 2014-10-21 | 1.320 | 1.994 |
| 2014-07-16 | 1.320 | 1.965 |
| 2014-03-26 | 1.320 | 2.125 |
| 2014-01-22 | 1.240 | 1.997 |
| 2013-10-15 | 1.240 | 2.119 |
| 2013-07-16 | 1.240 | 2.203 |
| 2013-03-14 | 1.240 | 2.207 |
| 2013-01-15 | 1.200 | 2.279 |
| 2012-11-13 | 1.200 | 2.442 |
| 2012-07-17 | 1.200 | 2.562 |
| 2012-03-14 | 1.200 | 2.642 |
| 2012-01-17 | 1.120 | 2.579 |
| 2011-11-15 | 1.120 | 2.866 |
| 2011-07-19 | 1.120 | 2.923 |
| 2011-04-19 | 1.120 | 2.366 |
| 2011-01-18 | 1.120 | 2.164 |
| 2010-10-19 | 1.120 | 2.133 |
| 2010-07-20 | 1.120 | 2.319 |
| 2010-04-20 | 1.120 | 2.203 |
| 2010-02-16 | 1.120 | 2.028 |
| 2009-10-20 | 1.120 | 2.216 |
| 2009-07-21 | 1.120 | 1.896 |
| 2009-04-22 | 1.120 | 2.057 |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Dividends per share have been stable in the past 10 years.
- Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of
Northern Trust's earnings are
paid
to the shareholders as a dividend.
- Dividends paid are well covered by earnings (3.4x coverage).
- Dividends after 3 years are expected to be well covered by earnings (2.8x coverage).
Income/ dividend checks
We assess Northern Trust's dividend by checking for:- Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
- Is current dividend yield above the bottom 25% of dividend payers? (1 check)
- Is current dividend yield above the top 25% of dividend payers? (1 check)
- Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
- If they have paid a dividend for 10 years has it increased in this time? (1 check)
- How sustainable is the dividend, can Northern Trust afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks) Northern Trust has a total score of 5/6, see the detailed checks below.
Full details on the Dividends part of the Simply Wall St company analysis model.
NTRS Management
CEO
| COMPENSATION | $7,971,986 |
| AGE | 52 |
| TENURE AS CEO | 1.3 years |
CEO Bio
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 officer at Northern Trust Corporation and Northern Trust Company since January 1, 2017 and January 1, 2018 respectively and served as its President of Corporate and Institutional Services at September 2014 until January 1, 2017. He served as Executive Vice President of Corporate & Institutional Services at Northern Trust Corporation from 2014 to 2016. Mr. O'Grady served as Chief Financial Officer from 2011 to 2014 and Executive Vice President of Northern Trust Corporation since August 15, 2011 and October 1, 2011 respectively. Mr. O'Grady served as the Head of Structured Finance and Investments of Bank of America Merrill Lynch since June 2008. He is Independent Director of Northern Trust Corporation since January 1, 2017. Before joining Northern Trust in 2011, he served as a Managing Director in the Financial Institutions Investment Banking Group at Bank of America Merrill Lynch. He is a board member of Catholic Extension, The Field Museum, the Museum of Contemporary Art Chicago, and a member of the Finance Council of the Archdiocese of Chicago. He is also a member of the Commercial Club of Chicago and its Civic Committee. He graduated from the University of Notre Dame and received an MBA from Harvard Business School.
CEO Compensation
- Mike's compensation has increased by more than 20% in the past year.
- Mike's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure
Average tenure and age of the Northern Trust management team in years:
- The tenure for the Northern Trust management team is about average.
Management Team
Mike O’Grady
Chairman
$8M
52
1.3 yrs
Stephen Bowman
Executive VP & CFO
$4M
54
4.6 yrs
Steve Fradkin
Executive VP & President of Wealth Management
$4M
56
16.3 yrs
Pete Cherecwich
President of Corporate & Institutional Services
$4M
53
Bob Browne
Executive VP & Chief Investment Officer
53
10.3 yrs
Aileen Blake
Executive VP & Controller
50
Ian Headon
Head of Depositary Regulatory & Technical Services
Thomas South
Executive VP & Chief Information Officer
48
1.3 yrs
Mark Bette
Senior VP & Director of Investor Relations
2.9 yrs
Susan Levy
Executive VP
60
4.9 yrs
Board of Directors Tenure
Average tenure and age of the Northern Trust board of directors in years:
- The tenure for the Northern Trust board of directors is about average.
Board of Directors
Hidehiro Nakayama
President & Representative Director of Northern Trust Global Investments Japan
6.8 yrs
Susan Crown
Independent Director
$230K
59
22.3 yrs
Mike O’Grady
Chairman
$8M
52
0.3 yrs
Charles Tribbett
Independent Director
$235K
62
14.3 yrs
Linda Bynoe
Independent Director
$235K
66
13 yrs
R. Magill
Vice Chairman for Wealth Management
0.3 yrs
David H. Smith
Independent Director
$255K
51
9 yrs
Martin Slark
Independent Director
$255K
64
8 yrs
John Rowe
Lead Director
$255K
72
9 yrs
Jose Prado Becerra
Independent Director
$230K
63
6.5 yrs
Who owns this company?
Recent Insider Transactions
| Announced | Type | Name | Entity | Role | Start | End | Shares | Max Price ($) | Value ($) | |
|---|---|---|---|---|---|---|---|---|---|---|
| 18. Dec 18 | Sell | Stephen Potter | Individual | 13. Dec 18 | 13. Dec 18 | -141 | $86.90 | $-12,282 | ||
| 06. Aug 18 | Sell | Jana Schreuder | Individual | 06. Aug 18 | 06. Aug 18 | -9,699 | $110.00 | $-1,066,890 | ||
| 24. Jul 18 | Sell | Teresa Parker | Individual | 20. Jul 18 | 20. Jul 18 | -5,606 | $108.23 | $-606,737 | ||
| 16. May 18 | Sell | Jana Schreuder | Individual | 15. May 18 | 15. May 18 | -2,913 | $107.38 | $-312,798 | ||
| 08. May 18 | Sell | Aileen Blake | Individual | 07. May 18 | 07. May 18 | -1,000 | $105.49 | $-105,490 | ||
| 08. May 18 | Sell | Jeffrey Cohodes | Individual | 07. May 18 | 07. May 18 | -14,979 | $105.15 | $-1,575,042 | ||
| 24. Apr 18 | Sell | Jana Schreuder | Individual | 24. Apr 18 | 24. Apr 18 | -2,627 | $108.08 | $-283,926 | ||
Management checks
We assess Northern Trust's management by checking for:- Is the CEO's compensation unreasonable compared to market cap? (1 check)
- Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
- Is the average tenure of the management team less than 2 years? (1 check)
- Is the average tenure of the board of directors team less than 3 years? (1 check) Northern Trust has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.
Note: We use the top 6 management executives and board members in our calculations.
Note 2: Insider trading include any internal stakeholders and these transactions .
Full details on the Management part of the Simply Wall St company analysis model.
NTRS News
Simply Wall St News
What Kind Of Shareholders Own Northern Trust Corporation (NASDAQ:NTRS)?
If you want to know who really controls Northern Trust Corporation (NASDAQ:NTRS), then you'll have to look at the makeup of its share registry. … Northern Trust has a market capitalization of US$21b, so it's too big to fly under the radar. … Taking a look at our data on the ownership groups (below), it's seems that.
Simply Wall St - – Full articleHave Insiders Been Selling Northern Trust Corporation (NASDAQ:NTRS) Shares?
So before you buy or sell Northern Trust Corporation (NASDAQ:NTRS), you may well want to know whether insiders have been buying or selling. … The Last 12 Months Of Insider Transactions At Northern Trust. … Over the last year we saw more insider selling of Northern Trust shares, than buying
Simply Wall St - – Full articleWhat Should We Expect From Northern Trust Corporation's (NASDAQ:NTRS) Earnings In The Next Couple Of Years?
The latest earnings update Northern Trust Corporation (NASDAQ:NTRS) released in December 2018a
Simply Wall St - – Full articleOnly 4 Days Left Before Northern Trust Corporation (NASDAQ:NTRS) Will Be Trading Ex-Dividend
If you are interested in cashing in on Northern Trust Corporation's (NASDAQ:NTRS) upcoming dividend of US$0.60 per share, you only have 4 days left to buy the shares before its ex-dividend date, 07 March 2019, in time for dividends payable on the 01 April 2019. … When assessing a stock as a potential addition to my dividend Portfolio, I look at these five areas:? … Has it consistently paid a stable dividend without missing a payment or drastically cutting payout?
Simply Wall St - – Full articleDo You Like Northern Trust Corporation (NASDAQ:NTRS) At This P/E Ratio?
To keep it practical, we'll show how Northern Trust Corporation's (NASDAQ:NTRS) P/E ratio could help you assess the value on offer. … Northern Trust has a P/E ratio of 13.94, based on the last twelve months. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)
Simply Wall St - – Full articleWhat Should You Know About Northern Trust Corporation's (NASDAQ:NTRS) Future?
Participate in a short research study and receive a 6-month subscription to the award winning Simply Wall St research tool (valued at $60)! … On 31 December 2018, Northern Trust Corporation (NASDAQ:NTRS) announced its latest earnings update.
Simply Wall St - – Full articleIs There Now An Opportunity In Northern Trust Corporation (NASDAQ:NTRS)?
Today we're going to take a look at the well-established Northern Trust Corporation (NASDAQ:NTRS). … With many analysts covering the large-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price? … Let’s take a look at Northern Trust’s outlook and value based on the most recent financial data to see if the opportunity still exists.
Simply Wall St - – Full articleNorthern Trust Corporation (NASDAQ:NTRS) Is Trading At A 1.74% Discount Right Now
Capital market firms such as NTRS are hard to value. … This is because the rules they face are different to other companies, which can impact the way we forecast their cash flow. … Maintaining a certain level of cash capital ratio is common for these financial firms to abide by, in order to minimize risks to their shareholders.
Simply Wall St - – Full articleShould You Be Worried About Insider Transactions At Northern Trust Corporation (NASDAQ:NTRS)?
So shareholders might well want to know whether insiders have been buying or selling shares in Northern Trust Corporation (NASDAQ:NTRS). … As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.'. … That means that an insider was selling shares at below the current price (US$99.23).
Simply Wall St - – Full articleDo You Know What Northern Trust Corporation's (NASDAQ:NTRS) P/E Ratio Means?
We'll look at Northern Trust Corporation's (NASDAQ:NTRS) P/E ratio and reflect on what it tells us about the company's share price. … Northern Trust has a P/E ratio of 14.94, based on the last twelve months. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)
Simply Wall St - – Full articleNTRS Company Info
Description
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.
Details
| Name: | Northern Trust Corporation |
| NTRS | |
| Exchange: | NasdaqGS |
| Founded: | 1889 |
| $20,073,422,560 | |
| 218,498,123 | |
| Website: | http://www.northerntrust.com |
| Address: |
Northern Trust Corporation 50 South La Salle Street, Chicago, Illinois, 60603, United States |
Listings
| Exchange Symbol | Ticker Symbol | Security | Exchange | Country | Currency | Listed on | |
|---|---|---|---|---|---|---|---|
| NasdaqGS | NTRS | Common Stock | Nasdaq Global Select | US | USD | 02. Jan 1969 | |
| DB | NT4 | Common Stock | Deutsche Boerse AG | DE | EUR | 02. Jan 1969 | |
| LSE | 0K91 | Common Stock | London Stock Exchange | GB | USD | 02. Jan 1969 | |
| BMV | NTRS * | Common Stock | Bolsa Mexicana de Valores | MX | MXN | 02. Jan 1969 | |
| NasdaqGS | NTRS.P | DEP SHS RP PFD C | Nasdaq Global Select | US | USD | 01. Aug 2014 |
Number of employees
Current staff
Industry
| Asset Management and Custody Banks | |
| Diversified Financials |
Company Analysis and Financial Data Status
| Area | Date (UTC time) |
|---|---|
| Company Analysis updated: | 2019/04/21 23:39 |
| End of day share price update: | 2019/04/18 00:00 |
| Last estimates confirmation: | 2019/04/17 |
| Last earnings filing: | 2019/02/26 |
| Last earnings reported: | 2018/12/31 |
| Last annual earnings reported: | 2018/12/31 |
All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.
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.
