Northern Trust
Market Cap
US$22.6b
Last Updated
2019/11/16 23:43 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.
Snowflake
Fundamentals
Excellent 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
-1.0%
NTRS
1.0%
US Capital Markets
0.7%
US Market
1 Year Return
9.2%
NTRS
8.5%
US Capital Markets
12.9%
US Market
Return vs Industry: NTRS matched the US Capital Markets industry which returned 8.5% over the past year.
Return vs Market: NTRS underperformed the US Market which returned 12.9% over the past year.
Shareholder returns
| NTRS | Industry | Market | |
|---|---|---|---|
| 7 Day | -1.0% | 1.0% | 0.7% |
| 30 Day | 13.6% | 5.8% | 4.4% |
| 90 Day | 22.5% | 7.8% | 7.0% |
| 1 Year | 12.2%9.2% | 11.0%8.5% | 15.4%12.9% |
| 3 Year | 39.2%30.7% | 42.8%34.7% | 49.1%39.5% |
| 5 Year | 73.9%56.9% | 76.5%60.1% | 62.7%44.7% |
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 weeks ago | Simply Wall St
Northern Trust Corporation Just Released Its Third-Quarter Earnings: Here's What Analysts Think3 weeks ago | Simply Wall St
Have Insiders Been Selling Northern Trust Corporation (NASDAQ:NTRS) Shares?1 month ago | Simply Wall St
The Northern Trust (NASDAQ:NTRS) Share Price Is Up 40% And Shareholders Are Holding OnValuation
Is Northern Trust undervalued compared to its fair value and its price relative to the market?
15.77x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: NTRS ($106.55) is trading above our estimate of fair value ($90.43)
Significantly Below Fair Value: NTRS is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: NTRS is good value based on its PE Ratio (15.8x) compared to the Capital Markets industry average (35.1x).
PE vs Market: NTRS is good value based on its PE Ratio (15.8x) compared to the US market (18.2x).
Price to Earnings Growth Ratio
PEG Ratio: NTRS's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: NTRS is good value based on its PB Ratio (2.3x) compared to the US Capital Markets industry average (6.4x).
Next Steps
Future Growth
How is Northern Trust forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?
-0.7%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: NTRS's earnings are forecast to decline over the next 3 years (-0.7% per year).
Earnings vs Market: NTRS's earnings are forecast to decline over the next 3 years (-0.7% per year).
High Growth Earnings: NTRS's earnings are forecast to decline over the next 3 years.
Revenue vs Market: NTRS's revenue (1.8% per year) is forecast to grow slower than the US market (7.3% per year).
High Growth Revenue: NTRS's revenue (1.8% 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 (15.1%).
Next Steps
Past Performance
How has Northern Trust performed over the past 5 years?
13.9%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: NTRS has high quality earnings.
Growing Profit Margin: NTRS's current net profit margins (24.3%) are lower than last year (24.4%).
Past Earnings Growth Analysis
Earnings Trend: NTRS's earnings have grown by 13.9% per year over the past 5 years.
Accelerating Growth: NTRS's earnings growth over the past year (2%) is below its 5-year average (13.9% per year).
Earnings vs Industry: NTRS earnings growth over the past year (2%) underperformed the Capital Markets industry 20.6%.
Return on Equity
High ROE: NTRS's Return on Equity (14.2%) 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 2.8x debt).
Financial Institutions Analysis
Asset Level: NTRS's level of assets compared to its equity is moderate.
Allowance for Bad Loans: NTRS has a low 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 (0.37%)
Next Steps
Dividend
What is Northern Trust's current dividend yield, its reliability and sustainability?
2.63%
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 (2.63%) is higher than the bottom 25% of dividend payers in the US market (1.42%).
High Dividend: NTRS's dividend (2.63%) is low compared to the top 25% of dividend payers in the US market (3.65%).
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 (36.3%), 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 (41.7% payout ratio).
Next Steps
Management
What is the CEO of Northern Trust's salary, the management and board of directors tenure and is there insider trading?
5.3yrs
Average management tenure
CEO
Mike O’Grady (53yo)
1.8yrs
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 ($USD11.01M).
Compensation vs Earnings: Mike's compensation has increased by more than 20% in the past year.
Management Age and Tenure
5.3yrs
Average Tenure
54yo
Average Age
Experienced Management: NTRS's management team is seasoned and experienced (5.3 years average tenure).
Board Age and Tenure
7.3yrs
Average Tenure
63.5yo
Average Age
Experienced Board: NTRS's board of directors are considered experienced (7.3 years average tenure).
Insider Trading
Insider Buying: NTRS insiders have only sold shares in the past 3 months.
Recent Insider Transactions
| Entity | Individual |
| Shares | 8,110 |
| Max Price | US$100.52 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 4 |
| Max Price | US$93.99 |
| Entity | Individual |
| Role | Chief Information Officer Executive VP & Chief Information Officer |
| Shares | 1,000 |
| Max Price | US$98.54 |
| Entity | Individual |
| Role | Chief Investment Officer Executive VP & Chief Investment Officer |
| Shares | 12,000 |
| Max Price | US$99.60 |
| Entity | Individual |
| Role | Chief Investment Officer Executive VP & Chief Investment Officer |
| Shares | 12,156 |
| Max Price | US$86.88 |
| Entity | Individual |
| Shares | 141.33 |
| Max Price | US$86.90 |
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Management Team
Steve Fradkin (57yo)
Executive VP & President of Wealth Management
- Tenure: 16.8yrs
- Compensation: US$4.10m
Ian Headon
Head of Depositary Regulatory & Technical Services
- Tenure: 0yrs
Pete Cherecwich (54yo)
Executive VP and President of Corporate & Institutional Services
- Tenure: 0yrs
- Compensation: US$4.08m
Stephen Bowman (55yo)
Executive VP & CFO
- Tenure: 5.2yrs
- Compensation: US$3.74m
Susan Levy (61yo)
Executive VP
- Tenure: 5.5yrs
Mike O’Grady (53yo)
Chairman
- Tenure: 1.8yrs
- Compensation: US$7.97m
Bob Browne (54yo)
Executive VP & Chief Investment Officer
- Tenure: 10.8yrs
K. Mannard
Chief Marketing & Communications Officer
- Tenure: 0yrs
Mark Bette
Senior VP
- Tenure: 0yrs
Thomas South (49yo)
Executive VP & Chief Information Officer
- Tenure: 1.8yrs
Board Members
Martin Slark (65yo)
Lead Director
- Tenure: 0.6yrs
- Compensation: US$254.96k
Susan Crown (60yo)
Independent Director
- Tenure: 22.8yrs
- Compensation: US$229.96k
Linda Bynoe (67yo)
Independent Director
- Tenure: 13.6yrs
- Compensation: US$234.96k
David H. Smith (52yo)
Independent Director
- Tenure: 9.6yrs
- Compensation: US$254.96k
Charles Tribbett (63yo)
Independent Director
- Tenure: 14.8yrs
- Compensation: US$234.96k
R. Magill
Vice Chairman for Wealth Management
- Tenure: 0.8yrs
Dean Harrison (64yo)
Independent Director
- Tenure: 4.8yrs
- Compensation: US$239.96k
Mike O’Grady (53yo)
Chairman
- Tenure: 1.8yrs
- Compensation: US$7.97m
Jose Prado Becerra (64yo)
Independent Director
- Tenure: 7.1yrs
- Compensation: US$229.96k
Hidehiro Nakayama
President & Representative Director of Northern Trust Global Investments Japan
- Tenure: 7.4yrs
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$22.576b
- Shares outstanding: 211.88m
- 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 |
| 0K91 | LSE (London Stock Exchange) | Yes | Common Stock | GB | USD | Jan 1969 |
| NTRS.P | NasdaqGS (Nasdaq Global Select) | DEP SHS RP PFD C | US | USD | Aug 2014 |
Biography
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 | 2019/11/16 23:43 |
| End of Day Share Price | 2019/11/15 00:00 |
| Earnings | 2019/09/30 |
| Annual Earnings | 2018/12/31 |
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.