Northern Trust
Market Cap
US$20.2b
Last Updated
2020/11/26 23:10 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. More Details
Rewards
Risk Analysis
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 is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.
Volatility Over Time: NTRS's weekly volatility (6%) has been stable over the past year.
Market Performance
7 Day Return
3.8%
NTRS
3.5%
US Capital Markets
2.1%
US Market
1 Year Return
-10.0%
NTRS
11.5%
US Capital Markets
19.8%
US Market
Return vs Industry: NTRS underperformed the US Capital Markets industry which returned 11.4% over the past year.
Return vs Market: NTRS underperformed the US Market which returned 19.7% over the past year.
Shareholder returns
| NTRS | Industry | Market | |
|---|---|---|---|
| 7 Day | 3.8% | 3.5% | 2.1% |
| 30 Day | 20.1% | 13.2% | 8.1% |
| 90 Day | 15.5% | 9.5% | 6.0% |
| 1 Year | -7.0%-10.0% | 14.3%11.5% | 22.5%19.8% |
| 3 Year | 6.6%-0.9% | 30.2%20.2% | 46.5%36.8% |
| 5 Year | 48.8%33.1% | 87.2%64.0% | 96.9%75.3% |
Long-Term 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
4 days ago | Simply Wall St
This Insider Has Just Sold Shares In Northern Trust Corporation (NASDAQ:NTRS)2 weeks ago | Simply Wall St
A Look At Northern Trust's (NASDAQ:NTRS) Share Price Returns1 month ago | Simply Wall St
Have Insiders Been Selling Northern Trust Corporation (NASDAQ:NTRS) Shares?Valuation
Is Northern Trust undervalued compared to its fair value and its price relative to the market?
15.97x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: NTRS ($96.88) is trading above our estimate of fair value ($73.94)
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 (16x) compared to the US Capital Markets industry average (23.1x).
PE vs Market: NTRS is good value based on its PE Ratio (16x) compared to the US market (19.7x).
Price to Earnings Growth Ratio
PEG Ratio: NTRS is poor value based on its PEG Ratio (5.5x)
Price to Book Ratio
PB vs Industry: NTRS is good value based on its PB Ratio (1.9x) compared to the US Capital Markets industry average (4.7x).
Next Steps
Future Growth
How is Northern Trust forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?
2.9%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: NTRS's forecast earnings growth (2.9% per year) is above the savings rate (2.2%).
Earnings vs Market: NTRS's earnings (2.9% per year) are forecast to grow slower than the US market (22% per year).
High Growth Earnings: NTRS's earnings are forecast to grow, but not significantly.
Revenue vs Market: NTRS's revenue (1.9% per year) is forecast to grow slower than the US market (10.2% per year).
High Growth Revenue: NTRS's revenue (1.9% 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 (12.2%).
Next Steps
Past Performance
How has Northern Trust performed over the past 5 years?
10.3%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: NTRS has high quality earnings.
Growing Profit Margin: NTRS's current net profit margins (21.1%) are lower than last year (24.2%).
Past Earnings Growth Analysis
Earnings Trend: NTRS's earnings have grown by 10.3% 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 (-13.5%) over the past year, making it difficult to compare to the Capital Markets industry average (3%).
Return on Equity
High ROE: NTRS's Return on Equity (11.6%) is considered low.
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
Financial Institutions Analysis
Asset Level: NTRS's Assets to Equity ratio (13.1x) is moderate.
Allowance for Bad Loans: NTRS has a sufficient allowance for bad loans (228%).
Low Risk Liabilities: 87% of NTRS's liabilities are made up of primarily low risk sources of funding.
Loan Level: NTRS has an appropriate level of Loans to Assets ratio (21%).
Low Risk Deposits: NTRS's Loans to Deposits ratio (27%) is appropriate.
Level of Bad Loans: NTRS has an appropriate level of bad loans (0.3%).
Next Steps
Dividend
What is Northern Trust current dividend yield, its reliability and sustainability?
2.89%
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: NTRS's dividend (2.89%) is higher than the bottom 25% of dividend payers in the US market (1.47%).
High Dividend: NTRS's dividend (2.89%) is low compared to the top 25% of dividend payers in the US market (4.05%).
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 (46.2%), 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 (44.2% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.8yrs
Average management tenure
CEO
Mike O’Grady (54 yo)
2.83yrs
Tenure
US$9,459,768
Compensation
Mr. Michael G. O'Grady, also known as Mike, has been the Chairman of Northern Trust Corporation and Northern Trust Company since January 23, 2019. Mr. O'Grady has been the President and Chief Executive off...
CEO Compensation Analysis
Compensation vs Market: Mike's total compensation ($USD9.46M) is about average for companies of similar size in the US market ($USD10.79M).
Compensation vs Earnings: Mike's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | 2.83yrs | US$9.46m | 0.057% $ 11.5m | |
| Executive VP & Chief Investment Officer | 11.83yrs | US$3.87m | 0.0043% $ 873.0k | |
| Executive VP & President of Wealth Management | 17.83yrs | US$6.20m | 0.084% $ 16.9m | |
| Executive VP and President of Corporate & Institutional Services | no data | US$4.47m | 0.025% $ 5.0m | |
| CFO & Executive VP | 0.83yr | no data | 0.0061% $ 1.2m | |
| Head of Depositary Regulatory & Technical Services | no data | no data | no data | |
| Executive VP & Chief Information Officer | 2.83yrs | no data | 0.0047% $ 945.6k | |
| Senior VP & Director of Investor Relations | no data | no data | no data | |
| Executive VP | 6.5yrs | no data | 0.022% $ 4.4m | |
| 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 | 2.83yrs | no data | no data |
2.8yrs
Average Tenure
55yo
Average Age
Experienced Management: NTRS's management team is considered experienced (2.8 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | 2.83yrs | US$9.46m | 0.057% $ 11.5m | |
| President & Representative Director of Northern Trust Global Investments Japan | 8.42yrs | no data | no data | |
| Independent Director | 9.58yrs | US$240.75k | 0.0080% $ 1.6m | |
| Independent Director | 23.83yrs | US$231.95k | 0.17% $ 35.1m | |
| Independent Director | 14.58yrs | US$234.95k | 0.00096% $ 193.6k | |
| Independent Director | 10.58yrs | US$254.95k | 0.66% $ 134.0m | |
| Independent Director | 15.83yrs | US$234.95k | 0.00048% $ 96.8k | |
| Independent Director | 5.33yrs | US$229.95k | 0.0057% $ 1.1m | |
| Vice Chairman for Wealth Management | 1.83yrs | no data | no data | |
| Independent Director | 5.83yrs | US$250.29k | 0.00050% $ 100.8k | |
| Independent Director | 8.08yrs | US$223.05k | 0.00094% $ 189.5k | |
| Independent Lead Director | 1.58yrs | US$257.19k | 0.0036% $ 717.8k |
8.3yrs
Average Tenure
64.5yo
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$20.163b
- Shares outstanding: 208.12m
- 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% DP SH PF 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 world...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/11/26 23:10 |
| End of Day Share Price | 2020/11/25 00:00 |
| Earnings | 2020/09/30 |
| 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.