NasdaqGS:NTRS

Stock Analysis Report

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

Established dividend payer and fair value.


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


Market Performance


7 Day Return

-2.4%

NasdaqGS:NTRS

0.9%

US Capital Markets

0.9%

US Market


1 Year Return

-20.4%

NasdaqGS:NTRS

-5.5%

US Capital Markets

0.3%

US Market

NTRS underperformed the Capital Markets industry which returned -5.5% over the past year.

NTRS underperformed the Market in United States of America which returned 0.3% over the past year.


Share holder returns

NTRSIndustryMarket
7 Day-2.4%0.9%0.9%
30 Day-6.6%-3.7%-1.9%
90 Day-7.1%0.4%1.6%
1 Year-18.4%-20.4%-3.4%-5.5%2.6%0.3%
3 Year34.2%26.3%53.1%44.2%41.0%31.8%
5 Year39.1%25.8%69.9%54.1%55.2%38.0%

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

Valuation

Is Northern Trust undervalued based on future cash flows and its price relative to the stock market?

7%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Northern Trust's share price is below the future cash flow value, but not at a moderate discount (< 20%).

Northern Trust's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

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

Northern Trust is poor value based on expected growth next year.


Price Based on Value of Assets

Northern Trust is good value based on assets compared to the US Capital Markets industry average.


Next Steps

Future Growth

How is Northern Trust expected to perform in the next 1 to 3 years based on estimates from 15 analysts?

2.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Northern Trust's revenue is expected to grow by 2.4% yearly, however this is not considered high growth (20% yearly).

Northern Trust's earnings are expected to grow by 2% yearly, however this is not considered high growth (20% yearly).

Northern Trust's revenue growth is positive but not above the United States of America market average.

Northern Trust's earnings growth is positive but not above the United States of America market average.

Northern Trust's earnings growth is positive but not above the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Northern Trust is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Northern Trust performed over the past 5 years?

14.2%

Historical annual earnings growth


Earnings and Revenue History


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 is less than its 5-year average (7.1% vs 14.2%)

Northern Trust's earnings growth has not exceeded the US Capital Markets industry average in the past year (7.1% vs 34.8%).


Return on Equity

Northern Trust has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Northern Trust used its assets less efficiently than the US Capital Markets industry average last year based on Return on Assets.


Return on Capital Employed

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.


Next Steps

Financial Health

How is Northern Trust's financial position?


Financial Position Analysis

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.


Debt to Equity History and Analysis

Northern Trust's level of debt (118.6%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (74% vs 118.6% today).

Debt is not well covered by operating cash flow (17.9%, 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.


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 3.2x debt.


Next Steps

Dividend

What is Northern Trust's current dividend yield, its reliability and sustainability?

3.21%

Expected Dividend Yield


Upcoming Dividend Payment

Purchase Northern Trust before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield and Payments Analysis

Northern Trust's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.48%).

Northern Trust's dividend is below the markets top 25% of dividend payers in United States of America (3.83%).

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

Dividends paid are well covered by earnings (2.9x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (2.4x coverage).


Next Steps

Management

What is the CEO of Northern Trust's salary, the management and board of directors tenure and is there insider trading?

4.9yrs

Average management tenure


CEO

Mike O’Grady (53yo)

1.6yrs

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

Mike's remuneration is about average for companies of similar size in United States of America.

Mike's compensation has increased by more than 20% in the past year whilst earnings grew less than 20%.


Management Age and Tenure

4.9yrs

Average Tenure

54yo

Average Age

The tenure for the Northern Trust management team is about average.


Board Age and Tenure

7.0yrs

Average Tenure

63.5yo

Average Age

The tenure for the Northern Trust board of directors is about average.


Insider Trading

Northern Trust individual insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$1,195,20030 Jul 19
Robert Browne
EntityIndividual
Role
Chief Investment Officer
Executive VP & Chief Investment Officer
Shares12,000
Max PriceUS$99.60
SellUS$1,056,11314 Jun 19
Robert Browne
EntityIndividual
Role
Chief Investment Officer
Executive VP & Chief Investment Officer
Shares12,156
Max PriceUS$86.88
SellUS$12,28218 Dec 18
Stephen Potter
EntityIndividual
Shares141.33
Max PriceUS$86.90

Ownership Breakdown


Management Team

  • Steve Fradkin (57yo)

    Executive VP & President of Wealth Management

    • Tenure: 16.6yrs
    • Compensation: US$4.10m
  • Ian Headon

    Head of Depositary Regulatory & Technical Services

    • Tenure: 0.0yrs
  • Aileen Blake (51yo)

    Head of Management Reporting

    • Tenure: 0.0yrs
  • Pete Cherecwich (54yo)

    President of Corporate & Institutional Services

    • Tenure: 0.0yrs
    • Compensation: US$4.08m
  • Stephen Bowman (55yo)

    Executive VP & CFO

    • Tenure: 4.9yrs
    • Compensation: US$3.74m
  • Susan Levy (61yo)

    Executive VP

    • Tenure: 5.3yrs
  • Mike O’Grady (53yo)

    Chairman

    • Tenure: 1.6yrs
    • Compensation: US$7.97m
  • Bob Browne (54yo)

    Executive VP & Chief Investment Officer

    • Tenure: 10.6yrs
  • Mark Bette

    Senior VP & Director of Investor Relations

    • Tenure: 3.3yrs
  • Thomas South (49yo)

    Executive VP & Chief Information Officer

    • Tenure: 1.6yrs

Board Members

  • Martin Slark (65yo)

    Lead Director

    • Tenure: 0.3yrs
    • Compensation: US$254.96k
  • Susan Crown (60yo)

    Independent Director

    • Tenure: 22.6yrs
    • Compensation: US$229.96k
  • Linda Bynoe (67yo)

    Independent Director

    • Tenure: 13.3yrs
    • Compensation: US$234.96k
  • David H. Smith (52yo)

    Independent Director

    • Tenure: 9.3yrs
    • Compensation: US$254.96k
  • Charles Tribbett (63yo)

    Independent Director

    • Tenure: 14.6yrs
    • Compensation: US$234.96k
  • R. Magill

    Vice Chairman for Wealth Management

    • Tenure: 0.6yrs
  • Dean Harrison (64yo)

    Independent Director

    • Tenure: 4.6yrs
    • Compensation: US$239.96k
  • Mike O’Grady (53yo)

    Chairman

    • Tenure: 1.6yrs
    • Compensation: US$7.97m
  • Jose Prado Becerra (64yo)

    Independent Director

    • Tenure: 6.8yrs
    • Compensation: US$229.96k
  • Hidehiro Nakayama

    President & Representative Director of Northern Trust Global Investments Japan

    • Tenure: 7.2yrs

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$18.635b
  • Shares outstanding: 214.89m
  • Website: https://www.northerntrust.com

Number of Employees


Location

  • Northern Trust Corporation
  • 50 South La Salle Street
  • Chicago
  • Illinois
  • 60603
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NTRSNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJan 1969
NT4DB (Deutsche Boerse AG)YesCommon StockDEEURJan 1969
NTRS *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJan 1969
0K91LSE (London Stock Exchange)YesCommon StockGBUSDJan 1969
NTRS.PNasdaqGS (Nasdaq Global Select)DEP SHS RP PFD CUSUSDAug 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/20 23:43
End of Day Share Price2019/08/20 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.