Loading...

Northern Trust

Nasdaq:NTRS
Snowflake Description

Established dividend payer and fair value.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
NTRS
Nasdaq
$20B
Market Cap
  1. Home
  2. US
  3. Diversified Financials
Company 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. The last earnings update was 82 days ago. More info.


Add to Portfolio Compare Print
NTRS Share Price and Events
7 Day Returns
1.7%
NasdaqGS:NTRS
0.6%
US Capital Markets
-1.2%
US Market
1 Year Returns
-13.8%
NasdaqGS:NTRS
-4%
US Capital Markets
3.4%
US Market
NTRS Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Northern Trust (NTRS) 1.7% 8.3% 1.1% -13.8% 38.4% 38.3%
US Capital Markets 0.6% 4.8% 1.8% -4% 54.6% 59.6%
US Market -1.2% 1.2% 1.7% 3.4% 35.5% 41.6%
1 Year Return vs Industry and Market
  • NTRS underperformed the Capital Markets industry which returned -4% over the past year.
  • NTRS underperformed the Market in United States of America which returned 3.4% over the past year.
Price Volatility
NTRS
Industry
5yr Volatility vs Market

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.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Northern Trust.

NasdaqGS:NTRS Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Weighted future Return on Equity estimates from 14 analysts.
= Stable Book Value * Return on Equity
= $46.71 * 14.9%
$6.94
Book Value of Equity per Share Weighted future Book Value estimates from 10 analysts. $46.71
Discount Rate (Cost of Equity) See below 8.7%
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.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:NTRS
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 0.66
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.659 (1 + (1- 21%) (63.62%))
0.994
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.99
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.994 * 5.96%)
8.65%

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.

NasdaqGS:NTRS Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (14.9% – 8.65%) * $46.71)
$2.90
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= $2.90 / (8.65% - 2.73%)
$49.01
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= $46.71 + $49.01
$95.72
NasdaqGS:NTRS Discount to Share Price
Calculation Result
Value per share (USD) From above. $95.72
Current discount Discount to share price of $92.86
= -1 x ($92.86 - $95.72) / $95.72
3%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Northern Trust is available for.
Intrinsic value
3%
Share price is $92.86 vs Future cash flow value of $95.72
Current Discount Checks
For Northern Trust to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • 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 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?
Raw Data
NasdaqGS:NTRS PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $6.58
NasdaqGS:NTRS Share Price ** NasdaqGS (2019-07-19) in USD $92.86
United States of America Capital Markets Industry PE Ratio Median Figure of 90 Publicly-Listed Capital Markets Companies 37.91x
United States of America Market PE Ratio Median Figure of 3,080 Publicly-Listed Companies 17.88x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Northern Trust.

NasdaqGS:NTRS PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:NTRS Share Price ÷ EPS (both in USD)

= 92.86 ÷ 6.58

14.11x

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?
Raw Data
NasdaqGS:NTRS PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 14.11x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 14 Analysts
1.6%per year
United States of America Capital Markets Industry PEG Ratio Median Figure of 33 Publicly-Listed Capital Markets Companies 2.5x
United States of America Market PEG Ratio Median Figure of 2,119 Publicly-Listed Companies 1.57x

*Line of best fit is calculated by linear regression .

NasdaqGS:NTRS PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 14.11x ÷ 1.6%

8.86x

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?
Raw Data
NasdaqGS:NTRS PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $44.72
NasdaqGS:NTRS Share Price * NasdaqGS (2019-07-19) in USD $92.86
United States of America Capital Markets Industry PB Ratio Median Figure of 175 Publicly-Listed Capital Markets Companies 7.86x
United States of America Market PB Ratio Median Figure of 5,245 Publicly-Listed Companies 1.79x
NasdaqGS:NTRS PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:NTRS Share Price ÷ Book Value per Share (both in USD)

= 92.86 ÷ 44.72

2.08x

* 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.
X
Value checks
We assess Northern Trust's value by looking at:
  1. 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. )
  2. Is the PE ratio less than the market average, and/ or less than the Capital Markets industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Capital Markets industry average (and greater than 0)? (1 check)
  5. 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

 How is Northern Trust expected to perform in the next 1 to 3 years based on estimates from 14 analysts?

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!
Annual Growth Rate
1.6%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Northern Trust expected to grow at an attractive rate?
  • 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
Raw Data
NasdaqGS:NTRS Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:NTRS Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 14 Analysts 1.6%
NasdaqGS:NTRS Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 14 Analysts 2.3%
United States of America Capital Markets Industry Earnings Growth Rate Market Cap Weighted Average 6.3%
United States of America Capital Markets Industry Revenue Growth Rate Market Cap Weighted Average 3.8%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.9%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.4%

*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
Raw Data
NasdaqGS:NTRS Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 14 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:NTRS Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 6,327 1,410 3
2020-12-31 6,206 1,464 12
2019-12-31 6,052 1,413 12
NasdaqGS:NTRS Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 5,957 2,539 1,456
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

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Northern Trust's earnings are expected to grow by 1.6% yearly, however this is not considered high growth (20% yearly).
  • Northern Trust's revenue is expected to grow by 2.3% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:NTRS 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 14 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.

NasdaqGS:NTRS Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 6.43 7.12 5.38 3.00
2020-12-31 7.05 7.40 6.50 17.00
2019-12-31 6.55 6.78 6.30 17.00
NasdaqGS:NTRS Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 6.58
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

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Northern Trust is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Northern Trust's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
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
Below we compare Northern Trust's growth in the last year to its industry (Capital Markets).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • 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 (17.6% vs 14.2%)
  • Northern Trust's earnings growth has not exceeded the US Capital Markets industry average in the past year (17.6% vs 54.5%).
Earnings and Revenue History
Northern Trust's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Northern Trust Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:NTRS Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 5,956.80 1,456.30 3,815.90
2018-12-31 5,954.90 1,489.90 3,784.60
2018-09-30 5,891.70 1,436.90 3,785.70
2018-06-30 5,760.60 1,360.50 3,715.30
2018-03-31 5,584.20 1,238.60 3,630.10
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

*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 more 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.
X
Past performance checks
We assess Northern Trust's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Capital Markets industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Northern Trust has a total score of 3/6, 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.
Net Worth
  • 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
This treemap shows a more detailed breakdown of Northern Trust's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • 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.
Raw Data

All data from Northern Trust Company Filings, last reported 3 months ago.

NasdaqGS:NTRS Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 10,616.20 12,351.10 10,330.70
2018-12-31 10,508.30 14,657.60 11,262.80
2018-09-30 10,364.50 14,413.80 10,398.80
2018-06-30 10,357.60 15,763.30 12,163.40
2018-03-31 10,226.00 12,020.80 13,585.80
2017-12-31 10,216.20 13,588.70 12,292.70
2017-09-30 10,165.20 13,330.90 13,616.00
2017-06-30 10,067.90 9,405.10 13,922.10
2017-03-31 9,977.70 8,793.70 14,137.20
2016-12-31 9,770.40 9,814.80 14,399.60
2016-09-30 9,579.80 8,215.80 14,553.60
2016-06-30 8,951.50 11,289.70 17,798.00
2016-03-31 8,832.80 9,269.40 22,966.50
2015-12-31 8,705.90 9,013.40 16,849.40
2015-09-30 8,784.50 8,736.10 21,743.60
2015-06-30 8,749.30 7,954.00 26,249.50
2015-03-31 8,607.60 8,392.30 23,884.50
2014-12-31 8,448.90 7,914.70 22,221.00
2014-09-30 8,542.60 8,263.90 21,506.10
2014-06-30 8,042.60 5,928.20 22,482.10
2014-03-31 7,948.30 6,972.40 22,376.20
2013-12-31 7,912.00 8,561.90 25,523.80
2013-09-30 7,817.10 7,717.70 22,619.80
2013-06-30 7,724.60 9,736.40 27,156.00
2013-03-31 7,612.10 7,622.70 24,844.80
2012-12-31 7,527.00 6,526.10 25,258.40
2012-09-30 7,532.20 6,270.80 24,485.20
  • Northern Trust's level of debt (116.3%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (88% vs 116.3% today).
  • Debt is well covered by operating cash flow (20.6%, greater 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.
X
Financial health checks
We assess Northern Trust's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Northern Trust has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. 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
Dividend payments
2.58%
Current annual income from Northern Trust dividends. Estimated to be 2.9% next year.
If you bought $2,000 of Northern Trust shares you are expected to receive $52 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Northern Trust's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).
  • Northern Trust's dividend is below the markets top 25% of dividend payers in United States of America (3.76%).
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.
Raw Data
NasdaqGS:NTRS Annualized Past and Future Dividends
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 14 Analyst Estimates (S&P Global) See Below
United States of America Capital Markets Industry Average Dividend Yield Market Cap Weighted Average of 41 Stocks 2.2%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2016 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 3.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:NTRS Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 2.84 6.00
2020-12-31 2.80 17.00
2019-12-31 2.54 17.00
NasdaqGS:NTRS Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-04-23 2.400 2.626
2019-01-22 2.400 2.612
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
2009-04-21 1.120 2.056
2009-02-17 1.120 1.937
2008-10-21 1.120 2.227

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 (3.1x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.5x coverage).
X
Income/ dividend checks
We assess Northern Trust's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. 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)
  7. 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

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Mike O’Grady
COMPENSATION $7,971,986
AGE 53
TENURE AS CEO 1.5 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 been consistent with company performance over the past year, both up more than 20%.
  • 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:

4.8
Average Tenure
54
Average Age
  • The tenure for the Northern Trust management team is about average.
Management Team

Mike O’Grady

TITLE
Chairman
COMPENSATION
$8M
AGE
53
TENURE
1.5 yrs

Stephen Bowman

TITLE
Executive VP & CFO
COMPENSATION
$4M
AGE
55
TENURE
4.8 yrs

Steve Fradkin

TITLE
Executive VP & President of Wealth Management
COMPENSATION
$4M
AGE
57
TENURE
16.5 yrs

Pete Cherecwich

TITLE
President of Corporate & Institutional Services
COMPENSATION
$4M
AGE
54

Bob Browne

TITLE
Executive VP & Chief Investment Officer
AGE
54
TENURE
10.5 yrs

Aileen Blake

TITLE
Head of Management Reporting
AGE
51

Ian Headon

TITLE
Head of Depositary Regulatory & Technical Services

Thomas South

TITLE
Executive VP & Chief Information Officer
AGE
49
TENURE
1.5 yrs

Mark Bette

TITLE
Senior VP & Director of Investor Relations
TENURE
3.2 yrs

Susan Levy

TITLE
Executive VP
AGE
61
TENURE
5.2 yrs
Board of Directors Tenure

Average tenure and age of the Northern Trust board of directors in years:

6.9
Average Tenure
63.5
Average Age
  • The tenure for the Northern Trust board of directors is about average.
Board of Directors

Hidehiro Nakayama

TITLE
President & Representative Director of Northern Trust Global Investments Japan
TENURE
7.1 yrs

Susan Crown

TITLE
Independent Director
COMPENSATION
$230K
AGE
60
TENURE
22.5 yrs

Mike O’Grady

TITLE
Chairman
COMPENSATION
$8M
AGE
53
TENURE
0.5 yrs

Charles Tribbett

TITLE
Independent Director
COMPENSATION
$235K
AGE
63
TENURE
14.5 yrs

Linda Bynoe

TITLE
Independent Director
COMPENSATION
$235K
AGE
67
TENURE
13.3 yrs

R. Magill

TITLE
Vice Chairman for Wealth Management
TENURE
0.5 yrs

David H. Smith

TITLE
Independent Director
COMPENSATION
$255K
AGE
52
TENURE
9.3 yrs

Dean Harrison

TITLE
Independent Director
COMPENSATION
$240K
AGE
64
TENURE
4.5 yrs

Martin Slark

TITLE
Lead Director
COMPENSATION
$255K
AGE
65
TENURE
0.3 yrs

Jose Prado Becerra

TITLE
Independent Director
COMPENSATION
$230K
AGE
64
TENURE
6.8 yrs
Who owns this company?
Recent Insider Trading
  • Northern Trust individual insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
14. Jun 19 Sell Robert Browne Individual 14. Jun 19 14. Jun 19 -12,156 $86.88 $-1,056,113
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
X
Management checks
We assess Northern Trust's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. 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

The Northern Trust (NASDAQ:NTRS) Share Price Is Up 46% And Shareholders Are Holding On

One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement. … During three years of share price growth, Northern Trust achieved compound earnings per share growth of 17% per year. … It is important to consider the total shareholder return, as well as the share price return, for any given stock.

Simply Wall St -

Is Northern Trust Corporation (NASDAQ:NTRS) An Attractive Dividend Stock?

For the purpose of this article, we only scrutinise the last decade of Northern Trust's dividend payments. … Dividend Growth Potential While dividend payments have been relatively reliable, it would also be nice if earnings per share (EPS) were growing, as this is essential to maintaining the dividend's purchasing power over the long term. It's good to see Northern Trust has been growing its earnings per share at 17% a year over the past 5 years. A company paying out less than a quarter of its earnings as dividends, and growing earnings at more than 10% per annum, looks to be right in the cusp of its growth phase. At the right price, we might be interested. Conclusion Dividend investors should always want to know if a) a company's dividends are affordable, b) if there is a track record of consistent payments, and c) if the dividend is capable of growing. … Companies that are growing earnings tend to be the best dividend stocks over the long term.

Simply Wall St -

I Ran A Stock Scan For Earnings Growth And Northern Trust (NASDAQ:NTRS) Passed With Ease

I note that Northern Trust's revenue from operations was lower than its revenue in the last twelve months, so that could distort my analysis of its margins. … While we note Northern Trust's EBIT margins were flat over the last year, revenue grew by a solid 6.7% to US$6.0b. … This may only be a fast rundown, but the takeaway for me is that Northern Trust is worth keeping an eye on.

Simply Wall St -

Is Now An Opportune Moment To Examine Northern Trust Corporation (NASDAQ:NTRS)?

The company's stock. … saw a double-digit share price rise of over 10% in the past couple of months on the NASDAQGS. … 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

Simply Wall St -

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 -

Have 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 -

What 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 -

Only 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 -

Do 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 -

What 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 -

NTRS 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
$20,213,448,054
217,676,589
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
Staff numbers
18,800
Northern Trust employees.
Industry
Asset Management and Custody Banks
Diversified Financials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/20 23:45
End of day share price update: 2019/07/19 00:00
Last estimates confirmation: 2019/07/15
Last earnings filing: 2019/04/29
Last earnings reported: 2019/03/31
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.