10Y annualized return is
positive but below market average
at 2.3% per year
NTRS has met or exceeded earnings expectations in
some
recent quarters (5/10)
Attractive P/E Ratio
Strong Net Profit Margin
Good Return on Equity
Manageable Debt to Assets Ratio
📈 Strong Financial Performance
🔒 Strong Risk Management and Technology Investment
🌍 Market Position and Client Focus
🚀 Growth in Wealth and Asset Management
💡 Innovation and Technology Adoption
Negative Price-to-Cash Flow Ratio
Low Gross Profit Margin
Poor Liquidity Ratios
Low Interest Coverage Ratio
⚠️ Economic and Regulatory Risks
Overall, Northern Trust demonstrates robust business quality through strong financial performance, effective risk management, and a client-focused strategy. The future prospects appear positive with planned expansions in wealth and asset management, supported by technology innovations. However, external economic risks remain a concern.
Analysis Date: January 23, 2025
Last Updated: March 12, 2025
Past performance does not guarantee future results. The data presented is indicative and may not be updated in real-time.
Northern Trust Corporation is a company that helps people and organizations manage their money and investments. They offer services like investment management, banking, and financial advice for wealthy individuals, families, and businesses. Northern Trust specializes in keeping track of assets, helping clients grow their wealth, and providing support for things like estate planning and charitable giving. Founded in 1889 and based in Chicago, they serve clients all around the world.
Streams of revenue
Geographic Distribution
Estimations for reference only
Core Products
Business Type
Business to Business
Competitive Advantages
Key Business Risks
Latest News
NTRS' first-quarter results benefit from increases in NII and non-interest income. Yet, rising costs act as a headwind.
The headline numbers for Northern Trust (NTRS) give insight into how the company performed in the quarter ended March 2025, but it may be worthwhile t...
Northern Trust Corporation (NTRS) came out with quarterly earnings of $1.90 per share, beating the Zacks Consensus Estimate of $1.85 per share. This c...
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Benjamin Graham's value investing approach focuses on finding stocks with a significant margin of safety between their intrinsic value and market price.
Intrinsic Value
Estimated fair value based on Graham's formula
$391.11
Current Market Price: $83.87
IV/P Ratio: 4.66x (>1.0 indicates undervalued)
Margin of Safety
Gap between intrinsic value and market price
79.0%
Graham recommended a minimum of 20-30% margin of safety
Higher values indicate a greater potential discount to fair value
Graham Criteria Checklist
Benjamin Graham's value investing checklist for NTRS
Positive earnings (5+ years)
Dividend history (5+ years)
P/E ratio ≤ 20 (8.47)
P/B ratio ≤ 1.5 (1.34)
Current ratio ≥ 2.0
Long-term debt < Net current assets
Margin of safety (79.0%)
NTRS does not meet all Graham criteria
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
The net profit margin of 17.60% is a positive indicator of the company’s ability to convert revenue into profit, suggesting effective cost management.
A return on equity (ROE) of 16.15% indicates that the company is effectively using equity to generate profit, reflecting strong financial performance.
The gross profit margin of 1.01% is extremely low, indicating potential issues with cost structure or pricing strategy.
Profitability metrics measure a company's ability to generate earnings relative to its revenue, operating costs, and other relevant metrics. Higher values generally indicate better performance.
Return on Equity (ROE)
Measures how efficiently a company uses its equity to generate profits
16.15%
Higher values indicate better returns for shareholders
TTM (as of 2025-04-25)
Gross Profit Margin
Percentage of revenue retained after accounting for cost of goods sold
100.77%
Higher values indicate better efficiency in production
TTM (as of 2025-04-25)
Net Profit Margin
Percentage of revenue retained after accounting for all expenses
17.60%
Higher values indicate better overall profitability
TTM (as of 2025-04-25)
A debt-to-assets ratio of 8.60% suggests that the company has a relatively low level of debt compared to its total assets, indicating a solid financial foundation.
The current ratio, quick ratio, and cash ratio are all 0.0, indicating severe liquidity issues that could hinder short-term obligations.
An interest coverage ratio of 0.22 indicates the company struggles to cover its interest obligations, raising concerns about financial stability.
Financial health metrics assess a company's ability to meet its financial obligations and its overall financial stability.
Debt to Equity Ratio
Total debt divided by total equity
1.05x
Lower values indicate less financial leverage and risk
Less than 1.0 is conservative, 1.0-2.0 is moderate, >2.0 indicates high risk
Q4 2024
Current Ratio
Current assets divided by current liabilities
NTRS: No data available
Meeting Expectations
Higher values indicate better execution and credibility
Recent Results
EPS
Northern Trust reported a significant increase in key financial metrics, including a 12% increase in trust fees and a 15% growth in net interest income. The company generated positive operating leverage and a 24% EPS growth year-over-year, indicating a solid financial foundation.
The company has made significant investments in technology to enhance its risk and control systems, including modernizing its core platforms and adopting AI tools. These efforts are aimed at improving operational efficiency and maintaining resilience against market fluctuations.
Northern Trust's 'One Northern Trust' strategy emphasizes enhancing client experiences and expanding service offerings across wealth management and asset management. The collaborative approach has led to significant client wins and improved market positioning.
Northern Trust aims to capture growth in wealth and asset management by expanding its suite of alternative investment solutions and enhancing its global family office services. The company intends to deepen client relationships and target high-net-worth individuals more effectively.
The firm is focused on further integrating technology and AI in its operations to enhance service delivery and operational efficiency. These innovations are expected to drive productivity and align with industry trends, positioning Northern Trust favorably for future growth.
The company remains cautious about potential economic downturns and regulatory changes that could impact liquidity and interest rates. Although they are preparing for these uncertainties, such risks could affect future performance.