The Bank of N.T. Butterfield & Son Limited (NTB) Fundamental Analysis: Bull vs. Bear Case

NTB

The Bank of N.T. Butterfield & Son Limited

Fundamental data last updated:November 6, 2026

We may earn a commission from partner links. This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate.

company profile

SECTOR

Financial Services

industry

Banks - Regional

Exchange

NYSE

County of HQ

Bermuda

Next Earnings Date

02/08/2027

Business Summary

NTB operates as a regional bank, focusing on providing financial services such as loans, deposits, and wealth management. Its competitive moat lies in its established customer relationships and regional expertise. By offering tailored financial solutions, NTB locks in clients and generates consistent cash flow. The bank's strategic focus on niche markets helps maintain its competitive edge.

VALUATION

P/E

9.94 Market Cap ($M USD)

$2.29B

Forward P/E

9.80 PEG

1.01 PRICE TO SALES

3.36 PRICE TO BOOK

1.99 EV / EBITDA

3.28 5-Year Average P/E

Free Cash Flow Yield

9.19%

DCF Value

$82.48

Graham Number

$62.54

Price to FCF

10.88 EV to FCF

4.21 Earnings Yield

10.23%

FCF Yield

9.19%

DIVIDEND

Yield

3.44%

Annual Payout

$2.00

Payout Ratio

34.27%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$5.95

Next Year EPS Growth Estimate

$5.94

Next Year Revenue Growth Estimate

$640.10M

Return on Equity (ROE)

20.68%

FREE CASH FLOW

Operating Margin

35.40%

Debt-to-Equity

0.03 Piotroski F-Score

5 Altman Z-Score

0.92 Return on Invested Capital (ROIC)

1.63%

Current Ratio

1518.86

Quick Ratio

1518.86

Net Debt to EBITDA

-5.20

Interest Coverage

1.94 Gross Profit margin

93.07%

FCF PER SHARE

$5.34

REVENUE PER SHARE

$17.30

Gainseekers Quantitative Analysis

Summary

The market seems to be overlooking NTB’s intrinsic value. With a DCF value significantly higher than its recent trading price, the stock appears undervalued. The Graham Number further supports this notion, indicating a potential upside. However, the Altman Z-score raises red flags about financial distress, suggesting caution. Despite a reasonable Forward P/E and solid Earnings Yield, the company’s growth prospects might be limited by structural challenges.

AI Exposure / Tech Reliance

As a regional bank, NTB's exposure to AI and tech shifts is indirect but crucial. The financial services sector is increasingly leveraging AI for risk management and customer service enhancements. NTB's ability to integrate these technologies will be key to maintaining competitiveness.

The Bull Case

For value investors, NTB offers compelling reasons to buy. The company boasts a robust Return on Equity of 20.68%, indicating efficient capital use. Its Free Cash Flow Yield, while modest, suggests potential for reinvestment and growth. The Piotroski F-Score of 5 and strong operating margins highlight solid financial health and operational efficiency, reinforcing its pricing power.

The Bear Case

Despite its strengths, NTB faces significant structural risks. The Price/Book and Price/Sales ratios suggest the stock might be overvalued relative to its peers. The Altman Z-score is alarmingly low, hinting at potential financial instability. Additionally, the stock's proximity to its 52-week high could indicate technical overextension, posing a risk for new investors.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Hold

Average Analyst Price Target

$65.00

Institutional Ownership %

1-Year Beta

0.54 Insider Buying % (6 Mo)

Distance to 52-Week High

10.31%

Distance to 52-Week Low

23.76%

EARNINGS SURPRISE %

6.04%

50-DAY SMA

$59.04

200-DAY SMA

$56.64

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.