NTRS

Northern Trust Corporation

Fundamental data last updated:November 6, 2026

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company profile

SECTOR

Financial Services

industry

Asset Management

Exchange

NASDAQ

County of HQ

United States

Next Earnings Date

01/21/2027

Business Summary

Northern Trust's business model revolves around providing asset management and financial services to institutional and individual clients. Its competitive moat is built on a reputation for trust and reliability, crucial in the financial sector. By offering bespoke solutions and leveraging long-standing client relationships, the company ensures a steady revenue stream. This client-centric approach, combined with technological integration, fortifies its market position.

 


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VALUATION

P/E

13.40

Market Cap ($M USD)

$31.45B

Forward P/E

14.51

PEG

0.37

PRICE TO SALES

2.06

PRICE TO BOOK

2.34

EV / EBITDA

0.45

5-Year Average P/E

Free Cash Flow Yield

-0.72%

DCF Value

$386.00

Graham Number

$148.38

Price to FCF

-138.91

EV to FCF

-7.58

Earnings Yield

7.75%

FCF Yield

-0.72%

DIVIDEND

Yield

1.91%

Annual Payout

$3.28

Payout Ratio

19.39%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$13.33

Next Year EPS Growth Estimate

$11.85

Next Year Revenue Growth Estimate

$9.54B

Return on Equity (ROE)

18.41%

FREE CASH FLOW

Operating Margin

20.83%

Debt-to-Equity

1.19

Piotroski F-Score

8

Altman Z-Score

0.05

Return on Invested Capital (ROIC)

6.90%

Current Ratio

0.77

Quick Ratio

0.77

Net Debt to EBITDA

-7.87

Interest Coverage

0.53

Gross Profit margin

60.93%

FCF PER SHARE

$-1.24

REVENUE PER SHARE

$84.06

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Gainseekers Quantitative Analysis

Summary

Northern Trust Corporation’s valuation reveals a striking disconnect between market perception and intrinsic value. Recent pricing indicated it traded significantly below its DCF value of $385.99 and its Graham Number of $148.38, suggesting a potential undervaluation. However, the Forward P/E of 14.51 and an Earnings Yield of 7.75% imply moderate growth expectations. The Altman Z-score of 0.046 raises red flags about financial distress, demanding caution despite the attractive valuation metrics.

AI Exposure / Tech Reliance

Operating within the asset management industry, Northern Trust is strategically positioned to leverage AI and tech advancements. As financial services increasingly integrate technology, the company can enhance efficiency and client offerings. Its adaptability will be crucial in maintaining a competitive edge in a rapidly evolving landscape.

The Bull Case

For the discerning GARP investor, Northern Trust offers compelling reasons to buy. With a robust ROIC of 6.90% and a high Piotroski F-Score of 8, the company demonstrates strong operational efficiency and financial health. Despite a negative FCF Yield, its operating margin of 20.83% underscores effective cost management and pricing power. These metrics suggest a well-managed firm capable of delivering sustainable returns.

The Bear Case

Yet, the bear case cannot be ignored. The Price/Book ratio of 2.34 and Price/Sales of 2.06 indicate potential overvaluation relative to peers. The negative FCF Yield and Price to FCF ratio of -138.91 highlight severe cash flow issues. Additionally, trading close to its 52-week high, the stock may be technically overextended, posing risks for new entrants.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Hold

Average Analyst Price Target

$186.00

Institutional Ownership %

1-Year Beta

1.25

Insider Buying % (6 Mo)

Distance to 52-Week High

13.89%

Distance to 52-Week Low

29.30%

EARNINGS SURPRISE %

11.50%

50-DAY SMA

$176.04

200-DAY SMA

$165.21

⚠️ 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.