Northern Trust logged a -4.5% change during today's afternoon session, and is now trading at a price of $79.91 per share.
Over the last year, Northern Trust logged a -2.7% change, with its stock price reaching a high of $89.25 and a low of $62.44. Over the same period, the stock underperformed the S&P 500 index by -24.5%. AThe company's 50-day average price was $82.9. Northern Trust Corporation, a financial holding company, provides wealth management, asset servicing, asset management, and banking solutions for corporations, institutions, families, and individuals worldwide. Based in Chicago, IL, the Large-Cap Finance company has 23,100 full time employees. Northern Trust has offered a 3.6% dividend yield over the last 12 months.
Low Leverage Levels but a Declining EPS Growth Trend:
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $5,960 | $6,073 | $6,101 | $6,464 | $6,761 | $6,774 |
| Interest Income (M) | $1,623 | $1,678 | $1,443 | $1,383 | $1,887 | $1,982 |
| Operating Margins | 33% | 32% | 27% | 31% | 26% | 22% |
| Net Margins | 26% | 25% | 20% | 24% | 20% | 16% |
| Net Income (M) | $1,556 | $1,492 | $1,209 | $1,545 | $1,336 | $1,107 |
| Depreciation & Amort. (M) | $17 | $17 | $500 | $516 | $554 | $635 |
| Diluted Shares (M) | 224 | 216 | 209 | 209 | 209 | 208 |
| Earnings Per Share | $6.64 | $6.63 | $5.46 | $7.14 | $6.14 | $5.08 |
| EPS Growth | n/a | -0.15% | -17.65% | 30.77% | -14.01% | -17.26% |
| Avg. Price | $88.68 | $83.23 | $77.39 | $105.08 | $106.83 | $79.87 |
| P/E Ratio | 13.28 | 12.5 | 14.12 | 14.68 | 17.34 | 15.69 |
| Free Cash Flow (M) | $1,670 | $2,434 | $1,761 | $1,260 | $2,264 | $2,509 |
| CAPEX (M) | $98 | $158 | $136 | $96 | $129 | $116 |
| EV / EBITDA | 8.4 | 7.58 | 6.11 | 7.91 | 8.46 | 7.57 |
| Total Debt (M) | $1,112 | $1,148 | $1,189 | $1,146 | $2,066 | $4,065 |
| Net Debt / EBITDA | -1.76 | -1.69 | -1.5 | -0.76 | -1.12 | -0.35 |
Northern Trust's Valuation Is in Line With Its Sector Averages:
Northern Trust has a trailing twelve month P/E ratio of 16.3, compared to an average of 12.38 for the Finance sector. Based on its EPS guidance of $6.91, the company has a forward P/E ratio of 12.0. The 0.6% compound average growth rate of Northern Trust's historical and projected earnings per share yields a PEG ratio of 28.58. This suggests that these shares are overvalued. In contrast, the market is likely undervaluing Northern Trust in terms of its equity because its P/B ratio is 1.49 while the sector average is 1.58. The company's shares are currently trading -1.3% below their Graham number.
Northern Trust Has an Analyst Consensus of Some Upside Potential:
The 13 analysts following Northern Trust have set target prices ranging from $85.0 to $101.0 per share, for an average of $90.77 with a hold rating. The company is trading -12.0% away from its average target price, indicating that there is an analyst consensus of some upside potential.
Northern Trust has a very low short interest because 1.1% of the company's shares are sold short. Institutions own 86.0% of the company's shares, and the insider ownership rate stands at 0.51%, suggesting a small amount of insider investors. The largest shareholder is Vanguard Group Inc, whose 11% stake in the company is worth $1,868,076,772.
