A Business at a Glance
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ITEM 1 – BUSINESS Northern Trust Corporation Northern Trust Corporation (the “Corporation”) is a leading provider of wealth management, asset servicing, asset management and banking solutions to corporations, institutions, families and individuals. The Corporation is a financial holding company conducting business through various U.S. and non-U.S. subsidiaries, including The Northern Trust Company (Bank). The Bank is an Illinois banking corporation headquartered in Chicago and the Corporation’s principal subsidiary. Founded in 1889, the Bank conducts its business through its U.S. operations and its various U.S. and non-U.S. branches and subsidiaries. At December 31, 2025, the Bank had consolidated assets of $176.4 billion and common bank equity capital of $11.4 billion. The Corporation was formed as a holding company for the Bank in 1971. The Corporation has a global presence with offices in 24 U.S. states and Washington, D.C.
| Segment | 2021 | 2022 | 2023 | 2024 | 2025 | % of Total |
|---|---|---|---|---|---|---|
Investment Management and Advisory | $2.14B | $2.30B | $2.23B | $2.49B | $2.66B | 51% |
Custody and Fund Administration | $1.92B | $1.82B | $1.81B | $1.92B | $2.03B | 39% |
Other | $227M | $236M | $240M | $247M | $248M | 5% |
Securities Commission and Trading | $112M | $117M | $116M | $144M | $163M | 3% |
Securities Lending | $77M | $82M | $84M | $74M | $83M | 2% |
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 14.3B | 14.3B | 15.9B | 12.1B | 7.8B | 6.5B |
| Net Income | 1.7B | 1.7B | 2.0B | 1.1B | 1.3B | 1.5B |
| EPS | $8.74 | $8.74 | $9.77 | $5.08 | $6.14 | $7.14 |
| Free Cash Flow | 5.5B | 5.5B | -588M | 2.5B | 2.3B | 1.3B |
| ROIC | 10.4% | 10.6% | 12.8% | 7.3% | 9.3% | 10.4% |
| Gross Margin | 56.5% | 56.5% | 52.2% | 55.7% | 87.1% | 98.4% |
| Debt/Equity | 0.26 | 0.26 | 0.22 | 0.23 | 0.24 | 0.21 |
| Dividends/Share | $3.05 | $3.10 | $3.00 | $3.00 | $2.90 | $2.80 |
| Operating Income | 208M | 208M | 1.2B | 229M | 191M | 244M |
| Operating Margin | 1.5% | 1.5% | 7.3% | 1.9% | 2.5% | 3.8% |
| ROE | 13.1% | 13.2% | 15.6% | 9.0% | 11.5% | 12.5% |
| Shares Outstanding | 194M | 194M | 204M | 210M | 211M | 211M |
NORTHERN TRUST CORP passes 5 of 9 quality checks, suggesting mixed fundamentals.
NORTHERN TRUST CORP trades at 17.6x trailing earnings, compared to its 15-year median P/E of 14.7x, suggesting it is currently Expensive relative to its historical range. On a free-cash-flow basis, the stock trades at 5.2x vs a median of 9.1x. The company's 5-year average ROIC is 10.1% with a gross margin of 70.0%. Total shareholder yield (dividends + buybacks) is 6.2%. At current prices, the estimated annualized return to fair value is +9.5%.
NORTHERN TRUST CORP (NTRS) has a current P/E ratio of 17.6, compared to its historical median P/E of 14.7. The stock is currently considered Expensive based on its historical valuation range.
NORTHERN TRUST CORP (NTRS) has a 5-year average return on invested capital (ROIC) of 10.1%. This indicates solid capital allocation.
NORTHERN TRUST CORP (NTRS) has a market capitalization of $29.9B. It is classified as a large-cap stock.
Yes, NORTHERN TRUST CORP (NTRS) pays a dividend with a trailing twelve-month yield of 1.98%. The company also returns capital through share buybacks, with a buyback yield of 4.26%.
Based on historical P/E analysis, NORTHERN TRUST CORP (NTRS) appears expensive. The current P/E of 17.6 is 20% above its historical median of 14.7. The estimated fair value CAGR (P/E method) is 3.1%.
NORTHERN TRUST CORP (NTRS) operates in the State Commercial Banks industry, within the Financials sector.
NORTHERN TRUST CORP (NTRS) reported annual revenue of $14.3 billion in its most recent fiscal year, based on SEC EDGAR filings.
NORTHERN TRUST CORP (NTRS) has a net profit margin of 11.9%. This is a healthy margin.
NORTHERN TRUST CORP (NTRS) generated $5.5 billion in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
NORTHERN TRUST CORP (NTRS) has a debt-to-equity ratio of 0.26. This indicates a conservatively financed balance sheet.
NORTHERN TRUST CORP (NTRS) reported earnings per share (EPS) of $8.74 in its most recent fiscal year.
NORTHERN TRUST CORP (NTRS) has a return on equity (ROE) of 13.2%. This indicates moderate shareholder returns.
NORTHERN TRUST CORP (NTRS) has a 5-year average gross margin of 70.0%. This high margin suggests strong pricing power and a potential competitive moat.
The Ledger Terminal provides 19 years of financial data for NORTHERN TRUST CORP (NTRS), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
NORTHERN TRUST CORP (NTRS) has a book value per share of $66.81, based on its most recent annual SEC filing.
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