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Northern Trust

NASDAQ: NTRS

Stock price

168.63 USD

(+34.56%) 5 years

Asset Management & Custody BanksBanks - Diversified

Financial Performance

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5Y price score: 50

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The price score is a basic measure of the stock's performance against the S&P 500 Index over a five-year period.

A score of 100 indicates that the stock did as well as the S&P 500 Index.

A score below 100 means the stock underperformed the index, while a score above 100 means it outperformed the S&P 500.

10Y return: 173.3%

DATE RANGE:

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  • Free cash flow per share

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121.5

52-week range

195.7

168.63

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Required return / cost of capital
%
FCFF terminal growth rate
%

Your fair value & Margin of safety

To calculate fair value based on cost of capital and terminal growth assumptions above, please select free cash flow forecast.

Forecast:

Valuation

Free Cash Flow Yield

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FCF Yield TTM = Trailing Twelve Months free cash flow per share / current market price per shareLearn more

(0.7) %

Dividend Yield TTM

1.9 %

Market cap $

$ 30,852

Price / Earnings TTM

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P/E TTM = current market price per share / Trailing Twelve Months diluted earnings per shareLearn more

13.2

Price / Book TTM

2.3

PEG TTM

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Price/Earnings-to-Growth ratio = P/E TTM divided by most recent annual diluted earnings per share growth rateLearn more

(1.3)

Earnings growth and return

LTM

5YR

10YR

Total return (price & dividends)

37 %

46.5 %

173.3 %

Free cash flow per share growth

(55.3) %

352.8 %

384 %

Earnings per share growth

48.5 %

60.1 %

119 %

Founded: 1,889

Employees: 23,400

Business Summary:Northern Trust Corporation, a financial holding company established in 1889 and based in Chicago, Illinois, offers a comprehensive suite of wealth management, asset servicing, asset management, and banking solutions worldwide. Its diverse client base includes corporations, institutions, families, and individual investors. The company structures its operations across two primary segments: Asset Servicing and Wealth Management. The Asset Servicing division delivers a broad spectrum of support and operational services tailored for institutional entities. These services include custody, fund administration, outsourced investment operations, investment management, investment risk and analytical reporting, employee benefit services, securities lending, foreign exchange, treasury management, brokerage, transition management, and banking and cash management solutions. This segment serves corporate and public retirement funds, charitable foundations, endowments, investment managers, insurance companies, sovereign wealth funds, and other major institutional investors. Conversely, the Wealth Management segment is dedicated to high-net-worth individuals, families, business owners, executives, professionals, retirees, and established privately held businesses. Its offerings span trust administration, investment management, custody, philanthropic advisory, financial consulting, guardianship and estate administration, family business consulting, family financial education, brokerage services, and private and business banking. Furthermore, Northern Trust provides extensive asset management capabilities, encompassing active and passive strategies for both equity and fixed income, cash management, and alternative asset classes like private equity and hedge funds of funds. These investment products are delivered via diverse vehicles, including individually managed accounts, bank common and collective funds, registered investment companies, exchange-traded funds, non-U.S. collective investment funds, and unregistered private investment funds. The corporation also offers sophisticated overlay and other risk management services.

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Fair Value Reference Estimate

Latest Earnings Call Takeaways

2026 Q3 (Oct 21, 2026)

1) Strong Financial Performance
- Northern Trust reported a net income of $642.9 million and earnings per share of $3.40, reflecting a 40% YoY increase.
- Revenue grew 11% YoY, driven by 8% growth in trust fees, 14% growth in net interest income, and 38% growth in capital markets revenues.
- Pre-tax income rose 21%, with a pre-tax margin of 34.9%.
- The company returned over $500 million to shareholders in Q3 and $1.5 billion year-to-date.

2) Business Segment Highlights
- Wealth Management: Fees increased 9% YoY, with assets under management reaching $536 billion. Global Family Office fees rose 16%.
- Asset Servicing: Assets under custody were $20 trillion, up 9% YoY. Pre-tax margin exceeded 30%, with a focus on expanding relationships with complex asset managers.
- Asset Management: Continued positive ETF flows and launched 10 new ETFs. The firm plans to convert $33 billion in assets into ETFs in Q1 2027.

3) Operational Efficiency and AI Integration
- The company achieved over 600 basis points of positive operating leverage through disciplined expense management, with expenses rising only 5% YoY.
- AI initiatives are enhancing productivity, with relationship managers saving 2 to 3 hours per client memo.
- The firm is focused on building capabilities in digital assets and enhancing client onboarding processes through AI.

4) Strategic Growth Initiatives
- Northern Trust is executing its One Northern Trust strategy, integrating services across business lines to deepen client relationships.
- The company is investing in talent and expanding its alternatives offering, with year-to-date fundraising surpassing 2025 levels.
- Future growth is anticipated in digital assets, with new products like the Northern Institutional Funds Stablecoin Cash Reserves Portfolio launched to meet evolving client needs.

5) Guidance and Market Outlook
- For Q4, Northern Trust expects net interest income to increase 8%-9% YoY and total revenue to rise 6%-7%.
- The effective tax rate is projected to be around 25% moving forward.
- The company is well-positioned to continue its growth trajectory despite potential market headwinds, with a strong capital position and ongoing investments in strategic initiatives.

Bottom line: Northern Trust's robust financial performance, strategic growth initiatives, and focus on operational efficiency position it well for sustained growth, making it an attractive investment for shareholders despite potential market fluctuations.

Annual Reports, Presentations And IR Contacts

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Annual report links (10K)
2025202420232022202120202019201820172016

Northern Trust — Financial Overview, Stock Price, Market Cap

Northern Trust is a company. Founded in 1889. As of October 23, 2026, the company's market capitalization is $30851870280 with a current stock price of $168.63.