Northern (NTRS) AI Stock Analysis

• Market Cap: $24.84B
• Dividend Yield: 2.43%
• Average Volume (3M): 1.07M
• Price to Earnings (P/E): 15.3
• Beta (1Y): 1.09
• Revenue Growth: -4.52%
• EPS Growth: 7.01%
• Country: US
• Employees: 23,400
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): 2.29
• Shares Outstanding: 189,117,370
• 10 Day Avg. Volume: 1,064,747
• 30 Day Avg. Volume: 1,069,917
• PEG Ratio: 0.11
• Price to Book (P/B): 1.61
• Price to Sales (P/S): 1.30
• P/FCF Ratio: -16.75
• Enterprise Value/Market Cap: -0.50
• Enterprise Value/Revenue: -0.88
• Enterprise Value/Gross Profit: -1.57
• Enterprise Value/Ebitda: -4.07
• 1Y Price Target: $137.92
• Price Target Upside: 4.99% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 12
• EPS Forecast (FY): 8.66
• Revenue Forecast (FY): $8.03B

• Rating: 73 Outperform
• Price Target: $142.00 ▲(8.09% Upside)

Northern Trust's strong earnings call performance and reasonable valuation are the most significant factors driving the score. Solid profitability and cash flow generation support the financial performance score, despite concerns about declining revenue growth. Technical indicators suggest a neutral to slightly bearish outlook, which tempers the overall score.

Positive Factors

AI Integration

The integration of AI across operations enhances efficiency, potentially reducing costs and improving service delivery, which can strengthen competitive positioning over the long term.

Wealth Management Expansion

Growth in wealth management assets indicates strong client retention and acquisition, which supports future revenue stability and enhances market position.

Asset Servicing Growth

The increase in assets under custody and administration suggests robust demand for Northern Trust's services, which can drive sustained revenue growth.

Negative Factors

Declining Revenue Growth

A declining revenue growth rate can signal challenges in maintaining market share and competitiveness, potentially impacting long-term profitability.

Deposit Decline

A decline in deposits can limit the company's ability to fund new loans and investments, potentially affecting interest income and financial stability.

Asset Management Fee Pressure

Fee pressure in asset management could reduce profitability margins, impacting the company's ability to invest in growth and innovation.

Northern Business Overview & Revenue Model

Company Description

Northern Trust Corporation (NTRS) is a leading financial services company that specializes in asset servicing, asset management, and banking solutions. Founded in 1889, the firm primarily serves institutional investors, corporations, and affluent individuals, providing a comprehensive suite of services that includes investment operations outsourcing, risk management, and private banking. With a global presence, Northern Trust operates in various sectors, focusing on wealth management, investment management, and trust services.

How the Company Makes Money

Northern Trust generates revenue through several key streams, primarily encompassing asset servicing fees, investment management fees, and banking services. Asset servicing involves providing custodian services, fund administration, and related support to institutional clients, which forms a significant portion of their income. Investment management fees arise from managing assets for clients in various investment vehicles, including mutual funds and separate accounts. Additionally, the company offers private banking services, generating revenue through interest on loans and fees for banking services. Strategic partnerships with financial institutions and investment firms enhance their service offerings and broaden their client base, contributing positively to their overall earnings.

Northern Financial Statement Overview

Summary

Northern Trust demonstrates solid profitability with a net profit margin of 13.47% and a strong cash flow growth rate of 20.09%. However, declining revenue growth and missing metrics in the balance sheet and cash flow analysis present areas for further scrutiny.

Income Statement

Northern's income statement shows a mixed performance. The TTM (Trailing-Twelve-Months) data indicates a decline in revenue growth rate by 3.2%, which is a concern. However, the company maintains a solid net profit margin of 13.47% and an EBIT margin of 17.95%, suggesting efficient cost management and profitability. The gross profit margin remains healthy at 45.97%, although it has decreased from previous years.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.32 in the TTM period, significantly improved from previous years, indicating reduced leverage. Return on equity stands at 13.41%, showing good profitability relative to shareholder equity. However, the equity ratio is not provided, which limits a full assessment of asset financing.

Cash Flow

Cash flow analysis reveals a strong free cash flow growth rate of 20.09% in the TTM period, indicating improved cash generation. The free cash flow to net income ratio is 0.84, suggesting efficient conversion of income to cash. However, the operating cash flow to net income ratio is not available, which could provide further insights into cash flow stability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	14.25B	15.88B	12.12B	7.75B	6.49B	6.30B
Gross Profit	7.93B	8.29B	6.75B	6.75B	6.55B	5.98B
EBITDA	3.06B	3.38B	2.10B	2.32B	2.53B	2.13B
Net Income	1.73B	2.03B	1.11B	1.34B	1.55B	1.21B
Balance Sheet
Total Assets	170.26B	155.51B	150.78B	155.04B	183.89B	170.00B
Cash, Cash Equivalents and Short-Term Investments	69.48B	56.54B	64.93B	74.52B	0.00	0.00
Total Debt	15.64B	15.99B	17.24B	14.85B	8.43B	9.60B
Total Liabilities	157.31B	142.72B	138.89B	143.78B	171.87B	158.32B
Stockholders Equity	12.96B	12.79B	11.90B	11.26B	12.02B	11.69B
Cash Flow
Free Cash Flow	1.71B	-1.23B	1.95B	1.67B	840.90M	1.34B
Operating Cash Flow	2.51B	-486.00M	2.63B	2.39B	1.36B	1.90B
Investing Cash Flow	-15.31B	-2.56B	4.78B	25.93B	-18.60B	-29.92B
Financing Cash Flow	11.19B	3.44B	-7.18B	-26.44B	16.07B	27.87B

Northern Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 131.37
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NTRS, the sentiment is Positive. The current price of 131.37 is above the 20-day moving average (MA) of 128.14, above the 50-day MA of 128.96, and above the 200-day MA of 115.58, indicating a bullish trend. The MACD of 0.12 indicates Negative momentum. The RSI at 58.51 is Neutral, neither overbought nor oversold. The STOCH value of 75.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NTRS.

Northern Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BK	78 Outperform	$77.68B	16.07	12.21%	1.80%	4.22%	51.01%
SEIC	76 Outperform	$9.90B	14.86	29.38%	1.21%	9.33%	33.17%
TROW	75 Outperform	$22.28B	11.12	19.28%	4.81%	4.26%	0.42%
STT	74 Outperform	$32.86B	12.45	11.14%	2.65%	5.62%	49.49%
NTRS	73 Outperform	$24.84B	15.32	13.31%	2.43%	-4.52%	7.01%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
BEN	64 Neutral	$11.73B	24.70	3.84%	5.68%	2.31%	5.71%

Northern Corporate Events

Northern Trust Reports Robust Q3 Earnings Growth

Northern Trust Corporation is a leading provider of wealth management, asset servicing, asset management, and banking services to corporations, institutions, affluent families, and individuals, with a global presence and a history of over 135 years.

Northern Trust’s Earnings Call Highlights Growth and Challenges

Northern Trust Corporation’s recent earnings call painted a picture of robust financial health, underscored by strong revenue growth and strategic advancements. The company reported significant returns to shareholders and highlighted the successful integration of AI across its operations. However, challenges persist in certain areas, including investment products and deposit levels, as well as fee pressure in asset management.

Northern Trust Q3 2025 Financial Results Released

Northern Trust Corporation reported its third-quarter 2025 financial results, showing a net income of $457.6 million and earnings per diluted common share of $2.29, an increase from the previous quarter and the same quarter last year. The company experienced solid revenue growth across trust fees, capital markets, and net interest income, contributing to a strong return on equity and positive operating leverage. The results reflect Northern Trust’s focus on its ‘One Northern Trust’ strategy, aiming to enhance shareholder value and maintain sound financial measures.

The most recent analyst rating on (NTRS) stock is a Hold with a $147.00 price target. To see the full list of analyst forecasts on Northern stock, see the NTRS Stock Forecast page.

Northern Trust Appoints Michael Hunstad as President

On September 3, 2025, Northern Trust Corporation announced the appointment of Michael Hunstad as the new President of Northern Trust Asset Management, succeeding Daniel E. Gamba. Hunstad, who has been with the company since 2012, previously served as Global Co-Chief Investment Officer and has been instrumental in shaping the firm’s investment strategies. His extensive experience and leadership are expected to enhance Northern Trust’s asset management capabilities and deliver exceptional value to clients and stakeholders.

The most recent analyst rating on (NTRS) stock is a Buy with a $142.00 price target. To see the full list of analyst forecasts on Northern stock, see the NTRS Stock Forecast page.