Northern (NTRS) AI Stock Analysis

• Market Cap: $24.24B
• Dividend Yield: 2.43%
• Average Volume (3M): 1.14M
• Price to Earnings (P/E): 14.9
• Beta (1Y): 1.12
• 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: 1,032,002
• 30 Day Avg. Volume: 1,135,556
• 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: -0.51
• Enterprise Value/Revenue: -0.88
• Enterprise Value/Gross Profit: -1.57
• Enterprise Value/Ebitda: -4.07
• 1Y Price Target: $137.92
• Price Target Upside: 7.50% 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 ▲(10.68% 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, a financial holding company, provides wealth management, asset servicing, asset management, and banking solutions for corporations, institutions, families, and individuals worldwide. It operates in two segments, Asset Servicing and Wealth Management. The Asset Servicing segment offers asset servicing and related services, including custody, fund administration, investment operations outsourcing, investment management, investment risk and analytical services, employee benefit services, securities lending, foreign exchange, treasury management, brokerage services, transition management services, banking, and cash management services. This segment serves corporate and public retirement funds, foundations, endowments, fund managers, insurance companies, sovereign wealth funds, and other institutional investors. The Wealth Management segment offers trust, investment management, custody, and philanthropic; financial consulting; guardianship and estate administration; family business consulting; family financial education; brokerage services; and private and business banking services. This segment serves high-net-worth individuals and families, business owners, executives, professionals, retirees, and established privately held businesses. The company also provides asset management services, such as active and passive equity; active and passive fixed income; cash management; alternative asset classes comprising private equity and hedge funds of funds; and multi-manager advisory services and products through separately managed accounts, bank common and collective funds, registered investment companies, exchange traded funds, non-U.S. collective investment funds, and unregistered private investment funds. In addition, it offers overlay and other risk management services. Northern Trust Corporation was founded in 1889 and is headquartered in Chicago, Illinois.

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 strong profitability margins and a solid return on equity. However, it faces challenges in revenue growth and cash flow generation. The high leverage ratio indicates potential risk, but the company maintains profitability and a stable balance sheet.

Income Statement

The income statement shows a mixed performance. The TTM revenue has declined by 6.95%, indicating a contraction in sales. However, the company maintains a healthy gross profit margin of 53.32% and a net profit margin of 11.77%, reflecting good cost management. The EBIT and EBITDA margins are also solid at 15.49% and 20.60%, respectively, though they have decreased compared to previous periods. Overall, the company demonstrates profitability but faces challenges in revenue growth.

Balance Sheet

The balance sheet reveals a stable financial position with a debt-to-equity ratio of 1.30, which is relatively high but manageable. The return on equity (ROE) is strong at 13.52%, indicating efficient use of equity to generate profits. The equity ratio stands at 7.49%, suggesting a moderate level of equity financing. While the company is leveraged, it maintains a solid return on equity, balancing risk and profitability.

Cash Flow

Cash flow analysis indicates some concerns. The free cash flow has declined by 39.65% in the TTM, and the operating cash flow to net income ratio is low at 1.85%. The free cash flow to net income ratio is 67.78%, showing that a significant portion of net income is converted into free cash flow. Despite these challenges, the company generates positive free cash flow, albeit at a reduced growth rate.

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	5.35B	56.54B	64.93B	74.52B	108.29B	107.88B
Total Debt	4.09B	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	2.11B	-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: 128.30
• 50DMA: Negative
• 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 128.3 is above the 20-day moving average (MA) of 127.09, below the 50-day MA of 129.17, and above the 200-day MA of 114.27, indicating a neutral trend. The MACD of -0.38 indicates Negative momentum. The RSI at 50.78 is Neutral, neither overbought nor oversold. The STOCH value of 66.31 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	79 Outperform	$75.79B	15.68	12.21%	1.84%	4.22%	51.01%
SEIC	76 Outperform	$10.09B	15.14	29.38%	1.19%	9.33%	33.17%
TROW	75 Outperform	$22.10B	11.03	19.28%	4.81%	4.26%	0.42%
STT	74 Outperform	$32.44B	12.29	11.14%	2.66%	5.62%	49.49%
NTRS	73 Outperform	$24.24B	14.94	13.31%	2.43%	-4.52%	7.01%
BEN	70 Neutral	$11.82B	43.64	2.16%	5.51%	4.72%	-67.85%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

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.