📊 NTRSO Key Takeaways
Is Northern Trust Corp. (NTRSO) a Good Investment?
Northern Trust demonstrates solid fundamental performance with strong revenue growth of 61.2% YoY and healthy profitability margins (21.5% net margin). The company maintains a conservative capital structure with low leverage (0.11x debt/equity) and generates substantial free cash flow of $5.5B, supporting operational resilience and capital allocation flexibility.
Northern Trust exhibits solid core profitability (ROE 13.4%, ROA 1.0%) and a healthy net margin with conservative long‑term leverage and strong operating cash generation. However, outsized revenue growth is not flowing through to earnings—EPS declined 10.5% and net income grew only 2.5%—while interest coverage is thin, indicating pressure from higher funding costs and/or expenses/provisions. Fundamentals appear stable but need clearer operating leverage and earnings quality improvement to turn more constructive.
Why Buy Northern Trust Corp. Stock? NTRSO Key Strengths
- Exceptional revenue growth of 61.2% YoY indicates strong business momentum and market demand
- Robust profitability with 28.9% operating margin and 21.5% net margin demonstrating operational efficiency
- Strong free cash flow generation of $5.5B with 67.5% FCF margin provides financial flexibility and capital return capacity
- Conservative balance sheet with 0.11x debt-to-equity ratio and substantial cash position of $5.9B
- ROE 13.4% and ROA 1.0% indicate solid profitability
- Strong operating cash flow and minimal capex support high FCF
- Low long-term debt (0.11x D/E) and robust net margin (21.5%)
NTRSO Stock Risks: Northern Trust Corp. Investment Risks
- Interest coverage ratio of 1.2x is concerning and suggests limited cushion for debt servicing, particularly vulnerable to rate shocks
- Net income growth of only 2.5% YoY significantly lags revenue growth of 61.2%, indicating margin compression or integration challenges
- Diluted EPS declined 10.5% YoY despite revenue growth, signaling potential shareholder dilution or earnings quality concerns
- ROA of 1.0% is relatively weak for an asset-heavy financial institution, suggesting inefficient asset deployment
- EPS decline despite revenue surge suggests weak operating leverage/expense pressure
- Low interest coverage (1.2x) implies sensitivity to funding costs
- Banking-cycle risks: rate moves, deposit mix, and credit provisioning could compress margins
Key Metrics to Watch
- Net margin stability and trend relative to revenue growth to assess earnings quality
- Interest coverage ratio improvement to confirm debt service capacity
- Operating leverage and the path to improved returns on assets (ROA > 1.2%)
- Insider trading activity patterns as continued Form 4 filings may indicate management confidence or concern
- Efficiency ratio (expense discipline and operating leverage)
- Net interest margin (funding cost vs asset yield)
Northern Trust Corp. (NTRSO) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 67.5% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. The current ratio below 1.0x warrants monitoring of short-term liquidity.
NTRSO Profit Margin, ROE & Profitability Analysis
NTRSO vs Finance Sector: How Northern Trust Corp. Compares
How Northern Trust Corp. compares to Finance sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Northern Trust Corp. Stock Overvalued? NTRSO Valuation Analysis 2026
Based on fundamental analysis, Northern Trust Corp. has mixed fundamental signals relative to the Finance sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Northern Trust Corp. Balance Sheet: NTRSO Debt, Cash & Liquidity
NTRSO Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Northern Trust Corp.'s revenue has grown significantly by 15% over the 5-year period, indicating strong business expansion. The most recent EPS of $5.08 reflects profitable operations.
NTRSO Revenue Growth, EPS Growth & YoY Performance
NTRSO Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $1.2B | $214.7M | $2.22 |
| Q2 2025 | $1.2B | $214.7M | $2.13 |
| Q1 2025 | $1.1B | $214.7M | $0.96 |
| Q3 2024 | $1.1B | $214.7M | $1.49 |
| Q2 2024 | $1.1B | $214.7M | $1.56 |
| Q1 2024 | $1.1B | $214.7M | $0.96 |
| Q3 2023 | $1.1B | $327.8M | $1.49 |
| Q2 2023 | $1.1B | $331.8M | $1.56 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Northern Trust Corp. Dividends, Buybacks & Capital Allocation
NTRSO SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Northern Trust Corp. (CIK: 0000073124)
📋 Recent SEC Filings
| Date | Form | Document | Action |
|---|---|---|---|
| Apr 2, 2026 | 4 | xslF345X06/wk-form4_1775165632.xml | View → |
| Apr 2, 2026 | 4 | xslF345X06/wk-form4_1775165612.xml | View → |
| Apr 2, 2026 | 4 | xslF345X06/wk-form4_1775165593.xml | View → |
| Apr 2, 2026 | 4 | xslF345X06/wk-form4_1775165575.xml | View → |
| Apr 2, 2026 | 4 | xslF345X06/wk-form4_1775165556.xml | View → |
❓ Frequently Asked Questions about NTRSO
What is the AI rating for NTRSO?
Northern Trust Corp. (NTRSO) has a Combined AI Rating of BUY from Claude (BUY) and ChatGPT (HOLD) with 69% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are NTRSO's key strengths?
Claude: Exceptional revenue growth of 61.2% YoY indicates strong business momentum and market demand. Robust profitability with 28.9% operating margin and 21.5% net margin demonstrating operational efficiency. ChatGPT: ROE 13.4% and ROA 1.0% indicate solid profitability. Strong operating cash flow and minimal capex support high FCF.
What are the risks of investing in NTRSO?
Claude: Interest coverage ratio of 1.2x is concerning and suggests limited cushion for debt servicing, particularly vulnerable to rate shocks. Net income growth of only 2.5% YoY significantly lags revenue growth of 61.2%, indicating margin compression or integration challenges. ChatGPT: EPS decline despite revenue surge suggests weak operating leverage/expense pressure. Low interest coverage (1.2x) implies sensitivity to funding costs.
What is NTRSO's revenue and growth?
Northern Trust Corp. reported revenue of $8.1B.
Does NTRSO pay dividends?
Northern Trust Corp. pays dividends, with $591.6M distributed to shareholders in the trailing twelve months.
Where can I find NTRSO SEC filings?
Official SEC filings for Northern Trust Corp. (CIK: 0000073124) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is NTRSO's EPS?
Northern Trust Corp. has a diluted EPS of $8.74.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is NTRSO a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Northern Trust Corp. has a BUY rating with 69% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is NTRSO stock overvalued or undervalued?
Valuation metrics for NTRSO: ROE of 13.4% (sector avg: 12%), net margin of 21.5% (sector avg: 25%). Higher ROE suggests strong returns relative to peers.
Should I buy NTRSO stock in 2026?
Our dual AI analysis gives Northern Trust Corp. a combined BUY rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is NTRSO's free cash flow?
Northern Trust Corp.'s operating cash flow is $5.5B, with capital expenditures of $74.0M. FCF margin is 67.5%.
How does NTRSO compare to other Finance stocks?
Vs Finance sector averages: Net margin 21.5% (avg: 25%), ROE 13.4% (avg: 12%), current ratio N/A (avg: 1.2).