Northern Trust Corporation Depositary Shares Each Representing a 1/1000th Interest in a Share of Series E Non-Cumulative Perpetual Preferred Stock (NTRSO)

FairStock Score: 66/100 — STEADY

Key Financials

Strengths

• Solid return on equity of 14.5% above cost of capital
• Attractive 6.1% dividend yield providing steady income returns
• Established organization with 23,600 employees providing operational scale

AI Analysis

Northern Trust Corporation Depositary Shares Each Representing a 1/1000th Interest in a Share of Series E Non-Cumulative Perpetual Preferred Stock is a micro-cap financial services company. The business generates $8.4 billion in annual revenue with a 6.0% net margin. From a quality standpoint, Northern shows adequate 14% ROE. On valuation, the stock is deeply undervalued on a P/E basis at 2.6x, with offers a 82% margin of safety vs Graham Number of $106. Growth dynamics show revenue growing at 8.3% and profit growth of 2.3%. The 6.1% dividend yield adds an income component for patient holders. Our composite FairStock Score of 66/100 reflects above-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

The market underappreciates Northern's consistent 14% ROE at just 3x earnings—a re-rating toward sector peers could unlock 30-50% upside. Operational leverage in the business model means incremental revenue growth could disproportionately boost bottom-line profitability.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the financial services space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer