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

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look at NTRSO not as a common stock but as a preferred claim on Northern Trust. The issuer is a 23,600-employee asset servicer and wealth manager; such businesses can enjoy recurring fees and switching costs, though custody and asset servicing remain competitive. Filed figures show fiscal Q2 2026, the quarter ended 2026-06-30, revenue of $1.3B and net income of $792.2M, versus revenue of $1.2B and net income of $421.3M in fiscal Q2 2025, the quarter ended 2025-06-30—a sharp profit jump. For FY2025, period ended 2025-12-31, revenue was $5.0B and net income $1.7B, against FY2024 revenue of $4.7B and net income of $2.0B, so the annual trend is mixed. At the 2026-10-13 close of $18.41, FairStock calculates a 6.38% dividend yield, P/B 0.27, P/E 2.55, Graham Number $109.01, margin of safety 83.11%, and ROE 17.07%. Those are asset-play numbers, and the computed Lynch category is ASSET PLAY — Trades at 0.27× book value. But this is a non-cumulative perpetual preferred: skipped dividends do not accumulate, and the upside is capped. FairStock's Piotroski F-Score of 4/9 and Altman Z-Score of 0.16 are weak, while trailing free cash flow is -$217.9M and FCF yield -6.5%. The 6.38% yield may compensate for credit risk, but I would demand stable issuer earnings and reliable dividend coverage. Price looks cheap against book, but for this security, credit and yield matter more than the common equity's asset discount.

In plain English: Northern Trust provides wealth management, asset servicing, and banking to institutions and families. The business is profitable and recent quarterly earnings improved, but trailing cash flow is negative and some safety checks are weak. The preferred shares offer a high dividend and the company's valuation numbers look cheap, though the dividend is not cumulative, so missed payments are not later repaid.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer