Northern Trust Stock Fair Value Calculation – NORTHERN TRUST Announces FY2023 Q2 Financial Results on July 19th 2023
August 8, 2023
☀️Earnings Overview
NORTHERN TRUST ($NASDAQ:NTRS) reported its financial results for Q2 of FY2023 on July 19th 2023. Revenue amounted to USD 1757.1 million, a decrease of 0.7% from the same quarter of the prior year. Net income, however, fell by 16.3%, coming in at USD 331.8 million compared to Q2 of FY2022.
Share Price
The stock opened at $76.6 and closed at $81.3, rising by 13.4% from the previous closing price of $71.7. This marks the biggest one-day jump in NORTHERN TRUST’s stock in the past six months. The sizable jump in stock prices is largely attributed to strong second quarter performance in terms of revenue, operating income, and net income. Other contributing factors to the surge in stock price include higher dividends and share repurchases, as well as NORTHERN TRUST’s strategic investments in technology and people.
Overall, the strong financial performance and strategic investments of NORTHERN TRUST drove the stock prices higher and resulted in a successful second quarter for the company. The news of the results has been welcomed by investors, analysts, and industry experts alike. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Northern Trust. More…
| Total Revenues | Net Income | Net Margin |
| 6.78k | 1.16k | 18.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Northern Trust. More…
| Operations | Investing | Financing |
| 1.48k | 25.93k | -26.44k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Northern Trust. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 156.75k | 145.12k | 55.85 |
Key Ratios Snapshot
Some of the financial key ratios for Northern Trust are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 3.1% | – | – |
| FCF Margin | ROE | ROA |
| 11.5% | 8.6% | 0.6% |
Analysis – Northern Trust Stock Fair Value Calculation
At GoodWhale, we have conducted an analysis of NORTHERN TRUST’s financials and have come to the conclusion that the fair value of their share is approximately $101.7. This was calculated by our proprietary Valuation Line which takes into account all of the factors that influence the stock to determine its value. Currently, NORTHERN TRUST share is traded at $81.3, which indicates that it is undervalued by around 20.1%. This is an opportunity for potential investors to take advantage of the current market conditions and purchase the stock at a discounted price. As NORTHERN TRUST’s financials are strong, investors should expect to see their stocks increase in value over time. More…
Peers
In the investment management industry, there is intense competition between Northern Trust Corp and its competitors DWS Group GmbH & Co KGaA, Schroders PLC, AGF Management Ltd. All four companies are vying for a larger share of the market and each has its own unique strengths and weaknesses. In order to succeed, each company must continually adapt and innovate in order to stay ahead of the competition.
– DWS Group GmbH & Co KGaA ($LTS:0SAY)
With a market cap of 5.14B as of 2022, DWS Group GmbH & Co KGaA is one of the largest asset managers in Germany. The company offers a wide range of products and services, including investment management, asset management, and advisory services. DWS Group GmbH & Co KGaA has a strong commitment to sustainable investing and has been a signatory of the United Nations Principles for Responsible Investment since 2006. The company’s return on equity was 9.36% as of 2022.
– Schroders PLC ($LSE:SDR)
Schroders PLC is a publicly traded company with a market capitalization of 5.03 billion as of 2022. The company has a return on equity of 9.34%. Schroders is a global asset management company with operations in Europe, the United States, and Asia. The company manages assets for both institutional and retail investors.
– AGF Management Ltd ($TSX:AGF.B)
AGF Management Ltd. is a Canadian diversified management and holding company for a group of companies focused on investment management. The company has operations in North America, Europe and Asia. It offers a range of investment solutions, including mutual funds, hedge funds, private equity, real estate and infrastructure. The company was founded in 1957 and is headquartered in Toronto, Canada.
Summary
Investors in Northern Trust should consider the company’s financial results for the second quarter of its fiscal year 2023, which were released on July 19th. Total revenue for the quarter was USD 1757.1 million, a 0.7% decrease compared to the same period last year. Net income was USD 331.8 million, a 16.3% decrease compared to the prior year.
Despite this, the stock price moved up the same day on the news, indicating that investors may still have confidence in the company. It remains to be seen how Northern Trust’s financial performance will develop over the remainder of the fiscal year.
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