Northern Trust Return On Equity vs. Shares Owned By Insiders
| NTRS Stock | USD 84.46 1.05 1.23% |
Return On Equity | First Reported 2010-12-31 | Previous Quarter 0.09306684 | Current Value 0.15 | Quarterly Volatility 0.02889193 |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.73 | 0.89 |
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| Net Profit Margin | 0.0868 | 0.0914 |
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| Operating Profit Margin | 0.11 | 0.1209 |
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| Pretax Profit Margin | 0.11 | 0.1209 |
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| Return On Assets | 0.0109 | 0.0073 |
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| Return On Equity | 0.15 | 0.0931 |
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For Northern Trust profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Northern Trust to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Northern Trust utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Northern Trust's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Northern Trust over time as well as its relative position and ranking within its peers.
Northern |
Northern Trust's Revenue Breakdown by Earning Segment
Check out Correlation Analysis.
Is Northern Trust's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Northern Trust. If investors know Northern will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Northern Trust listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.36) | Dividend Share 3 | Earnings Share 4.53 | Revenue Per Share 32.345 | Quarterly Revenue Growth (0.04) |
The market value of Northern Trust is measured differently than its book value, which is the value of Northern that is recorded on the company's balance sheet. Investors also form their own opinion of Northern Trust's value that differs from its market value or its book value, called intrinsic value, which is Northern Trust's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Northern Trust's market value can be influenced by many factors that don't directly affect Northern Trust's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Northern Trust's value and its price as these two are different measures arrived at by different means. Investors typically determine if Northern Trust is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Northern Trust's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Northern Trust Shares Owned By Insiders vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Northern Trust's current stock value. Our valuation model uses many indicators to compare Northern Trust value to that of its competitors to determine the firm's financial worth. Northern Trust is rated below average in return on equity category among related companies. It is rated below average in shares owned by insiders category among related companies making about 6.12 of Shares Owned By Insiders per Return On Equity. At this time, Northern Trust's Return On Equity is comparatively stable compared to the past year.Comparative valuation analysis is a catch-all model that can be used if you cannot value Northern Trust by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Northern Trust's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Northern Trust's earnings, one of the primary drivers of an investment's value.Northern Shares Owned By Insiders vs. Return On Equity
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
Northern Trust |
| = | 0.0834 |
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Shares Owned by Insiders show the percentage of outstanding shares owned by insiders (such as principal officers or members of the board of directors) or private individuals and entities with over 5% of the total shares outstanding. Company executives or private individuals with access to insider information share information about a firm's operations that is not available to the general public.
Northern Trust |
| = | 0.51 % |
Although the research on effects of insider trading on prices and volatility is still relatively inconclusive, and investors are advised to pay close attention to the distribution of equities among company's stakeholders to avoid many problems associated with the disclosure of price-sensitive information.
Northern Shares Owned By Insiders Comparison
Northern Trust is currently under evaluation in shares owned by insiders category among related companies.
Northern Trust Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Northern Trust, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Northern Trust will eventually generate negative long term returns. The profitability progress is the general direction of Northern Trust's change in net profit over the period of time. It can combine multiple indicators of Northern Trust, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -1.1 B | -1.1 B | |
| Operating Income | 1.5 B | 995.8 M | |
| Net Income | 1.1 B | 733 M | |
| Income Tax Expense | 357.5 M | 269 M | |
| Income Before Tax | 1.5 B | 1 B | |
| Total Other Income Expense Net | 1.5 B | 1.5 B | |
| Net Income Applicable To Common Shares | 1.5 B | 921.8 M | |
| Net Income From Continuing Ops | 1.1 B | 1.2 B | |
| Net Interest Income | 2 B | 1.7 B | |
| Interest Income | 6.3 B | 6.6 B | |
| Non Operating Income Net Other | -900 K | -945 K | |
| Change To Netincome | -492.7 M | -468 M | |
| Net Income Per Share | 5.34 | 5.61 | |
| Income Quality | 2.37 | 2.49 | |
| Net Income Per E B T | 0.76 | 0.77 |
Northern Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Northern Trust. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Northern Trust position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Northern Trust's important profitability drivers and their relationship over time.
Use Northern Trust in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Northern Trust position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Northern Trust will appreciate offsetting losses from the drop in the long position's value.Northern Trust Pair Trading
Northern Trust Pair Trading Analysis
The ability to find closely correlated positions to Northern Trust could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Northern Trust when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Northern Trust - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Northern Trust to buy it.
The correlation of Northern Trust is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Northern Trust moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Northern Trust moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Northern Trust can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Northern Trust position
In addition to having Northern Trust in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Shipbuilding Railroad Equipment Thematic Idea Now
Shipbuilding Railroad Equipment
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Shipbuilding Railroad Equipment theme has 16 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Shipbuilding Railroad Equipment Theme or any other thematic opportunities.
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Check out Correlation Analysis. For more information on how to buy Northern Stock please use our How to Invest in Northern Trust guide.You can also try the Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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When running Northern Trust's price analysis, check to measure Northern Trust's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Northern Trust is operating at the current time. Most of Northern Trust's value examination focuses on studying past and present price action to predict the probability of Northern Trust's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Northern Trust's price. Additionally, you may evaluate how the addition of Northern Trust to your portfolios can decrease your overall portfolio volatility.
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To fully project Northern Trust's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Northern Trust at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Northern Trust's income statement, its balance sheet, and the statement of cash flows.