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Arphra AIPlain-English read on Northern Trust Corporation’s valuationRatios & metrics
Profitability, returns on capital, growth, and credit — all derived from the historical income statement, balance sheet, and cash flow rows in our data warehouse.
Valuation multiples
Price- and EV-based multiples plus shareholder yields. Snapshot at each fiscal year-end from key_metrics (FMP).
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| Headline | |||||||||
| Market cap | — | — | — | — | — | — | — | — | — |
| Enterprise value | — | — | — | — | — | — | — | — | — |
| Multiples | |||||||||
| P / E | — | — | — | — | — | — | — | — | — |
| P / B | — | — | — | — | — | — | — | — | — |
| EV / EBITDA | — | — | — | — | — | — | — | — | — |
| EV / Sales | — | — | — | — | — | — | — | — | — |
| EV / FCF | — | — | — | — | — | — | — | — | — |
| Yields | |||||||||
| Earnings yield | — | — | — | — | — | — | — | — | — |
| Free cash flow yield | — | — | — | — | — | — | — | — | — |
| Dividend yield | — | — | — | — | — | — | — | — | — |
Profitability
Margin structure across the last 5 fiscal years
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| Margins | |||||||||
| Gross margin | +100.89% | +87.07% | +55.70% | +52.24% | +56.54% | +56.21% | +56.23% | +55.46% | +53.46% |
| Operating margin | +30.98% | +22.79% | +12.09% | +16.75% | +16.30% | +15.02% | +14.95% | +15.02% | +15.00% |
| EBITDA margin | +38.93% | +29.93% | +17.33% | +21.27% | +22.48% | +20.87% | +20.21% | +20.37% | +19.96% |
| EBIT margin | +30.98% | +22.79% | +12.09% | +16.75% | +16.30% | +14.94% | +14.99% | +15.28% | +14.96% |
| Pre-tax margin | +30.98% | +22.79% | +12.09% | +16.75% | +16.36% | +15.05% | +14.70% | +14.81% | +14.85% |
| Net margin | +23.82% | +17.23% | +9.14% | +12.79% | +12.15% | +11.63% | +11.67% | +11.27% | +11.09% |
| Cost structure | |||||||||
| Cost of revenue / sales | -0.89% | +12.93% | +44.30% | +47.76% | +43.46% | +46.40% | +44.73% | +44.52% | +44.90% |
| R&D intensity | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
| SG&A intensity | +39.40% | +36.31% | +24.03% | +18.76% | +24.30% | +22.86% | +22.47% | +22.95% | +22.82% |
| Effective tax rate | +23.12% | +24.36% | +24.41% | +23.63% | +25.76% | +24.48% | +25.75% | +24.40% | +24.29% |
Returns on capital
ROE / ROA / ROC / ROIC over the relevant capital base, plus the 3-step DuPont decomposition of ROE.
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| Returns | |||||||||
| Return on equity (ROE) | +12.86% | +11.87% | +9.31% | +15.88% | +13.40% | +13.22% | +13.07% | +12.84% | +12.22% |
| Return on assets (ROA) | +0.84% | +0.86% | +0.73% | +1.31% | +0.98% | +1.02% | +1.03% | +0.98% | +0.97% |
| Return on capital (ROC) | +9.83% | +6.77% | +5.03% | +9.24% | +7.93% | +7.13% | +7.14% | +7.30% | +7.15% |
| Return on invested capital (ROIC) | +7.56% | +5.12% | +3.80% | +7.06% | +5.91% | +5.52% | +5.57% | +5.48% | +5.29% |
| Asset turnover | +3.53% | +5.00% | +8.04% | +10.21% | +8.07% | +8.73% | +8.80% | +8.74% | +8.76% |
| DuPont · ROE decomposition | |||||||||
| Net margin | +23.82% | +17.23% | +9.14% | +12.79% | +12.15% | +11.63% | +11.67% | +11.27% | +11.09% |
| Asset turnover (× revenue / assets) | +3.53% | +5.00% | +8.04% | +10.21% | +8.07% | +8.73% | +8.80% | +8.74% | +8.76% |
| Equity multiplier (× assets / equity) | +1530.27% | +1376.94% | +1267.31% | +1216.01% | +1366.99% | +1301.77% | +1273.97% | +1304.33% | +1258.05% |
Activity & efficiency
Turnover ratios and days-outstanding — how efficiently the business converts assets and working capital into sales and cash.
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| Turnover | |||||||||
| Asset turnover | 0.04 | 0.05 | 0.08 | 0.10 | 0.08 | 0.09 | 0.09 | 0.09 | 0.09 |
| Fixed-asset turnover | 13.28 | 15.49 | 24.13 | 32.38 | 30.78 | — | — | — | — |
| Inventory turnover | — | — | — | — | — | — | — | — | — |
| Receivables turnover | 3.32 | 4.56 | 56.99 | 386.27 | — | — | — | — | — |
| Payables turnover | — | — | — | — | — | — | — | — | — |
| Days outstanding | |||||||||
| Days sales outstanding (DSO) | 109.82 | 79.97 | 6.40 | 0.94 | — | — | — | — | — |
| Days inventory outstanding (DIO) | — | — | — | — | — | — | — | — | — |
| Days payables outstanding (DPO) | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | 109.82 | 79.97 | 6.40 | 0.94 | 0.00 | — | — | — | — |
Cash flow quality
How well reported earnings translate into operating and free cash flow, plus reinvestment intensity.
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| Operating CF / Net income | 0.88 | 1.79 | 2.37 | -0.24 | 3.19 | 1.67 | 1.61 | 1.65 | 1.75 |
| FCF / Net income | 0.54 | 1.25 | 1.76 | -0.61 | 3.14 | 1.33 | 1.29 | 1.40 | 1.40 |
| FCF margin | +12.96% | +21.53% | +16.09% | -7.76% | +38.18% | +15.51% | +15.06% | +15.76% | +15.54% |
| OCF margin | +20.90% | +30.86% | +21.67% | -3.06% | +38.70% | +19.39% | +18.78% | +18.64% | +19.46% |
| CapEx / Revenue | +7.94% | +9.33% | +5.58% | +4.70% | +0.52% | +3.68% | +3.55% | +3.63% | +3.68% |
| CapEx / D&A | 1.00 | 1.31 | 1.06 | 1.04 | 0.09 | — | — | — | — |
| Stock-based comp / Revenue | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | — | — | — | — |
Per-share & shareholder yield
EPS, book value, sales, cash flow and dividends per share — plus payout / retention.
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| EPS · diluted | 7.14 | 6.14 | 5.08 | 9.77 | 8.74 | 10.84 | 11.74 | 12.97 | 15.02 |
| EPS · basic | 7.16 | 6.16 | 5.09 | 9.80 | 8.79 | 10.79 | 11.92 | 13.13 | 14.90 |
| Book value / share | 57.52 | 53.91 | 57.32 | 63.35 | 68.71 | 41.28 | 43.05 | 44.49 | 49.00 |
| Tangible BV / share | 54.14 | 50.60 | 53.94 | 59.91 | 64.93 | 41.28 | 43.05 | 44.49 | 49.00 |
| Sales / share | 31.06 | 37.11 | 58.37 | 78.64 | 75.83 | 46.94 | 48.24 | 50.71 | 54.00 |
| Operating CF / share | 6.49 | 11.45 | 12.65 | -2.41 | 29.34 | 9.10 | 9.06 | 9.45 | 10.51 |
| Free cash flow / share | 4.03 | 7.99 | 9.39 | -6.10 | 28.95 | 7.28 | 7.26 | 7.99 | 8.39 |
| Dividends / share | 2.79 | 3.59 | 2.99 | 2.98 | 3.14 | 2.04 | 2.13 | 2.26 | 2.32 |
| Payout ratio | +37.75% | +56.15% | +56.13% | +29.65% | +34.06% | +37.46% | +37.80% | +39.53% | +38.65% |
| Retention ratio | +62.25% | +43.85% | +43.87% | +70.35% | +65.94% | +62.54% | +62.20% | +60.47% | +61.35% |
Growth
Year-over-year change for headline P&L lines, plus through-cycle CAGR
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E | 8y CAGR |
|---|---|---|---|---|---|---|---|---|---|---|
| Top-line | ||||||||||
| Revenue · YoY | — | +19.47% | +56.31% | +31.02% | -9.93% | -37.91% | +3.17% | +4.92% | +4.95% | +5.67% |
| Gross profit · YoY | — | +3.10% | -0.00% | +22.88% | -2.50% | -38.28% | +3.21% | +3.47% | +1.17% | -2.39% |
| Profit | ||||||||||
| Operating income · YoY | — | -12.13% | -17.07% | +81.56% | -12.33% | -42.79% | +2.67% | +5.39% | +4.84% | -3.49% |
| EBITDA · YoY | — | -8.15% | -9.50% | +60.82% | -4.78% | -42.37% | -0.05% | +5.73% | +2.82% | -2.80% |
| Net income · YoY | — | -13.54% | -17.12% | +83.43% | -14.48% | -40.55% | +3.48% | +1.32% | +3.33% | -3.96% |
| Operating | ||||||||||
| EBIT · YoY | — | -12.13% | -17.07% | +81.56% | -12.33% | -43.12% | +3.53% | +6.93% | +2.75% | -3.52% |
| R&D · YoY | — | — | — | — | — | — | — | — | — | — |
| Per-share | ||||||||||
| EPS · diluted · YoY | — | -14.01% | -17.26% | +92.32% | -10.54% | +24.02% | +8.28% | +10.52% | +15.76% | +9.74% |
| EPS · basic · YoY | — | -13.97% | -17.37% | +92.53% | -10.31% | +22.79% | +10.46% | +10.12% | +13.46% | +9.59% |
Credit & leverage
Balance-sheet health + interest coverage + liquidity. Coverage ratios use period-end debt and trailing interest expense.
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| Leverage | |||||||||
| Total debt | $8.43B | $14.85B | $17.24B | $15.99B | $16.43B | $10.9B | $11.01B | $11.34B | $12.01B |
| Net debt | -$61.16B | -$31.78B | -$23.82B | -$29.4B | -$44.7B | -$20.3B | -$20.66B | -$22.2B | -$23.2B |
| Net debt / EBITDA | -24.21 | -13.70 | -11.35 | -8.71 | -13.90 | -10.96 | -11.16 | -11.34 | -11.53 |
| Debt / equity | 0.70 | 1.32 | 1.45 | 1.25 | 1.27 | 1.40 | 1.35 | 1.34 | 1.31 |
| Debt / assets | +4.58% | +9.58% | +11.43% | +10.28% | +9.27% | +10.72% | +10.57% | +10.31% | +10.43% |
| Equity / assets | +6.53% | +7.26% | +7.89% | +8.22% | +7.32% | +7.68% | +7.85% | +7.67% | +7.95% |
| Coverage | |||||||||
| EBITDA / interest expense | 106.12 | 2.34 | 0.39 | 0.45 | 0.52 | 0.47 | 0.46 | 0.46 | 0.44 |
| Operating income / interest | 84.46 | 1.78 | 0.27 | 0.35 | 0.38 | 0.34 | 0.34 | 0.34 | 0.33 |
| Interest expense | $23.8M | $990.5M | $5.34B | $7.59B | $6.21B | $3.95B | $4.03B | $4.27B | $4.55B |
| Liquidity | |||||||||
| Current ratio | 0.68 | 0.60 | 0.54 | 0.45 | 0.41 | — | — | — | — |
| Quick ratio | 0.68 | 0.60 | 0.54 | 0.45 | 0.41 | — | — | — | — |
| Cash ratio | 0.43 | 0.37 | 0.34 | 0.36 | 0.39 | — | — | — | — |
| Working capital | -$50.72B | -$50.17B | -$54.85B | -$68.52B | -$91.96B | — | — | — | — |
| Working capital / revenue | -781.75% | -647.27% | -452.69% | -431.62% | -643.08% | — | — | — | — |
Methodology. ROE / ROA / ROC use period-end balance-sheet denominators (no average-of- period smoothing). ROIC = Operating Income × (1 − inferred effective tax rate) over invested capital, with the effective tax inferred from net-to-operating income when both are positive and a 25% default otherwise. Net debt / EBITDA, debt ratios, and interest-coverage ratios are calculated point-in-time at each fiscal year-end. TTM = trailing 4 quarters (income / cash flow summed, balance sheet = most-recent quarterly snapshot). Through-cycle CAGR in the Growth panel uses the geometric mean of first-to-last period growth across the window (positive values only).