Northern Trust Corporation (NTRS) — Free Cash Flow Yield
Financial Services
Northern Trust Corporation, a financial holding company, provides wealth management, asset servicing, asset management, and banking solutions for corporations, institutions, families, and individuals. It operates in two segments, Asset Servicing and Wealth Management. The Asset Servicing segment offers asset servicing and related services, including custody, fund administration, investment operations outsourcing, investment management, investment risk and analytics services, employee benefit services, securities lending, foreign exchange, treasury management, brokerage, transition management, banking, and cash management services. It serves corporate and public retirement funds, foundations, endowments, fund managers, insurance companies, sovereign wealth funds, and other institutional investors. The Wealth Management segment offers trust, investment management, custody, and philanthropic services; financial consulting; guardianship and estate administration; family business consulting; family financial education; brokerage; and private and business banking services. This segment also provides global custody, fiduciary services, family office consulting, and technology solutions to high-net-worth individuals and families, business owners, executives, professionals, retirees, and established privately held businesses. In addition, it offers asset management and related services comprising active and passive equity; active and passive fixed income; cash management; multi-asset and alternative asset classes that include private equity and hedge funds of funds; and multi-manager advisory services and products through separately managed accounts, bank common and collective funds, registered investment companies, exchange-traded funds, non-U.S. collective investment funds, and unregistered private investment funds. Further, the company provides overlay and other risk management services. The company was founded in 1889 and is headquartered in Chicago, Illinois.
| Metric | Value |
|---|---|
| FCF Yield | 13.6% |
| Financial Services Sector Avg FCF Yield | 6.6% |
| Annual Free Cash Flow | $4.8B |
| Market Cap | $35.0B |
| P/E Ratio | 16.4x |
Northern Trust Corporation's FCF yield of 13.6% is above the Financial Services sector average (6.6%).
Frequently Asked Questions
What is Northern Trust Corporation's (NTRS) free cash flow yield?
Northern Trust Corporation's (NTRS) free cash flow yield is 13.6%. That is above the Financial Services sector average (6.6%).
Is NTRS's free cash flow yield good?
At 13.6%, NTRS's free cash flow yield is considered excellent — yields above 10% are generally excellent, 7–10% good, 4–7% fair, and below 4% weak, though context varies by sector and growth stage.
How much free cash flow does Northern Trust Corporation generate?
Northern Trust Corporation generated $4.8B in free cash flow, against a market cap of $35.0B.
How is free cash flow yield calculated?
Free cash flow yield = (Free Cash Flow ÷ Market Capitalization) × 100%. Free cash flow equals operating cash flow minus capital expenditures.
Data from public filings. Not investment advice. Calculate your own FCF yield →