Northern Beneish M Score

NTRS
 Stock
  

USD 91.66  1.97  2.10%   

This module uses fundamental data of Northern Trust to approximate the value of its Beneish M Score. Northern Trust M Score tells investors if the company management is likely to be manipulating earnings. The score is calculated using eight financial indicators that are adjusted by a specific multiplier. Please note, the M Score is a probabilistic model and cannot detect companies that manipulate their earnings with 100% accuracy. Additionally, see Northern Trust Piotroski F Score and Northern Trust Altman Z Score analysis.
  
Northern Trust Total Debt is relatively stable at the moment as compared to the past year. Northern Trust reported last year Total Debt of 10.24 Billion. As of 12/05/2022, Debt to Equity Ratio is likely to grow to 0.39, while Long Term Debt is likely to drop slightly above 3.4 B. Northern Trust Earnings per Diluted Share are relatively stable at the moment as compared to the past year. Northern Trust reported last year Earnings per Diluted Share of 7.14. As of 12/05/2022, Price to Book Value is likely to grow to 2.08, while Cash Flow Per Share is likely to drop 6.16.
At this time, it appears that Northern Trust is an unlikely manipulator. The earnings manipulation may begin if Northern Trust's top management creates an artificial sense of financial success, forcing the stock price to be traded at a high price-earnings multiple than it should be. In general, excessive earnings management by Northern Trust executives may lead to removing some of the operating profits from subsequent periods to inflate earnings in the following periods. This way, the manipulation of Northern Trust's earnings can lead to misrepresentations of actual financial condition, taking the otherwise loyal stakeholders on to the path of questionable ethical practices and plain fraud.
-3.92
Beneish M Score - Unlikely Manipulator
Elasticity of ReceivablesN/AFocus
Asset QualityN/AFocus
Expense Coverage1.05Focus
Gross Margin Strengs0.99Focus
Accruals Factor1.05Focus
Depreciation Resistance1.03Focus
Net Sales Growth0.87Focus
Financial Leverage Condition1.01Focus

Northern Trust Beneish M-Score Indicator Trends

The cure to earnings manipulation is the transparency of financial reporting. It will typically remove the temptation of the top executives to inflate earnings (i.e., to promote the idea of 'winning at any cost'). Because a healthy internal audit department can enhance transparency, the board should promote the auditors' access to all the record-keeping systems across the enterprise. For example, if Northern Trust's auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back.
Current ValueLast YearChange From Last Year 10 Year Trend
Selling General and Administrative Expense4.2 B4.6 B
Significantly Down
Increasing
Slightly volatile
Revenues5.6 B6.5 B
Fairly Down
Increasing
Slightly volatile
Property Plant and Equipment Net442 M463.4 M
Sufficiently Down
Decreasing
Stable
Operating Income1.8 B1.9 B
Sufficiently Down
Increasing
Slightly volatile
Net Cash Flow from Operations1.3 B1.4 B
Fairly Down
Increasing
Slightly volatile
Total Liabilities139 B171.9 B
Significantly Down
Increasing
Slightly volatile
Investments100.3 B109.2 B
Significantly Down
Increasing
Slightly volatile
Gross Margin0.890.9
Fairly Down
Decreasing
Slightly volatile
Depreciation Amortization and Accretion514.6 M575.3 M
Moderately Down
Increasing
Slightly volatile
Total Debt10.7 B10.2 B
Sufficiently Up
Increasing
Slightly volatile
Total Assets149.3 B183.9 B
Significantly Down
Increasing
Slightly volatile

Northern Trust Beneish M-Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to detect the potential manipulation of earnings. Understanding the correlation between Northern Trust's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Northern Trust in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find Northern Trust's degree of accounting gimmicks and manipulations.

About Northern Trust Beneish M Score

M-Score is one of many grading techniques for value stocks. It was developed by Professor M. Daniel Beneish of the Kelley School of Business at Indiana University and published in 1999 under the paper titled The Detection of Earnings Manipulation. The Beneish score is a multi-factor model that utilizes financial identifiers to compile eight variables used to classify whether a company has manipulated its reported earnings. The variables are built from the officially filed financial statements to create a final score call 'M Score.' The score helps to identify companies that are likely to manipulate their profits if they show deteriorating gross margins, operating expenses, and leverage against growing revenue.

Depreciation Amortization and Accretion

514.65 Million

Northern Trust Depreciation Amortization and Accretion is relatively stable at the moment as compared to the past year. Northern Trust reported last year Depreciation Amortization and Accretion of 575.35 Million

Northern Trust Earnings Manipulation Drivers

Although earnings manipulation is typically not the result of intentional misconduct by the c-level executives, it is still a widespread practice by the senior management of public companies such as Northern Trust. It is usually done by a series of misrepresentations of various accounting rules and operating activities across multiple financial cycles. The best way to spot the manipulation is to examine the historical financial statement to find inconsistencies in earning reports to find trends in assets or liabilities that are not sustainable in the future.
201720182019202020212022 (projected)
Revenues5.72 B6.66 B6.9 B6.3 B6.49 B5.63 B
Total Assets138.59 B132.21 B136.83 B170 B183.89 B149.3 B
Property Plant and Equipment Net464.6 M428.2 M483.3 M514.9 M463.41 M442.04 M
Depreciation Amortization and Accretion421.7 M460.9 M458.9 M500.3 M575.35 M514.65 M
Selling General and Administrative Expense3.44 B3.69 B3.81 B4 B4.6 B4.21 B
Total Liabilities128.37 B121.7 B125.74 B158.32 B171.87 B139.05 B
Total Debt12.4 B14.07 B11.79 B8.9 B10.24 B10.74 B
Operating Income1.63 B1.96 B1.94 B1.63 B1.87 B1.79 B
Net Cash Flow from Operations1.72 B1.77 B2.59 B1.9 B1.36 B1.32 B
Investments79.25 B83.62 B83.17 B94.97 B109.22 B100.3 B

Northern Trust ESG Sustainability

Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Northern Trust's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Northern Trust's managers, analysts, and investors.
Environment Score
Governance Score
Social Score

About Northern Trust Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Northern Trust's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Northern Trust using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Northern Trust based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Northern Trust Corporation, a financial holding company, provides wealth management, asset servicing, asset management, and banking solutions for corporations, institutions, families, and individuals worldwide. The company was founded in 1889 and is headquartered in Chicago, Illinois. Northern Trust operates under Asset Management classification in the United States and is traded on NASDAQ Exchange. It employs 23100 people.

Be your own money manager

Our tools can tell you how much better you can do entering a position in Northern Trust without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.

Did you try this?

Run Idea Optimizer Now

   

Idea Optimizer

Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio
All  Next Launch Module

Becoming a Better Investor with Macroaxis

Macroaxis puts the power of mathematics on your side. We analyze your portfolios and positions such as Northern Trust using complex mathematical models and algorithms, but make them easy to understand. There is no real person involved in your portfolio analysis. We perform a number of calculations to compute absolute and relative portfolio volatility, correlation between your assets, value at risk, expected return as well as over 100 different fundamental and technical indicators.

Build Optimal Portfolios

Align your risk with return expectations

Fix your portfolio
By capturing your risk tolerance and investment horizon Macroaxis technology of instant portfolio optimization will compute exactly how much risk is acceptable for your desired return expectations
Additionally, see Northern Trust Piotroski F Score and Northern Trust Altman Z Score analysis. You can also try Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.

Complementary Tools for analysis

When running Northern Trust 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 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.
Commodity Channel Index
Use Commodity Channel Index to analyze current equity momentum
Go
Commodity Channel Index
Use Commodity Channel Index to analyze current equity momentum
Go
Technical Analysis
Check basic technical indicators and analysis based on most latest market data
Go
Volatility Analysis
Get historical volatility and risk analysis based on latest market data
Go
ETF Directory
Find actively traded Exchange Traded Funds (ETF) from around the world
Go
CEO Directory
Screen CEOs from public companies around the world
Go
Efficient Frontier
Plot and analyze your portfolio and positions against risk-return landscape of the market.
Go
Price Transformation
Use Price Transformation models to analyze depth of different equity instruments across global markets
Go
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.
Market Capitalization
19.1 B
Quarterly Revenue Growth YOY
0.065
Return On Assets
0.0096
Return On Equity
0.14
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 Northern Trust value 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.