Buffett Brain · Research note
Score updated 23 Oct 2026 · analysis from 17 Aug 2026
NTRS· Financial Services
Northern
Northern Trust's owner earnings yield of 17.66% is attractive, but its ROIC of 5.9% lags sector benchmarks, raising questions about its competitive moat.
Buffett fit
Weak fit
Owner
37
Durability
80
Management
61
Price
89
Score updated 23 Oct 2026 · analysis from 17 Aug 2026
Buffett's checklist
Each number against Buffett's bar, and where it ranks among Financial Services stocks in our database.
How much profit the business makes on each dollar invested in it. Higher is better.
What is left of each sale after the cost of making the product. A high number often means pricing power.
The cash the business earns for its owners, compared with the price of the whole company.
How fast sales grew each year over the last five years.
How many years of today's profit you pay for at today's price. Lower means cheaper.
How much the company owes compared with what it owns outright. Lower is safer.
The four pillars
How the business measures up on each of Buffett's four tests.
Owning Northern Trust would involve managing a business with steady earnings, reflected by a 5-year revenue CAGR of 21.84%.
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Northern Trust has demonstrated durability with consistent profitability over the past five years.
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The management has been returning capital to shareholders with a 5-year share count CAGR of -2.57% and a yield of 1.85%.
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Northern Trust's yield of 17.66% is attractive, suggesting a potential at the current price of $191.41.
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For and against
The strongest points on each side, with the numbers behind them.
In its favor
7- 1 yield of 17.66% indicates strong cash generation.
- 25-year revenue CAGR of 21.84% shows robust top-line growth.
- 3Consistent profitability over the last 5 years.
- 4Share count CAGR of -2.57% reflects shareholder-friendly .
Concerns
7- 1 of 5.9% is below the sector top-quintile threshold of 10.5%.
- 2 of 17.23% falls short of sector peers.
- 3Interest coverage of 0.4 raises concerns about debt servicing capacity.
- 4 of 16.6 prices in growth that may not materialize given a 5-year EPS CAGR of 5.26%.
Price history
$166+34.8%· 5-year return
Weekly closing prices. Touch or hover the line for a date.
The business
How the business works
Northern Trust Corporation operates in two main segments: Asset Servicing and Wealth Management. The Asset Servicing segment provides a wide array of services including custody, fund administration, and investment management, primarily to institutional clients. The Wealth Management segment caters to high-net-worth individuals and families with services like trust and investment management. With a revenue of $14.3B, the company maintains a of 57.34%, indicating moderate in its sectors.
How this analysis has moved
The call has held across 4 reviews.
Sep 27, 2026 → Oct 16, 2026
What other investors would say
The same company, judged by three other documented playbooks.
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