3. Northern Trust
Shares of Northern Trust (NTRS) of Chicago closed at $48.72 Friday, down 5% year-to-date.The company was named in recent report by Rochdale Research analyst Richard Bove as a good fit for an acquisitive Credit Suisse (CS). Bove said "there is no company better suited for Credit Suisse than Northern Trust," adding that "management has no ability to withstand a takeover bid." Income Statement Northern Trust reported net income of $356.8 million or $1.46 a share for the first half of 2010, compared to net income to common shareholders of $364.9 million or $1.57 a share during the first half of 2009. Northern Trust fully repaid $1.6 billion in TARP money in June 2009. The year-over-year decline in earnings was attributed to lower net interest income in the low rate environment and reduced noninterest expenses during the first half of 2009 from capital support agreements. ROE for the first half of 2010 was 10.98% and for the previous five years peaked at 17.57% in 2006, according to SNL Financial. Balance Sheet Total assets were $80 billion as of June 30. Since Northern Trust focuses on providing trust, asset servicing and other fee-based services, loans held for investment only make up about 35% of its total assets and credit quality has not been a problem. The company's tier 1 leverage ratio was 9.22% as of June 30, its total risk-based capital ratio was 15.88% and its tangible common equity ratio was 7.76%. Stock Ratios The shares trade for 1.9 times tangible book value according to SNL Financial. The forward P/E based on the consensus earnings estimate of $3.46 a share for 2011 was 14.1 and world drop to 11.6 based on the 2012 consensus earnings estimate of $4.21 a share. Analyst Ratings Out of 19 analysts covering Northern Trust, nine have buy ratings while ten recommend investors hold the shares.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV