Northern Trust (FRA:NT4) Beneish M-Score: -2.53 (As of Jul. 06, 2026)


FRA:NT4 Northern Trust Corp FRA:NT4
74 GF Score
Price €154.45
GF Value €103.42
Valuation Significantly Overvalued
! 7 Warning Signs
View Full Analysis

What is Northern Trust Beneish M-Score?

Northern Trust FRA:NT4 +0.85% 74 Beneish M-Score is -2.53 as of Jul. 06, 2026. GuruFocus rates FRA:NT4 with a GF Score™ of 74/100 and a GF Value™ of €103.42 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 953 Asset Management companies, Northern Trust ranks better than 63.38% on this metric.

Note: Financial institutions were excluded from the sample in Beneish paper when calculating Beneish M-Score. Thus, the prediction might not fit banks and insurance companies.

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -2.53 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Northern Trust's Beneish M-Score or its related term are showing as below:

FRA:NT4' s Beneish M-Score Range Over the Past 10 Years
Min: -3.69   Med: -2.65   Max: -1.05
Current: -2.53

During the past 13 years, the highest Beneish M-Score of Northern Trust was -1.05. The lowest was -3.69. And the median was -2.65.

FRA:NT4
74GF Score
Northern Trust Corp FRA:NT4
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Northern Trust Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of Northern Trust for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 1+0.528 * 1+0.404 * 1.0003+0.892 * 0.9016+0.115 * 0.9559
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0665+4.679 * -0.003418-0.327 * 0.9904
=-2.60

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Mar26) TTM:Last Year (Mar25) TTM:
Total Receivables was €0 Mil.
Revenue was 1907.844 + 1813.213 + 1725.641 + 1732.179 = €7,179 Mil.
Gross Profit was 1907.844 + 1813.213 + 1725.641 + 1732.179 = €7,179 Mil.
Total Current Assets was €0 Mil.
Total Assets was €151,007 Mil.
Property, Plant and Equipment(Net PPE) was €387 Mil.
Depreciation, Depletion and Amortization(DDA) was €675 Mil.
Selling, General, & Admin. Expense(SGA) was €2,734 Mil.
Total Current Liabilities was €0 Mil.
Long-Term Debt & Capital Lease Obligation was €12,168 Mil.
Net Income was 454.557 + 397.964 + 389.875 + 365.267 = €1,608 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = €0 Mil.
Cash Flow from Operations was -276.8 + 331.694 + 447.982 + 1620.856 = €2,124 Mil.
 Total Receivables was €0 Mil.
Revenue was 1794.407 + 1871.418 + 1773.619 + 2522.7 = €7,962 Mil.
Gross Profit was 1794.407 + 1871.418 + 1773.619 + 2522.7 = €7,962 Mil.
Total Current Assets was €0 Mil.
Total Assets was €152,691 Mil.
Property, Plant and Equipment(Net PPE) was €442 Mil.
Depreciation, Depletion and Amortization(DDA) was €684 Mil.
Selling, General, & Admin. Expense(SGA) was €2,843 Mil.
Total Current Liabilities was €0 Mil.
Long-Term Debt & Capital Lease Obligation was €12,422 Mil.

1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI=(Receivables_t / Revenue_t) / (Receivables_t-1 / Revenue_t-1)
=(0 / 7178.877) / (0 / 7962.144)
=0 / 0
=1

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI=GrossMargin_t-1 / GrossMargin_t
=(GrossProfit_t-1 / Revenue_t-1) / (GrossProfit_t / Revenue_t)
=(7962.144 / 7962.144) / (7178.877 / 7178.877)
=1 / 1
=1

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (0 + 387.087) / 151006.769) / (1 - (0 + 441.595) / 152690.86)
=0.997437 / 0.997108
=1.0003

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI=Sales_t / Sales_t-1
=Revenue_t / Revenue_t-1
=7178.877 / 7962.144
=0.9016

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI=(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1)) / (Depreciation_t / (Depreciaton_t + PPE_t))
=(683.725 / (683.725 + 441.595)) / (675.138 / (675.138 + 387.087))
=0.607583 / 0.635589
=0.9559

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI=(SGA_t / Sales_t) / (SGA_t-1 /Sales_t-1)
=(2733.802 / 7178.877) / (2843.081 / 7962.144)
=0.380812 / 0.357075
=1.0665

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((12167.609 + 0) / 151006.769) / ((12422.195 + 0) / 152690.86)
=0.080577 / 0.081355
=0.9904

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA=(IncomefromContinuingOperations_t - CashFlowsfromOperations_t) / TotalAssets_t
=(NetIncome_t - NonOperatingIncome_t - CashFlowsfromOperations_t) / TotalAssets_t
=(1607.663 - 0 - 2123.732) / 151006.769
=-0.003418

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Northern Trust has a M-score of -2.60 suggests that the company is unlikely to be a manipulator.

Frequently Asked Questions Learn more about Beneish M-Score →
What does a Beneish M-Score of -2.53 mean?
Northern Trust (FRA:NT4) has a Beneish M-Score of -2.53 as of Jul. 06, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Northern Trust and its competitors. According to the industry distribution chart, Northern Trust ranks #349 out of 953 companies in the Asset Management industry, placing it in the top 36.6%.
Is Northern Trust's Beneish M-Score too high?
Northern Trust's current Beneish M-Score is -2.53. Based on the distribution chart, Northern Trust ranks #349 out of 953 companies in the Asset Management industry, which is above the industry midpoint. Overall, Northern Trust has a GF Score™ of 74/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Northern Trust's Beneish M-Score compare to RJF and ARES?
According to the Asset Management industry distribution chart, Northern Trust ranks #349 out of 953 companies for Beneish M-Score. This puts Northern Trust in the upper half of its industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Beneish M-Score for an Asset Management company?
A good Beneish M-Score depends on the Asset Management industry context. However, Beneish M-Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Beneish M-Score mean?
A high Beneish M-Score can signal that a stock is expensive relative to its fundamentals. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Northern Trust and its competitors. Northern Trust's current Beneish M-Score is -2.53. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Northern Trust stock overvalued right now?
Based on GuruFocus' analysis, Northern Trust (FRA:NT4) is currently considered Significantly Overvalued. The stock's GF Value™ is €103.42, compared to a current price of €154.45 — trading 49.3% above its estimated fair value. The current Beneish M-Score is -2.53. Northern Trust's overall GF Score™ is 74/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Beneish M-Score calculated?
Beneish M-Score is calculated from a company's financial statements. For Northern Trust (FRA:NT4), the current Beneish M-Score is -2.53 as of Jul. 06, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Northern Trust (FRA:NT4) Overvalued in 2026?

Based on GuruFocus' analysis, Northern Trust stock appears to be overvalued. The current stock price of €154.45 is trading 49.3% above its estimated GF Value™ of €103.42. GuruFocus considers Northern Trust to be Significantly Overvalued.

Key valuation signals for FRA:NT4:

  • Beneish M-Score: -2.53
  • GF Value™: €103.42 vs. price of €154.45 (49.3% above fair value)
  • GF Score™: 74/100 with 7 warning signs

No single metric tells the full story. See the FRA:NT4 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Northern Trust Business Description

Address 50 South La Salle Street, Chicago, IL, USA, 60603
Northern Trust is a leading provider of wealth management, asset servicing, asset management, and banking to corporations, institutions, affluent families, and individuals. Founded in Chicago in 1889, Northern Trust has offices in 20 states and Washington, D.C. as well as 23 locations in Canada, Europe, the Middle East, and Asia-Pacific. As of December 2025, Northern Trust had assets under custody or administration of $18.7 trillion and assets under management of $1.8 trillion.
74GF Score

Get the complete analysis for FRA:NT4

Beneish M-Score is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€154.45
Price
€103.42
GF Value