* Note: Prices are in Million (M) USD.
Description:
The Bank of NT Butterfield & Son Limited offers a variety of community, commercial and private banking services to individuals and small and medium-sized businesses. The company is headquartered in Hamilton, Bermuda.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $1,450 M
Debt : $38 M
EBITDA : $251 M
Since Cash is greater than Total Debt, 5 points assigned.
This criteria used industry in which company operates:
Sector: Financials
Industry: Banks - diversified
Based on industry, 3 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Message: Cannot calculate PE Ratio since EPS is either 0 or negative.
Using default values for calculation.
Forward PE Ratio (using default values): 20.00
Since Forward PE Ratio is between 20 - 25, 2 points assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Using last 18 overlapping fiscal years (max 20).Average Free Cash Flow: $136 M
Average Revenue: $499 M
Revenue Converted To Free Cash Flow (%): 27.2%
Since Free Cash Flow (FCF) to Revenue percentage is greater than 25, 5 points assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2024-12-31): $582 M
Revenue 5 Years Ago (2019-12-31): $533 M
Total Growth over 5 Years: 9.2%
5-Year Revenue CAGR (Historical): 1.8%
Forward 5-Year CAGR (Tapered): 1.6%
Since historical Revenue CAGR is between 0 - 5, 1 point assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-12-31): $45 M
Share Count 5 Years Ago (2020-12-31): $51 M
Company is buying back its own shares, 3 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Message: Cannot calculate payout ratio because EPS is either 0 or negative.
Using default values for calculation.
Based on default values, 1 points assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Using last 20 valid ROE years (max 20).Average ROE: 13.9%
Since Average ROE is between 10 - 20, 3 points assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $45
52-Week Low: $34
Threshold Price (15% Above 52-Week Low): $39
Since Current price is not within 15% threshold, 0 point assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $1,890 M
Since Market Cap is less than 10B, 1 point assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 2% exposure of Total Portfolio.
Warren Buffett's Owners' Earnings:
Owners' Earnings (FCF/Share) (TTM ending 2025-06-30): $6.29
Owners' Earnings (FCF/Share, latest positive annual) (2024-12-31): $5.41
Note: Many fast-growing companies reinvest heavily, so Owners' Earnings may appear low.
Consider other factors in your valuation.
Value-Trade has assigned 24 points to above Bank of N.T. Butterfield & Son Ltd (NTB) stock.
Last 9 Years Avg PE 7.79, Fair Value PE 15, Industry Based PE 13, Growth Based PE 15, RCFC Based PE 27.21, ROE Based PE 13.93, Risk-Free Anchored PE (25% MoS) 17.61. Based on these 7 values, average assigned is 15.65. The fair value of Bank of N.T. Butterfield & Son Ltd (NTB) stock cannot be calculated since EBITDA and EPS are either 0 or negative.
