Stock fact sheet · data as of
The Bank of N.T. Butterfield & Son Limited (NTB): fair value, margin of safety and Wheel Score
Ticker symbol NTB · Financial Services · Banks - Regional · Bermuda · Value Quality
Is NTB undervalued?
The Bank of N.T. Butterfield & Son Limited (NTB) closed at 55.49 on 5 Nov 2026. The GLS average fair value - the simple average of the 9 valuation models that produced a positive number - is 117.94, which puts the price 53% below it. 8 of the 9 models value the shares above the current price. A gap this wide is rare in our universe of ~7,400 US stocks and is exactly what the Value part of the Wheel Score rewards; it is also where the question "why is it this cheap?" matters most.
The 9 models disagree widely: DDM gives 29.43 while Graham Growth gives 239.03. A spread that wide means the average is sensitive to which methods you trust; the model table below shows where each one lands, and the Quote page lets you switch any of them off.
Ranked against every other company we cover, NTB is clearly cheaper than it is fast-growing, so the nightly engine files it under Value (value score 65, growth score 39, out of 100). It also carries the Quality tag (Quality = moat 7.5+ out of 10 and Piotroski 7+).
Nine valuation models for NTB
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 81.54 | +47% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 61.55 | +11% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 239.03 | +331% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 96.98 | +75% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 185.45 | +234% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 120.40 | +117% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 181.07 | +226% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 29.43 | -47% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 66.01 | +19% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -260.39 | -569% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 65.00 | +17% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
On financial health NTB scores 7/9 (Piotroski): most of the nine tests - positive earnings and cash flow, falling debt, rising margins and turnover - are passed, which is the kind of balance sheet a wheel trader is happy to be assigned. The GLS Moat score is 8.6 out of 10 - high returns on capital, steady margins and growth that held up through bad years point to a durable business.
Returns on capital are high - ROIC 19.6%, ROE 20.3%, ROA 1.6% - with debt at 0.03 times equity and a free-cash-flow yield of 10.2%.
The dividend yield is 3.60% at a payout ratio of 34%; for a wheel trader holding assigned shares the dividend adds to the covered-call premium, and the ex-dividend date is worth knowing before a call is sold. Revenue comes mainly from Bermuda 43%, Cayman 31%, Channel Islands And United Kingdom 18% (fiscal year FY2025).
Institutional ownership scores 9/10, insider activity 1/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 7 / 9 | ROIC | 19.6% |
|---|---|---|---|
| GLS Moat | 8.6 / 10 | ROE | 20.3% |
| Debt / equity | 0.03 | ROA | 1.6% |
| Free-cash-flow yield | 10.2% | Payout ratio | 34% |
| Institutions | 9 / 10 | Insiders · Congress | 1 · 5 / 10 |
Wheel Score 55: Fair
NTB scores 55 out of 100 on the Wheel Score (Fair band, 50-69) because it fails filter 1, options that actually trade - options too quiet (762 open interest, 141 a day). A stock must pass all 9 Wheel Trade Filters to reach 70. Otherwise the parts read: value strong, premium strong, moat strong, health good, red flags strong, option trading weak, stability fair.
Implied volatility is 36% on the near-the-money contracts 20-60 days out - inside the 35-60% sweet spot the Wheel Score rewards most: enough premium to be worth selling, not so much that the risk is unpaid. Chain open interest is thin - 762 contracts across every expiry - so fills at a fair price are not guaranteed; a 30-45-day put may not exist at a usable strike.
Volume runs at 248k shares a day on a market cap of $2.2B, with a beta of 0.56 - a low beta, so day-to-day moves are smaller than the market's; the Stability part of the Wheel Score rates that fair.
| Filter | Wheel Trade Filter | Result | Detail |
|---|---|---|---|
| 1 | Options that actually trade | Fails | options too quiet (762 open interest, 141 a day) |
| 2 | A real business, not a gamble | Passes | Profitable over the last twelve months - not a speculative stock, fund or note |
| 3 | Below fair value | Passes | Trading below the nine-model average fair value (margin of safety above 0) |
| 4 | Financially healthy | Passes | Piotroski F-score 6 or more out of 9 (a company with no score on file passes) |
| 5 | Can repay its debt | Passes | Long-term debt repaid from 3 years of operating cash flow or less (6 for real estate and utilities; banks and insurers are not judged on it) |
| 6 | No serious red flags | Passes | Red Flags score 60 or more out of 100 (earnings, margins, debt, analysts, filings and price checked the same way for every stock) |
| 7 | A premium worth selling | Passes | Implied volatility 25-80% (enough premium, not a lottery ticket) |
| 8 | Big enough | Passes | Market cap $1 billion or more |
| 9 | Not a penny stock | Passes | Share price $5 or more |
| How it ranks | Rating | From | |
|---|---|---|---|
| Value | Strong | 53% below fair value | |
| Premium | Strong | implied volatility 36% | |
| Moat | Strong | moat 8.6/10 | |
| Health | Good | Piotroski 7/9 | |
| Red Flags | Strong | Red Flags score 100/100 | |
| Option trading | Weak | 141 contracts a day, 762 open interest | |
| Stability | Fair | beta 0.56, $2.2B company |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls: a stock must pass all 9 Wheel Trade Filters to score 70, and the score then ranks the ones that pass; the Sunday Scan is the top 10. It is updated nightly and is not a recommendation. How the Wheel Score works · the walkthrough lesson shows how it fits into a trade, start to finish.
Upcoming events
No upcoming earnings date is recorded for NTB in the nightly calendar. The shares go ex-dividend on 10 Nov 2026 (0.5000 per share), so a covered call sold before then carries a small early-assignment risk around that date.
No analyst upgrades or downgrades were recorded in the last 30 days.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Banks - Regional
The 12 companies below are the closest to The Bank of N.T. Butterfield & Son Limited by market cap within the Banks - Regional industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| OFG OFG Bancorp | 51.51 | 60.38 | +15% | 76Good | $2.2B |
| FCF First Commonwealth Financial Corporation | 21.51 | 25.39 | +15% | 44Weak | $2.2B |
| HTH Hilltop Holdings Inc. | 37.68 | 41.55 | +9% | 37Weak | $2.2B |
| SRCE 1st Source Corporation | 89.21 | 109.80 | +19% | 43Weak | $2.1B |
| WAFD WaFd, Inc. | 30.13 | 45.47 | +34% | 48Weak | $2.2B |
| WAFDP WaFd, Inc. | 14.73 | 33.91 | +57% | 34No options | $2.1B |
| EFSC Enterprise Financial Services Corp | 63.87 | 64.59 | +1% | 36Weak | $2.3B |
| BBAR Banco BBVA Argentina S.A. | 11.18 | 99.28 | +89% | 79Good | $2.3B |
| BUSEP First Busey Corporation | 25.54 | 32.15 | +21% | 22No options | $2.1B |
| EFSCP Enterprise Financial Services Corp | 16.34 | 33.30 | +51% | 35No options | $2.3B |
| FIISO Financial Institutions, Inc. 8.48% SRB1 PFD B | 105.89 | 74.82 | -42% | 16No options | $2.1B |
| NWBI Northwest Bancshares, Inc. | 15.84 | 15.06 | -5% | 37Weak | $2.3B |
⚖ Compare NTB with 7 of them All Financial Services stocks →
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Start free See the Sunday ScanQuestions about NTB
Is NTB undervalued right now?
By the GLS models, yes: at 55.49 the stock is 53% below the average fair value of 117.94 (data as of 5 Nov 2026). Whether the discount is deserved is the question to research next.
What is the Wheel Score of NTB and what does it mean?
NTB scores 55 out of 100 (Fair) - it fails Wheel Trade Filter 1. The Wheel Score ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned - in two parts: the 9 pass/fail Wheel Trade Filters (busy options, a real business, below fair value, Piotroski 6 or more, debt it can repay, a Red Flags score of 60 or more, implied volatility of 25-80%, a $1 billion company, $5 a share) and a ranking of how strongly a stock passes on value, premium, moat, health, red flags, option trading and stability. A stock that fails any filter stays under 70; 70-84 is Good, 85 and above is Prime. The Sunday Scan is the top 10 that pass, sorted by Wheel Score.
What is the GLS fair value for NTB?
117.94 per share as of 5 Nov 2026 - the simple average of the 9 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does The Bank of N.T. Butterfield & Son Limited report earnings next?
No upcoming earnings date is recorded for NTB in our calendar as of 5 Nov 2026; the Calendars page is refreshed every morning.
Does NTB have listed options, and how liquid are they?
Yes. The nightly snapshot found 54 listed contracts with 762 open interest across all expiries and implied volatility of 36% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.