NASDAQ INC (NDAQ)
US6311031081 - Common Stock
NDAQ gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 212 industry peers in the Capital Markets industry. NDAQ has a medium profitability rating, but doesn't score so well on its financial health evaluation. NDAQ is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
NDAQ had positive earnings in the past year.
In the past year NDAQ had a positive cash flow from operations.
In the past 5 years NDAQ has always been profitable.
Each year in the past 5 years NDAQ had a positive operating cash flow.
1.2 Ratios
NDAQ has a Return On Assets of 3.28%. This is comparable to the rest of the industry: NDAQ outperforms 46.67% of its industry peers.
NDAQ has a Return On Equity (9.18%) which is in line with its industry peers.
The Return On Invested Capital of NDAQ (5.97%) is better than 67.62% of its industry peers.
NDAQ had an Average Return On Invested Capital over the past 3 years of 8.45%. This is in line with the industry average of 8.43%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.28% | ||
| ROE | 9.18% | ||
| ROIC | 5.97% |
ROA(3y)4.86%
ROA(5y)5.06%
ROE(3y)15.55%
ROE(5y)14.97%
ROIC(3y)8.45%
ROIC(5y)8.29%
1.3 Margins
NDAQ has a Profit Margin (15.99%) which is comparable to the rest of the industry.
NDAQ's Profit Margin has improved in the last couple of years.
NDAQ has a Operating Margin of 29.32%. This is comparable to the rest of the industry: NDAQ outperforms 49.52% of its industry peers.
In the last couple of years the Operating Margin of NDAQ has grown nicely.
Looking at the Gross Margin, with a value of 66.06%, NDAQ is in the better half of the industry, outperforming 64.29% of the companies in the same industry.
In the last couple of years the Gross Margin of NDAQ has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 29.32% | ||
| PM (TTM) | 15.99% | ||
| GM | 66.06% |
OM growth 3Y7.45%
OM growth 5Y3.96%
PM growth 3Y1.74%
PM growth 5Y10.28%
GM growth 3Y7.58%
GM growth 5Y1.69%
2. Health
2.1 Basic Checks
Compared to 1 year ago, NDAQ has more shares outstanding
NDAQ has more shares outstanding than it did 5 years ago.
NDAQ has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 1.87 indicates that NDAQ is not a great score, but indicates only limited risk for bankruptcy at the moment.
NDAQ has a Altman-Z score of 1.87. This is in the better half of the industry: NDAQ outperforms 69.05% of its industry peers.
NDAQ has a debt to FCF ratio of 6.64. This is a slightly negative value and a sign of low solvency as NDAQ would need 6.64 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 6.64, NDAQ is in line with its industry, outperforming 56.19% of the companies in the same industry.
A Debt/Equity ratio of 0.92 indicates that NDAQ is somewhat dependend on debt financing.
NDAQ has a Debt to Equity ratio (0.92) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.92 | ||
| Debt/FCF | 6.64 | ||
| Altman-Z | 1.87 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
NDAQ has a Current Ratio of 0.99. This is a bad value and indicates that NDAQ is not financially healthy enough and could expect problems in meeting its short term obligations.
NDAQ has a Current ratio of 0.99. This is comparable to the rest of the industry: NDAQ outperforms 40.48% of its industry peers.
A Quick Ratio of 0.99 indicates that NDAQ may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.99, NDAQ is in line with its industry, outperforming 40.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.99 | ||
| Quick Ratio | 0.99 |
3. Growth
3.1 Past
NDAQ shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.59%.
Measured over the past years, NDAQ shows a quite strong growth in Earnings Per Share. The EPS has been growing by 11.94% on average per year.
The Revenue has decreased by -0.31% in the past year.
NDAQ shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.23% yearly.
EPS 1Y (TTM)2.59%
EPS 3Y11.23%
EPS 5Y11.94%
EPS Q2Q%-8.7%
Revenue 1Y (TTM)-0.31%
Revenue growth 3Y2.52%
Revenue growth 5Y7.23%
Sales Q2Q%-27.14%
3.2 Future
NDAQ is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.65% yearly.
Based on estimates for the next years, NDAQ will show a quite strong growth in Revenue. The Revenue will grow by 9.41% on average per year.
EPS Next Y-3.54%
EPS Next 2Y4.32%
EPS Next 3Y7.64%
EPS Next 5Y8.65%
Revenue Next Year19.64%
Revenue Next 2Y13.09%
Revenue Next 3Y11.5%
Revenue Next 5Y9.41%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 21.73, which indicates a rather expensive current valuation of NDAQ.
Based on the Price/Earnings ratio, NDAQ is valued a bit more expensive than 64.76% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.20, NDAQ is valued a bit cheaper.
NDAQ is valuated rather expensively with a Price/Forward Earnings ratio of 19.55.
Based on the Price/Forward Earnings ratio, NDAQ is valued a bit more expensive than the industry average as 62.86% of the companies are valued more cheaply.
NDAQ's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 20.02.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.73 | ||
| Fwd PE | 19.55 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NDAQ is valued a bit cheaper than the industry average as 65.24% of the companies are valued more expensively.
NDAQ's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.08 | ||
| EV/EBITDA | 20.16 |
4.3 Compensation for Growth
The decent profitability rating of NDAQ may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.82
EPS Next 2Y4.32%
EPS Next 3Y7.64%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.56%, NDAQ has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 7.08, NDAQ is paying slightly less dividend.
Compared to the average S&P500 Dividend Yield of 2.37, NDAQ is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.56% |
5.2 History
The dividend of NDAQ is nicely growing with an annual growth rate of 8.05%!
NDAQ has been paying a dividend for at least 10 years, so it has a reliable track record.
NDAQ has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)8.05%
Div Incr Years11
Div Non Decr Years11
5.3 Sustainability
47.38% of the earnings are spent on dividend by NDAQ. This is a bit on the high side, but may be sustainable.
The dividend of NDAQ is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP47.38%
EPS Next 2Y4.32%
EPS Next 3Y7.64%
NASDAQ INC
NASDAQ:NDAQ (5/28/2024, 7:00:01 PM)
After market: 60.23 +0.03 (+0.05%)60.2
-2.03 (-3.26%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap34.71B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.56% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.73 | ||
| Fwd PE | 19.55 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)1.82
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.28% | ||
| ROE | 9.18% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 29.32% | ||
| PM (TTM) | 15.99% | ||
| GM | 66.06% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.21
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.92 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.99 | ||
| Quick Ratio | 0.99 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)2.59%
EPS 3Y11.23%
EPS 5Y
EPS Q2Q%
EPS Next Y-3.54%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-0.31%
Revenue growth 3Y2.52%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y