NASDAQ INC (NDAQ) Stock Fundamental Analysis
NASDAQ:NDAQ - Nasdaq - US6311031081 - Common Stock - Currency: USD
Taking everything into account, NDAQ scores 4 out of 10 in our fundamental rating. NDAQ was compared to 225 industry peers in the Capital Markets industry. There are concerns on the financial health of NDAQ while its profitability can be described as average. 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.
Of the past 5 years NDAQ 4 years had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 3.14%, NDAQ perfoms like the industry average, outperforming 51.14% of the companies in the same industry.
With a Return On Equity value of 8.66%, NDAQ perfoms like the industry average, outperforming 48.40% of the companies in the same industry.
NDAQ's Return On Invested Capital of 6.22% is fine compared to the rest of the industry. NDAQ outperforms 74.43% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for NDAQ is in line with the industry average of 6.76%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.14% | ||
| ROE | 8.66% | ||
| ROIC | 6.22% |
ROA(3y)4.12%
ROA(5y)4.69%
ROE(3y)12.69%
ROE(5y)14.23%
ROIC(3y)7.47%
ROIC(5y)7.97%
1.3 Margins
NDAQ has a Profit Margin of 13.67%. This is comparable to the rest of the industry: NDAQ outperforms 45.66% of its industry peers.
NDAQ's Profit Margin has declined in the last couple of years.
The Operating Margin of NDAQ (26.93%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of NDAQ has remained more or less at the same level.
The Gross Margin of NDAQ (64.70%) is better than 69.86% of its industry peers.
NDAQ's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.93% | ||
| PM (TTM) | 13.67% | ||
| GM | 64.7% |
OM growth 3Y-0.81%
OM growth 5Y0.5%
PM growth 3Y-9.2%
PM growth 5Y-3.63%
GM growth 3Y2.64%
GM growth 5Y1.1%
2. Health
2.1 Basic Checks
NDAQ has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for NDAQ has been increased compared to 5 years ago.
The debt/assets ratio for NDAQ has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.25 indicates that NDAQ is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of NDAQ (2.25) is better than 73.06% of its industry peers.
The Debt to FCF ratio of NDAQ is 6.74, which is on the high side as it means it would take NDAQ, 6.74 years of fcf income to pay off all of its debts.
NDAQ has a Debt to FCF ratio (6.74) which is comparable to the rest of the industry.
NDAQ has a Debt/Equity ratio of 0.89. This is a neutral value indicating NDAQ is somewhat dependend on debt financing.
NDAQ's Debt to Equity ratio of 0.89 is in line compared to the rest of the industry. NDAQ outperforms 56.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.89 | ||
| Debt/FCF | 6.74 | ||
| Altman-Z | 2.25 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 0.95 indicates that NDAQ may have some problems paying its short term obligations.
The Current ratio of NDAQ (0.95) is comparable to the rest of the industry.
A Quick Ratio of 0.95 indicates that NDAQ may have some problems paying its short term obligations.
NDAQ has a Quick ratio (0.95) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.95 |
3. Growth
3.1 Past
The earnings per share for NDAQ have decreased by -0.35% in the last year.
Measured over the past years, NDAQ shows a quite strong growth in Earnings Per Share. The EPS has been growing by 11.09% on average per year.
The Revenue has grown by 21.98% in the past year. This is a very strong growth!
NDAQ shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.67% yearly.
EPS 1Y (TTM)-0.35%
EPS 3Y3.77%
EPS 5Y11.09%
EPS Q2Q%5.56%
Revenue 1Y (TTM)21.98%
Revenue growth 3Y7.93%
Revenue growth 5Y11.67%
Sales Q2Q%9.85%
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 12.00% yearly.
NDAQ is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.57% yearly.
EPS Next Y15.33%
EPS Next 2Y14.47%
EPS Next 3Y13.46%
EPS Next 5Y12%
Revenue Next Year7.7%
Revenue Next 2Y7.77%
Revenue Next 3Y7.65%
Revenue Next 5Y6.57%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 28.75, which means the current valuation is very expensive for NDAQ.
NDAQ's Price/Earnings ratio is a bit more expensive when compared to the industry. NDAQ is more expensive than 71.23% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 29.63, NDAQ is valued at the same level.
The Price/Forward Earnings ratio is 24.93, which indicates a rather expensive current valuation of NDAQ.
NDAQ's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. NDAQ is more expensive than 67.12% of the companies in the same industry.
NDAQ is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.68, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.75 | ||
| Fwd PE | 24.93 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NDAQ is valued a bit cheaper than the industry average as 70.78% of the companies are valued more expensively.
NDAQ's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.87 | ||
| EV/EBITDA | 22.69 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates NDAQ does not grow enough to justify the current Price/Earnings ratio.
NDAQ's earnings are expected to grow with 13.46% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.88
PEG (5Y)2.59
EPS Next 2Y14.47%
EPS Next 3Y13.46%
5. Dividend
5.1 Amount
NDAQ has a Yearly Dividend Yield of 1.18%.
Compared to an average industry Dividend Yield of 10.00, NDAQ is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.29, NDAQ's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.18% |
5.2 History
On average, the dividend of NDAQ grows each year by 8.05%, which is quite nice.
NDAQ has paid a dividend for at least 10 years, which is a reliable track record.
NDAQ has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)8.05%
Div Incr Years12
Div Non Decr Years12
5.3 Sustainability
55.27% 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, but earnings are growing more, so the dividend growth is sustainable.
DP55.27%
EPS Next 2Y14.47%
EPS Next 3Y13.46%
81.07
-1.47 (-1.78%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners60.73%
Inst Owner Change-0.3%
Ins Owners0.52%
Ins Owner Change-0.12%
Market Cap46.60B
Analysts80
Price Target88.32 (8.94%)
Short Float %1.01%
Short Ratio1.55
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.18% |
Yearly Dividend0.83
Dividend Growth(5Y)8.05%
DP55.27%
Div Incr Years12
Div Non Decr Years12
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.89%
Min EPS beat(2)4.49%
Max EPS beat(2)5.29%
EPS beat(4)2
Avg EPS beat(4)0.97%
Min EPS beat(4)-5.54%
Max EPS beat(4)5.29%
EPS beat(8)5
Avg EPS beat(8)1.23%
EPS beat(12)8
Avg EPS beat(12)2.03%
EPS beat(16)12
Avg EPS beat(16)3.16%
Revenue beat(2)1
Avg Revenue beat(2)-1.71%
Min Revenue beat(2)-3.94%
Max Revenue beat(2)0.52%
Revenue beat(4)2
Avg Revenue beat(4)-0.7%
Min Revenue beat(4)-3.94%
Max Revenue beat(4)2.29%
Revenue beat(8)4
Avg Revenue beat(8)16.38%
Revenue beat(12)8
Avg Revenue beat(12)34.22%
Revenue beat(16)12
Avg Revenue beat(16)45.47%
PT rev (1m)3.81%
PT rev (3m)7.37%
EPS NQ rev (1m)1.61%
EPS NQ rev (3m)1.54%
EPS NY rev (1m)1.29%
EPS NY rev (3m)1.52%
Revenue NQ rev (1m)1.05%
Revenue NQ rev (3m)1.05%
Revenue NY rev (1m)0.27%
Revenue NY rev (3m)0.49%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.75 | ||
| Fwd PE | 24.93 | ||
| P/S | 6.64 | ||
| P/FCF | 31.87 | ||
| P/OCF | 28.22 | ||
| P/B | 4.21 | ||
| P/tB | N/A | ||
| EV/EBITDA | 22.69 |
EPS(TTM)2.82
EY3.48%
EPS(NY)3.25
Fwd EY4.01%
FCF(TTM)2.54
FCFY3.14%
OCF(TTM)2.87
OCFY3.54%
SpS12.21
BVpS19.26
TBVpS-17.69
PEG (NY)1.88
PEG (5Y)2.59
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.14% | ||
| ROE | 8.66% | ||
| ROCE | 8.35% | ||
| ROIC | 6.22% | ||
| ROICexc | 6.35% | ||
| ROICexgc | 101.29% | ||
| OM | 26.93% | ||
| PM (TTM) | 13.67% | ||
| GM | 64.7% | ||
| FCFM | 20.84% |
ROA(3y)4.12%
ROA(5y)4.69%
ROE(3y)12.69%
ROE(5y)14.23%
ROIC(3y)7.47%
ROIC(5y)7.97%
ROICexc(3y)7.79%
ROICexc(5y)8.72%
ROICexgc(3y)105.12%
ROICexgc(5y)113.19%
ROCE(3y)10.13%
ROCE(5y)10.75%
ROICexcg growth 3Y-7.24%
ROICexcg growth 5Y3.83%
ROICexc growth 3Y-12.54%
ROICexc growth 5Y-5.29%
OM growth 3Y-0.81%
OM growth 5Y0.5%
PM growth 3Y-9.2%
PM growth 5Y-3.63%
GM growth 3Y2.64%
GM growth 5Y1.1%
F-Score7
Asset Turnover0.23
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.89 | ||
| Debt/FCF | 6.74 | ||
| Debt/EBITDA | 3.98 | ||
| Cap/Depr | 32.31% | ||
| Cap/Sales | 2.69% | ||
| Interest Coverage | 4.69 | ||
| Cash Conversion | 66.73% | ||
| Profit Quality | 152.45% | ||
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.95 | ||
| Altman-Z | 2.25 |
F-Score7
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-0.35%
EPS 3Y3.77%
EPS 5Y11.09%
EPS Q2Q%5.56%
EPS Next Y15.33%
EPS Next 2Y14.47%
EPS Next 3Y13.46%
EPS Next 5Y12%
Revenue 1Y (TTM)21.98%
Revenue growth 3Y7.93%
Revenue growth 5Y11.67%
Sales Q2Q%9.85%
Revenue Next Year7.7%
Revenue Next 2Y7.77%
Revenue Next 3Y7.65%
Revenue Next 5Y6.57%
EBIT growth 1Y9.19%
EBIT growth 3Y7.05%
EBIT growth 5Y12.23%
EBIT Next Year15.04%
EBIT Next 3Y10.56%
EBIT Next 5Y8.5%
FCF growth 1Y-9.92%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-6.88%
OCF growth 3YN/A
OCF growth 5YN/A