NASDAQ INC (NDAQ) Stock Fundamental Analysis
USA - NASDAQ:NDAQ - US6311031081 - Common Stock
87.24 USD
+1.05 (+1.22%)
87.24 USD
0 (0%)
NDAQ gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 237 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.
NDAQ had positive earnings in each of the past 5 years.
Each year in the past 5 years NDAQ had a positive operating cash flow.
1.2 Ratios
NDAQ has a Return On Assets of 4.96%. This is in the better half of the industry: NDAQ outperforms 68.35% of its industry peers.
NDAQ has a better Return On Equity (12.77%) than 67.93% of its industry peers.
Looking at the Return On Invested Capital, with a value of 7.36%, NDAQ is in the better half of the industry, outperforming 79.75% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for NDAQ is in line with the industry average of 7.63%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.96% | ||
| ROE | 12.77% | ||
| ROIC | 7.36% |
ROA(3y)4.12%
ROA(5y)4.69%
ROE(3y)12.69%
ROE(5y)14.23%
ROIC(3y)7.46%
ROIC(5y)7.97%
1.3 Margins
NDAQ's Profit Margin of 18.59% is in line compared to the rest of the industry. NDAQ outperforms 54.01% of its industry peers.
In the last couple of years the Profit Margin of NDAQ has declined.
Looking at the Operating Margin, with a value of 27.06%, NDAQ is in line with its industry, outperforming 52.32% of the companies in the same industry.
NDAQ's Operating Margin has been stable in the last couple of years.
The Gross Margin of NDAQ (60.60%) is better than 71.73% of its industry peers.
NDAQ's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 27.06% | ||
| PM (TTM) | 18.59% | ||
| GM | 60.6% |
OM growth 3Y-0.88%
OM growth 5Y0.46%
PM growth 3Y-9.2%
PM growth 5Y-3.63%
GM growth 3Y2.64%
GM growth 5Y1.1%
2. Health
2.1 Basic Checks
The number of shares outstanding for NDAQ remains at a similar level compared to 1 year ago.
NDAQ has more shares outstanding than it did 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 2.50 indicates that NDAQ is not a great score, but indicates only limited risk for bankruptcy at the moment.
NDAQ has a better Altman-Z score (2.50) than 73.42% of its industry peers.
NDAQ has a debt to FCF ratio of 4.30. This is a neutral value as NDAQ would need 4.30 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.30, NDAQ is in the better half of the industry, outperforming 75.11% of the companies in the same industry.
NDAQ has a Debt/Equity ratio of 0.73. This is a neutral value indicating NDAQ is somewhat dependend on debt financing.
NDAQ has a Debt to Equity ratio (0.73) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | 4.3 | ||
| Altman-Z | 2.5 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
NDAQ has a Current Ratio of 0.96. 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 0.96. This is in the lower half of the industry: NDAQ underperforms 62.03% of its industry peers.
A Quick Ratio of 0.96 indicates that NDAQ may have some problems paying its short term obligations.
NDAQ has a worse Quick ratio (0.96) than 61.60% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.96 | ||
| Quick Ratio | 0.96 |
3. Growth
3.1 Past
NDAQ shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 17.99%, which is quite good.
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 16.44% in the past year. This is quite good.
Measured over the past years, NDAQ shows a quite strong growth in Revenue. The Revenue has been growing by 11.67% on average per year.
EPS 1Y (TTM)17.99%
EPS 3Y3.77%
EPS 5Y11.09%
EPS Q2Q%18.92%
Revenue 1Y (TTM)16.44%
Revenue growth 3Y7.93%
Revenue growth 5Y11.67%
Sales Q2Q%14.75%
3.2 Future
The Earnings Per Share is expected to grow by 12.58% on average over the next years. This is quite good.
NDAQ is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.21% yearly.
EPS Next Y22.04%
EPS Next 2Y16.45%
EPS Next 3Y14.99%
EPS Next 5Y12.58%
Revenue Next Year10.74%
Revenue Next 2Y9.02%
Revenue Next 3Y8.49%
Revenue Next 5Y7.21%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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
NDAQ is valuated quite expensively with a Price/Earnings ratio of 26.60.
68.78% of the companies in the same industry are cheaper than NDAQ, based on the Price/Earnings ratio.
NDAQ is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 25.83, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 22.81, 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 61.60% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 32.68. NDAQ is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.6 | ||
| Fwd PE | 22.81 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NDAQ is valued a bit cheaper than the industry average as 71.31% 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 | 23.46 | ||
| EV/EBITDA | 20.52 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
NDAQ has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as NDAQ's earnings are expected to grow with 14.99% in the coming years.
PEG (NY)1.21
PEG (5Y)2.4
EPS Next 2Y16.45%
EPS Next 3Y14.99%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.26%, NDAQ has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 8.39, NDAQ is paying slightly less dividend.
With a Dividend Yield of 1.26, NDAQ pays less dividend than the S&P500 average, which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.26% |
5.2 History
On average, the dividend of NDAQ grows each year by 8.85%, which is quite nice.
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)8.85%
Div Incr Years12
Div Non Decr Years12
5.3 Sustainability
37.73% of the earnings are spent on dividend by NDAQ. This is a low number and sustainable payout ratio.
The dividend of NDAQ is growing, but earnings are growing more, so the dividend growth is sustainable.
DP37.73%
EPS Next 2Y16.45%
EPS Next 3Y14.99%
87.24
+1.05 (+1.22%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners74.86%
Inst Owner Change-0.48%
Ins Owners0.54%
Ins Owner Change-0.45%
Market Cap50.06B
Revenue(TTM)8.17B
Net Income(TTM)1.51B
Analysts81.6
Price Target107.04 (22.7%)
Short Float %1.5%
Short Ratio1.97
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.26% |
Yearly Dividend0.94
Dividend Growth(5Y)8.85%
DP37.73%
Div Incr Years12
Div Non Decr Years12
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.4%
Min EPS beat(2)0.42%
Max EPS beat(2)2.38%
EPS beat(4)3
Avg EPS beat(4)1.67%
Min EPS beat(4)-0.6%
Max EPS beat(4)4.49%
EPS beat(8)5
Avg EPS beat(8)1%
EPS beat(12)8
Avg EPS beat(12)1.23%
EPS beat(16)11
Avg EPS beat(16)1.74%
Revenue beat(2)1
Avg Revenue beat(2)-0.6%
Min Revenue beat(2)-1.51%
Max Revenue beat(2)0.31%
Revenue beat(4)1
Avg Revenue beat(4)-1.77%
Min Revenue beat(4)-3.94%
Max Revenue beat(4)0.31%
Revenue beat(8)3
Avg Revenue beat(8)-0.86%
Revenue beat(12)6
Avg Revenue beat(12)16.68%
Revenue beat(16)10
Avg Revenue beat(16)29.2%
PT rev (1m)1.55%
PT rev (3m)9.69%
EPS NQ rev (1m)1.57%
EPS NQ rev (3m)4.61%
EPS NY rev (1m)0.73%
EPS NY rev (3m)4.12%
Revenue NQ rev (1m)0.46%
Revenue NQ rev (3m)2.01%
Revenue NY rev (1m)0.3%
Revenue NY rev (3m)2.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.6 | ||
| Fwd PE | 22.81 | ||
| P/S | 6.17 | ||
| P/FCF | 23.46 | ||
| P/OCF | 21.23 | ||
| P/B | 4.24 | ||
| P/tB | N/A | ||
| EV/EBITDA | 20.52 |
EPS(TTM)3.28
EY3.76%
EPS(NY)3.82
Fwd EY4.38%
FCF(TTM)3.72
FCFY4.26%
OCF(TTM)4.11
OCFY4.71%
SpS14.14
BVpS20.58
TBVpS-16.13
PEG (NY)1.21
PEG (5Y)2.4
Graham Number38.98
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.96% | ||
| ROE | 12.77% | ||
| ROCE | 9.66% | ||
| ROIC | 7.36% | ||
| ROICexc | 7.63% | ||
| ROICexgc | 198.88% | ||
| OM | 27.06% | ||
| PM (TTM) | 18.59% | ||
| GM | 60.6% | ||
| FCFM | 26.31% |
ROA(3y)4.12%
ROA(5y)4.69%
ROE(3y)12.69%
ROE(5y)14.23%
ROIC(3y)7.46%
ROIC(5y)7.97%
ROICexc(3y)7.79%
ROICexc(5y)8.72%
ROICexgc(3y)105.04%
ROICexgc(5y)113.14%
ROCE(3y)10.12%
ROCE(5y)10.74%
ROICexgc growth 3Y-7.3%
ROICexgc growth 5Y3.79%
ROICexc growth 3Y-12.6%
ROICexc growth 5Y-5.33%
OM growth 3Y-0.88%
OM growth 5Y0.46%
PM growth 3Y-9.2%
PM growth 5Y-3.63%
GM growth 3Y2.64%
GM growth 5Y1.1%
F-Score8
Asset Turnover0.27
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | 4.3 | ||
| Debt/EBITDA | 3.08 | ||
| Cap/Depr | 36.25% | ||
| Cap/Sales | 2.76% | ||
| Interest Coverage | 5.66 | ||
| Cash Conversion | 83.83% | ||
| Profit Quality | 141.51% | ||
| Current Ratio | 0.96 | ||
| Quick Ratio | 0.96 | ||
| Altman-Z | 2.5 |
F-Score8
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)47.2%
Cap/Depr(5y)58.66%
Cap/Sales(3y)2.61%
Cap/Sales(5y)2.79%
Profit Quality(3y)146.14%
Profit Quality(5y)125.99%
High Growth Momentum
Growth
EPS 1Y (TTM)17.99%
EPS 3Y3.77%
EPS 5Y11.09%
EPS Q2Q%18.92%
EPS Next Y22.04%
EPS Next 2Y16.45%
EPS Next 3Y14.99%
EPS Next 5Y12.58%
Revenue 1Y (TTM)16.44%
Revenue growth 3Y7.93%
Revenue growth 5Y11.67%
Sales Q2Q%14.75%
Revenue Next Year10.74%
Revenue Next 2Y9.02%
Revenue Next 3Y8.49%
Revenue Next 5Y7.21%
EBIT growth 1Y17.95%
EBIT growth 3Y6.98%
EBIT growth 5Y12.18%
EBIT Next Year19.17%
EBIT Next 3Y11.84%
EBIT Next 5Y9.08%
FCF growth 1Y37.59%
FCF growth 3Y23.48%
FCF growth 5Y15.68%
OCF growth 1Y38.3%
OCF growth 3Y21.43%
OCF growth 5Y15.02%
NASDAQ INC / NDAQ FAQ
What is the fundamental rating for NDAQ stock?
ChartMill assigns a fundamental rating of 5 / 10 to NDAQ.
What is the valuation status of NASDAQ INC (NDAQ) stock?
ChartMill assigns a valuation rating of 3 / 10 to NASDAQ INC (NDAQ). This can be considered as Overvalued.
What is the profitability of NDAQ stock?
NASDAQ INC (NDAQ) has a profitability rating of 6 / 10.
Can you provide the PE and PB ratios for NDAQ stock?
The Price/Earnings (PE) ratio for NASDAQ INC (NDAQ) is 26.6 and the Price/Book (PB) ratio is 4.24.
What is the financial health of NASDAQ INC (NDAQ) stock?
The financial health rating of NASDAQ INC (NDAQ) is 3 / 10.