NASDAQ INC (NDAQ) Stock Fundamental Analysis
NASDAQ:NDAQ - Nasdaq - US6311031081 - Common Stock
NDAQ gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 224 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 quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year NDAQ was profitable.
In the past year NDAQ had a positive cash flow from operations.
Each year in the past 5 years NDAQ has 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 (3.14%) which is comparable to the rest of the industry.
NDAQ's Return On Equity of 8.66% is in line compared to the rest of the industry. NDAQ outperforms 49.77% of its industry peers.
NDAQ's Return On Invested Capital of 6.19% is fine compared to the rest of the industry. NDAQ outperforms 71.69% 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 6.66%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.14% | ||
| ROE | 8.66% | ||
| ROIC | 6.19% |
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 (13.67%) which is in line with its industry peers.
In the last couple of years the Profit Margin of NDAQ has grown nicely.
With a Operating Margin value of 26.93%, NDAQ perfoms like the industry average, outperforming 49.77% of the companies in the same industry.
NDAQ's Operating Margin has improved in the last couple of years.
NDAQ has a Gross Margin of 64.70%. This is in the better half of the industry: NDAQ outperforms 65.30% of its industry peers.
NDAQ's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.93% | ||
| PM (TTM) | 13.67% | ||
| GM | 64.7% |
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
NDAQ has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, NDAQ has more shares outstanding
Compared to 1 year ago, NDAQ has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.21 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 2.21. This is in the better half of the industry: NDAQ outperforms 73.52% 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 of 6.74. This is comparable to the rest of the industry: NDAQ outperforms 57.08% of its industry peers.
NDAQ has a Debt/Equity ratio of 0.89. This is a neutral value indicating NDAQ is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.89, NDAQ is in line with its industry, outperforming 56.16% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.89 | ||
| Debt/FCF | 6.74 | ||
| Altman-Z | 2.21 |
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.
NDAQ has a Current ratio of 0.95. This is comparable to the rest of the industry: NDAQ outperforms 44.75% of its industry peers.
NDAQ has a Quick Ratio of 0.95. 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 Quick ratio of 0.95. This is comparable to the rest of the industry: NDAQ outperforms 44.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.95 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 1.09% over the past year.
NDAQ shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.94% yearly.
The Revenue has grown by 16.94% in the past year. This is quite good.
NDAQ shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.23% yearly.
EPS 1Y (TTM)1.09%
EPS 3Y11.23%
EPS 5Y11.94%
EPS Q2Q%4.23%
Revenue 1Y (TTM)16.94%
Revenue growth 3Y2.52%
Revenue growth 5Y7.23%
Sales Q2Q%21.91%
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 9.61% yearly.
NDAQ is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.61% yearly.
EPS Next Y0.96%
EPS Next 2Y6.52%
EPS Next 3Y8.65%
EPS Next 5Y9.61%
Revenue Next Year21.58%
Revenue Next 2Y14.39%
Revenue Next 3Y12.18%
Revenue Next 5Y9.61%
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.
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
A Price/Earnings ratio of 28.73 indicates a quite expensive valuation of NDAQ.
Compared to the rest of the industry, the Price/Earnings ratio of NDAQ indicates a slightly more expensive valuation: NDAQ is more expensive than 69.86% of the companies listed in the same industry.
NDAQ's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.29.
With a Price/Forward Earnings ratio of 24.88, NDAQ is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NDAQ indicates a slightly more expensive valuation: NDAQ is more expensive than 66.21% of the companies listed in the same industry.
NDAQ's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 24.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.73 | ||
| Fwd PE | 24.88 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NDAQ is valued a bit cheaper than 67.12% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as NDAQ.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.4 | ||
| EV/EBITDA | 22.07 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of NDAQ may justify a higher PE ratio.
PEG (NY)29.84
PEG (5Y)2.41
EPS Next 2Y6.52%
EPS Next 3Y8.65%
5. Dividend
5.1 Amount
NDAQ has a Yearly Dividend Yield of 1.22%. Purely for dividend investing, there may be better candidates out there.
NDAQ's Dividend Yield is slightly below the industry average, which is at 9.45.
With a Dividend Yield of 1.22, NDAQ pays less dividend than the S&P500 average, which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.22% |
5.2 History
On average, the dividend of NDAQ grows each year by 8.05%, 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 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 around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP55.27%
EPS Next 2Y6.52%
EPS Next 3Y8.65%
NASDAQ INC
NASDAQ:NDAQ (1/21/2025, 8:16:37 PM)
After market: 79.89 +0.02 (+0.03%)79.87
+1.04 (+1.32%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners60.73%
Inst Owner Change0.05%
Ins Owners0.52%
Ins Owner Change-40.14%
Market Cap45.91B
Analysts77.78
Price Target85.08 (6.52%)
Short Float %1%
Short Ratio1.59
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.22% |
Yearly Dividend0.83
Dividend Growth(5Y)8.05%
DP55.27%
Div Incr Years12
Div Non Decr Years12
Ex-DateN/A
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)2.09%
PT rev (3m)13.93%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.53%
EPS NY rev (1m)0%
EPS NY rev (3m)1.62%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.08%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)0.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.73 | ||
| Fwd PE | 24.88 | ||
| P/S | 6.54 | ||
| P/FCF | 31.4 | ||
| P/OCF | 27.81 | ||
| P/B | 4.15 | ||
| P/tB | N/A | ||
| EV/EBITDA | 22.07 |
EPS(TTM)2.78
EY3.48%
EPS(NY)3.21
Fwd EY4.02%
FCF(TTM)2.54
FCFY3.18%
OCF(TTM)2.87
OCFY3.6%
SpS12.21
BVpS19.26
TBVpS-17.69
PEG (NY)29.84
PEG (5Y)2.41
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.14% | ||
| ROE | 8.66% | ||
| ROCE | 8.35% | ||
| ROIC | 6.19% | ||
| ROICexc | 6.32% | ||
| ROICexgc | 100.75% | ||
| OM | 26.93% | ||
| PM (TTM) | 13.67% | ||
| GM | 64.7% | ||
| FCFM | 20.84% |
ROA(3y)4.86%
ROA(5y)5.06%
ROE(3y)15.55%
ROE(5y)14.97%
ROIC(3y)8.45%
ROIC(5y)8.29%
ROICexc(3y)8.85%
ROICexc(5y)9.09%
ROICexgc(3y)114.5%
ROICexgc(5y)108.54%
ROCE(3y)11.57%
ROCE(5y)11.27%
ROICexcg growth 3Y-0.34%
ROICexcg growth 5Y-7.76%
ROICexc growth 3Y-16.13%
ROICexc growth 5Y-7.14%
OM growth 3Y7.45%
OM growth 5Y3.96%
PM growth 3Y1.74%
PM growth 5Y10.28%
GM growth 3Y7.58%
GM growth 5Y1.69%
F-Score6
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 | 2.21 |
F-Score6
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)55.49%
Cap/Depr(5y)65.28%
Cap/Sales(3y)2.61%
Cap/Sales(5y)2.83%
Profit Quality(3y)120.29%
Profit Quality(5y)116.58%
High Growth Momentum
Growth
EPS 1Y (TTM)1.09%
EPS 3Y11.23%
EPS 5Y11.94%
EPS Q2Q%4.23%
EPS Next Y0.96%
EPS Next 2Y6.52%
EPS Next 3Y8.65%
EPS Next 5Y9.61%
Revenue 1Y (TTM)16.94%
Revenue growth 3Y2.52%
Revenue growth 5Y7.23%
Sales Q2Q%21.91%
Revenue Next Year21.58%
Revenue Next 2Y14.39%
Revenue Next 3Y12.18%
Revenue Next 5Y9.61%
EBIT growth 1Y9.19%
EBIT growth 3Y10.16%
EBIT growth 5Y11.48%
EBIT Next Year35.41%
EBIT Next 3Y16.72%
EBIT Next 5Y12.03%
FCF growth 1Y2.38%
FCF growth 3Y13.07%
FCF growth 5Y10.9%
OCF growth 1Y3.45%
OCF growth 3Y10.65%
OCF growth 5Y10.53%