NASDAQ INC (NDAQ)
US6311031081 - Common Stock
NDAQ gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 220 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 quite expensive at the moment. 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.
In the past 5 years NDAQ always reported a positive cash flow from operatings.
1.2 Ratios
NDAQ's Return On Assets of 3.14% is in line compared to the rest of the industry. NDAQ outperforms 51.61% of its industry peers.
Looking at the Return On Equity, with a value of 8.66%, NDAQ is in line with its industry, outperforming 50.69% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 6.19%, NDAQ is in the better half of the industry, outperforming 71.43% 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 7.00%.
| 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 comparable to the rest of the industry.
NDAQ's Profit Margin has improved in the last couple of years.
With a Operating Margin value of 26.93%, NDAQ perfoms like the industry average, outperforming 48.85% 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 64.98% of its industry peers.
In the last couple of years the Gross Margin of NDAQ has grown nicely.
| 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
The number of shares outstanding for NDAQ has been increased compared to 1 year ago.
The number of shares outstanding for NDAQ has been increased compared to 5 years ago.
Compared to 1 year ago, NDAQ has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.16 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 (2.16) than 73.27% of its industry peers.
NDAQ has a debt to FCF ratio of 6.74. This is a slightly negative value and a sign of low solvency as NDAQ would need 6.74 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 6.74, NDAQ is in line with its industry, outperforming 59.45% of the companies in the same industry.
NDAQ has a Debt/Equity ratio of 0.89. This is a neutral value indicating NDAQ is somewhat dependend on debt financing.
NDAQ has a Debt to Equity ratio of 0.89. This is comparable to the rest of the industry: NDAQ outperforms 56.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.89 | ||
| Debt/FCF | 6.74 | ||
| Altman-Z | 2.16 |
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 44.24% 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.
The Quick ratio of NDAQ (0.95) is comparable to the rest of the industry.
| 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.
The Earnings Per Share has been growing by 11.94% on average over the past years. This is quite good.
NDAQ shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 16.94%.
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 Y0.83%
EPS Next 2Y6.4%
EPS Next 3Y8.67%
EPS Next 5Y9.61%
Revenue Next Year21.47%
Revenue Next 2Y14.27%
Revenue Next 3Y12.1%
Revenue Next 5Y9.61%
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 27.95 indicates a quite expensive valuation of NDAQ.
Based on the Price/Earnings ratio, NDAQ is valued a bit more expensive than 69.59% of the companies in the same industry.
NDAQ is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.73, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 24.25, 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 65.44% of the companies in the same industry.
NDAQ's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.95 | ||
| Fwd PE | 24.25 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NDAQ is valued a bit cheaper than the industry average as 65.44% 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 | 30.55 | ||
| EV/EBITDA | 21.49 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
NDAQ has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)33.86
PEG (5Y)2.34
EPS Next 2Y6.4%
EPS Next 3Y8.67%
5. Dividend
5.1 Amount
NDAQ has a Yearly Dividend Yield of 1.19%.
Compared to an average industry Dividend Yield of 9.13, NDAQ is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.24, NDAQ's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.19% |
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 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.
NDAQ's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP55.27%
EPS Next 2Y6.4%
EPS Next 3Y8.67%
NASDAQ INC
NASDAQ:NDAQ (12/20/2024, 8:26:41 PM)
After market: 78 +0.3 (+0.39%)77.7
+0.32 (+0.41%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners83.17%
Inst Owner Change0.78%
Ins Owners18.61%
Ins Owner Change-40.16%
Market Cap44.66B
Analysts77.04
Price Target83.34 (7.26%)
Short Float %1.11%
Short Ratio1.79
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.19% |
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)1.31%
PT rev (3m)16.96%
EPS NQ rev (1m)-0.07%
EPS NQ rev (3m)-1.53%
EPS NY rev (1m)0.02%
EPS NY rev (3m)1.48%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.08%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.95 | ||
| Fwd PE | 24.25 | ||
| P/S | 6.37 | ||
| P/FCF | 30.55 | ||
| P/OCF | 27.05 | ||
| P/B | 4.03 | ||
| P/tB | N/A | ||
| EV/EBITDA | 21.49 |
EPS(TTM)2.78
EY3.58%
EPS(NY)3.2
Fwd EY4.12%
FCF(TTM)2.54
FCFY3.27%
OCF(TTM)2.87
OCFY3.7%
SpS12.21
BVpS19.26
TBVpS-17.69
PEG (NY)33.86
PEG (5Y)2.34
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 | 2.16 |
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 Y0.83%
EPS Next 2Y6.4%
EPS Next 3Y8.67%
EPS Next 5Y9.61%
Revenue 1Y (TTM)16.94%
Revenue growth 3Y2.52%
Revenue growth 5Y7.23%
Sales Q2Q%21.91%
Revenue Next Year21.47%
Revenue Next 2Y14.27%
Revenue Next 3Y12.1%
Revenue Next 5Y9.61%
EBIT growth 1Y9.19%
EBIT growth 3Y10.16%
EBIT growth 5Y11.48%
EBIT Next Year34.57%
EBIT Next 3Y16.58%
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%