NASDAQ INC (NDAQ) Stock Fundamental Analysis
NASDAQ:NDAQ - Nasdaq - US6311031081 - Common Stock - Currency: USD
NDAQ gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 233 industry peers in the Capital Markets industry. NDAQ has only an average score on both its financial health and profitability. 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.
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
Looking at the Return On Assets, with a value of 4.17%, NDAQ is in the better half of the industry, outperforming 63.95% of the companies in the same industry.
NDAQ has a Return On Equity of 11.07%. This is in the better half of the industry: NDAQ outperforms 65.67% of its industry peers.
NDAQ has a better Return On Invested Capital (6.99%) than 74.68% of its industry peers.
The Average Return On Invested Capital over the past 3 years for NDAQ is in line with the industry average of 7.84%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.17% | ||
| ROE | 11.07% | ||
| ROIC | 6.99% |
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
With a Profit Margin value of 16.36%, NDAQ perfoms like the industry average, outperforming 53.65% of the companies in the same industry.
In the last couple of years the Profit Margin of NDAQ has declined.
Looking at the Operating Margin, with a value of 26.63%, NDAQ is in line with its industry, outperforming 48.07% of the companies in the same industry.
NDAQ's Operating Margin has been stable in the last couple of years.
NDAQ has a better Gross Margin (61.03%) than 69.10% of its industry peers.
In the last couple of years the Gross Margin of NDAQ has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.63% | ||
| PM (TTM) | 16.36% | ||
| GM | 61.03% |
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.
Compared to 5 years ago, NDAQ has more shares outstanding
Compared to 1 year ago, NDAQ has an improved debt to assets ratio.
2.2 Solvency
NDAQ has an Altman-Z score of 2.50. This is not the best score and indicates that NDAQ is in the grey zone with still only limited risk for bankruptcy at the moment.
NDAQ has a Altman-Z score of 2.50. This is in the better half of the industry: NDAQ outperforms 74.25% of its industry peers.
NDAQ has a debt to FCF ratio of 5.03. This is a neutral value as NDAQ would need 5.03 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 5.03, NDAQ is doing good in the industry, outperforming 67.38% of the companies in the same industry.
NDAQ has a Debt/Equity ratio of 0.77. This is a neutral value indicating NDAQ is somewhat dependend on debt financing.
NDAQ's Debt to Equity ratio of 0.77 is fine compared to the rest of the industry. NDAQ outperforms 62.66% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | 5.03 | ||
| Altman-Z | 2.5 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
NDAQ has a Current Ratio of 0.98. 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 Current ratio of NDAQ (0.98) is comparable to the rest of the industry.
A Quick Ratio of 0.98 indicates that NDAQ may have some problems paying its short term obligations.
NDAQ has a Quick ratio (0.98) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.98 |
3. Growth
3.1 Past
NDAQ shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.58%.
The Earnings Per Share has been growing by 11.09% on average over the past years. This is quite good.
NDAQ shows a strong growth in Revenue. In the last year, the Revenue has grown by 25.93%.
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)7.58%
EPS 3Y3.77%
EPS 5Y11.09%
EPS Q2Q%25.4%
Revenue 1Y (TTM)25.93%
Revenue growth 3Y7.93%
Revenue growth 5Y11.67%
Sales Q2Q%10.74%
3.2 Future
The Earnings Per Share is expected to grow by 10.96% 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 6.53% yearly.
EPS Next Y15.81%
EPS Next 2Y13.57%
EPS Next 3Y12.87%
EPS Next 5Y10.96%
Revenue Next Year7.87%
Revenue Next 2Y7.43%
Revenue Next 3Y7.49%
Revenue Next 5Y6.53%
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
A Price/Earnings ratio of 30.00 indicates a quite expensive valuation of NDAQ.
NDAQ's Price/Earnings ratio is a bit more expensive when compared to the industry. NDAQ is more expensive than 70.39% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.30, NDAQ is valued at the same level.
With a Price/Forward Earnings ratio of 24.58, NDAQ is valued on the expensive side.
63.52% of the companies in the same industry are cheaper than NDAQ, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of NDAQ to the average of the S&P500 Index (21.76), we can say NDAQ is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30 | ||
| Fwd PE | 24.58 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NDAQ is valued a bit cheaper than the industry average as 69.96% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of NDAQ is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.67 | ||
| EV/EBITDA | 22.38 |
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.
The decent profitability rating of NDAQ may justify a higher PE ratio.
NDAQ's earnings are expected to grow with 12.87% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.9
PEG (5Y)2.71
EPS Next 2Y13.57%
EPS Next 3Y12.87%
5. Dividend
5.1 Amount
NDAQ has a Yearly Dividend Yield of 1.20%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 8.10, NDAQ is paying slightly less dividend.
With a Dividend Yield of 1.20, NDAQ pays less dividend than the S&P500 average, which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.2% |
5.2 History
The dividend of NDAQ is nicely growing with an annual growth rate of 8.85%!
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)8.85%
Div Incr Years12
Div Non Decr Years12
5.3 Sustainability
NDAQ pays out 43.19% of its income as dividend. This is a bit on the high side, but may be sustainable.
NDAQ's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP43.19%
EPS Next 2Y13.57%
EPS Next 3Y12.87%
89.41
-1.32 (-1.45%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners69.1%
Inst Owner Change0.01%
Ins Owners0.55%
Ins Owner Change-0.25%
Market Cap51.33B
Analysts80
Price Target85.94 (-3.88%)
Short Float %1.23%
Short Ratio1.44
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.2% |
Yearly Dividend0.94
Dividend Growth(5Y)8.85%
DP43.19%
Div Incr Years12
Div Non Decr Years12
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.09%
Min EPS beat(2)-0.6%
Max EPS beat(2)0.42%
EPS beat(4)3
Avg EPS beat(4)2.4%
Min EPS beat(4)-0.6%
Max EPS beat(4)5.29%
EPS beat(8)5
Avg EPS beat(8)1.34%
EPS beat(12)8
Avg EPS beat(12)1.53%
EPS beat(16)11
Avg EPS beat(16)2.01%
Revenue beat(2)0
Avg Revenue beat(2)-1.72%
Min Revenue beat(2)-1.92%
Max Revenue beat(2)-1.51%
Revenue beat(4)1
Avg Revenue beat(4)-1.71%
Min Revenue beat(4)-3.94%
Max Revenue beat(4)0.52%
Revenue beat(8)2
Avg Revenue beat(8)-1%
Revenue beat(12)6
Avg Revenue beat(12)22.71%
Revenue beat(16)10
Avg Revenue beat(16)33.41%
PT rev (1m)1.51%
PT rev (3m)-4.4%
EPS NQ rev (1m)0.47%
EPS NQ rev (3m)1.21%
EPS NY rev (1m)0.22%
EPS NY rev (3m)0.31%
Revenue NQ rev (1m)0.39%
Revenue NQ rev (3m)0.71%
Revenue NY rev (1m)0.17%
Revenue NY rev (3m)0.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30 | ||
| Fwd PE | 24.58 | ||
| P/S | 6.57 | ||
| P/FCF | 27.67 | ||
| P/OCF | 24.77 | ||
| P/B | 4.45 | ||
| P/tB | N/A | ||
| EV/EBITDA | 22.38 |
EPS(TTM)2.98
EY3.33%
EPS(NY)3.64
Fwd EY4.07%
FCF(TTM)3.23
FCFY3.61%
OCF(TTM)3.61
OCFY4.04%
SpS13.61
BVpS20.11
TBVpS-16.48
PEG (NY)1.9
PEG (5Y)2.71
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.17% | ||
| ROE | 11.07% | ||
| ROCE | 9.18% | ||
| ROIC | 6.99% | ||
| ROICexc | 7.28% | ||
| ROICexgc | 204.34% | ||
| OM | 26.63% | ||
| PM (TTM) | 16.36% | ||
| GM | 61.03% | ||
| FCFM | 23.74% |
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%
ROICexcg growth 3Y-7.3%
ROICexcg 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-Score7
Asset Turnover0.25
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | 5.03 | ||
| Debt/EBITDA | 3.31 | ||
| Cap/Depr | 35.34% | ||
| Cap/Sales | 2.78% | ||
| Interest Coverage | 5.41 | ||
| Cash Conversion | 76.88% | ||
| Profit Quality | 145.15% | ||
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.98 | ||
| Altman-Z | 2.5 |
F-Score7
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)7.58%
EPS 3Y3.77%
EPS 5Y11.09%
EPS Q2Q%25.4%
EPS Next Y15.81%
EPS Next 2Y13.57%
EPS Next 3Y12.87%
EPS Next 5Y10.96%
Revenue 1Y (TTM)25.93%
Revenue growth 3Y7.93%
Revenue growth 5Y11.67%
Sales Q2Q%10.74%
Revenue Next Year7.87%
Revenue Next 2Y7.43%
Revenue Next 3Y7.49%
Revenue Next 5Y6.53%
EBIT growth 1Y14.4%
EBIT growth 3Y6.98%
EBIT growth 5Y12.18%
EBIT Next Year14.49%
EBIT Next 3Y10.23%
EBIT Next 5Y7.71%
FCF growth 1Y22.93%
FCF growth 3Y23.48%
FCF growth 5Y15.68%
OCF growth 1Y24.37%
OCF growth 3Y21.43%
OCF growth 5Y15.02%