98.71 USD
+0.21 (+0.21%)
100.74 USD
+2.03 (+2.06%)
Overall NDAQ gets a fundamental rating of 5 out of 10. We evaluated NDAQ against 237 industry peers in the Capital Markets industry. NDAQ has an average financial health and profitability rating. 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.
- NDAQ had a positive operating cash flow in the past year.
- In the past 5 years NDAQ has always been profitable.
- Each year in the past 5 years NDAQ had a positive operating cash flow.
1.2 Ratios
- With a decent Return On Assets value of 5.30%, NDAQ is doing good in the industry, outperforming 68.35% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 13.52%, NDAQ is in the better half of the industry, outperforming 73.00% of the companies in the same industry.
- NDAQ has a better Return On Invested Capital (7.71%) than 80.17% of its industry peers.
- NDAQ had an Average Return On Invested Capital over the past 3 years of 7.46%. This is in line with the industry average of 7.27%.
- The last Return On Invested Capital (7.71%) for NDAQ is above the 3 year average (7.46%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.3% | ||
| ROE | 13.52% | ||
| ROIC | 7.71% |
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
- Looking at the Profit Margin, with a value of 19.89%, NDAQ is in line with its industry, outperforming 53.59% of the companies in the same industry.
- NDAQ's Profit Margin has declined in the last couple of years.
- The Operating Margin of NDAQ (28.43%) is comparable to the rest of the industry.
- NDAQ's Operating Margin has been stable in the last couple of years.
- NDAQ has a Gross Margin of 62.26%. This is in the better half of the industry: NDAQ outperforms 69.20% of its industry peers.
- NDAQ's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 28.43% | ||
| PM (TTM) | 19.89% | ||
| GM | 62.26% |
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
- NDAQ has a better debt/assets ratio than last year.
2.2 Solvency
- NDAQ has an Altman-Z score of 2.75. 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's Altman-Z score of 2.75 is fine compared to the rest of the industry. NDAQ outperforms 74.68% of its industry peers.
- NDAQ has a debt to FCF ratio of 4.34. This is a neutral value as NDAQ would need 4.34 years to pay back of all of its debts.
- With a decent Debt to FCF ratio value of 4.34, NDAQ is doing good in the industry, outperforming 72.15% of the companies in the same industry.
- NDAQ has a Debt/Equity ratio of 0.72. This is a neutral value indicating NDAQ is somewhat dependend on debt financing.
- With a Debt to Equity ratio value of 0.72, NDAQ perfoms like the industry average, outperforming 57.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 4.34 | ||
| Altman-Z | 2.75 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
- NDAQ has a Current Ratio of 0.99. 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 (0.99) which is in line with its industry peers.
- A Quick Ratio of 0.99 indicates that NDAQ may have some problems paying its short term obligations.
- NDAQ has a Quick ratio of 0.99. This is comparable to the rest of the industry: NDAQ outperforms 43.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.99 | ||
| Quick Ratio | 0.99 |
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.
- The Earnings Per Share has been growing by 11.09% 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 16.44%.
- 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
- NDAQ is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.93% yearly.
- Based on estimates for the next years, NDAQ will show a small growth in Revenue. The Revenue will grow by 7.56% on average per year.
EPS Next Y23.92%
EPS Next 2Y18.09%
EPS Next 3Y15.87%
EPS Next 5Y13.93%
Revenue Next Year11.62%
Revenue Next 2Y9.99%
Revenue Next 3Y9.29%
Revenue Next 5Y7.56%
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 accelerating.
- 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 30.09.
- NDAQ's Price/Earnings ratio is a bit more expensive when compared to the industry. NDAQ is more expensive than 73.84% of the companies in the same industry.
- NDAQ's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.60.
- NDAQ is valuated quite expensively with a Price/Forward Earnings ratio of 25.10.
- Based on the Price/Forward Earnings ratio, NDAQ is valued a bit more expensive than the industry average as 62.45% of the companies are valued more cheaply.
- When comparing the Price/Forward Earnings ratio of NDAQ to the average of the S&P500 Index (25.83), we can say NDAQ is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.09 | ||
| Fwd PE | 25.1 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NDAQ indicates a somewhat cheap valuation: NDAQ is cheaper than 69.20% of the companies listed in the same industry.
- NDAQ's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.87 | ||
| EV/EBITDA | 22.02 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- The decent profitability rating of NDAQ may justify a higher PE ratio.
- A more expensive valuation may be justified as NDAQ's earnings are expected to grow with 15.87% in the coming years.
PEG (NY)1.26
PEG (5Y)2.71
EPS Next 2Y18.09%
EPS Next 3Y15.87%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.09%, NDAQ has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 5.87, NDAQ is paying slightly less dividend.
- NDAQ's Dividend Yield is slightly below the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.09% |
5.2 History
- On average, the dividend of NDAQ grows each year by 8.85%, 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)8.85%
Div Incr Years12
Div Non Decr Years12
5.3 Sustainability
- 36.06% 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.
DP36.06%
EPS Next 2Y18.09%
EPS Next 3Y15.87%
NASDAQ INC / NDAQ FAQ
What is the fundamental rating for NDAQ stock?
ChartMill assigns a fundamental rating of 5 / 10 to NDAQ.
Can you provide the valuation status for NASDAQ INC?
ChartMill assigns a valuation rating of 3 / 10 to NASDAQ INC (NDAQ). This can be considered as Overvalued.
Can you provide the profitability details for NASDAQ INC?
NASDAQ INC (NDAQ) has a profitability rating of 6 / 10.
What is the valuation of NASDAQ INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for NASDAQ INC (NDAQ) is 30.09 and the Price/Book (PB) ratio is 4.69.
Can you provide the expected EPS growth for NDAQ stock?
The Earnings per Share (EPS) of NASDAQ INC (NDAQ) is expected to grow by 23.92% in the next year.