NASDAQ INC (NDAQ)
US6311031081 - Common Stock
Overall NDAQ gets a fundamental rating of 4 out of 10. We evaluated NDAQ against 212 industry peers in the Capital Markets industry. There are concerns on the financial health of NDAQ while its profitability can be described as average. While showing a medium growth rate, NDAQ is valued expensive at the moment.
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.
NDAQ had positive earnings in each of the past 5 years.
In the past 5 years NDAQ always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of NDAQ (3.28%) is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 9.18%, NDAQ is in line with its industry, outperforming 47.62% of the companies in the same industry.
With a decent Return On Invested Capital value of 5.97%, NDAQ is doing good in the industry, outperforming 67.62% of the companies in the same industry.
NDAQ had an Average Return On Invested Capital over the past 3 years of 8.45%. This is in line with the industry average of 8.46%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.28% | ||
| ROE | 9.18% | ||
| ROIC | 5.97% |
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
The Profit Margin of NDAQ (15.99%) is comparable to the rest of the industry.
NDAQ's Profit Margin has improved in the last couple of years.
The Operating Margin of NDAQ (29.32%) is comparable to the rest of the industry.
NDAQ's Operating Margin has improved in the last couple of years.
NDAQ has a better Gross Margin (66.06%) than 64.29% of its industry peers.
NDAQ's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 29.32% | ||
| PM (TTM) | 15.99% | ||
| GM | 66.06% |
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.
NDAQ has more shares outstanding than it did 5 years ago.
The debt/assets ratio for NDAQ is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 1.88 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 (1.88) than 69.05% of its industry peers.
NDAQ has a debt to FCF ratio of 6.64. This is a slightly negative value and a sign of low solvency as NDAQ would need 6.64 years to pay back of all of its debts.
NDAQ has a Debt to FCF ratio of 6.64. This is comparable to the rest of the industry: NDAQ outperforms 56.19% of its industry peers.
NDAQ has a Debt/Equity ratio of 0.92. This is a neutral value indicating NDAQ is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.92, NDAQ is in line with its industry, outperforming 51.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.92 | ||
| Debt/FCF | 6.64 | ||
| Altman-Z | 1.88 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 0.99 indicates that NDAQ may have some problems paying its short term obligations.
NDAQ has a Current ratio (0.99) which is comparable to the rest of the industry.
NDAQ has a Quick 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 Quick ratio (0.99) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.99 | ||
| Quick Ratio | 0.99 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 2.59% over the past year.
Measured over the past years, NDAQ shows a quite strong growth in Earnings Per Share. The EPS has been growing by 11.94% on average per year.
Looking at the last year, NDAQ shows a decrease in Revenue. The Revenue has decreased by -0.31% in the last year.
The Revenue has been growing slightly by 7.23% on average over the past years.
EPS 1Y (TTM)2.59%
EPS 3Y11.23%
EPS 5Y11.94%
EPS growth Q2Q-8.7%
Revenue 1Y (TTM)-0.31%
Revenue growth 3Y2.52%
Revenue growth 5Y7.23%
Revenue growth Q2Q-27.14%
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 8.65% yearly.
Based on estimates for the next years, NDAQ will show a quite strong growth in Revenue. The Revenue will grow by 9.41% on average per year.
EPS Next Y0.28%
EPS Next 2Y6.14%
EPS Next 3Y8.3%
EPS Next 5Y8.65%
Revenue Next Year20.56%
Revenue Next 2Y13.44%
Revenue Next 3Y11.66%
Revenue Next 5Y9.41%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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 22.66 indicates a rather expensive valuation of NDAQ.
65.71% of the companies in the same industry are cheaper than NDAQ, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 28.60. NDAQ is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 19.68, NDAQ is valued on the expensive side.
NDAQ's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. NDAQ is more expensive than 62.86% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of NDAQ to the average of the S&P500 Index (20.15), we can say NDAQ is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.66 | ||
| Fwd PE | 19.68 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NDAQ is valued a bit cheaper than 64.76% of the companies in the same industry.
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 | 24.06 | ||
| EV/EBITDA | 20.29 |
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)79.67
PEG (5Y)1.9
EPS Next 2Y6.14%
EPS Next 3Y8.3%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.54%, NDAQ has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 7.04, NDAQ is paying slightly less dividend.
NDAQ's Dividend Yield is slightly below the S&P500 average, which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.54% |
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 Years11
Div Non Decr Years11
5.3 Sustainability
NDAQ pays out 47.38% of its income as dividend. 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.
DP47.38%
EPS Next 2Y6.14%
EPS Next 3Y8.3%
NASDAQ INC
NASDAQ:NDAQ (5/17/2024, 7:15:45 PM)
After market: 62.82 +0.06 (+0.1%)62.76
+0.53 (+0.85%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap36.18B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.54% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.66 | ||
| Fwd PE | 19.68 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)79.67
PEG (5Y)1.9
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.28% | ||
| ROE | 9.18% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 29.32% | ||
| PM (TTM) | 15.99% | ||
| GM | 66.06% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.21
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.92 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.99 | ||
| Quick Ratio | 0.99 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)2.59%
EPS 3Y11.23%
EPS 5Y
EPS growth Q2Q
EPS Next Y0.28%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-0.31%
Revenue growth 3Y2.52%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y