NASDAQ INC (NDAQ) Stock Fundamental Analysis
NASDAQ:NDAQ - Nasdaq - US6311031081 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to NDAQ. NDAQ was compared to 231 industry peers in the Capital Markets industry. NDAQ has only an average score on both its financial health and profitability. 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.
Each year in the past 5 years NDAQ has been profitable.
NDAQ had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 4.17%, NDAQ is doing good in the industry, outperforming 61.47% of the companies in the same industry.
NDAQ has a better Return On Equity (11.07%) than 62.77% of its industry peers.
Looking at the Return On Invested Capital, with a value of 6.99%, NDAQ is in the better half of the industry, outperforming 78.36% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for NDAQ is in line with the industry average of 7.24%.
| 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
The Profit Margin of NDAQ (16.36%) is comparable to the rest of the industry.
NDAQ's Profit Margin has declined in the last couple of years.
NDAQ's Operating Margin of 26.63% is in line compared to the rest of the industry. NDAQ outperforms 48.48% of its industry peers.
NDAQ's Operating Margin has been stable in the last couple of years.
The Gross Margin of NDAQ (61.03%) is better than 68.83% of its industry peers.
NDAQ's Gross Margin has been stable in the last couple of years.
| 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
NDAQ has about the same amout of shares outstanding than it did 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
An Altman-Z score of 2.37 indicates that NDAQ is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 2.37, NDAQ is doing good in the industry, outperforming 74.03% of the companies in the same industry.
The Debt to FCF ratio of NDAQ is 5.03, which is a neutral value as it means it would take NDAQ, 5.03 years of fcf income to pay off all of its debts.
NDAQ has a better Debt to FCF ratio (5.03) than 64.50% of its industry peers.
A Debt/Equity ratio of 0.77 indicates that NDAQ is somewhat dependend on debt financing.
NDAQ has a Debt to Equity ratio of 0.77. This is in the better half of the industry: NDAQ outperforms 61.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | 5.03 | ||
| Altman-Z | 2.37 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 0.98 indicates that NDAQ may have some problems paying its short term obligations.
NDAQ has a Current ratio (0.98) which 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 of 0.98. This is comparable to the rest of the industry: NDAQ outperforms 45.45% of 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%.
Measured over the past years, NDAQ shows a quite strong growth in Earnings Per Share. The EPS has been growing by 11.09% on average per year.
Looking at the last year, NDAQ shows a very strong growth in Revenue. The Revenue has grown by 25.93%.
NDAQ shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.67% yearly.
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 6.46% yearly.
EPS Next Y15.56%
EPS Next 2Y13.46%
EPS Next 3Y12.76%
EPS Next 5Y10.96%
Revenue Next Year7.68%
Revenue Next 2Y7.33%
Revenue Next 3Y7.46%
Revenue Next 5Y6.46%
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.
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
The Price/Earnings ratio is 27.87, which means the current valuation is very expensive for NDAQ.
Based on the Price/Earnings ratio, NDAQ is valued a bit more expensive than the industry average as 66.67% of the companies are valued more cheaply.
NDAQ is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.35, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 22.88, which indicates a rather expensive current valuation of NDAQ.
Based on the Price/Forward Earnings ratio, NDAQ is valued a bit more expensive than the industry average as 60.61% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.20, NDAQ is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.87 | ||
| Fwd PE | 22.88 |
4.2 Price Multiples
72.73% of the companies in the same industry are more expensive than NDAQ, based on the Enterprise Value to EBITDA ratio.
NDAQ's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.71 | ||
| EV/EBITDA | 20.75 |
4.3 Compensation for Growth
NDAQ's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
NDAQ has a very decent profitability rating, which may justify a higher PE ratio.
NDAQ's earnings are expected to grow with 12.76% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.79
PEG (5Y)2.51
EPS Next 2Y13.46%
EPS Next 3Y12.76%
5. Dividend
5.1 Amount
NDAQ has a Yearly Dividend Yield of 1.34%.
NDAQ's Dividend Yield is slightly below the industry average, which is at 8.18.
Compared to an average S&P500 Dividend Yield of 2.40, NDAQ's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.34% |
5.2 History
On average, the dividend of NDAQ grows each year by 8.85%, 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)8.85%
Div Incr Years12
Div Non Decr Years12
5.3 Sustainability
43.19% 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 more than its dividend. This makes the dividend growth sustainable.
DP43.19%
EPS Next 2Y13.46%
EPS Next 3Y12.76%
83.06
+1.28 (+1.57%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners67.5%
Inst Owner Change2.55%
Ins Owners0.49%
Ins Owner Change0.15%
Market Cap47.69B
Analysts80
Price Target84.66 (1.93%)
Short Float %1.33%
Short Ratio1.54
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.34% |
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)0.99%
PT rev (3m)-5.68%
EPS NQ rev (1m)1.31%
EPS NQ rev (3m)0.93%
EPS NY rev (1m)0.62%
EPS NY rev (3m)0.2%
Revenue NQ rev (1m)0.79%
Revenue NQ rev (3m)0.31%
Revenue NY rev (1m)0.51%
Revenue NY rev (3m)-0.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.87 | ||
| Fwd PE | 22.88 | ||
| P/S | 6.1 | ||
| P/FCF | 25.71 | ||
| P/OCF | 23.01 | ||
| P/B | 4.13 | ||
| P/tB | N/A | ||
| EV/EBITDA | 20.75 |
EPS(TTM)2.98
EY3.59%
EPS(NY)3.63
Fwd EY4.37%
FCF(TTM)3.23
FCFY3.89%
OCF(TTM)3.61
OCFY4.35%
SpS13.61
BVpS20.11
TBVpS-16.48
PEG (NY)1.79
PEG (5Y)2.51
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 | 2.37 |
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 Y15.56%
EPS Next 2Y13.46%
EPS Next 3Y12.76%
EPS Next 5Y10.96%
Revenue 1Y (TTM)25.93%
Revenue growth 3Y7.93%
Revenue growth 5Y11.67%
Sales Q2Q%10.74%
Revenue Next Year7.68%
Revenue Next 2Y7.33%
Revenue Next 3Y7.46%
Revenue Next 5Y6.46%
EBIT growth 1Y14.4%
EBIT growth 3Y6.98%
EBIT growth 5Y12.18%
EBIT Next Year14.49%
EBIT Next 3Y10.23%
EBIT Next 5Y7.88%
FCF growth 1Y22.93%
FCF growth 3Y23.48%
FCF growth 5Y15.68%
OCF growth 1Y24.37%
OCF growth 3Y21.43%
OCF growth 5Y15.02%