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 230 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
In the past year NDAQ was profitable.
NDAQ had a positive operating cash flow in the past year.
NDAQ had positive earnings in each of the past 5 years.
NDAQ had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
NDAQ has a better Return On Assets (4.17%) than 60.43% of its industry peers.
NDAQ has a better Return On Equity (11.07%) than 61.30% 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 78.26% 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 7.27%.
| 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
Looking at the Profit Margin, with a value of 16.36%, NDAQ is in line with its industry, outperforming 53.04% 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 48.70% 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 69.13% 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
NDAQ has about the same amout of shares outstanding than it did 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 an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.33 indicates that NDAQ is not a great score, but indicates only limited risk for bankruptcy at the moment.
NDAQ has a Altman-Z score of 2.33. This is in the better half of the industry: NDAQ outperforms 73.91% 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.
NDAQ has a better Debt to FCF ratio (5.03) than 63.48% of its industry peers.
NDAQ has a Debt/Equity ratio of 0.77. This is a neutral value indicating NDAQ is somewhat dependend on debt financing.
With a decent Debt to Equity ratio value of 0.77, NDAQ is doing good in the industry, outperforming 62.17% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | 5.03 | ||
| Altman-Z | 2.33 |
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.
Looking at the Current ratio, with a value of 0.98, NDAQ is in line with its industry, outperforming 42.61% of the companies in the same industry.
A Quick Ratio of 0.98 indicates that NDAQ may have some problems paying its short term obligations.
With a Quick ratio value of 0.98, NDAQ perfoms like the industry average, outperforming 46.52% of the companies in the same industry.
| 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%.
NDAQ shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.09% yearly.
The Revenue has grown by 25.93% in the past year. This is a very strong growth!
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.
Based on estimates for the next years, NDAQ will show a small growth in Revenue. The Revenue will grow by 6.46% on average per year.
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
The EPS growth rate is stable: in the next years the growth will be about the same 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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 27.44, which means the current valuation is very expensive for NDAQ.
NDAQ's Price/Earnings ratio is a bit more expensive when compared to the industry. NDAQ is more expensive than 66.52% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.82, NDAQ is valued at the same level.
Based on the Price/Forward Earnings ratio of 22.53, the valuation of NDAQ can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NDAQ indicates a slightly more expensive valuation: NDAQ is more expensive than 61.30% of the companies listed in the same industry.
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 | 27.44 | ||
| Fwd PE | 22.53 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NDAQ is valued a bit cheaper than 72.61% of the companies in the same industry.
NDAQ's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.31 | ||
| EV/EBITDA | 20.36 |
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.
NDAQ's earnings are expected to grow with 12.76% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.76
PEG (5Y)2.47
EPS Next 2Y13.46%
EPS Next 3Y12.76%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.33%, NDAQ has a reasonable but not impressive dividend return.
NDAQ's Dividend Yield is slightly below the industry average, which is at 8.12.
Compared to an average S&P500 Dividend Yield of 2.36, NDAQ's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.33% |
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
43.19% of the earnings are spent on dividend by NDAQ. This is a bit on the high side, but may be sustainable.
The dividend of NDAQ is growing, but earnings are growing more, so the dividend growth is sustainable.
DP43.19%
EPS Next 2Y13.46%
EPS Next 3Y12.76%
81.78
+0.57 (+0.7%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners67.5%
Inst Owner Change2.5%
Ins Owners0.49%
Ins Owner Change0.15%
Market Cap46.95B
Analysts80
Price Target84.66 (3.52%)
Short Float %1.33%
Short Ratio1.54
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.33% |
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)-5.82%
PT rev (3m)-4.14%
EPS NQ rev (1m)1.23%
EPS NQ rev (3m)0.85%
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)-0.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.44 | ||
| Fwd PE | 22.53 | ||
| P/S | 6.01 | ||
| P/FCF | 25.31 | ||
| P/OCF | 22.66 | ||
| P/B | 4.07 | ||
| P/tB | N/A | ||
| EV/EBITDA | 20.36 |
EPS(TTM)2.98
EY3.64%
EPS(NY)3.63
Fwd EY4.44%
FCF(TTM)3.23
FCFY3.95%
OCF(TTM)3.61
OCFY4.41%
SpS13.61
BVpS20.11
TBVpS-16.48
PEG (NY)1.76
PEG (5Y)2.47
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 | 2.33 |
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 Year15.23%
EBIT Next 3Y10.72%
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%