NASDAQ INC (NDAQ) Stock Fundamental Analysis
NASDAQ:NDAQ - US6311031081 - Common Stock
94.32 USD
-0.43 (-0.45%)
94.3 USD
-0.02 (-0.02%)
We assign a fundamental rating of 5 out of 10 to NDAQ. NDAQ was compared to 238 industry peers in the Capital Markets industry. NDAQ has an average financial health and profitability rating. 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.
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
NDAQ's Return On Assets of 4.96% is fine compared to the rest of the industry. NDAQ outperforms 68.07% of its industry peers.
NDAQ has a better Return On Equity (12.77%) than 68.49% of its industry peers.
With a decent Return On Invested Capital value of 7.36%, NDAQ is doing good in the industry, outperforming 78.15% of the companies in the same industry.
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 7.60%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.96% | ||
| ROE | 12.77% | ||
| ROIC | 7.36% |
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
NDAQ has a Profit Margin (18.59%) which is comparable to the rest of the industry.
NDAQ's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 27.06%, NDAQ is in line with its industry, outperforming 52.10% of the companies in the same industry.
In the last couple of years the Operating Margin of NDAQ has remained more or less at the same level.
NDAQ has a Gross Margin of 60.60%. This is in the better half of the industry: NDAQ outperforms 70.59% of its industry peers.
NDAQ's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 27.06% | ||
| PM (TTM) | 18.59% | ||
| GM | 60.6% |
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
NDAQ has an Altman-Z score of 2.65. 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.
Looking at the Altman-Z score, with a value of 2.65, NDAQ is in the better half of the industry, outperforming 76.05% of the companies in the same industry.
NDAQ has a debt to FCF ratio of 4.30. This is a neutral value as NDAQ would need 4.30 years to pay back of all of its debts.
NDAQ's Debt to FCF ratio of 4.30 is fine compared to the rest of the industry. NDAQ outperforms 72.69% of its industry peers.
NDAQ has a Debt/Equity ratio of 0.73. This is a neutral value indicating NDAQ is somewhat dependend on debt financing.
NDAQ's Debt to Equity ratio of 0.73 is fine compared to the rest of the industry. NDAQ outperforms 61.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | 4.3 | ||
| Altman-Z | 2.65 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 0.96 indicates that NDAQ may have some problems paying its short term obligations.
The Current ratio of NDAQ (0.96) is comparable to the rest of the industry.
NDAQ has a Quick Ratio of 0.96. 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 Quick ratio, with a value of 0.96, NDAQ is in line with its industry, outperforming 44.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.96 | ||
| Quick Ratio | 0.96 |
3. Growth
3.1 Past
NDAQ shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 14.18%, which is quite good.
The Earnings Per Share has been growing by 11.09% on average over the past years. This is quite good.
Looking at the last year, NDAQ shows a very strong growth in Revenue. The Revenue has grown by 23.58%.
The Revenue has been growing by 11.67% on average over the past years. This is quite good.
EPS 1Y (TTM)14.18%
EPS 3Y3.77%
EPS 5Y11.09%
EPS Q2Q%23.19%
Revenue 1Y (TTM)23.58%
Revenue growth 3Y7.93%
Revenue growth 5Y11.67%
Sales Q2Q%12.68%
3.2 Future
Based on estimates for the next years, NDAQ will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.58% on average per year.
Based on estimates for the next years, NDAQ will show a small growth in Revenue. The Revenue will grow by 7.21% on average per year.
EPS Next Y21.06%
EPS Next 2Y16.22%
EPS Next 3Y14.73%
EPS Next 5Y12.58%
Revenue Next Year10.38%
Revenue Next 2Y8.82%
Revenue Next 3Y8.34%
Revenue Next 5Y7.21%
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
With a Price/Earnings ratio of 30.04, NDAQ can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of NDAQ indicates a slightly more expensive valuation: NDAQ is more expensive than 69.33% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.03, NDAQ is valued at the same level.
Based on the Price/Forward Earnings ratio of 24.76, the valuation of NDAQ can be described as rather expensive.
NDAQ's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. NDAQ is more expensive than 65.13% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.63. NDAQ is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.04 | ||
| Fwd PE | 24.76 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NDAQ is valued a bit cheaper than the industry average as 71.01% 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 | 25.36 | ||
| EV/EBITDA | 22.18 |
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 14.73% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.43
PEG (5Y)2.71
EPS Next 2Y16.22%
EPS Next 3Y14.73%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.15%, NDAQ has a reasonable but not impressive dividend return.
NDAQ's Dividend Yield is slightly below the industry average, which is at 8.00.
With a Dividend Yield of 1.15, NDAQ pays less dividend than the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.15% |
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
37.73% of the earnings are spent on dividend by NDAQ. This is a low number and sustainable payout ratio.
NDAQ's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP37.73%
EPS Next 2Y16.22%
EPS Next 3Y14.73%
94.32
-0.43 (-0.45%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners68.99%
Inst Owner Change-1.97%
Ins Owners0.54%
Ins Owner Change-0.33%
Market Cap54.12B
Analysts80.8
Price Target105.4 (11.75%)
Short Float %1.25%
Short Ratio1.58
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.15% |
Yearly Dividend0.94
Dividend Growth(5Y)8.85%
DP37.73%
Div Incr Years12
Div Non Decr Years12
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.4%
Min EPS beat(2)0.42%
Max EPS beat(2)2.38%
EPS beat(4)3
Avg EPS beat(4)1.67%
Min EPS beat(4)-0.6%
Max EPS beat(4)4.49%
EPS beat(8)5
Avg EPS beat(8)1%
EPS beat(12)8
Avg EPS beat(12)1.23%
EPS beat(16)11
Avg EPS beat(16)1.74%
Revenue beat(2)1
Avg Revenue beat(2)-0.6%
Min Revenue beat(2)-1.51%
Max Revenue beat(2)0.31%
Revenue beat(4)1
Avg Revenue beat(4)-1.77%
Min Revenue beat(4)-3.94%
Max Revenue beat(4)0.31%
Revenue beat(8)3
Avg Revenue beat(8)-0.86%
Revenue beat(12)6
Avg Revenue beat(12)16.68%
Revenue beat(16)10
Avg Revenue beat(16)29.2%
PT rev (1m)8.01%
PT rev (3m)24.5%
EPS NQ rev (1m)2.5%
EPS NQ rev (3m)3.78%
EPS NY rev (1m)3.28%
EPS NY rev (3m)4.76%
Revenue NQ rev (1m)1.31%
Revenue NQ rev (3m)2.26%
Revenue NY rev (1m)1.83%
Revenue NY rev (3m)2.51%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.04 | ||
| Fwd PE | 24.76 | ||
| P/S | 6.67 | ||
| P/FCF | 25.36 | ||
| P/OCF | 22.95 | ||
| P/B | 4.58 | ||
| P/tB | N/A | ||
| EV/EBITDA | 22.18 |
EPS(TTM)3.14
EY3.33%
EPS(NY)3.81
Fwd EY4.04%
FCF(TTM)3.72
FCFY3.94%
OCF(TTM)4.11
OCFY4.36%
SpS14.14
BVpS20.58
TBVpS-16.13
PEG (NY)1.43
PEG (5Y)2.71
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.96% | ||
| ROE | 12.77% | ||
| ROCE | 9.66% | ||
| ROIC | 7.36% | ||
| ROICexc | 7.63% | ||
| ROICexgc | 198.88% | ||
| OM | 27.06% | ||
| PM (TTM) | 18.59% | ||
| GM | 60.6% | ||
| FCFM | 26.31% |
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-Score8
Asset Turnover0.27
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | 4.3 | ||
| Debt/EBITDA | 3.08 | ||
| Cap/Depr | 36.25% | ||
| Cap/Sales | 2.76% | ||
| Interest Coverage | 5.66 | ||
| Cash Conversion | 83.83% | ||
| Profit Quality | 141.51% | ||
| Current Ratio | 0.96 | ||
| Quick Ratio | 0.96 | ||
| Altman-Z | 2.65 |
F-Score8
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)14.18%
EPS 3Y3.77%
EPS 5Y11.09%
EPS Q2Q%23.19%
EPS Next Y21.06%
EPS Next 2Y16.22%
EPS Next 3Y14.73%
EPS Next 5Y12.58%
Revenue 1Y (TTM)23.58%
Revenue growth 3Y7.93%
Revenue growth 5Y11.67%
Sales Q2Q%12.68%
Revenue Next Year10.38%
Revenue Next 2Y8.82%
Revenue Next 3Y8.34%
Revenue Next 5Y7.21%
EBIT growth 1Y17.95%
EBIT growth 3Y6.98%
EBIT growth 5Y12.18%
EBIT Next Year18.97%
EBIT Next 3Y11.81%
EBIT Next 5Y9.08%
FCF growth 1Y37.59%
FCF growth 3Y23.48%
FCF growth 5Y15.68%
OCF growth 1Y38.3%
OCF growth 3Y21.43%
OCF growth 5Y15.02%