NASDAQ INC (NDAQ)

US6311031081 - Common Stock

56.35  +0.31 (+0.55%)

Fundamental Rating

5

NDAQ gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 208 industry peers in the Capital Markets industry. NDAQ has an excellent profitability rating, but there are some minor concerns on its financial health. While showing a medium growth rate, NDAQ is valued expensive at the moment.



7

1. Profitability

1.1 Basic Checks

In the past year NDAQ was profitable.
NDAQ had a positive operating cash flow in the past year.
In the past 5 years NDAQ has always been profitable.
Of the past 5 years NDAQ 4 years had a positive operating cash flow.

1.2 Ratios

NDAQ has a Return On Assets of 4.53%. This is in the better half of the industry: NDAQ outperforms 60.59% of its industry peers.
With an excellent Return On Equity value of 17.07%, NDAQ belongs to the best of the industry, outperforming 81.28% of the companies in the same industry.
The Return On Invested Capital of NDAQ (7.58%) is better than 78.82% of its industry peers.
The Average Return On Invested Capital over the past 3 years for NDAQ is in line with the industry average of 9.80%.
Industry RankSector Rank
ROA 4.53%
ROE 17.07%
ROIC 7.58%
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

With a Profit Margin value of 18.40%, NDAQ perfoms like the industry average, outperforming 50.74% of the companies in the same industry.
NDAQ's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 28.84%, NDAQ is in line with its industry, outperforming 46.80% of the companies in the same industry.
NDAQ's Operating Margin has improved in the last couple of years.
NDAQ has a Gross Margin of 61.44%. This is in the better half of the industry: NDAQ outperforms 63.05% of its industry peers.
NDAQ's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 28.84%
PM (TTM) 18.4%
GM 61.44%
OM growth 3Y7.45%
OM growth 5Y3.96%
PM growth 3Y1.74%
PM growth 5Y10.28%
GM growth 3Y7.58%
GM growth 5Y1.69%

4

2. Health

2.1 Basic Checks

NDAQ has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, NDAQ has more shares outstanding
Compared to 1 year ago, NDAQ has a worse debt to assets ratio.

2.2 Solvency

An Altman-Z score of 2.27 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 2.27. This is in the better half of the industry: NDAQ outperforms 72.41% of its industry peers.
The Debt to FCF ratio of NDAQ is 5.98, which is a neutral value as it means it would take NDAQ, 5.98 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 5.98, NDAQ is doing good in the industry, outperforming 66.01% of the companies in the same industry.
A Debt/Equity ratio of 1.50 is on the high side and indicates that NDAQ has dependencies on debt financing.
NDAQ's Debt to Equity ratio of 1.50 is on the low side compared to the rest of the industry. NDAQ is outperformed by 71.92% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.5
Debt/FCF 5.98
Altman-Z 2.27
ROIC/WACCN/A
WACCN/A

2.3 Liquidity

A Current Ratio of 1.75 indicates that NDAQ should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.75, NDAQ is in the better half of the industry, outperforming 66.01% of the companies in the same industry.
A Quick Ratio of 1.75 indicates that NDAQ should not have too much problems paying its short term obligations.
NDAQ's Quick ratio of 1.75 is fine compared to the rest of the industry. NDAQ outperforms 66.01% of its industry peers.
Industry RankSector Rank
Current Ratio 1.75
Quick Ratio 1.75

5

3. Growth

3.1 Past

The Earnings Per Share has been growing slightly by 3.00% over the past year.
NDAQ shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.94% yearly.
NDAQ shows a decrease in Revenue. In the last year, the revenue decreased by -1.83%.
Measured over the past years, NDAQ shows a small growth in Revenue. The Revenue has been growing by 7.23% on average per year.
EPS 1Y (TTM)3%
EPS 3Y11.23%
EPS 5Y11.94%
EPS growth Q2Q4.41%
Revenue 1Y (TTM)-1.83%
Revenue growth 3Y2.52%
Revenue growth 5Y7.23%
Revenue growth Q2Q-6.81%

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 9.58% yearly.
The Revenue is expected to grow by 10.02% on average over the next years. This is quite good.
EPS Next Y0.44%
EPS Next 2Y5.68%
EPS Next 3Y8.56%
EPS Next 5Y9.58%
Revenue Next Year18.07%
Revenue Next 2Y12.31%
Revenue Next 3Y11.16%
Revenue Next 5Y10.02%

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 accelerating.

2

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 20.49, which indicates a rather expensive current valuation of NDAQ.
Based on the Price/Earnings ratio, NDAQ is valued a bit more expensive than the industry average as 67.00% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Earnings ratio of 26.00, NDAQ is valued a bit cheaper.
With a Price/Forward Earnings ratio of 19.82, NDAQ is valued on the expensive side.
62.56% of the companies in the same industry are cheaper than NDAQ, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 21.38. NDAQ is around the same levels.
Industry RankSector Rank
PE 20.49
Fwd PE 19.82

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, NDAQ is valued a bit cheaper than the industry average as 63.55% of the companies are valued more expensively.
NDAQ's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 20.03
EV/EBITDA 18.16

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates NDAQ does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of NDAQ may justify a higher PE ratio.
PEG (NY)46.26
PEG (5Y)1.72
EPS Next 2Y5.68%
EPS Next 3Y8.56%

5

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 1.59%, NDAQ has a reasonable but not impressive dividend return.
NDAQ's Dividend Yield is slightly below the industry average, which is at 7.98.
Compared to the average S&P500 Dividend Yield of 2.48, NDAQ is paying slightly less dividend.
Industry RankSector Rank
Dividend Yield 1.59%

5.2 History

The dividend of NDAQ is nicely growing with an annual growth rate of 9.75%!
NDAQ has paid a dividend for at least 10 years, which is a reliable track record.
NDAQ has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)9.75%
Div Incr Years11
Div Non Decr Years11

5.3 Sustainability

37.32% of the earnings are spent on dividend by NDAQ. This is a low number and sustainable payout ratio.
NDAQ's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP37.32%
EPS Next 2Y5.68%
EPS Next 3Y8.56%

NASDAQ INC

NASDAQ:NDAQ (2/22/2024, 10:51:05 AM)

56.35

+0.31 (+0.55%)

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 Cap32.51B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 1.59%
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)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
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 RankSector Rank
PE 20.49
Fwd PE 19.82
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)46.26
PEG (5Y)1.72
Profitability
Industry RankSector Rank
ROA 4.53%
ROE 17.07%
ROCE
ROIC
ROICexc
ROICexgc
OM 28.84%
PM (TTM) 18.4%
GM 61.44%
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 Turnover0.25
Health
Industry RankSector Rank
Debt/Equity 1.5
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 1.75
Quick Ratio 1.75
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)3%
EPS 3Y11.23%
EPS 5Y
EPS growth Q2Q
EPS Next Y0.44%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-1.83%
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