NASDAQ INC (NDAQ) Stock Fundamental Analysis
USA - NASDAQ:NDAQ - US6311031081 - Common Stock
87.43 USD
-1.34 (-1.51%)
87.75 USD
+0.32 (+0.37%)
Overall NDAQ gets a fundamental rating of 5 out of 10. We evaluated NDAQ against 237 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.
In the past year NDAQ had a positive cash flow from operations.
Each year in the past 5 years NDAQ has been profitable.
In the past 5 years NDAQ always reported a positive cash flow from operatings.
1.2 Ratios
NDAQ has a better Return On Assets (5.30%) than 72.15% of its industry peers.
Looking at the Return On Equity, with a value of 13.52%, NDAQ is in the better half of the industry, outperforming 72.15% of the companies in the same industry.
The Return On Invested Capital of NDAQ (7.71%) is better than 81.01% of its industry peers.
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 7.47%.
The 3 year average ROIC (7.46%) for NDAQ is below the current ROIC(7.71%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.3% | ||
| ROE | 13.52% | ||
| ROIC | 7.71% |
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's Profit Margin of 19.89% is in line compared to the rest of the industry. NDAQ outperforms 54.43% of its industry peers.
In the last couple of years the Profit Margin of NDAQ has declined.
Looking at the Operating Margin, with a value of 28.43%, NDAQ is in line with its industry, outperforming 57.38% 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's Gross Margin of 62.26% is fine compared to the rest of the industry. NDAQ outperforms 72.57% 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 | 28.43% | ||
| PM (TTM) | 19.89% | ||
| GM | 62.26% |
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
Compared to 1 year ago, NDAQ has about the same amount of shares outstanding.
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 2.57. 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.
The Altman-Z score of NDAQ (2.57) is better than 73.00% of its industry peers.
The Debt to FCF ratio of NDAQ is 4.34, which is a neutral value as it means it would take NDAQ, 4.34 years of fcf income to pay off all of its debts.
NDAQ's Debt to FCF ratio of 4.34 is fine compared to the rest of the industry. NDAQ outperforms 73.84% of its industry peers.
NDAQ has a Debt/Equity ratio of 0.72. This is a neutral value indicating NDAQ is somewhat dependend on debt financing.
The Debt to Equity ratio of NDAQ (0.72) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 4.34 | ||
| Altman-Z | 2.57 |
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 in line with its industry peers.
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.
With a Quick ratio value of 0.99, NDAQ perfoms like the industry average, outperforming 43.88% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.99 | ||
| Quick Ratio | 0.99 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 17.99% 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 11.09% yearly.
The Revenue has grown by 16.44% in the past year. This is quite good.
The Revenue has been growing by 11.67% on average over the past years. This is quite good.
EPS 1Y (TTM)17.99%
EPS 3Y3.77%
EPS 5Y11.09%
EPS Q2Q%18.92%
Revenue 1Y (TTM)16.44%
Revenue growth 3Y7.93%
Revenue growth 5Y11.67%
Sales Q2Q%14.75%
3.2 Future
The Earnings Per Share is expected to grow by 13.25% 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 7.56% yearly.
EPS Next Y23.68%
EPS Next 2Y17.06%
EPS Next 3Y15.24%
EPS Next 5Y13.25%
Revenue Next Year11.35%
Revenue Next 2Y9.37%
Revenue Next 3Y8.76%
Revenue Next 5Y7.56%
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 26.66, which means the current valuation is very expensive for NDAQ.
Compared to the rest of the industry, the Price/Earnings ratio of NDAQ indicates a slightly more expensive valuation: NDAQ is more expensive than 70.46% of the companies listed in the same industry.
NDAQ is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 25.91, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 22.63, NDAQ is valued on the expensive side.
Based on the Price/Forward Earnings ratio, NDAQ is valued a bit more expensive than the industry average as 61.60% of the companies are valued more cheaply.
NDAQ is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 34.57, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.66 | ||
| Fwd PE | 22.63 |
4.2 Price Multiples
71.73% of the companies in the same industry are more expensive than NDAQ, based on the Enterprise Value to EBITDA ratio.
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 | 23.91 | ||
| EV/EBITDA | 20.18 |
4.3 Compensation for Growth
NDAQ's 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 15.24% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.13
PEG (5Y)2.4
EPS Next 2Y17.06%
EPS Next 3Y15.24%
5. Dividend
5.1 Amount
NDAQ has a Yearly Dividend Yield of 1.25%. Purely for dividend investing, there may be better candidates out there.
NDAQ's Dividend Yield is slightly below the industry average, which is at 8.40.
With a Dividend Yield of 1.25, NDAQ pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.25% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)8.85%
Div Incr Years12
Div Non Decr Years12
5.3 Sustainability
36.06% 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.
DP36.06%
EPS Next 2Y17.06%
EPS Next 3Y15.24%
87.43
-1.34 (-1.51%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners74.86%
Inst Owner Change0.37%
Ins Owners0.54%
Ins Owner Change-0.45%
Market Cap50.17B
Revenue(TTM)8.17B
Net Income(TTM)1.63B
Analysts81.54
Price Target107.04 (22.43%)
Short Float %1.5%
Short Ratio1.97
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.25% |
Yearly Dividend0.94
Dividend Growth(5Y)8.85%
DP36.06%
Div Incr Years12
Div Non Decr Years12
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.1%
Min EPS beat(2)1.81%
Max EPS beat(2)2.38%
EPS beat(4)3
Avg EPS beat(4)1%
Min EPS beat(4)-0.6%
Max EPS beat(4)2.38%
EPS beat(8)5
Avg EPS beat(8)0.99%
EPS beat(12)8
Avg EPS beat(12)1.15%
EPS beat(16)11
Avg EPS beat(16)1.77%
Revenue beat(2)1
Avg Revenue beat(2)-0.11%
Min Revenue beat(2)-0.53%
Max Revenue beat(2)0.31%
Revenue beat(4)1
Avg Revenue beat(4)-0.91%
Min Revenue beat(4)-1.92%
Max Revenue beat(4)0.31%
Revenue beat(8)3
Avg Revenue beat(8)-0.81%
Revenue beat(12)5
Avg Revenue beat(12)10.61%
Revenue beat(16)9
Avg Revenue beat(16)25.44%
PT rev (1m)1.55%
PT rev (3m)9.69%
EPS NQ rev (1m)3.52%
EPS NQ rev (3m)3.33%
EPS NY rev (1m)2.08%
EPS NY rev (3m)5.52%
Revenue NQ rev (1m)1.69%
Revenue NQ rev (3m)1.69%
Revenue NY rev (1m)0.85%
Revenue NY rev (3m)1.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.66 | ||
| Fwd PE | 22.63 | ||
| P/S | 6.14 | ||
| P/FCF | 23.91 | ||
| P/OCF | 21.48 | ||
| P/B | 4.17 | ||
| P/tB | N/A | ||
| EV/EBITDA | 20.18 |
EPS(TTM)3.28
EY3.75%
EPS(NY)3.86
Fwd EY4.42%
FCF(TTM)3.66
FCFY4.18%
OCF(TTM)4.07
OCFY4.65%
SpS14.23
BVpS20.95
TBVpS-15.57
PEG (NY)1.13
PEG (5Y)2.4
Graham Number39.32
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.3% | ||
| ROE | 13.52% | ||
| ROCE | 10.12% | ||
| ROIC | 7.71% | ||
| ROICexc | 7.89% | ||
| ROICexgc | 120.36% | ||
| OM | 28.43% | ||
| PM (TTM) | 19.89% | ||
| GM | 62.26% | ||
| FCFM | 25.69% |
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%
ROICexgc growth 3Y-7.3%
ROICexgc 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 | 0.72 | ||
| Debt/FCF | 4.34 | ||
| Debt/EBITDA | 2.94 | ||
| Cap/Depr | 37.98% | ||
| Cap/Sales | 2.9% | ||
| Interest Coverage | 6.23 | ||
| Cash Conversion | 79.26% | ||
| Profit Quality | 129.11% | ||
| Current Ratio | 0.99 | ||
| Quick Ratio | 0.99 | ||
| Altman-Z | 2.57 |
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)17.99%
EPS 3Y3.77%
EPS 5Y11.09%
EPS Q2Q%18.92%
EPS Next Y23.68%
EPS Next 2Y17.06%
EPS Next 3Y15.24%
EPS Next 5Y13.25%
Revenue 1Y (TTM)16.44%
Revenue growth 3Y7.93%
Revenue growth 5Y11.67%
Sales Q2Q%14.75%
Revenue Next Year11.35%
Revenue Next 2Y9.37%
Revenue Next 3Y8.76%
Revenue Next 5Y7.56%
EBIT growth 1Y22.92%
EBIT growth 3Y6.98%
EBIT growth 5Y12.18%
EBIT Next Year19.17%
EBIT Next 3Y11.84%
EBIT Next 5Y9.28%
FCF growth 1Y29.27%
FCF growth 3Y23.48%
FCF growth 5Y15.68%
OCF growth 1Y31.7%
OCF growth 3Y21.43%
OCF growth 5Y15.02%
NASDAQ INC / NDAQ FAQ
What is the fundamental rating for NDAQ stock?
ChartMill assigns a fundamental rating of 5 / 10 to NDAQ.
What is the valuation status of NASDAQ INC (NDAQ) stock?
ChartMill assigns a valuation rating of 3 / 10 to NASDAQ INC (NDAQ). This can be considered as Overvalued.
What is the profitability of NDAQ stock?
NASDAQ INC (NDAQ) has a profitability rating of 6 / 10.
Can you provide the PE and PB ratios for NDAQ stock?
The Price/Earnings (PE) ratio for NASDAQ INC (NDAQ) is 26.66 and the Price/Book (PB) ratio is 4.17.
What is the financial health of NASDAQ INC (NDAQ) stock?
The financial health rating of NASDAQ INC (NDAQ) is 4 / 10.