NASDAQ INC (NDAQ) Stock Fundamental Analysis
NASDAQ:NDAQ - Nasdaq - US6311031081 - Common Stock - Currency: USD
NDAQ gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 232 industry peers in the Capital Markets industry. NDAQ has only an average score on both its financial health and profitability. While showing a medium growth rate, NDAQ is valued expensive at the moment.
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.
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 Return On Assets of 4.17%. This is in the better half of the industry: NDAQ outperforms 62.50% of its industry peers.
NDAQ's Return On Equity of 11.07% is fine compared to the rest of the industry. NDAQ outperforms 64.22% of its industry peers.
NDAQ has a better Return On Invested Capital (6.99%) than 74.57% 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 7.87%.
| 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
NDAQ has a Profit Margin of 16.36%. This is comparable to the rest of the industry: NDAQ outperforms 52.16% 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 26.63%, NDAQ is in line with its industry, outperforming 47.84% 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.
Looking at the Gross Margin, with a value of 61.03%, NDAQ is in the better half of the industry, outperforming 68.97% of the companies in the same industry.
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
Compared to 1 year ago, NDAQ has about the same amount of shares outstanding.
NDAQ has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, NDAQ has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.43 indicates that NDAQ is not a great score, but indicates only limited risk for bankruptcy at the moment.
NDAQ's Altman-Z score of 2.43 is fine compared to the rest of the industry. NDAQ outperforms 73.28% 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.
Looking at the Debt to FCF ratio, with a value of 5.03, NDAQ is in the better half of the industry, outperforming 66.38% of the companies in the same industry.
NDAQ has a Debt/Equity ratio of 0.77. This is a neutral value indicating NDAQ is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.77, NDAQ is in the better half of the industry, outperforming 62.07% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | 5.03 | ||
| Altman-Z | 2.43 |
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.
With a Current ratio value of 0.98, NDAQ perfoms like the industry average, outperforming 40.09% 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 44.40% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.98 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.58% over the past year.
The Earnings Per Share has been growing by 11.09% on average over the past years. This is quite good.
The Revenue has grown by 25.93% in the past year. This is a very strong growth!
Measured over the past years, NDAQ shows a quite strong growth in Revenue. The Revenue has been growing by 11.67% on average per year.
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
NDAQ is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.60% yearly.
The Revenue is expected to grow by 6.53% on average over the next years.
EPS Next Y15.56%
EPS Next 2Y13.46%
EPS Next 3Y12.76%
EPS Next 5Y12.6%
Revenue Next Year7.68%
Revenue Next 2Y7.33%
Revenue Next 3Y7.47%
Revenue Next 5Y6.53%
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
A Price/Earnings ratio of 28.98 indicates a quite expensive valuation of NDAQ.
71.98% of the companies in the same industry are cheaper than NDAQ, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.34, NDAQ is valued at the same level.
NDAQ is valuated rather expensively with a Price/Forward Earnings ratio of 23.79.
63.79% of the companies in the same industry are cheaper than NDAQ, based on the Price/Forward Earnings ratio.
NDAQ's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.19.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.98 | ||
| Fwd PE | 23.79 |
4.2 Price Multiples
NDAQ's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. NDAQ is cheaper than 69.40% 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 | 26.73 | ||
| EV/EBITDA | 21.45 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive 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)1.86
PEG (5Y)2.61
EPS Next 2Y13.46%
EPS Next 3Y12.76%
5. Dividend
5.1 Amount
NDAQ has a Yearly Dividend Yield of 1.24%.
NDAQ's Dividend Yield is slightly below the industry average, which is at 7.91.
With a Dividend Yield of 1.24, NDAQ pays less dividend than the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.24% |
5.2 History
The dividend of NDAQ is nicely growing with an annual growth rate of 8.85%!
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
NDAQ pays out 43.19% of its income as dividend. 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%
86.37
+0.42 (+0.49%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners69.1%
Inst Owner Change2.54%
Ins Owners0.55%
Ins Owner Change-0.22%
Market Cap49.59B
Analysts80
Price Target84.98 (-1.61%)
Short Float %1.28%
Short Ratio1.43
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.24% |
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)0.38%
PT rev (3m)-5.46%
EPS NQ rev (1m)0.4%
EPS NQ rev (3m)1.05%
EPS NY rev (1m)0%
EPS NY rev (3m)0.2%
Revenue NQ rev (1m)0.16%
Revenue NQ rev (3m)0.47%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.98 | ||
| Fwd PE | 23.79 | ||
| P/S | 6.35 | ||
| P/FCF | 26.73 | ||
| P/OCF | 23.93 | ||
| P/B | 4.29 | ||
| P/tB | N/A | ||
| EV/EBITDA | 21.45 |
EPS(TTM)2.98
EY3.45%
EPS(NY)3.63
Fwd EY4.2%
FCF(TTM)3.23
FCFY3.74%
OCF(TTM)3.61
OCFY4.18%
SpS13.61
BVpS20.11
TBVpS-16.48
PEG (NY)1.86
PEG (5Y)2.61
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 | 2.43 |
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 5Y12.6%
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 3Y7.47%
Revenue Next 5Y6.53%
EBIT growth 1Y14.4%
EBIT growth 3Y6.98%
EBIT growth 5Y12.18%
EBIT Next Year14.49%
EBIT Next 3Y10.23%
EBIT Next 5Y7.71%
FCF growth 1Y22.93%
FCF growth 3Y23.48%
FCF growth 5Y15.68%
OCF growth 1Y24.37%
OCF growth 3Y21.43%
OCF growth 5Y15.02%