NASDAQ INC (NDAQ)
US6311031081 - Common Stock
NDAQ gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 219 industry peers in the Capital Markets industry. While NDAQ is still in line with the averages on profitability rating, there are concerns on its financial health. 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.
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
With a Return On Assets value of 3.13%, NDAQ perfoms like the industry average, outperforming 53.49% of the companies in the same industry.
The Return On Equity of NDAQ (8.69%) is comparable to the rest of the industry.
NDAQ's Return On Invested Capital of 6.14% is fine compared to the rest of the industry. NDAQ outperforms 71.63% of its industry peers.
NDAQ had an Average Return On Invested Capital over the past 3 years of 8.45%. This is significantly below the industry average of 17.66%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.13% | ||
| ROE | 8.69% | ||
| ROIC | 6.14% |
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 14.43%, NDAQ perfoms like the industry average, outperforming 47.44% of the companies in the same industry.
NDAQ's Profit Margin has improved in the last couple of years.
NDAQ has a Operating Margin (28.35%) which is comparable to the rest of the industry.
NDAQ's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 66.01%, NDAQ is in the better half of the industry, outperforming 65.12% of the companies in the same industry.
NDAQ's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 28.35% | ||
| PM (TTM) | 14.43% | ||
| GM | 66.01% |
OM growth 3Y7.45%
OM growth 5Y3.96%
PM growth 3Y1.74%
PM growth 5Y10.28%
GM growth 3Y7.58%
GM growth 5Y1.69%
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
The debt/assets ratio for NDAQ is higher compared to a year ago.
2.2 Solvency
NDAQ has an Altman-Z score of 2.08. 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.
With a decent Altman-Z score value of 2.08, NDAQ is doing good in the industry, outperforming 72.09% of the companies in the same industry.
NDAQ has a debt to FCF ratio of 6.37. This is a slightly negative value and a sign of low solvency as NDAQ would need 6.37 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 6.37, NDAQ is in the better half of the industry, outperforming 61.40% of the companies in the same industry.
A Debt/Equity ratio of 0.90 indicates that NDAQ is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.90, NDAQ is in line with its industry, outperforming 54.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.9 | ||
| Debt/FCF | 6.37 | ||
| Altman-Z | 2.08 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
NDAQ has a Current Ratio of 0.94. This is a bad value and indicates that NDAQ is not financially healthy enough and could expect problems in meeting its short term obligations.
NDAQ has a Current ratio of 0.94. This is in the lower half of the industry: NDAQ underperforms 60.00% of its industry peers.
A Quick Ratio of 0.94 indicates that NDAQ may have some problems paying its short term obligations.
NDAQ has a worse Quick ratio (0.94) than 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.94 | ||
| Quick Ratio | 0.94 |
3. Growth
3.1 Past
NDAQ shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.10%.
Measured over the past years, NDAQ shows a quite strong growth in Earnings Per Share. The EPS has been growing by 11.94% on average per year.
The Revenue has been growing slightly by 7.52% in the past year.
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)1.1%
EPS 3Y11.23%
EPS 5Y11.94%
EPS Q2Q%-2.82%
Revenue 1Y (TTM)7.52%
Revenue growth 3Y2.52%
Revenue growth 5Y7.23%
Sales Q2Q%25.3%
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 8.65% on average per year.
Based on estimates for the next years, NDAQ will show a quite strong growth in Revenue. The Revenue will grow by 9.41% on average per year.
EPS Next Y-0.65%
EPS Next 2Y5.8%
EPS Next 3Y8.14%
EPS Next 5Y8.65%
Revenue Next Year21.65%
Revenue Next 2Y14.11%
Revenue Next 3Y11.97%
Revenue Next 5Y9.41%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 26.65, the valuation of NDAQ can be described as expensive.
Based on the Price/Earnings ratio, NDAQ is valued a bit more expensive than 68.37% of the companies in the same industry.
NDAQ is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 30.71, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 23.14, the valuation of NDAQ can be described as rather expensive.
Based on the Price/Forward Earnings ratio, NDAQ is valued a bit more expensive than the industry average as 65.58% of the companies are valued more cheaply.
When comparing the Price/Forward Earnings ratio of NDAQ to the average of the S&P500 Index (22.09), we can say NDAQ is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.65 | ||
| Fwd PE | 23.14 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NDAQ is valued a bit cheaper than 66.98% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as NDAQ.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.47 | ||
| EV/EBITDA | 21.5 |
4.3 Compensation for Growth
NDAQ has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.23
EPS Next 2Y5.8%
EPS Next 3Y8.14%
5. Dividend
5.1 Amount
NDAQ has a Yearly Dividend Yield of 1.32%. Purely for dividend investing, there may be better candidates out there.
NDAQ's Dividend Yield is slightly below the industry average, which is at 8.61.
Compared to an average S&P500 Dividend Yield of 2.26, NDAQ's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.32% |
5.2 History
The dividend of NDAQ is nicely growing with an annual growth rate of 8.05%!
NDAQ has been paying a dividend for at least 10 years, so it has 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)8.05%
Div Incr Years11
Div Non Decr Years11
5.3 Sustainability
52.80% 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 around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP52.8%
EPS Next 2Y5.8%
EPS Next 3Y8.14%
NASDAQ INC
NASDAQ:NDAQ (9/16/2024, 8:00:02 PM)
After market: 73.3 0 (0%)73.3
+0.3 (+0.41%)
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 Cap42.22B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.32% |
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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.65 | ||
| Fwd PE | 23.14 | ||
| 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)N/A
PEG (5Y)2.23
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.13% | ||
| ROE | 8.69% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 28.35% | ||
| PM (TTM) | 14.43% | ||
| GM | 66.01% | ||
| 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 Turnover0.22
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.9 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.94 | ||
| Quick Ratio | 0.94 | ||
| 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)
High Growth Momentum
Growth
EPS 1Y (TTM)1.1%
EPS 3Y11.23%
EPS 5Y
EPS Q2Q%
EPS Next Y-0.65%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)7.52%
Revenue growth 3Y2.52%
Revenue growth 5Y
Sales 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