NASDAQ INC (NDAQ) Stock Fundamental Analysis
NASDAQ:NDAQ - Nasdaq - US6311031081 - Common Stock - Currency: USD
Taking everything into account, NDAQ scores 4 out of 10 in our fundamental rating. NDAQ was compared to 231 industry peers in the Capital Markets industry. Both the profitability and the financial health of NDAQ get a neutral evaluation. Nothing too spectacular is happening here. 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.
In the past year NDAQ had a positive cash flow from operations.
In the past 5 years NDAQ has always been profitable.
In the past 5 years NDAQ always reported a positive cash flow from operatings.
1.2 Ratios
NDAQ has a Return On Assets of 3.67%. This is comparable to the rest of the industry: NDAQ outperforms 57.14% of its industry peers.
NDAQ has a Return On Equity (9.98%) which is in line with its industry peers.
Looking at the Return On Invested Capital, with a value of 6.49%, NDAQ is in the better half of the industry, outperforming 75.32% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for NDAQ is in line with the industry average of 7.13%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.67% | ||
| ROE | 9.98% | ||
| ROIC | 6.49% |
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 (15.10%) which is in line with its industry peers.
In the last couple of years the Profit Margin of NDAQ has declined.
NDAQ has a Operating Margin of 26.36%. This is comparable to the rest of the industry: NDAQ outperforms 48.48% of its industry peers.
NDAQ's Operating Margin has been stable in the last couple of years.
The Gross Margin of NDAQ (62.84%) is better than 70.56% of its industry peers.
NDAQ's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.36% | ||
| PM (TTM) | 15.1% | ||
| GM | 62.84% |
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.
The debt/assets ratio for NDAQ has been reduced compared to a year ago.
2.2 Solvency
NDAQ has an Altman-Z score of 2.24. 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 (2.24) is better than 73.59% of its industry peers.
The Debt to FCF ratio of NDAQ is 5.47, which is a neutral value as it means it would take NDAQ, 5.47 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 5.47, NDAQ is doing good in the industry, outperforming 62.77% of the companies in the same industry.
A Debt/Equity ratio of 0.85 indicates that NDAQ is somewhat dependend on debt financing.
NDAQ has a Debt to Equity ratio of 0.85. This is comparable to the rest of the industry: NDAQ outperforms 59.74% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.85 | ||
| Debt/FCF | 5.47 | ||
| Altman-Z | 2.24 |
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.
NDAQ has a Quick ratio of 0.99. This is comparable to the rest of the industry: NDAQ outperforms 46.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.99 | ||
| Quick Ratio | 0.99 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.58% over the past year.
Measured over the past years, NDAQ shows a quite strong growth in Earnings Per Share. The EPS has been growing by 11.09% on average per year.
NDAQ shows a strong growth in Revenue. In the last year, the Revenue has grown by 25.93%.
The Revenue has been growing by 11.67% on average over the past years. This is quite good.
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
Based on estimates for the next years, NDAQ will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.96% on average per year.
NDAQ is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.46% yearly.
EPS Next Y14.84%
EPS Next 2Y13.44%
EPS Next 3Y12.61%
EPS Next 5Y10.96%
Revenue Next Year7.14%
Revenue Next 2Y7.14%
Revenue Next 3Y7.21%
Revenue Next 5Y6.46%
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.
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
With a Price/Earnings ratio of 26.35, 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 65.80% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 24.29, NDAQ is valued at the same level.
NDAQ is valuated rather expensively with a Price/Forward Earnings ratio of 21.64.
61.04% of the companies in the same industry are cheaper than NDAQ, based on the Price/Forward Earnings ratio.
NDAQ is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 20.42, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.35 | ||
| Fwd PE | 21.64 |
4.2 Price Multiples
NDAQ's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. NDAQ is cheaper than 71.00% of the companies in the same industry.
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 | 26.03 | ||
| EV/EBITDA | 20.66 |
4.3 Compensation for Growth
NDAQ's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
NDAQ's earnings are expected to grow with 12.61% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.78
PEG (5Y)2.38
EPS Next 2Y13.44%
EPS Next 3Y12.61%
5. Dividend
5.1 Amount
NDAQ has a Yearly Dividend Yield of 1.42%.
Compared to an average industry Dividend Yield of 8.44, NDAQ is paying slightly less dividend.
With a Dividend Yield of 1.42, NDAQ pays less dividend than the S&P500 average, which is at 2.43.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.42% |
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
NDAQ pays out 48.43% 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.
DP48.43%
EPS Next 2Y13.44%
EPS Next 3Y12.61%
NASDAQ:NDAQ (5/7/2025, 3:39:38 PM)
78.53
+0.45 (+0.58%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners67.5%
Inst Owner Change0.5%
Ins Owners0.49%
Ins Owner Change0.1%
Market Cap45.09B
Analysts80
Price Target83.83 (6.75%)
Short Float %1.22%
Short Ratio1.53
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.42% |
Yearly Dividend0.94
Dividend Growth(5Y)8.85%
DP48.43%
Div Incr Years12
Div Non Decr Years12
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.94%
Min EPS beat(2)-0.6%
Max EPS beat(2)4.49%
EPS beat(4)2
Avg EPS beat(4)0.91%
Min EPS beat(4)-5.54%
Max EPS beat(4)5.29%
EPS beat(8)5
Avg EPS beat(8)1.64%
EPS beat(12)7
Avg EPS beat(12)1.44%
EPS beat(16)11
Avg EPS beat(16)2.62%
Revenue beat(2)0
Avg Revenue beat(2)-2.93%
Min Revenue beat(2)-3.94%
Max Revenue beat(2)-1.92%
Revenue beat(4)1
Avg Revenue beat(4)-1.75%
Min Revenue beat(4)-3.94%
Max Revenue beat(4)0.52%
Revenue beat(8)3
Avg Revenue beat(8)7.32%
Revenue beat(12)7
Avg Revenue beat(12)28.56%
Revenue beat(16)11
Avg Revenue beat(16)39.68%
PT rev (1m)-6.74%
PT rev (3m)-5.08%
EPS NQ rev (1m)2.8%
EPS NQ rev (3m)4.84%
EPS NY rev (1m)-0.53%
EPS NY rev (3m)0.48%
Revenue NQ rev (1m)1.05%
Revenue NQ rev (3m)1.37%
Revenue NY rev (1m)-0.47%
Revenue NY rev (3m)-0.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.35 | ||
| Fwd PE | 21.64 | ||
| P/S | 6.09 | ||
| P/FCF | 26.03 | ||
| P/OCF | 23.25 | ||
| P/B | 4.03 | ||
| P/tB | N/A | ||
| EV/EBITDA | 20.66 |
EPS(TTM)2.98
EY3.79%
EPS(NY)3.63
Fwd EY4.62%
FCF(TTM)3.02
FCFY3.84%
OCF(TTM)3.38
OCFY4.3%
SpS12.89
BVpS19.49
TBVpS-16.84
PEG (NY)1.78
PEG (5Y)2.38
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.67% | ||
| ROE | 9.98% | ||
| ROCE | 8.67% | ||
| ROIC | 6.49% | ||
| ROICexc | 6.72% | ||
| ROICexgc | 118.49% | ||
| OM | 26.36% | ||
| PM (TTM) | 15.1% | ||
| GM | 62.84% | ||
| FCFM | 23.41% |
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 Turnover0.24
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.85 | ||
| Debt/FCF | 5.47 | ||
| Debt/EBITDA | 3.7 | ||
| Cap/Depr | 33.77% | ||
| Cap/Sales | 2.8% | ||
| Interest Coverage | 4.81 | ||
| Cash Conversion | 75.65% | ||
| Profit Quality | 155.06% | ||
| Current Ratio | 0.99 | ||
| Quick Ratio | 0.99 | ||
| Altman-Z | 2.24 |
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 Y14.84%
EPS Next 2Y13.44%
EPS Next 3Y12.61%
EPS Next 5Y10.96%
Revenue 1Y (TTM)25.93%
Revenue growth 3Y7.93%
Revenue growth 5Y11.67%
Sales Q2Q%10.74%
Revenue Next Year7.14%
Revenue Next 2Y7.14%
Revenue Next 3Y7.21%
Revenue Next 5Y6.46%
EBIT growth 1Y7.97%
EBIT growth 3Y6.98%
EBIT growth 5Y12.18%
EBIT Next Year15.23%
EBIT Next 3Y10.72%
EBIT Next 5Y7.88%
FCF growth 1Y12.61%
FCF growth 3Y23.48%
FCF growth 5Y15.68%
OCF growth 1Y14.33%
OCF growth 3Y21.43%
OCF growth 5Y15.02%