NASDAQ INC (NDAQ) Stock Fundamental Analysis
NASDAQ:NDAQ - Nasdaq - US6311031081 - Common Stock - Currency: USD
Taking everything into account, NDAQ scores 5 out of 10 in our fundamental rating. NDAQ was compared to 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.
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
NDAQ has a better Return On Assets (4.96%) than 68.35% of its industry peers.
Looking at the Return On Equity, with a value of 12.77%, NDAQ is in the better half of the industry, outperforming 70.04% of the companies in the same industry.
NDAQ has a better Return On Invested Capital (7.36%) than 77.22% 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 7.89%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.96% | ||
| ROE | 12.77% | ||
| ROIC | 7.36% |
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 18.59% is in line compared to the rest of the industry. NDAQ outperforms 57.38% of its industry peers.
In the last couple of years the Profit Margin of NDAQ has declined.
NDAQ has a Operating Margin (27.06%) which is in line with its industry peers.
NDAQ's Operating Margin has been stable in the last couple of years.
NDAQ's Gross Margin of 60.60% is fine compared to the rest of the industry. NDAQ outperforms 68.35% of its industry peers.
NDAQ's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 27.06% | ||
| PM (TTM) | 18.59% | ||
| GM | 60.6% |
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
NDAQ has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, NDAQ has more shares outstanding
NDAQ has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.67 indicates that NDAQ is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.67, NDAQ is in the better half of the industry, outperforming 76.37% of the companies in the same industry.
NDAQ has a debt to FCF ratio of 4.30. This is a neutral value as NDAQ would need 4.30 years to pay back of all of its debts.
NDAQ has a better Debt to FCF ratio (4.30) than 70.46% of its industry peers.
NDAQ has a Debt/Equity ratio of 0.73. This is a neutral value indicating NDAQ is somewhat dependend on debt financing.
NDAQ has a better Debt to Equity ratio (0.73) than 62.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | 4.3 | ||
| Altman-Z | 2.67 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
NDAQ has a Current Ratio of 0.96. 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 (0.96) which is comparable to the rest of the industry.
NDAQ has a Quick Ratio of 0.96. 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 0.96. This is comparable to the rest of the industry: NDAQ outperforms 44.30% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.96 | ||
| Quick Ratio | 0.96 |
3. Growth
3.1 Past
NDAQ shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 14.18%, which is quite good.
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 23.58% in the past year. This is a very strong growth!
The Revenue has been growing by 11.67% on average over the past years. This is quite good.
EPS 1Y (TTM)14.18%
EPS 3Y3.77%
EPS 5Y11.09%
EPS Q2Q%23.19%
Revenue 1Y (TTM)23.58%
Revenue growth 3Y7.93%
Revenue growth 5Y11.67%
Sales Q2Q%12.68%
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 10.96% yearly.
The Revenue is expected to grow by 6.53% on average over the next years.
EPS Next Y17.21%
EPS Next 2Y14.43%
EPS Next 3Y13.37%
EPS Next 5Y10.96%
Revenue Next Year10.05%
Revenue Next 2Y8.65%
Revenue Next 3Y8.22%
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
With a Price/Earnings ratio of 30.86, 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 70.46% of the companies listed in the same industry.
NDAQ's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.82.
The Price/Forward Earnings ratio is 26.24, which means the current valuation is very expensive for NDAQ.
64.13% of the companies in the same industry are cheaper than NDAQ, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.21, NDAQ is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.86 | ||
| Fwd PE | 26.24 |
4.2 Price Multiples
70.04% of the companies in the same industry are more expensive than NDAQ, based on the Enterprise Value to EBITDA ratio.
NDAQ's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.06 | ||
| EV/EBITDA | 22.36 |
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 has a very decent profitability rating, which may justify a higher PE ratio.
NDAQ's earnings are expected to grow with 13.37% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.79
PEG (5Y)2.78
EPS Next 2Y14.43%
EPS Next 3Y13.37%
5. Dividend
5.1 Amount
NDAQ has a Yearly Dividend Yield of 1.12%.
NDAQ's Dividend Yield is slightly below the industry average, which is at 8.23.
With a Dividend Yield of 1.12, NDAQ pays less dividend than the S&P500 average, which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.12% |
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 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
NDAQ pays out 37.73% of its income as dividend. This is a sustainable payout ratio.
NDAQ's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP37.73%
EPS Next 2Y14.43%
EPS Next 3Y13.37%
96.91
+1.74 (+1.83%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners69.1%
Inst Owner Change0.03%
Ins Owners0.55%
Ins Owner Change-0.26%
Market Cap55.61B
Analysts80
Price Target97.58 (0.69%)
Short Float %1.37%
Short Ratio1.67
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.12% |
Yearly Dividend0.94
Dividend Growth(5Y)8.85%
DP37.73%
Div Incr Years12
Div Non Decr Years12
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.4%
Min EPS beat(2)0.42%
Max EPS beat(2)2.38%
EPS beat(4)3
Avg EPS beat(4)1.67%
Min EPS beat(4)-0.6%
Max EPS beat(4)4.49%
EPS beat(8)5
Avg EPS beat(8)1%
EPS beat(12)8
Avg EPS beat(12)1.23%
EPS beat(16)11
Avg EPS beat(16)1.74%
Revenue beat(2)1
Avg Revenue beat(2)-0.6%
Min Revenue beat(2)-1.51%
Max Revenue beat(2)0.31%
Revenue beat(4)1
Avg Revenue beat(4)-1.77%
Min Revenue beat(4)-3.94%
Max Revenue beat(4)0.31%
Revenue beat(8)3
Avg Revenue beat(8)-0.86%
Revenue beat(12)6
Avg Revenue beat(12)16.68%
Revenue beat(16)10
Avg Revenue beat(16)29.2%
PT rev (1m)13.55%
PT rev (3m)16.4%
EPS NQ rev (1m)6.02%
EPS NQ rev (3m)3.7%
EPS NY rev (1m)1.21%
EPS NY rev (3m)2.06%
Revenue NQ rev (1m)2.9%
Revenue NQ rev (3m)2.34%
Revenue NY rev (1m)2.02%
Revenue NY rev (3m)2.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.86 | ||
| Fwd PE | 26.24 | ||
| P/S | 6.85 | ||
| P/FCF | 26.06 | ||
| P/OCF | 23.58 | ||
| P/B | 4.71 | ||
| P/tB | N/A | ||
| EV/EBITDA | 22.36 |
EPS(TTM)3.14
EY3.24%
EPS(NY)3.69
Fwd EY3.81%
FCF(TTM)3.72
FCFY3.84%
OCF(TTM)4.11
OCFY4.24%
SpS14.14
BVpS20.58
TBVpS-16.13
PEG (NY)1.79
PEG (5Y)2.78
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.96% | ||
| ROE | 12.77% | ||
| ROCE | 9.66% | ||
| ROIC | 7.36% | ||
| ROICexc | 7.63% | ||
| ROICexgc | 198.88% | ||
| OM | 27.06% | ||
| PM (TTM) | 18.59% | ||
| GM | 60.6% | ||
| FCFM | 26.31% |
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-Score8
Asset Turnover0.27
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | 4.3 | ||
| Debt/EBITDA | 3.08 | ||
| Cap/Depr | 36.25% | ||
| Cap/Sales | 2.76% | ||
| Interest Coverage | 5.66 | ||
| Cash Conversion | 83.83% | ||
| Profit Quality | 141.51% | ||
| Current Ratio | 0.96 | ||
| Quick Ratio | 0.96 | ||
| Altman-Z | 2.67 |
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)14.18%
EPS 3Y3.77%
EPS 5Y11.09%
EPS Q2Q%23.19%
EPS Next Y17.21%
EPS Next 2Y14.43%
EPS Next 3Y13.37%
EPS Next 5Y10.96%
Revenue 1Y (TTM)23.58%
Revenue growth 3Y7.93%
Revenue growth 5Y11.67%
Sales Q2Q%12.68%
Revenue Next Year10.05%
Revenue Next 2Y8.65%
Revenue Next 3Y8.22%
Revenue Next 5Y6.53%
EBIT growth 1Y17.95%
EBIT growth 3Y6.98%
EBIT growth 5Y12.18%
EBIT Next Year14.49%
EBIT Next 3Y10.23%
EBIT Next 5Y7.71%
FCF growth 1Y37.59%
FCF growth 3Y23.48%
FCF growth 5Y15.68%
OCF growth 1Y38.3%
OCF growth 3Y21.43%
OCF growth 5Y15.02%