98.05 USD
-0.73 (-0.74%)
98.05 USD
0 (0%)
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. Both the profitability and the financial health of NDAQ get a neutral evaluation. Nothing too spectacular is happening here. NDAQ is quite expensive at the moment. 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.
- NDAQ had positive earnings in each of the past 5 years.
- In the past 5 years NDAQ always reported a positive cash flow from operatings.
1.2 Ratios
- NDAQ has a Return On Assets of 5.30%. This is in the better half of the industry: NDAQ outperforms 68.49% of its industry peers.
- NDAQ's Return On Equity of 13.52% is fine compared to the rest of the industry. NDAQ outperforms 73.11% of its industry peers.
- NDAQ has a Return On Invested Capital of 7.71%. This is amongst the best in the industry. NDAQ outperforms 80.25% 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 7.27%.
- The last Return On Invested Capital (7.71%) for NDAQ is above the 3 year average (7.46%), which is a sign of increasing profitability.
| 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 has a Profit Margin of 19.89%. This is comparable to the rest of the industry: NDAQ outperforms 53.78% of its industry peers.
- NDAQ's Profit Margin has declined in the last couple of years.
- Looking at the Operating Margin, with a value of 28.43%, NDAQ is in line with its industry, outperforming 57.14% 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.
- The Gross Margin of NDAQ (62.26%) is better than 69.33% 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
- NDAQ has about the same amout of shares outstanding than it did 1 year ago.
- The number of shares outstanding for NDAQ has been increased compared to 5 years ago.
- Compared to 1 year ago, NDAQ has an improved debt to assets ratio.
2.2 Solvency
- NDAQ has an Altman-Z score of 2.74. 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.
- NDAQ's Altman-Z score of 2.74 is fine compared to the rest of the industry. NDAQ outperforms 74.37% 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 has a better Debt to FCF ratio (4.34) than 72.27% of its industry peers.
- A Debt/Equity ratio of 0.72 indicates that NDAQ is somewhat dependend on debt financing.
- NDAQ's Debt to Equity ratio of 0.72 is in line compared to the rest of the industry. NDAQ outperforms 57.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 4.34 | ||
| Altman-Z | 2.74 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
- NDAQ has a Current 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.
- The Current ratio of NDAQ (0.99) is comparable to the rest of the industry.
- A Quick Ratio of 0.99 indicates that NDAQ may have some problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 0.99, NDAQ is in line with its industry, outperforming 43.70% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.99 | ||
| Quick Ratio | 0.99 |
3. Growth
3.1 Past
- NDAQ shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 17.99%, which is quite good.
- 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.
- Looking at the last year, NDAQ shows a quite strong growth in Revenue. The Revenue has grown by 16.44% in the last year.
- NDAQ shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.67% yearly.
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
- Based on estimates for the next years, NDAQ will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.93% on average per year.
- The Revenue is expected to grow by 7.56% on average over the next years.
EPS Next Y23.92%
EPS Next 2Y18.09%
EPS Next 3Y15.87%
EPS Next 5Y13.93%
Revenue Next Year11.62%
Revenue Next 2Y9.99%
Revenue Next 3Y9.29%
Revenue Next 5Y7.56%
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 accelerating.
- 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 29.89, which means the current valuation is very expensive for NDAQ.
- Based on the Price/Earnings ratio, NDAQ is valued a bit more expensive than 73.95% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, NDAQ is valued at the same level.
- Based on the Price/Forward Earnings ratio of 24.93, 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 62.60% of the companies are valued more cheaply.
- NDAQ is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.89 | ||
| Fwd PE | 24.93 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, NDAQ is valued a bit cheaper than 69.33% 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 | 26.69 | ||
| EV/EBITDA | 21.9 |
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.
- A more expensive valuation may be justified as NDAQ's earnings are expected to grow with 15.87% in the coming years.
PEG (NY)1.25
PEG (5Y)2.7
EPS Next 2Y18.09%
EPS Next 3Y15.87%
5. Dividend
5.1 Amount
- NDAQ has a Yearly Dividend Yield of 1.09%. Purely for dividend investing, there may be better candidates out there.
- NDAQ's Dividend Yield is slightly below the industry average, which is at 5.87.
- NDAQ's Dividend Yield is slightly below the S&P500 average, which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.09% |
5.2 History
- The dividend of NDAQ is nicely growing with an annual growth rate of 8.85%!
- NDAQ has been paying a dividend for at least 10 years, so it has 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 36.06% of its income as dividend. This is a sustainable payout ratio.
- The dividend of NDAQ is growing, but earnings are growing more, so the dividend growth is sustainable.
DP36.06%
EPS Next 2Y18.09%
EPS Next 3Y15.87%
NASDAQ INC / NDAQ FAQ
What is the fundamental rating for NDAQ stock?
ChartMill assigns a fundamental rating of 5 / 10 to NDAQ.
Can you provide the valuation status for NASDAQ INC?
ChartMill assigns a valuation rating of 3 / 10 to NASDAQ INC (NDAQ). This can be considered as Overvalued.
Can you provide the profitability details for NASDAQ INC?
NASDAQ INC (NDAQ) has a profitability rating of 6 / 10.
What is the valuation of NASDAQ INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for NASDAQ INC (NDAQ) is 29.89 and the Price/Book (PB) ratio is 4.66.
Can you provide the expected EPS growth for NDAQ stock?
The Earnings per Share (EPS) of NASDAQ INC (NDAQ) is expected to grow by 23.92% in the next year.