NASDAQ INC (NDAQ)
US6311031081 - Common Stock
NDAQ gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 222 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. 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
The Return On Assets of NDAQ (3.28%) is comparable to the rest of the industry.
NDAQ's Return On Equity of 9.18% is in line compared to the rest of the industry. NDAQ outperforms 48.15% of its industry peers.
With a decent Return On Invested Capital value of 5.97%, NDAQ is doing good in the industry, outperforming 69.44% 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 7.96%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.28% | ||
| ROE | 9.18% | ||
| ROIC | 5.97% |
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 15.99%, NDAQ perfoms like the industry average, outperforming 46.30% of the companies in the same industry.
NDAQ's Profit Margin has improved in the last couple of years.
With a Operating Margin value of 29.32%, NDAQ perfoms like the industry average, outperforming 50.93% of the companies in the same industry.
In the last couple of years the Operating Margin of NDAQ has grown nicely.
NDAQ has a Gross Margin of 66.06%. This is in the better half of the industry: NDAQ outperforms 63.89% of its industry peers.
In the last couple of years the Gross Margin of NDAQ has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 29.32% | ||
| PM (TTM) | 15.99% | ||
| GM | 66.06% |
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
The number of shares outstanding for NDAQ has been increased compared to 1 year ago.
The number of shares outstanding for NDAQ has been increased compared to 5 years ago.
NDAQ has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 1.96 indicates that NDAQ is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of NDAQ (1.96) is better than 71.30% of its industry peers.
The Debt to FCF ratio of NDAQ is 6.64, which is on the high side as it means it would take NDAQ, 6.64 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of NDAQ (6.64) is comparable to the rest of the industry.
NDAQ has a Debt/Equity ratio of 0.92. This is a neutral value indicating NDAQ is somewhat dependend on debt financing.
NDAQ's Debt to Equity ratio of 0.92 is in line compared to the rest of the industry. NDAQ outperforms 50.93% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.92 | ||
| Debt/FCF | 6.64 | ||
| Altman-Z | 1.96 |
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.
NDAQ has a Current ratio (0.99) which 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.
NDAQ has a Quick ratio (0.99) which is comparable to the rest of the industry.
| 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 1.10% 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 11.94% on average per year.
Looking at the last year, NDAQ shows a decrease in Revenue. The Revenue has decreased by -2.60% in the last year.
NDAQ shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.23% yearly.
EPS 1Y (TTM)1.1%
EPS 3Y11.23%
EPS 5Y11.94%
EPS Q2Q%-2.82%
Revenue 1Y (TTM)-2.6%
Revenue growth 3Y2.52%
Revenue growth 5Y7.23%
Sales Q2Q%25.3%
3.2 Future
The Earnings Per Share is expected to grow by 8.65% on average over the next years. This is quite good.
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-3.54%
EPS Next 2Y4.32%
EPS Next 3Y7.64%
EPS Next 5Y8.65%
Revenue Next Year19.64%
Revenue Next 2Y13.09%
Revenue Next 3Y11.5%
Revenue Next 5Y9.41%
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 decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 24.35, the valuation of NDAQ can be described as rather expensive.
67.59% of the companies in the same industry are cheaper than NDAQ, based on the Price/Earnings ratio.
NDAQ is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 24.41, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 21.74 indicates a rather expensive valuation of NDAQ.
Based on the Price/Forward Earnings ratio, NDAQ is valued a bit more expensive than the industry average as 64.35% of the companies are valued more cheaply.
The average S&P500 Price/Forward Earnings ratio is at 20.59. NDAQ is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.35 | ||
| Fwd PE | 21.74 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NDAQ is valued a bit cheaper than the industry average as 66.20% of the companies are valued more expensively.
NDAQ's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.67 | ||
| EV/EBITDA | 21.46 |
4.3 Compensation for Growth
The decent profitability rating of NDAQ may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.04
EPS Next 2Y4.32%
EPS Next 3Y7.64%
5. Dividend
5.1 Amount
NDAQ has a Yearly Dividend Yield of 1.53%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 7.46, NDAQ is paying slightly less dividend.
NDAQ's Dividend Yield is slightly below the S&P500 average, which is at 2.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.53% |
5.2 History
The dividend of NDAQ is nicely growing with an annual growth rate of 8.05%!
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)8.05%
Div Incr Years11
Div Non Decr Years11
5.3 Sustainability
NDAQ pays out 47.38% of its income as dividend. This is a bit on the high side, but may be sustainable.
NDAQ's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP47.38%
EPS Next 2Y4.32%
EPS Next 3Y7.64%
NASDAQ INC
NASDAQ:NDAQ (7/26/2024, 7:00:01 PM)
After market: 65.25 -1.71 (-2.55%)66.96
-0.3 (-0.45%)
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 Cap38.60B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.53% |
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 | 24.35 | ||
| Fwd PE | 21.74 | ||
| 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)2.04
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.28% | ||
| ROE | 9.18% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 29.32% | ||
| PM (TTM) | 15.99% | ||
| GM | 66.06% | ||
| 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 Turnover0.21
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.92 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.99 | ||
| Quick Ratio | 0.99 | ||
| 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-3.54%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-2.6%
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