NasdaqGS:NDAQ

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Nasdaq, Inc. operates as a technology company that serves capital markets and other industries worldwide. More Details


Snowflake Analysis

Solid track record with adequate balance sheet.


Similar Companies

Share Price & News

How has Nasdaq's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: NDAQ has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.3%

NDAQ

-0.2%

US Capital Markets

0.4%

US Market


1 Year Return

30.8%

NDAQ

8.3%

US Capital Markets

17.8%

US Market

Return vs Industry: NDAQ exceeded the US Capital Markets industry which returned 8.3% over the past year.

Return vs Market: NDAQ exceeded the US Market which returned 17.8% over the past year.


Shareholder returns

NDAQIndustryMarket
7 Day1.3%-0.2%0.4%
30 Day4.1%6.5%6.1%
90 Day0.8%3.7%8.9%
1 Year33.0%30.8%11.0%8.3%20.5%17.8%
3 Year88.6%78.3%22.9%13.5%42.3%32.9%
5 Year137.6%116.4%70.3%49.0%84.2%63.4%

Price Volatility Vs. Market

How volatile is Nasdaq's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Nasdaq undervalued compared to its fair value and its price relative to the market?

23.3x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: NDAQ ($129.12) is trading above our estimate of fair value ($104.54)

Significantly Below Fair Value: NDAQ is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: NDAQ is poor value based on its PE Ratio (23.3x) compared to the US Capital Markets industry average (22.7x).

PE vs Market: NDAQ is poor value based on its PE Ratio (23.3x) compared to the US market (19.1x).


Price to Earnings Growth Ratio

PEG Ratio: NDAQ is poor value based on its PEG Ratio (5.9x)


Price to Book Ratio

PB vs Industry: NDAQ is good value based on its PB Ratio (3.5x) compared to the US Capital Markets industry average (4.7x).


Next Steps

Future Growth

How is Nasdaq forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

3.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NDAQ's forecast earnings growth (3.9% per year) is above the savings rate (2.2%).

Earnings vs Market: NDAQ's earnings (3.9% per year) are forecast to grow slower than the US market (22.1% per year).

High Growth Earnings: NDAQ's earnings are forecast to grow, but not significantly.

Revenue vs Market: NDAQ's revenue (0.9% per year) is forecast to grow slower than the US market (9.9% per year).

High Growth Revenue: NDAQ's revenue (0.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NDAQ's Return on Equity is forecast to be low in 3 years time (18.7%).


Next Steps

Past Performance

How has Nasdaq performed over the past 5 years?

17.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NDAQ has high quality earnings.

Growing Profit Margin: NDAQ's current net profit margins (17.4%) are higher than last year (12.2%).


Past Earnings Growth Analysis

Earnings Trend: NDAQ's earnings have grown by 17.3% per year over the past 5 years.

Accelerating Growth: NDAQ's earnings growth over the past year (72%) exceeds its 5-year average (17.3% per year).

Earnings vs Industry: NDAQ earnings growth over the past year (72%) exceeded the Capital Markets industry 14.1%.


Return on Equity

High ROE: NDAQ's Return on Equity (15.1%) is considered low.


Next Steps

Financial Health

How is Nasdaq's financial position?


Financial Position Analysis

Short Term Liabilities: NDAQ's short term assets ($4.8B) exceed its short term liabilities ($4.2B).

Long Term Liabilities: NDAQ's short term assets ($4.8B) exceed its long term liabilities ($4.7B).


Debt to Equity History and Analysis

Debt Level: NDAQ's debt to equity ratio (58.4%) is considered high.

Reducing Debt: NDAQ's debt to equity ratio has increased from 43.9% to 58.4% over the past 5 years.

Debt Coverage: NDAQ's debt is well covered by operating cash flow (35.9%).

Interest Coverage: NDAQ's interest payments on its debt are well covered by EBIT (12.7x coverage).


Balance Sheet


Next Steps

Dividend

What is Nasdaq current dividend yield, its reliability and sustainability?

1.52%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: NDAQ's dividend (1.52%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.63%).

High Dividend: NDAQ's dividend (1.52%) is low compared to the top 25% of dividend payers in the US market (4.56%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, NDAQ has been paying a dividend for less than 10 years.

Growing Dividend: NDAQ's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (34.6%), NDAQ's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: NDAQ's dividends in 3 years are forecast to be well covered by earnings (31% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.8yrs

Average management tenure


CEO

Adena Friedman (50 yo)

3.75yrs

Tenure

US$13,869,287

Compensation

Ms. Adena T. Friedman has been the President, Chief Executive Officer and Director of Nasdaq, Inc. since December 2015, December 31, 2016 and January 1, 2017 respectively. She serves as Director at FCLT Gl ...


CEO Compensation Analysis

Compensation vs Market: Adena's total compensation ($USD13.87M) is about average for companies of similar size in the US market ($USD11.16M).

Compensation vs Earnings: Adena's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Adena Friedman
President3.75yrsUS$13.87m0.20%
$ 42.1m
Michael Ptasznik
Executive VP of Corporate Strategy & CFO4.25yrsUS$3.93m0.019%
$ 4.1m
Bradley Peterson
Executive VPno dataUS$3.81m0.015%
$ 3.1m
P. C. Griggs
Executive Vice President of Corporate Services2.5yrsUS$3.34m0.012%
$ 2.6m
Lauren Dillard
Executive VP of Global Information Services1.33yrsUS$8.44m0.0059%
$ 1.2m
Ann Dennison
Senior VP4.5yrsno data0.0094%
$ 2.0m
Edward Ditmire
Vice President of Investor Relationsno datano datano data
John Zecca
Executive VP1yrno data0.014%
$ 2.9m
Jeremy Skule
Chief Marketing Officer & Executive VP7.75yrsno data0.0060%
$ 1.3m
Bryan Smith
Executive VP & Chief People Officer8.17yrsno data0.0085%
$ 1.8m
Edward Knight
Vice Chairman and Senior Advisor on Public Policy & Litigation1yrUS$3.45m0.00061%
$ 129.4k
Joan Conley
Senior VP & Corporate Secretaryno datano datano data

3.8yrs

Average Tenure

49.5yo

Average Age

Experienced Management: NDAQ's management team is considered experienced (3.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Adena Friedman
President3.75yrsUS$13.87m0.20%
$ 42.1m
Steven Black
Independent Director8.83yrsUS$333.53k0.024%
$ 5.0m
Michael Splinter
Independent Chairman of the Board3.42yrsUS$490.58k0.038%
$ 8.2m
Alfred Zollar
Independent Director1.5yrsUS$299.22k0.0040%
$ 846.2k
Jacob Wallenberg
Independent Director2.5yrsUS$304.06k0.0044%
$ 935.3k
Charlene Begley
Independent Director6.42yrsUS$320.67k0.0041%
$ 863.2k
Essa Kazim Al Mulla
Independent Director12.58yrsUS$304.06k0.024%
$ 5.0m
Thomas Kloet
Independent Director5.58yrsUS$473.53k0.012%
$ 2.5m
John Rainey
Independent Director3.25yrsUS$328.61k0.0078%
$ 1.6m
Melissa Arnoldi
Independent Director3.42yrsUS$308.99k0.0081%
$ 1.7m

3.6yrs

Average Tenure

61yo

Average Age

Experienced Board: NDAQ's board of directors are considered experienced (3.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: NDAQ insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Nasdaq, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Nasdaq, Inc.
  • Ticker: NDAQ
  • Exchange: NasdaqGS
  • Founded: 1971
  • Industry: Financial Exchanges and Data
  • Sector: Diversified Financials
  • Market Cap: US$21.209b
  • Shares outstanding: 164.26m
  • Website: https://www.nasdaq.com

Number of Employees


Location

  • Nasdaq, Inc.
  • 151 West 42nd Street
  • New York
  • New York
  • 10036
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NDAQNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJul 2002
NAQDB (Deutsche Boerse AG)YesCommon StockDEEURJul 2002
NDAQDIFX (NASDAQ Dubai Limited)YesCommon StockAEUSDJul 2002
0K4TLSE (London Stock Exchange)YesCommon StockGBUSDJul 2002
NDAQ *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJul 2002
NDAQWBAG (Wiener Boerse AG)YesCommon StockATEURJul 2002
N1DA34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 2 REPR 1 COMBRBRLJan 2020

Biography

Nasdaq, Inc. operates as a technology company that serves capital markets and other industries worldwide. The company’s Market Services segment includes equity derivative trading and clearing, cash equity ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/26 05:18
End of Day Share Price2020/10/23 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.