NasdaqGS:NDAQ

Stock Analysis Report

Executive Summary

Nasdaq, Inc. provides trading, clearing, marketplace technology, regulatory, securities listing, information, and public and private company services worldwide.


Snowflake Analysis

Solid track record and fair value.


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

-2.5%

NDAQ

-8.0%

US Capital Markets

-7.4%

US Market


1 Year Return

23.8%

NDAQ

8.3%

US Capital Markets

10.5%

US Market

Return vs Industry: NDAQ exceeded the US Capital Markets industry which returned 12% over the past year.

Return vs Market: NDAQ exceeded the US Market which returned 14% over the past year.


Shareholder returns

NDAQIndustryMarket
7 Day-2.5%-8.0%-7.4%
30 Day2.4%-4.0%-3.6%
90 Day7.8%-2.1%-0.6%
1 Year26.2%23.8%10.4%8.3%12.8%10.5%
3 Year65.1%55.7%27.5%20.4%37.4%28.6%
5 Year142.0%120.3%70.2%54.4%61.3%43.6%

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?

7.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NDAQ ($114.74) is trading below our estimate of fair value ($120.92)

Significantly Below Fair Value: NDAQ is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: NDAQ is good value based on its PE Ratio (24.4x) compared to the Capital Markets industry average (33.4x).

PE vs Market: NDAQ is poor value based on its PE Ratio (24.4x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

PEG Ratio: NDAQ is poor value based on its PEG Ratio (3x)


Price to Book Ratio

PB vs Industry: NDAQ is good value based on its PB Ratio (3.3x) compared to the US Capital Markets industry average (6.6x).


Next Steps

Future Growth

How is Nasdaq forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

8.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NDAQ's forecast earnings growth (8.1% per year) is above the savings rate (1.7%).

Earnings vs Market: NDAQ's earnings (8.1% per year) are forecast to grow slower than the US market (13.1% per year).

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

Revenue vs Market: NDAQ's revenue is expected to decline over the next 3 years (-12.4% per year).

High Growth Revenue: NDAQ's revenue is forecast to decline over the next 3 years (-12.4% 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 (16.6%).


Next Steps

Past Performance

How has Nasdaq performed over the past 5 years?

13.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NDAQ has high quality earnings.

Growing Profit Margin: NDAQ's current net profit margins (18.2%) are higher than last year (10.7%).


Past Earnings Growth Analysis

Earnings Trend: NDAQ's earnings have grown by 13.7% per year over the past 5 years.

Accelerating Growth: NDAQ's earnings growth over the past year (69%) exceeds its 5-year average (13.7% per year).

Earnings vs Industry: NDAQ earnings growth over the past year (69%) exceeded the Capital Markets industry 8.4%.


Return on Equity

High ROE: NDAQ's Return on Equity (13.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Nasdaq's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: NDAQ has a low level of unsold assets or inventory.

Debt Coverage by Assets: NDAQ's debt is covered by short term assets (assets are 1.3x debt).


Financial Institutions Analysis

Asset Level: NDAQ's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if NDAQ has a sufficient allowance for bad loans.

Low Risk Liabilities: NDAQ reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if NDAQ has an acceptable proportion of non-loan assets held.

Low Risk Deposits: NDAQ has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if NDAQ has an appropriate level of bad loans.


Next Steps

Dividend

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

1.67%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Nasdaq before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company1.7%marketbottom25%1.5%markettop25%3.9%industryaverage2.1%forecastin3Years1.8%

Current dividend yield vs market & industry

Notable Dividend: NDAQ's dividend (1.64%) is higher than the bottom 25% of dividend payers in the US market (1.48%).

High Dividend: NDAQ's dividend (1.64%) is low compared to the top 25% of dividend payers in the US market (3.77%).


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 8 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (39.4%), 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 (36.9% payout ratio).


Next Steps

Management

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

3.3yrs

Average management tenure


CEO

Adena Friedman (49yo)

3.1yrs

Tenure

US$14,366,397

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 ($USD14.37M) is above average for companies of similar size in the US market ($USD10.82M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Adena Friedman
President3.1yrsUS$14.37m0.071% $13.3m
Edward Knight
Vice Chairman and Senior Advisor on Public Policy & Litigation0.3yrsUS$3.45m0.00062% $116.6k
Michael Ptasznik
Executive VP Corporate Strategy & CFO3.6yrsUS$4.35m0.011% $2.1m
Bradley Peterson
Executive VP & Chief Information Officer7yrsUS$4.58m0.0081% $1.5m
Ann Dennison
Senior VP3.8yrsno data0.0041% $765.5k
Edward Ditmire
Vice President of Investor Relations0yrsno datano data
John Zecca
Executive VP & General Counsel0.3yrsno data0.011% $2.0m
Jeremy Skule
Executive Vice President of Marketing & Communications1.8yrsno data0.00019% $35.7k
Bryan Smith
Executive VP & Chief People Officer7.5yrsno data0.0046% $872.7k
Joan Conley
Senior VP & Corporate Secretary0yrsno datano data

3.3yrs

Average Tenure

50yo

Average Age

Experienced Management: NDAQ's management team is considered experienced (3.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Adena Friedman
President3.1yrsUS$14.37m0.071% $13.3m
Edward Knight
Vice Chairman and Senior Advisor on Public Policy & Litigation0.3yrsUS$3.45m0.00062% $116.6k
Lars Wedenborn
Independent Director11.9yrsUS$338.92kno data
Steven Black
Independent Director8.2yrsUS$333.25k0.021% $4.0m
Michael Splinter
Independent Chairman of the Board2.8yrsUS$490.14k0.035% $6.6m
Charlene Begley
Independent Director5.8yrsUS$320.49k0.0025% $472.1k
Essa Kazim Al Mulla
Independent Director11.9yrsUS$303.81k0.023% $4.3m
Thomas Kloet
Independent Director4.9yrsUS$463.25k0.0095% $1.8m
John Rainey
Independent Director2.6yrsUS$329.84k0.0058% $1.1m
Melissa Arnoldi
Independent Director2.8yrsUS$309.70k0.0066% $1.2m

4.0yrs

Average Tenure

60yo

Average Age

Experienced Board: NDAQ's board of directors are considered experienced (4 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$18.808b
  • Shares outstanding: 163.92m
  • Website: https://www.business.nasdaq.com

Number of Employees


Location

  • Nasdaq, Inc.
  • 151 West 42nd Street
  • 10th floor
  • 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. provides trading, clearing, marketplace technology, regulatory, securities listing, information, and public and private company services worldwide. The company’s Market Services segment offers equity derivative trading and clearing; cash equity trading; fixed income and commodities trading and clearing; and trade management services. This segment operates various exchanges and other marketplace facilities across various asset classes; and provides broker, clearing, settlement, and central depository services. Its Corporate Services segment offers capital market and governance solutions; and liquidity solutions for private companies and private funds. This segment also operates various listing platforms, which offer capital raising solutions for private and public companies. The company’s Information Services segment sells and distributes historical and real-time quote and trade information to sell-side, the buy-side, retail online brokers, proprietary trading shops, other venues, Internet portals, and data distributors; and develops and licenses Nasdaq branded indexes, associated derivatives, and financial products, as well as provides custom calculation services. This segment also offers content and analytics for asset managers, investment consultants, and asset owners. Its Market Technology segment provides solutions for trading, clearing, settlement, surveillance, depository, and information dissemination to markets. It also provides broker services through SMARTS, a managed service designed for brokers and other market participants; and TradeGuard, a suite of products for risk management. The company was formerly known as The NASDAQ OMX Group, Inc. and changed its name to Nasdaq, Inc. in September 2015. Nasdaq, Inc. was founded in 1971 and is headquartered in New York, New York. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/26 00:16
End of Day Share Price2020/02/25 00:00
Earnings2019/12/31
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.