company background image
NDAQ

NasdaqNasdaqGS:NDAQ Stock Report

Last Price

US$181.11

Market Cap

US$30.3b

7D

-6.3%

1Y

26.1%

Updated

19 Jan, 2022

Data

Company Financials +
NDAQ fundamental analysis
Snowflake Score
Valuation1/6
Future Growth2/6
Past Performance4/6
Financial Health1/6
Dividends4/6

NDAQ Stock Overview

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

Nasdaq Competitors

CME Group

NasdaqGS:CME

US$82.5b

Moody's

NYSE:MCO

US$64.4b

MSCI

NYSE:MSCI

US$42.3b

Tradeweb Markets

NasdaqGS:TW

US$21.2b

Price History & Performance

Summary of all time highs, changes and price drops for Nasdaq
Historical stock prices
Current Share PriceUS$181.11
52 Week HighUS$214.96
52 Week LowUS$134.21
Beta0.83
1 Month Change-8.76%
3 Month Change-8.93%
1 Year Change26.06%
3 Year Change113.75%
5 Year Change165.01%
Change since IPO1,107.40%

Recent News & Updates

Jan 20

Nasdaq - 20%+ Underperformance, This Is A 'Hold'

It's time to update the overall thesis on Nasdaq (Not the index, but the company). I called this one a firm "HOLD" back in October. Based on recent historical underperformance of double digits, and my own outperformance of this by close to 28%, it was clearly the right choice. There's no doubt to my mind that Nasdaq is a solid business - just not investable at any price. Let's see why the thesis hasn't changed.

Jan 03
Does Nasdaq (NASDAQ:NDAQ) Deserve A Spot On Your Watchlist?

Does Nasdaq (NASDAQ:NDAQ) Deserve A Spot On Your Watchlist?

It's only natural that many investors, especially those who are new to the game, prefer to buy shares in 'sexy' stocks...

Shareholder Returns

NDAQUS Capital MarketsUS Market
7D-6.3%-5.5%-4.6%
1Y26.1%24.6%7.7%

Return vs Industry: NDAQ matched the US Capital Markets industry which returned 25.7% over the past year.

Return vs Market: NDAQ exceeded the US Market which returned 10.2% over the past year.

Price Volatility

Is NDAQ's price volatile compared to industry and market?
NDAQ volatility
NDAQ Average Weekly Movement3.3%
Capital Markets Industry Average Movement0.7%
Market Average Movement6.6%
10% most volatile stocks in US Market15.7%
10% least volatile stocks in US Market2.4%

Stable Share Price: NDAQ is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: NDAQ's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19715,764Adena Friedmanhttps://www.nasdaq.com

Nasdaq, Inc. operates as a technology company that serves capital markets and other industries worldwide. It operates through four segments: Market Services, Corporate Platforms, Investment Intelligence, and Market Technology. The Market Services segment includes equity derivative trading and clearing, cash equity trading, fixed income and commodities trading and clearing, and trade management service businesses.

Nasdaq Fundamentals Summary

How do Nasdaq's earnings and revenue compare to its market cap?
NDAQ fundamental statistics
Market CapUS$30.29b
Earnings (TTM)US$1.15b
Revenue (TTM)US$5.88b

26.3x

P/E Ratio

5.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
NDAQ income statement (TTM)
RevenueUS$5.88b
Cost of RevenueUS$2.56b
Gross ProfitUS$3.32b
ExpensesUS$2.17b
EarningsUS$1.15b

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

Jan 26, 2022

Earnings per share (EPS)6.90
Gross Margin56.47%
Net Profit Margin19.60%
Debt/Equity Ratio93.3%

How did NDAQ perform over the long term?

See historical performance and comparison

Dividends

1.2%

Current Dividend Yield

30%

Payout Ratio

Valuation

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

26.27x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: NDAQ ($181.11) is trading above our estimate of fair value ($170.46)

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 (26.3x) compared to the US Capital Markets industry average (15.5x).

PE vs Market: NDAQ is poor value based on its PE Ratio (26.3x) compared to the US market (17x).


Price to Earnings Growth Ratio

PEG Ratio: NDAQ is poor value based on its PEG Ratio (9.5x)


Price to Book Ratio

PB vs Industry: NDAQ is good value based on its PB Ratio (4.8x) compared to the US Capital Markets industry average (42.2x).


Future Growth

How is Nasdaq forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

2.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NDAQ's forecast earnings growth (2.8% per year) is above the savings rate (2%).

Earnings vs Market: NDAQ's earnings (2.8% per year) are forecast to grow slower than the US market (13% per year).

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

Revenue vs Market: NDAQ's revenue (2.5% per year) is forecast to grow slower than the US market (9.2% per year).

High Growth Revenue: NDAQ's revenue (2.5% 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 high in 3 years time (20.2%)


Past Performance

How has Nasdaq performed over the past 5 years?

25.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NDAQ has high quality earnings.

Growing Profit Margin: NDAQ's current net profit margins (19.6%) are higher than last year (17.4%).


Past Earnings Growth Analysis

Earnings Trend: NDAQ's earnings have grown significantly by 25.4% per year over the past 5 years.

Accelerating Growth: NDAQ's earnings growth over the past year (26.6%) exceeds its 5-year average (25.4% per year).

Earnings vs Industry: NDAQ earnings growth over the past year (26.6%) underperformed the Capital Markets industry 86.4%.


Return on Equity

High ROE: NDAQ's Return on Equity (18.1%) is considered low.


Financial Health

How is Nasdaq's financial position?


Financial Position Analysis

Short Term Liabilities: NDAQ's short term assets ($5.5B) do not cover its short term liabilities ($5.6B).

Long Term Liabilities: NDAQ's short term assets ($5.5B) do not cover its long term liabilities ($6.4B).


Debt to Equity History and Analysis

Debt Level: NDAQ's net debt to equity ratio (88.2%) is considered high.

Reducing Debt: NDAQ's debt to equity ratio has increased from 64.5% to 93.3% over the past 5 years.

Debt Coverage: NDAQ's debt is not well covered by operating cash flow (19.1%).

Interest Coverage: NDAQ's interest payments on its debt are well covered by EBIT (13.4x coverage).


Balance Sheet


Dividend

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

1.19%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: NDAQ's dividend (1.19%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.35%).

High Dividend: NDAQ's dividend (1.19%) is low compared to the top 25% of dividend payers in the US market (3.48%).


Stability and Growth of Payments

Stable Dividend: NDAQ's dividends per share have been stable in the past 10 years.

Growing Dividend: NDAQ's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (29.5%), 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 (31.2% payout ratio).


Next Steps

Management

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

2.6yrs

Average management tenure


CEO

Adena Friedman (51 yo)

7.58yrs

Tenure

US$15,807,618

Compensation

Ms. Adena T. Friedman has been the President of Nasdaq, Inc. since June 16, 2014 and its Chief Executive Officer and Director since January 1, 2017. She serves as Director at FCLT Global. Ms. Friedman has...


CEO Compensation Analysis

Compensation vs Market: Adena's total compensation ($USD15.81M) is above average for companies of similar size in the US market ($USD11.29M).

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


Leadership Team

Experienced Management: NDAQ's management team is considered experienced (2.6 years average tenure).


Board Members

Experienced Board: NDAQ's board of directors are considered experienced (5 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 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
  • Implied Market Cap: US$30.286b
  • Shares outstanding: 167.22m
  • Website: https://www.nasdaq.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/19 23:37
End of Day Share Price2022/01/19 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


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.