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Nasdaq Inc NDAQ

Morningstar Rating
$60.12 −0.17 (0.28%)
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Company Report

Nasdaq Earnings: Strong Index Revenue Offset by Weakness in Listing and Market Services

Narrow-moat-rated Nasdaq reported decent first-quarter earnings that came in a bit below our expectations as strong results from the firm’s index segment were partially offset by weakness in its exchange business. Net revenue increased 22% from last year, or 6% when adjusted for the acquisition of Adenza. Adjusted diluted earnings per share fell to $0.63 from $0.69 last year as lower trading revenue and share dilution from the Adenza acquisition weighed on results. As we incorporate these results, we do not plan to materially alter our $60 fair value estimate, and we see the shares as fairly valued.

Price vs Fair Value

NDAQ is trading within a range we consider fairly valued.
Price
$61.20
Fair Value
$58.00
Uncertainty
Medium
1-Star Price
$45.00
5-Star Price
$72.00
Economic Moat
Wtbnm
Capital Allocation
Bkjhvmph

Bulls Say, Bears Say

Bulls

Nasdaq continues to see strong growth from its newer more data-focused business lines as the company continues to invest in its data and technology offerings.

Bears

Nasdaq continues to face growing competitive pressure at its exchanges, with two new competitors launching in 2020.

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News

Trading Information

Previous Close Price
$60.29
Day Range
$59.4160.63
52-Week Range
$46.8864.25
Bid/Ask
$60.01 / $61.00
Market Cap
$34.61 Bil
Volume/Avg
4.8 Mil / 3.5 Mil

Key Statistics

Price/Earnings (Normalized)
21.24
Price/Sales
5.13
Dividend Yield (Trailing)
1.46%
Dividend Yield (Forward)
1.59%
Total Yield
2.24%

Company Profile

Founded in 1971, Nasdaq is primarily known for its equity exchange, but in addition to its market-services business (about 35% of sales), the company sells and distributes market data as well as offers Nasdaq-branded indexes to asset managers and investors through its information-services segment (30%). Nasdaq's corporate-services business (20%) offers listing services and related investor relations products to publicly traded companies and through the company's market technology group (15%), Nasdaq facilitates the exchange operations of other exchanges throughout the world and provides financial compliance services.
Sector
Financial Services
Industry
Financial Data & Stock Exchanges
Stock Style Box
Mid Core
Total Number of Employees
8,525

Competitors

Valuation

Metric
NDAQ
ICE
CME
Price/Earnings (Normalized)
21.2423.4122.59
Price/Book Value
3.202.942.80
Price/Sales
5.137.5213.49
Price/Cash Flow
18.4518.9521.37
Price/Earnings
NDAQ
ICE
CME

Financial Strength

Metric
NDAQ
ICE
CME
Quick Ratio
0.170.050.04
Current Ratio
1.011.001.02
Interest Coverage
5.734.1927.06
Quick Ratio
NDAQ
ICE
CME

Profitability

Metric
NDAQ
ICE
CME
Return on Assets (Normalized)
5.78%2.10%2.25%
Return on Equity (Normalized)
19.99%13.14%12.26%
Return on Invested Capital (Normalized)
9.86%8.05%11.30%
Return on Assets
NDAQ
ICE
CME
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Financial Data & Stock Exchanges Industry Comparables

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Name
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
SPGI
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CME
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ICE
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MCO
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LNSTY
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LDNXF
London Stock Exchange Group PLCZsqx$59.9 Bil
COIN
Coinbase Global Inc Ordinary Shares - Class AKtzkpfnLnls$57.3 Bil
MSCI
MSCI IncLvvjhhydrCyhf$37.9 Bil
FDS
FactSet Research Systems IncXywpbhtcRjpgvw$16.1 Bil

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