Nasdaq (NDAQ) AI Stock Analysis

• Market Cap: $44.88B
• Dividend Yield: 1.23%
• Average Volume (3M): 3.42M
• Price to Earnings (P/E): 35.4
• Beta (1Y): 0.76
• Revenue Growth: 25.89%
• EPS Growth: 16.37%
• Country: US
• Employees: 9,377
• Sector: Financial
• Sector Strength: 83
• Industry: Financial - Data & Stock Exchanges
• EPS (TTM): 0.79
• Shares Outstanding: 574,121,640
• 10 Day Avg. Volume: 2,797,947
• 30 Day Avg. Volume: 3,421,906
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.18
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 17.76
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $84.85
• Price Target Upside: 7.99% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 14

Nasdaq's strong financial performance and positive earnings call sentiment are key strengths, highlighting robust revenue and profit growth. Valuation concerns due to a high P/E ratio are mitigated by a decent dividend yield. Technical indicators suggest caution, with mixed signals on market momentum. Overall, Nasdaq demonstrates a solid outlook with strategic growth initiatives but faces challenges from external economic factors.

Positive Factors

Business Model

The quarter highlighted the durable nature of Nasdaq’s business model and its ability to deliver broad-based growth.

Earnings

Nasdaq reported adjusted EPS of $0.79, beating consensus of $0.77.

Technology and Services

Transformation of the business to a financial technology and services provider positions NDAQ to penetrate large and fast growing end markets.

Negative Factors

Economic Uncertainty

Some revenue weakness is expected in the near term from heightened economic uncertainty and a tough market for the listings business.

Sales Cycles

There is a concern regarding elongated sales cycles in the company's Calypso business, which is likely to persist.

Share Pressure

The expiration of Thoma Bravo’s 43M shares lockup could present additional pressure on the stock.

Nasdaq Business Overview & Revenue Model

Company Description

Nasdaq, Inc. operates as a technology company that serves capital markets and other industries worldwide. The Market Technology segment includes anti financial crime technology business, which offers Nasdaq Trade Surveillance, a SaaS solution for brokers and other market participants to assist them in complying with market rules, regulations, and internal market surveillance policies; Nasdaq Automated Investigator, a cloud-deployed anti-money laundering tool; and Verafin, a SaaS technology provider of anti-financial crime management solutions. This segment also handles assets, such as cash equities, equity derivatives, currencies, interest-bearing securities, commodities, energy products, and digital currencies. The Investment Intelligence segment sells and distributes historical and real-time market data; develops and licenses Nasdaq-branded indexes and financial products; and provides investment insights and workflow solutions. The Corporate Platforms segment operates listing platforms; and offers investor relations intelligence and governance solutions. As of December 31, 2021, it had 4,178 companies listed securities on The Nasdaq Stock Market, including 1,632 listings on The Nasdaq Global Select Market; 1,169 on The Nasdaq Global Market; and 1,377 on The Nasdaq Capital Market. 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. This segment operates various exchanges and other marketplace facilities across various asset classes, which include derivatives, commodities, cash equity, debt, structured products, and exchange traded products; and provides broker, clearing, settlement, and central depository services. 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.

How the Company Makes Money

Nasdaq makes money through multiple revenue streams. Its primary source of revenue comes from transaction fees charged for trading on its exchange platforms. Additionally, Nasdaq generates income from listing fees paid by companies to list their stocks on its exchanges. The company also earns revenue by providing market data and analytics services to financial institutions and investors. Another significant source of revenue is its technology solutions, where Nasdaq licenses its trading and clearing technology to other exchanges and financial entities. Furthermore, Nasdaq has diversified into offering corporate solutions, such as investor relations and governance services, to listed companies. Strategic partnerships and acquisitions in fintech and data analytics have also bolstered its revenue streams.

Nasdaq Financial Statement Overview

Summary

Nasdaq exhibits robust financial performance with strong profitability, effective cash management, and consistent revenue growth. The balance sheet reflects stability, though increasing liabilities warrant attention. Overall, the company's financial health is solid, driven by efficient operational execution and strategic investments.

Income Statement

Nasdaq demonstrates strong profitability with a Gross Profit Margin of 54.8% and a Net Profit Margin of 16.4% for TTM. Revenue has grown by 5.6% over the past year, indicating a positive growth trajectory. The EBIT and EBITDA margins are robust at 25.5% and 32.3% respectively, showcasing efficient operational management. However, Gross Profit Margin has decreased compared to the previous year, indicating rising costs.

Balance Sheet

Nasdaq maintains a moderate Debt-to-Equity Ratio of 0.84, reflecting a balanced approach to leveraging. The Return on Equity stands at 11.1%, indicating efficient use of equity to generate profits. With an Equity Ratio of 37.7%, Nasdaq shows good financial stability, although there has been a slight increase in total liabilities over assets, which could pose a risk if not managed.

Cash Flow

The company has shown a 7.1% growth in Free Cash Flow, indicating effective cash generation capabilities. The Operating Cash Flow to Net Income Ratio is 1.62, suggesting strong cash flow relative to net income. The Free Cash Flow to Net Income Ratio of 1.45 further underscores solid cash management. However, continued investment activities resulting in negative investing cash flow could warrant monitoring.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
7.40B	6.06B	6.23B	5.89B	5.63B
	Gross Profit
2.99B	3.90B	2.58B	2.48B	2.12B
	EBIT
1.80B	1.58B	1.56B	1.44B	1.23B
	EBITDA
2.56B	2.00B	1.95B	1.90B	1.55B
	Net Income Common Stockholders
1.12B	1.06B	1.13B	1.19B	933.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
776.00M	473.00M	683.00M	601.00M	2.94B
	Total Assets
30.39B	32.29B	20.87B	20.11B	17.98B
	Total Debt
9.87B	10.87B	5.85B	6.22B	5.93B
	Net Debt
9.28B	10.42B	5.35B	5.82B	3.19B
	Total Liabilities
19.20B	21.47B	14.70B	13.71B	11.54B
	Stockholders Equity
11.19B	10.82B	6.15B	6.39B	6.43B
Cash Flow		Free Cash Flow
1.73B	1.54B	1.55B	920.00M	1.06B
	Operating Cash Flow
1.94B	1.70B	1.71B	1.08B	1.25B
	Investing Cash Flow
-953.00M	-5.99B	49.00M	-2.65B	-231.00M
	Financing Cash Flow
-2.56B	4.22B	1.04B	1.42B	1.38B

Nasdaq Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 78.57
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NDAQ, the sentiment is Positive. The current price of 78.57 is above the 20-day moving average (MA) of 74.35, above the 50-day MA of 75.01, and above the 200-day MA of 75.12, indicating a bullish trend. The MACD of 1.06 indicates Negative momentum. The RSI at 62.55 is Neutral, neither overbought nor oversold. The STOCH value of 92.08 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NDAQ.

Nasdaq Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CME	79 Outperform	$101.97B	28.41	13.40%	3.71%	11.72%	13.31%
ICE	79 Outperform	$99.50B	35.92	10.27%	1.04%	13.25%	10.82%
CBOE	78 Outperform	$24.43B	30.37	18.93%	1.04%	15.76%	1.97%
NDAQ	77 Outperform	$44.88B	35.45	11.43%	1.23%	25.89%	16.37%
SPGI	76 Outperform	$153.91B	39.72	11.68%	0.73%	12.98%	42.72%
MSCI	66 Neutral	$42.18B	37.85	-117.99%	1.21%	11.67%	-0.89%
Sector *	64 Neutral	$12.51B	9.81	7.92%	16985.69%	12.67%	-5.98%

Nasdaq Corporate Events

Nasdaq Reports Strong Q1 2025 Financial Results

On April 24, 2025, Nasdaq reported its financial results for the first quarter of 2025, showcasing a net revenue increase of 11% year-over-year to $1.2 billion, driven by growth across its divisions. The company highlighted strong performance in its Financial Technology and Index services, with significant growth in annualized recurring revenue and earnings per share. Nasdaq returned $138 million to shareholders through dividends and $115 million through stock repurchases, while also repurchasing $279 million of senior unsecured notes. The results underscore Nasdaq’s resilience and strategic focus on sustainable growth, leveraging its complementary solutions to navigate complex economic conditions.

Spark’s Take on NDAQ Stock

According to Spark, TipRanks’ AI Analyst, NDAQ is a Outperform.

Nasdaq’s strong financial performance and positive earnings call sentiment are key drivers of its stock score, highlighting robust revenue and profit growth. However, technical analysis reveals bearish trends, and the high P/E ratio suggests limited immediate upside potential. While the dividend yield adds value, potential regulatory challenges and corporate solutions issues present risks.

To see Spark’s full report on NDAQ stock, click here.

Nasdaq Extends Executive Contracts Through 2030

On March 10 and 11, 2025, Nasdaq, Inc. announced new employment agreements with key executives Adena T. Friedman, Tal Cohen, and Bradley J. Peterson, extending their roles through 2030 and 2028, respectively. These agreements include substantial compensation packages, equity awards, and severance benefits, reflecting Nasdaq’s commitment to retaining top leadership and ensuring stability in its executive team. The agreements also outline specific terms for termination and retirement, emphasizing continuity in leadership amid potential changes in control, which could impact Nasdaq’s strategic direction and reassure stakeholders of consistent governance.