NDAQ
Nasdaq, Inc.
Financial Services · Financial Data & Stock Exchanges · United States · Stock
Score Breakdown
Scored for Aggressive Growth profile
Sub-scores are 0–20 each; Model Score is weighted by your selected investment goal. How it works →
Why Ranked Here
- The combined momentum (18.0) and growth (17.5) sub-scores account for over 35 of the 71.4 total points, anchoring the score in demonstrably improving quarterly and annual financial performance as filed with the SEC.
- The profitability sub-score of 16.0/20 confirms that Nasdaq generates meaningful operating and net margins, adding score stability beyond pure growth metrics and reflecting the high-margin nature of exchange and technology infrastructure businesses.
- The dividend sub-score of 13.8/20 contributes positively by reflecting a history of growing dividends per share with free cash flow coverage, which adds credibility to the quality of reported earnings.
Why Not Higher
- The financial health sub-score of 14.0/20 is the primary drag on the composite score, reflecting leverage and balance sheet conditions that do not meet the threshold for a top-tier rating, most likely tied to debt assumed in major technology acquisitions.
- The theme sub-score of 0.0 means the model awarded no points for macro thematic exposure, and since theme scores can contribute up to 20 points, this cap significantly limits how high the composite score can climb regardless of strong operational metrics.
Data Confidence
10 / 10
Very High — full data coverage
Research Summary
AI-generated analysis reflects data and conditions as of the report date shown above. Verify any specific figures through primary sources before acting on this analysis.
Nasdaq, Inc. is a global technology company and financial infrastructure provider that operates exchanges, clearinghouses, and market data platforms, and is perhaps best known for operating the Nasdaq Stock Market — one of the world's largest equity exchanges. Beyond its exchange business, Nasdaq has evolved into a diversified financial technology firm, offering market data and analytics, anti-financial crime software, regulatory technology, and corporate services to clients spanning exchanges, banks, asset managers, and regulators worldwide. This transformation from a pure-play exchange operator toward a recurring-revenue SaaS and analytics model is central to understanding its filing-derived fundamentals. The model assigned NDAQ a score of 71.4/100 driven by particularly strong momentum (18.0/20) and growth (17.5/20) sub-scores, reflecting measurable quarterly improvements in revenue and earnings alongside year-over-year expansion in revenue, net income, and EPS as reported in the FY2025 10-K. Profitability (16.0/20) and financial health (14.0/20) are solid but not exceptional, reflecting the reality that Nasdaq carries meaningful debt on its balance sheet — likely tied to strategic acquisitions such as the large Adenza acquisition — which tempers the financial health score. The dividend sub-score (13.8/20) signals consistent and growing cash returns to shareholders with reasonable free cash flow coverage, though not at the top tier. The theme score of 0.0 indicates no macro theme exposure was flagged in this scoring model version, which limits the composite ceiling. The central research tradeoff for NDAQ is the tension between its genuinely strong operating momentum and growth trajectory — particularly as its high-margin technology and analytics businesses scale — and the elevated leverage that accompanies its acquisition-driven expansion strategy. This positions NDAQ most favorably under an aggressive growth research profile (76.5), where the growth and momentum signals are rewarded, while the safe long-term investing profile scores it lower (68.1) due to balance sheet considerations.
Plain English
Nasdaq, Inc. is the company that runs the Nasdaq stock exchange but has also built a large business selling financial technology, market data, and software to banks, regulators, and other exchanges around the world. A model score of 71.4 out of 100 means the company scores well on growth and recent earnings momentum but has some balance sheet weight from debt that holds the score back from being higher. The Medium risk rating reflects that this is a real, established business with improving fundamentals, but it carries leverage that adds financial risk. It fits best as a research candidate for those studying aggressive growth-oriented opportunities rather than conservative income plays.
Bull Case vs. Bear Case
Bull Case
- The momentum sub-score of 18.0/20 — the highest sub-score in the model — indicates consistent quarterly improvement in revenue, earnings, and margins as captured in the FY2025 10-K, suggesting the company's financial trajectory is accelerating rather than plateauing.
- The growth sub-score of 17.5/20 reflects strong year-over-year expansion in revenue, net income, and EPS, supported by Nasdaq's ongoing shift toward higher-margin, recurring-revenue technology and analytics segments that tend to compound more predictably than transaction-based exchange revenues.
- The dividend sub-score of 13.8/20 signals that Nasdaq maintains a track record of growing dividend payments per share backed by adequate free cash flow coverage, demonstrating financial discipline and shareholder returns even while investing heavily in growth.
Bear Case
- The financial health sub-score of 14.0/20 is the weakest non-theme metric in the model and likely reflects elevated leverage ratios resulting from debt-funded acquisitions, meaning the balance sheet carries measurable risk that could constrain financial flexibility in a tighter credit environment.
- The profitability sub-score of 16.0/20, while above average, is not top-tier, indicating that net and operating margins or return on assets have not yet reached the levels that would suggest the full earnings power of the combined technology and exchange businesses has been unlocked.
- The theme sub-score of 0.0 means no macro thematic tailwinds were identified in the scoring model for NDAQ, which limits the composite model score ceiling and suggests the research case rests primarily on execution rather than structural macro drivers.
What Could Change the Picture
Bullish Triggers
- Evidence in future filings of meaningful debt reduction and improved leverage and interest coverage ratios would likely lift the financial health sub-score and push the composite model score materially higher.
- Acceleration in revenue growth and margin expansion within the technology and analytics segments — particularly if reflected in higher net income and EPS growth rates in subsequent annual filings — would strengthen the already-high growth and profitability sub-scores.
Bearish Triggers
- A reversal in the quarterly momentum trend — such as declining revenue or compressing margins appearing in future 10-K filings — would directly erode the 18.0 momentum sub-score, which is the single largest contributor to the current composite score.
- Any material increase in debt levels, deterioration in interest coverage, or impairment charges related to acquired assets would further weaken the financial health sub-score and raise concerns about balance sheet sustainability.
Red Flags
- The financial health sub-score of 14.0/20 raises a specific concern around leverage, as large acquisition-related debt loads can pressure interest coverage ratios and limit strategic flexibility if revenue growth were to decelerate.
Risk Profile
Medium RiskThe Medium risk rating for NDAQ reflects a business with strong and improving operational fundamentals offset by meaningful acquisition-related debt on the balance sheet, creating a profile where the core business is resilient but financial leverage introduces vulnerability to earnings or credit market shocks. This is not a high-risk speculative profile, but it is not the conservative, low-leverage profile that would warrant a low risk designation.
Key Catalysts to Watch
The primary catalyst to monitor is Nasdaq's ability to demonstrate sustained integration and margin expansion from its technology acquisitions in future regulatory filings, as this would directly improve both profitability and financial health sub-scores. Secondary catalysts include progress on debt reduction and any acceleration in recurring-revenue SaaS segment growth rates visible in subsequent annual 10-K disclosures.
This report is for educational and research purposes only. It does not constitute financial, investment, legal, or tax advice — always conduct your own due diligence before making investment decisions.