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NDAQ (Nasdaq) Piotroski F-Score : 6 (As of Oct. 31, 2024)


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What is Nasdaq Piotroski F-Score?

The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Nasdaq has an F-score of 6 indicating the company's financial situation is typical for a stable company.

The historical rank and industry rank for Nasdaq's Piotroski F-Score or its related term are showing as below:

NDAQ' s Piotroski F-Score Range Over the Past 10 Years
Min: 3   Med: 6   Max: 7
Current: 6

During the past 13 years, the highest Piotroski F-Score of Nasdaq was 7. The lowest was 3. And the median was 6.


Nasdaq Piotroski F-Score Historical Data

The historical data trend for Nasdaq's Piotroski F-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Nasdaq Piotroski F-Score Chart

Nasdaq Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Piotroski F-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 7.00 6.00 4.00 6.00 5.00

Nasdaq Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
Piotroski F-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 6.00 5.00 5.00 5.00 6.00

Competitive Comparison of Nasdaq's Piotroski F-Score

For the Financial Data & Stock Exchanges subindustry, Nasdaq's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Nasdaq's Piotroski F-Score Distribution in the Capital Markets Industry

For the Capital Markets industry and Financial Services sector, Nasdaq's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where Nasdaq's Piotroski F-Score falls into.


How is the Piotroski F-Score calculated?

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Sep24) TTM:Last Year (Sep23) TTM:
Net Income was 197 + 234 + 222 + 306 = $959 Mil.
Cash Flow from Operations was 417 + 530 + 460 + 244 = $1,651 Mil.
Revenue was 1647 + 1674 + 1792 + 1902 = $7,015 Mil.
Gross Profit was 740 + 701 + 744 + 734 = $2,919 Mil.
Average Total Assets from the begining of this year (Sep23)
to the end of this year (Sep24) was
(24350 + 32294 + 30267 + 30210 + 30560) / 5 = $29536.2 Mil.
Total Assets at the begining of this year (Sep23) was $24,350 Mil.
Long-Term Debt & Capital Lease Obligation was $9,758 Mil.
Total Current Assets was $7,558 Mil.
Total Current Liabilities was $7,933 Mil.
Net Income was 241 + 302 + 267 + 294 = $1,104 Mil.

Revenue was 1582 + 1533 + 1433 + 1451 = $5,999 Mil.
Gross Profit was 588 + 595 + 599 + 613 = $2,395 Mil.
Average Total Assets from the begining of last year (Sep22)
to the end of last year (Sep23) was
(22941 + 20868 + 20775 + 25657 + 24350) / 5 = $22918.2 Mil.
Total Assets at the begining of last year (Sep22) was $22,941 Mil.
Long-Term Debt & Capital Lease Obligation was $10,115 Mil.
Total Current Assets was $12,351 Mil.
Total Current Liabilities was $7,048 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Nasdaq's current Net Income (TTM) was 959. ==> Positive ==> Score 1.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Nasdaq's current Cash Flow from Operations (TTM) was 1,651. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets (Sep23)
=959/24350
=0.03938398

ROA (Last Year)=Net Income/Total Assets (Sep22)
=1104/22941
=0.04812345

Nasdaq's return on assets of this year was 0.03938398. Nasdaq's return on assets of last year was 0.04812345. ==> Last year is higher ==> Score 0.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

Nasdaq's current Net Income (TTM) was 959. Nasdaq's current Cash Flow from Operations (TTM) was 1,651. ==> 1,651 > 959 ==> CFROA > ROA ==> Score 1.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Sep24)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Sep23 to Sep24
=9758/29536.2
=0.33037425

Gearing (Last Year: Sep23)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Sep22 to Sep23
=10115/22918.2
=0.44135229

Nasdaq's gearing of this year was 0.33037425. Nasdaq's gearing of last year was 0.44135229. ==> This year is lower or equal to last year. ==> Score 1.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

Current Ratio (This Year: Sep24)=Total Current Assets/Total Current Liabilities
=7558/7933
=0.95272911

Current Ratio (Last Year: Sep23)=Total Current Assets/Total Current Liabilities
=12351/7048
=1.75241203

Nasdaq's current ratio of this year was 0.95272911. Nasdaq's current ratio of last year was 1.75241203. ==> Last year's current ratio is higher ==> Score 0.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

Nasdaq's number of shares in issue this year was 579.017. Nasdaq's number of shares in issue last year was 494.112. ==> There is larger number of shares in issue this year. ==> Score 0.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=2919/7015
=0.41610834

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=2395/5999
=0.39923321

Nasdaq's gross margin of this year was 0.41610834. Nasdaq's gross margin of last year was 0.39923321. ==> This year's gross margin is higher. ==> Score 1.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (Sep23)
=7015/24350
=0.28809035

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Sep22)
=5999/22941
=0.26149688

Nasdaq's asset turnover of this year was 0.28809035. Nasdaq's asset turnover of last year was 0.26149688. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+0+1+1+0+0+1+1
=6

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Nasdaq has an F-score of 6 indicating the company's financial situation is typical for a stable company.

Nasdaq  (NAS:NDAQ) Piotroski F-Score Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


Nasdaq Piotroski F-Score Related Terms

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Nasdaq Business Description

Address
151 W. 42nd Street, New York, NY, USA, 10036
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.
Executives
John Zecca officer: Executive Vice President 151 W. 42ND STREET, NEW YORK NY 10036
Bradley J Peterson officer: Executive Vice President ONE LIBERTY PLAZA, NEW YORK NY 10006
Adenza Parent, Lp director, 10 percent owner ONE MARKET PLAZA, SPEAR TOWER, SUITE 2400, SAN FRANCISCO CA 94150
Bryan Everard Smith officer: Executive Vice President 151 W. 42ND STREET, NEW YORK NY 10036
Borse Dubai Ltd 10 percent owner LEVEL 7, PRECINCT BLDG 5, GATE DISTRICT, PO BOX 506690, DUBAI INTL FINANCIAL CTR, DUBAI C0 00000
Spaht Paul Holden Jr. director 600 MONTGOMERY STREET, 20TH FLOOR, SAN FRANCISCO CA 94111
Thoma Bravo Ugp, Llc director, 10 percent owner 110 N. WACKER DRIVE, 32ND FLOOR, CHICAGO IL 60606
Ann M Dennison officer: Controller and Prin Acctg Ofcr ONE LIBERTY PLAZA, NEW YORK NY 10006
Johan Torgeby director 151 W. 42ND STREET, NEW YORK NY 10036
Jeffery W Yabuki director 255 FISERV DRIVE, BROOKFIELD WI 53045
Adena T Friedman officer: Executive Vice President 1801 K STREET, N.W., WASHINGTON DC 20006
Michael R Splinter director
Steven D Black director C/O JPMORGAN CHASE & CO., 270 PARK AVENUE, NEW YORK NY 10017
Michelle Lynn Daly officer: Controller and Prin Acctg Ofcr 151 W. 42ND STREET, NEW YORK NY 10036
Brendan Brothers officer: Interim Head of AFC 151 W. 42ND STREET, NEW YORK NY 10036