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Why NVIDIA CORP (NASDAQ:NVDA) qualifies as a quality stock.

By Mill Chart

Last update: May 1, 2024

Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if NVIDIA CORP (NASDAQ:NVDA) is suited for quality investing. Investors should of course do their own research, but we spotted NVIDIA CORP showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.

Why NASDAQ:NVDA may be interesting for quality investors.

  • NVIDIA CORP has shown strong performance in revenue growth over the past 5 years, with a 39.06% increase. This indicates the company's ability to generate consistent revenue growth and reflects its potential for long-term success.
  • NVIDIA CORP exhibits a strong ROIC excluding cash and goodwill, indicating efficient capital utilization and profitable operations. The 123.0% reflects the company's ability to generate returns on invested capital and underscores its commitment to delivering value to shareholders.
  • With a Debt/Free Cash Flow Ratio of 0.36, NVIDIA CORP exhibits solid financial health and responsible debt management practices. This ratio indicates the company's ability to generate ample free cash flow to meet its debt obligations and pursue growth opportunities.
  • The Profit Quality (5-year) of NVIDIA CORP stands at 105.0%, highlighting its ability to consistently generate reliable profits. This metric underscores the company's strong business fundamentals and reinforces its position as a financially stable entity.
  • NVIDIA CORP has experienced impressive EBIT growth over the past 5 years, with 54.6% increase. This reflects the company's effective operational performance and highlights its potential for long-term financial success.
  • NVIDIA CORP demonstrates a remarkable trend where its EBIT 5-year growth exceeds its Revenue 5-year growth. This indicates the company's ability to enhance its profitability through improved cost control and operational efficiency.

Fundamental analysis of NASDAQ:NVDA

ChartMill assigns a proprietary Fundamental Rating to each stock. The score is computed daily by evaluating various fundamental indicators and properties. The score ranges from 0 to 10.

NVDA gets a fundamental rating of 8 out of 10. The analysis compared the fundamentals against 107 industry peers in the Semiconductors & Semiconductor Equipment industry. NVDA scores excellent points on both the profitability and health parts. This is a solid base for a good stock. NVDA is growing strongly while it is still valued neutral. This is a good combination! This makes NVDA very considerable for growth and quality investing!

Our latest full fundamental report of NVDA contains the most current fundamental analsysis.

More ideas for quality investing can be found on ChartMill in our Caviar Cruise screen.

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.

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NVIDIA CORP

NASDAQ:NVDA (5/17/2024, 7:16:59 PM)

After market: 925.76 +0.97 (+0.1%)

924.79

-18.8 (-1.99%)

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