NVIDIA CORP (NVDA)
US67066G1040 - Common Stock
Taking everything into account, NVDA scores 8 out of 10 in our fundamental rating. NVDA was compared to 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! These ratings would make NVDA suitable for growth and quality investing!
1. Profitability
1.1 Basic Checks
In the past year NVDA was profitable.
In the past year NVDA had a positive cash flow from operations.
NVDA had positive earnings in each of the past 5 years.
In the past 5 years NVDA always reported a positive cash flow from operatings.
1.2 Ratios
NVDA's Return On Assets of 45.28% is amongst the best of the industry. NVDA outperforms 100.00% of its industry peers.
The Return On Equity of NVDA (69.24%) is better than 98.11% of its industry peers.
With an excellent Return On Invested Capital value of 52.66%, NVDA belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for NVDA is significantly above the industry average of 10.53%.
The last Return On Invested Capital (52.66%) for NVDA is above the 3 year average (31.07%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 45.28% | ||
| ROE | 69.24% | ||
| ROIC | 52.66% |
ROA(3y)25.98%
ROA(5y)21.83%
ROE(3y)41.88%
ROE(5y)34.84%
ROIC(3y)31.07%
ROIC(5y)25.18%
1.3 Margins
Looking at the Profit Margin, with a value of 48.85%, NVDA belongs to the top of the industry, outperforming 98.11% of the companies in the same industry.
In the last couple of years the Profit Margin of NVDA has grown nicely.
NVDA's Operating Margin of 54.12% is amongst the best of the industry. NVDA outperforms 99.06% of its industry peers.
In the last couple of years the Operating Margin of NVDA has grown nicely.
NVDA's Gross Margin of 72.72% is amongst the best of the industry. NVDA outperforms 92.45% of its industry peers.
In the last couple of years the Gross Margin of NVDA has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 54.12% | ||
| PM (TTM) | 48.85% | ||
| GM | 72.72% |
OM growth 3Y25.23%
OM growth 5Y11.18%
PM growth 3Y23.43%
PM growth 5Y6.69%
GM growth 3Y5.34%
GM growth 5Y3.8%
2. Health
2.1 Basic Checks
NVDA has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
NVDA has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for NVDA has been increased compared to 5 years ago.
The debt/assets ratio for NVDA has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 63.54 indicates that NVDA is not in any danger for bankruptcy at the moment.
The Altman-Z score of NVDA (63.54) is better than 98.11% of its industry peers.
NVDA has a debt to FCF ratio of 0.36. This is a very positive value and a sign of high solvency as it would only need 0.36 years to pay back of all of its debts.
NVDA has a better Debt to FCF ratio (0.36) than 81.13% of its industry peers.
NVDA has a Debt/Equity ratio of 0.20. This is a healthy value indicating a solid balance between debt and equity.
NVDA's Debt to Equity ratio of 0.20 is in line compared to the rest of the industry. NVDA outperforms 49.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 0.36 | ||
| Altman-Z | 63.54 |
ROIC/WACC4.21
WACC12.51%
2.3 Liquidity
NVDA has a Current Ratio of 4.17. This indicates that NVDA is financially healthy and has no problem in meeting its short term obligations.
NVDA's Current ratio of 4.17 is fine compared to the rest of the industry. NVDA outperforms 68.87% of its industry peers.
NVDA has a Quick Ratio of 3.67. This indicates that NVDA is financially healthy and has no problem in meeting its short term obligations.
NVDA has a better Quick ratio (3.67) than 66.98% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.17 | ||
| Quick Ratio | 3.67 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 289.49% over the past year.
The Earnings Per Share has been growing by 50.90% on average over the past years. This is a very strong growth
Looking at the last year, NVDA shows a very strong growth in Revenue. The Revenue has grown by 125.85%.
Measured over the past years, NVDA shows a very strong growth in Revenue. The Revenue has been growing by 39.06% on average per year.
EPS 1Y (TTM)289.49%
EPS 3Y73.17%
EPS 5Y50.9%
EPS growth Q2Q486.36%
Revenue 1Y (TTM)125.85%
Revenue growth 3Y54.02%
Revenue growth 5Y39.06%
Revenue growth Q2Q265.28%
3.2 Future
The Earnings Per Share is expected to grow by 28.56% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 27.79% on average over the next years. This is a very strong growth
EPS Next Y92.53%
EPS Next 2Y55.22%
EPS Next 3Y42.74%
EPS Next 5Y28.56%
Revenue Next Year85.65%
Revenue Next 2Y51.67%
Revenue Next 3Y40.02%
Revenue Next 5Y27.79%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 69.71, NVDA can be considered very expensive at the moment.
NVDA's Price/Earnings ratio is in line with the industry average.
NVDA's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 28.05.
A Price/Forward Earnings ratio of 36.21 indicates a quite expensive valuation of NVDA.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NVDA is on the same level as its industry peers.
NVDA's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 20.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 69.71 | ||
| Fwd PE | 36.21 |
4.2 Price Multiples
NVDA's Enterprise Value to EBITDA is on the same level as the industry average.
NVDA's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 83.65 | ||
| EV/EBITDA | 64.64 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
NVDA has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as NVDA's earnings are expected to grow with 42.74% in the coming years.
PEG (NY)0.75
PEG (5Y)1.37
EPS Next 2Y55.22%
EPS Next 3Y42.74%
5. Dividend
5.1 Amount
With a yearly dividend of 0.02%, NVDA is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.04, NVDA pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.02, NVDA pays less dividend than the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.02% |
5.2 History
The dividend of NVDA has a limited annual growth rate of 0.91%.
NVDA has paid a dividend for at least 10 years, which is a reliable track record.
NVDA has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)0.91%
Div Incr Years0
Div Non Decr Years11
5.3 Sustainability
NVDA pays out 1.33% of its income as dividend. This is a sustainable payout ratio.
The dividend of NVDA is growing, but earnings are growing more, so the dividend growth is sustainable.
DP1.33%
EPS Next 2Y55.22%
EPS Next 3Y42.74%
NVIDIA CORP
NASDAQ:NVDA (5/8/2024, 7:09:34 PM)
Premarket: 897.03 -7.09 (-0.78%)904.12
-1.42 (-0.16%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
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Market Cap2260.30B
Analysts
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Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.02% |
Dividend Growth(5Y)
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Surprises & Revisions
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 69.71 | ||
| Fwd PE | 36.21 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
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EPS(NY)
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SpS
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PEG (NY)0.75
PEG (5Y)1.37
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 45.28% | ||
| ROE | 69.24% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 54.12% | ||
| PM (TTM) | 48.85% | ||
| GM | 72.72% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
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ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
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F-Score
Asset Turnover0.93
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 4.17 | ||
| Quick Ratio | 3.67 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)289.49%
EPS 3Y73.17%
EPS 5Y
EPS growth Q2Q
EPS Next Y92.53%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)125.85%
Revenue growth 3Y54.02%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
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